Congressional Record Weekly Update

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1A) Pakistan's Nuclear Exchange with North Korea
Mr. PALLONE. Mr. Speaker, I would like to express my grave concern regarding Pakistan's transfer of equipment to support North Korea's covert nuclear weapons program.

Mr. Speaker, I am outraged that North Korea has violated its commitment to the United States, established in a 1994 accord, to freeze its nuclear program. According to reports by your administration, North Korea has in fact been secretly building a program to enrich uranium since the late 1990's.

What I find appalling is that this nuclear program that the United States worked tirelessly to halt, was in fact sustained through the assistance of Pakistan. Not only did the transfer of critical equipment from Pakistan to North Korea take place around 1997, in addition, this relationship has continued even after President Musharraf seized power by force in 1999. Lastly, Pakistan is thought to have provided technology up to even three months ago--I find this particularly outrageous.

The Bush administration has declined to openly discuss Pakistan's involvement in this crucial situation with North Korea. Although the administration seems to have evidence pointing to Pakistan's direct involvement, I see no punitive measures taking place because Pakistan is a U.S. ally in the war on terrorism. In fact, Pakistan has received over one billion dollars' worth of direct and indirect assistance from the U.S. since September 11, 2001. I find it incredible that the U.S. has provided virtually all the assistance President Musharraf has requested, yet at the same time, Pakistan still continues to consort with North Korea by exchanging nuclear equipment for missiles.

Mr. Speaker, I sent a letter to President Bush last month urging the administration to conduct a full investigation of Pakistan's role in providing North Korea with nuclear information and equipment. We must fully investigate President Musharraf's relationship with North Korea since his military coup in 1999, and even more important, to what extent this relationship between the two nations continued after September 11, 2001. To this day, I have not received a response to my request.

In addition, I requested that the administration take immediate steps to ban all military sales to Pakistan and to reimpose Symington sanctions on Pakistan for assisting a foreign nuclear weapons program. Lastly, I urged the administration to also take similar steps and ban any future arms sales they have with Pakistan. I have not received a response to these requests either, however, it seems clear that the administration is opposed to imposing any corrective measures on Pakistan.

Mr. Speaker, I am reiterating these requests that I had previously made to the administration because I think it is important for us to understand that Pakistan should not be exempted of its responsibility in colluding with North Korea over a nuclear weapons program. This situation poses a direct threat to our allies in Asia and to our safety in the United States.

Since the administration is not inclined to recognize the severity of Pakistan's relationship with North Korea, an ``axis of evil'', and since the administration is not willing to use its authority to reimpose the Symington Sanctions, I will introduce legislation early in the 108th Congress to sanction Pakistan for delivering nuclear enrichment equipment without international safeguards as determined by the Symington Amendment of 1976.

Mr. Speaker, we must show Pakistan that their promise to help us in our war on terrorism cannot be an empty promise. They cannot have it both ways and until President Musharraf learns this lesson we must reinstate the Symington Sanctions to protect our allies in Asia and our own nation.

1B) Teach Peace and Disarmament in our Schools
Mr. GEORGE MILLER of California. Mr. Speaker, I am delighted to bring to my colleagues' attention, and to the attention of their constituents who may wish to get involved in peace education, the recently released United Nations Study on Disarmament and Non-Proliferation Education.

The study is the result of successful collaboration between the Hague Appeal for Peace--a citizen's organization dedicated to reducing wars and armed conflict and promoting reconciliation and economic development--the Government of Mexico and the United Nations Department for Disarmament Affairs.

By working together--governments, civil society and the United Nations--the effort to sustain peace through education stands a greater chance of success.

Humankind's genius invented technological wonders in the last century that have made life more livable and longer for many. It also produced, and then governments used, the atomic bomb, and then perfected it to incomprehensible destructive capacity. We are discovering new pieces of information from direct participants about how close we came to a global nuclear exchange during the Cuban Missile crisis 40 years ago. And we are confronted with a new awareness of dangers that might arise with the use of weapons of mass destruction for terrorism.

Education alone is not a security blanket. It is not a guarantee for progressive thinking. Indeed, we have learned that young people being educated in some religious schools in the Middle East were being indoctrinated with hatred for the West and the United States.

However, in a democratic society, education is a tool for enlightenment. As H.G. Wells said in his 1921 work, The Outline of History, ``Human history becomes more and more a race between education and catastrophe.'' We would do well to heed his warning.

Fortunately, the complacency and lack of interest in questions of disarmament and non-proliferation, especially about extant nuclear dangers and solutions, is starting slowly to break down. During talk of war and inspections of weapons of mass destruction, we find ourselves in a teachable moment.

Mr. Speaker, we are at a time in history when it is critical to embrace the idea that peace, dialogue, and disarmament can and should be taught in school and that it should be taught as an integral part of school curricula and programs in the United States and across the world. And there has emerged a plan to help educators learn how to teach peace.

A ten-country United Nations group of experts issued a study in October on the status of disarmament and non-proliferation education efforts world-wide, making a set of 34 recommendations to Governments, the UN, other international organizations, and civil society on how to improve peace and disarmament education as a means of fostering tolerance and a culture of non-violence.

It calls for a joint effort to revitalize disarmament education to empower young people through knowledge to help make the world a more peaceful place. Surely this is an idea that all of us in Congress, regardless of party or political persuasion, can support.

The Study is available on the United Nations Web site at http://disarmament.un.org/education/index.html, and I commend it to my colleagues for further reading. I am also enclosing several additional documents for the RECORD about the project for the benefit of my colleagues and their constituents.

Mr. Speaker, I appreciate the opportunity to share this information with my colleagues and I also appreciate the hard work that the Hague Appeal for Peace, the United Nations, and the Government of Mexico put into this exciting and important peace education project.

All the following recommendations are important. They vary, however, in the resources required for their implementation, the pace with which they can be put in place and the amount of time needed before they yield significant results. Those recommendations with asterisks represent steps that can and should be taken rapidly and at a relatively low cost.

*1. Member States are encouraged to accord importance to disarmament and non-proliferation education and training in their programmes and policies, consistent with their national legislation and practices, taking into account present and future trends. They are also encouraged to use, designate or establish public advisory bodies, where appropriate, whose responsibilities include advising on disarmament and non-proliferation education and training practices. Member States are encouraged to share their experience in disarmament and non-proliferation education and training with other Member States, international organizations, civil society and the Department for Disarmament Affairs.

*2. Relevant United Nations offices and other international organizations and agencies should prepare, adapt and disseminate a wider range of user-friendly educational material on disarmament and non-proliferation. The current experience in this field should be tapped and existing educational material, including educational modules, resource books, guide and online programmes, should be tailored to the needs of individual countries, specific audiences or the international community at large.

*3. The United Nations and other international organizations should translate its disarmament and publications into all United Nations official languages and, when possible, into other languages for additional dissemination. Upon request by the United Nations or relevant international organizations, Member States, academic and research institutions and NGOs are encouraged to support or assist in translating relevant materials.

4. The United Nations and other international organizations should increase their capacities to disseminate disarmament and non-proliferation education-related materials (print and audio-visual) more widely to all regions of the world. While strengthening existing distribution channels, they should explore new ones, such as cooperation with educational networks, teachers unions and curriculum committees as well as electrical access. Member States, local academic institutions, research centres and NGOs are also encouraged to assist in dissemination efforts. As it is essential to reach the local community level, channels of dissemination such as school libraries, gathering places, radio and television are highly recommended.

5. The Department of Disarmament Affairs should gather information about the involvement of regional and intergovernmental organizations in disarmament and non-proliferation education, training and data collection activities. The Department should examine ways to foster an exchange of experiences and regional perspectives to facilitate the development of disarmament and non-proliferation education programmes.

6. The Department of Disarmament Affairs should examine, accumulate and make public and easily accessible the different disarmament and non-proliferation curricula and programmes that States have developed for their formal school systems and university courses as well as for informal training.

7. UNU and UPEACE are encouraged to develop intensive postgraduate and other courses on disarmament and non-proliferation for representatives of all regions of the world, including government officials, legislators, military officers, NGOs, the media and students, working in cooperation with academic and non-governmental institutions that have expertise in designing and implementing such courses. UPEACE, in coordination with the Department of Disarmament Affairs, may wish to host seminars and workshops as well as to develop model university and school material.

8. Member States are encouraged to include parliamentarians and/or non-governmental advisers in delegations to United Nations disarmament-related meetings, taking into account national legislation and practices.

9. The Department of Disarmament Affairs and its regional centres, in cooperation with UNIDIR, UNU and UPEACE, are encouraged to establish a virtual library of reports of ``lessons learned'' on disarmament-related aspects of peace operations and make it available to both Governments and NGOs on a disarmament and non-proliferation online education resource site (see recommendations 25).

10. Municipal leaders, working with citizen groups, are encouraged to establish peace cities, as part of the UNESCO Cities for Peace network, through, for example, the creation of peace museums, peace parks, web sites and the production of booklets on peacemakers and peacemaking.

11. UNU and UPEACE are encouraged to provide assistance to those city councils and prefectures that are willing to host seminars on disarmament and non-proliferation issues for the media, academics, local and national politicians, trade union representatives, religious leaders and the wider public.

12. Religious leaders and institutions are encouraged to develop educational material promoting a culture of peace and disarmament.

*13. Member States, in cooperation with the United Nations and relevant international organizations, are encouraged to sponsor training, fellowships, and awareness programmes, on as wide a geographical basis as possible, for researchers, engineers, scientists and other academics in areas of particular relevance, but not limited to treaties and agreements on weapons of mass destruction and their means of delivery. They are also encouraged to give special emphasis to training customs, licensing and law enforcement officers for the purpose of fulfilling international obligations of Member States in the disarmament and non-proliferation fields.

*14. The Department of Disarmament Affairs, in cooperation with UNU and UPEACE, should be encouraged to organize a programme of training for educators and trainers in disarmament and non-proliferation. These programmes may be implemented cooperatively with international organizations such as IAEA, OPCW and the Preparatory Commission for the Comprehensive Nuclear -Test Ban Treaty Organization.

15. The Department of Disarmament Affairs, in cooperation with UNESCO, UPEACE, UNIDIR and NGOs, should produce and maintain an updated international bibliography of reference literature for teachers, including an updated directory of peace studies programmes and disarmament and non-proliferation research centres, and make this available on a disarmament and non-proliferation online education resource site (see recommendation 25).

16. UNESCO IBE is encouraged to convene regional meetings with ministers of education, educational administrators and university presidents to discuss the issues involved in developing disarmament and non-proliferation education for primary, secondary and university students. The International Conference on Education is encouraged to devote one session of a future meeting to disarmament and non-proliferation education, for example, through a workshop on science and ethics.

*17. The United Nations, relevant international organizations, Member States, NGOs and research institutes should develop and strengthen programmes, workshops, fellowships and materials or disarmament and non-proliferation topics for journalists and media representatives in order to enhance their knowledge of these issues. Special attention should be paid to the development of programmes and materials designed for local media in post-conflict situations, as essential partners in the disarmament and non-proliferation education process.

18. Disarmament and non-proliferation educational materials developed by the United Nations, such as the Cyberschoolbus web site, should include complementary material on how parents can encourage attitudes of peace and non-violence. Efforts should also be made by educators, parents and the business community to devise and produce toys, computer games and videos that engender such attitudes.

19. Additional fellowships and scholarships should be provided for various target audiences by or through the Department of Disarmament Affairs (directly or through its regional centres), UPEACE, UNIDIR and the NGO Committee on Disarmament, among others. An important educational supplement to disarmament and non-proliferation classroom training should be on-the-job training, which may be conducted at the sites of international organizations, national governmental agencies, NGOs and research centres. Opportunities for such on-the-job training should be expanded.

*20. The United Nations, relevant international organizations, Member States, and corporate and private donors are encouraged to provide assistance, including funds, educational material and equipment to NGOs in different regions of the world and to universities to establish or expand their disarmament and non-proliferation libraries with free and open public access to their resources. Member States should be encouraged to fund research institutes that focus on disarmament and non-proliferation and offer scholarships for advanced university students to carry out research on disarmament and non-proliferation and its pedagogy. The United Nations should make greater efforts to tap the financial resources of private enterprises in the fields of information and communications technology.

2A) National Defense and Space
Mr. SMITH of New Hampshire. Mr. President, when I came to the Senate in 1991, we were faced with Saddam Hussein and Iraq. Actually, my first speech on the floor was about Iraq and the war and the fact that we had to make a very difficult vote.

   As I leave the Senate, here we are still facing--12 years later--Saddam Hussein and an imminent war with Iraq. So there is some irony there, I guess.

   Before I make some closing remarks about my tenure here and leaving the Senate, I want to make a few remarks about something that I think has been somewhat ignored over the past several years in this body and, indeed, in the country, and that is the future of space and how space will help us to protect our national security and also not only our national security but just the pure science of space and the fascination

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   I hope the 21st century will be the one that takes us into space to help protect our Nation and, indeed, perhaps the world. I believe whoever controls space will control peace here on earth.

   I made these statements several years ago and got some negative editorials for it. I was called spaceman by one of the more, if you will, ``prominent'' newspapers in my State. As Harry Truman said, ``If you can't stand the heat, get out of the kitchen.'' Sometimes a price is to be paid for leadership. I believe if they can say about me that I was one of the folks here that promoted space and the good things that can come to our Nation as a result of space--if I can be remembered for that--I would be very happy.

   I want to draw my colleagues' attention to our Nation's

   future security in space. In 1998, I delivered a speech at the Fletcher School of Law and Diplomacy at Tufts University on November 18, just 4 years ago. In that speech, I spoke about the challenge of space power. I labeled space the ``permanent frontier.'' Some say it is the ``final frontier.'' It is not final, it is permanent.

   That is the fascinating part about space. I remember looking at the stars as a kid and thinking this goes on forever. It is a permanent frontier. There is no limit to how far we can go in the exploration of space.

   When I came to the House in 1985, I served on the Space Subcommittee of the Science and Technology Committee until my election to the Senate in 1990. I had the pleasure of being in Congress during the Reagan administration. I remember with pride and emotion President Reagan's firm leadership and his commitment to rebuilding our military after years of neglect. He, too, offered a promise of space power, with his visionary Strategic Defense Initiative. Despite tremendous opposition and ridicule, with cynics and critics calling SDI ``star wars,'' his vision is being fulfilled today. It was a vision.

   The ABM Treaty is on the waste heap of history, where it belongs. Mutual assured destruction has been exposed for the sham that it was, and we are moving toward deployment of a robust, multilayered ballistic missile defense system and toward providing the American people the protection they need from the growing and imminent threat of ballistic missiles in the hands of rogue states such as North Korea, Iran, Iraq, and others.

   We stand now at a very uncertain time--perhaps on the brink of a greatly expanded war on terrorism. And while we try to find and eliminate terrorists and their cells, we are at risk in our cities, in the heartland, of more devastating terrorist attacks. In the heartland of our country, never before have we felt threatened like this.

   None of us wish to be at war. I have served in war. I don't want to be in war. But we are in a state of war. I enlisted to serve in the Navy in Vietnam. I know what the horrors of war bring. But if this Nation has to go to war with Iraq, or anywhere else, to ensure our liberty, to ensure our freedom, to ensure that our lives are free of the threats of aggressive, dangerous dictators and the global terrorist network, I will support our President and I will support our troops, whether or not I am in the Senate.

   All of my efforts in national security over my career in the House and Senate have been focused on ensuring that our troops--the men and women who put the uniform on and defend us every day--are well organized, trained, and equipped for war. Nothing less than that is satisfactory. If we are going to show the world that we are strong and we are prepared for war, few would choose the risky path of challenging us, and that is the message we must send.

   The task of organizing, training, and equipping our forces is not a one-time effort; it is a continuously evolving challenge that must be attended with the same aggressiveness and unyielding commitment that our warfighters apply on the battlefield. The threats we face are constantly changing, as we saw on September 11, and our approach to warfighting must change as well.

   As we have so vividly demonstrated in our prosecution of the global war on terrorism, we now have to protect our cities in our own homeland--our own buildings, the very buildings where we are sitting now.

   My colleagues, I say to you, as I leave, that it is our job

   as leaders representing this great Nation to make sure our military is properly organized, trained, and equipped to meet its future challenges, and nothing we do here is more important.

   In the early years of this Nation, we relied on the power of our Army and our Navy. In the early years of the last century, we saw the emergence of air power--which was also criticized when it first started--that has dominated our initial application of force in recent conflicts. But times are changing. The threats we face are changing.

   GEN Chuck Horner, commander of our troops in Desert Storm, said after the conflict that we have witnessed the first space war--that was in 1991, tanks and troops navigating flawlessly through a featureless desert. That was the war against Iraq in 1991. Unprecedented intelligence; advance warning of incoming missiles; bombs dropped precisely on targets; command, control, and communications synchronizing a military scattered across a vast theater of war in the Middle East--all of these contributions were made possible by the use of space systems in 1991.

   Had we not had those space systems and had we not had control, or had Iraq had control, the whole outcome may have been different.

   This was not a real space war that General Horner was referring to. There were no shots fired in space. What we witnessed was an awakening to the enormous benefits that space systems provide our military. It is important to remember that we are not the only witnesses. The world and our potential adversaries watched us and learned from our prosecution of that war and every conflict since.

   Like General Horner, General Krulak, former Marine Commandant, and a soldier greatly respected by me and by his marines and fellow officers, said that ``between 2015 and 2025, we have an opportunity to put a fleet on another sea. And that sea is space.''

   That is a very far-reaching and visionary statement, Mr. President, from a great American, Chuck Krulak.

   Our troops deserve every advantage we can give them. We ought to lay up at night thinking about what advantages we can give these men and women. If we are to preserve our current space advantage, then we must protect our space systems from any attack and deny our adversaries that same use of space. We must maintain space control. We also must do more than maintain the current status quo. Space offers our warfighters so much more; a space-based radar that tracks enemy movements behind the lines without risking air crews, a space plane that can project force anywhere on earth in 45 minutes or less, a low orbit space plane, new ways of looking for new threats. I fought to save that space plane, and it was cut during the 8 years of the Clinton administration.

   The space plane, I believe, is beginning to receive the attention it deserves within the hierarchy of the Air Force Space Command.

   The MSP, the military space plan, could access virtually all orbits and with specific upper-stage systems could help protect our extensive and vital space-based assets. This plan could provide platforms to support potential air, sea, and ground operations through its intelligence, surveillance, and reconnaissance sensor payloads while also providing potential precision long-range strike capability without putting men and women in uniform in harm's way--a tremendous asset to our arsenal. Yet it has been slowed down; it was cut. We now need to bring it back.

   As we look even further into the future, visionaries see capabilities--this is always what I like to talk about, what the future will bring. It is fun to hear these visionaries talk, but in the future we are going to see capabilities like special operations troops delivered rapidly from one location to another through space and lasers, destroying targets instantaneously deep inside the enemy's territory. When the missile is fired, we blow it up with a laser over their territory, not ours.

   Not only do these visions offer fast and effective military action, they offer the possibility of putting fewer men and women forward deployed with their lives at risk.

   We cannot forget we must invest today to develop these and all the

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   In 1999, with the support of my colleagues, I chartered the Space Commission to make recommendations to reorganize Government to better deliver the military space capabilities this Nation needs for the future. That Commission brought together this Nation's best defense and space leaders.

   One of them was Donald Rumsfeld. He led the group just before he became our current Secretary of Defense. I would like to believe he was selected in part because he did such an outstanding job with the Space Commission--I hope that is one of the reasons why President Bush selected him as Secretary of Defense--and earlier with the Ballistic Missile Threat Commission.

   Secretary Rumsfeld and his fellow commissioners found that future space warfare is a ``virtual certainty,'' and that we had better be prepared for it. The Space Commission's report warned about the ominous possibility of a ``space Pearl Harbor.'' It called for protecting satellites essential for military operations and developing space weapons to deter attacks in or from space and to defend against attacks if they occur.

   The U.S. is now heavily dependent upon satellites with hundreds in orbit serving commercial as well as military uses. We are more dependent on space than any other nation in the world. Think about your cell phone. Were it not for space, you would not be using it.

   In 1998, a Galaxy IV satellite malfunctioned. It shut down 80 percent of U.S. pagers and video feeds for cable and broadcast transmissions. It took weeks to restore service. In 2000, the U.S. lost all information from satellites for 3 hours when computers in ground stations malfunctioned. These incidents served to show how critical space has become to us.

   The Space Commission recognized space weapons to deter attacks from space would be essential because we cannot protect satellites adequately without weapons in space. Remember that. Let me repeat it: We cannot protect our satellites in space without weapons in space. A weapon in space does not have to be an offensive weapon; it can be a defensive weapon.

   The resulting space management reorganization stemming from

   the work of the Space Commission is nearly complete. The various stakeholders have decided which of the Space Commission's recommendations it will implement and how. Frankly, though, I am still skeptical that the changes that have been made will be effective in delivering the space capabilities this Nation needs.

   Over the course of the last year, we have discovered that most of our current space programs are ``broken,'' severely underfunded, and behind schedule, and that is not good. I am not naive, and I do not blame the recent reforms for the current problems. However, I am not convinced the reforms that have been implemented are capable of making the tough choices that both, A, fix the problems with our current space programs and, B, keep us aggressively pressing forward with developing new technologies and capabilities we need for the future.

   When we won the war in the Persian Gulf in 1991, it was with highly sophisticated weapons. Somebody 20, 30 years ago had the vision to build them. They did not crawl under a rock and say: That is just too far in the future; we are not going to deal with it--precision bombs and precision ordnance. Somebody had to think about it. Somebody had to put it on the drawing board. Somebody had to pay for it and build it.

   If the Air Force cannot or will not step up to its responsibilities as the executive agent for military space, then Congress must do it, as the space commissioners noted, and create a separate space force to become that strong advocate. I have spoken of the need for the Air Force to build a dedicated space warfare cadre of younger space-trained officers and to stop assigning nonspace officers to lead space billets in space organizations. I predict that early in this 21st century, there will be a space force just as there now is an Air Force. There will be a space force.

   For far too long, the Air Force's space institutions and commands have been led by officers not specializing in space. That must change if we are to move into this space era.

   I have been a long-time advocate for the potential of national security space on the Hill. I know being an advocate for space is not easy. Believe me, I know. I have been ridiculed for it. These capabilities are complex, and they are not cheap, although I believe space power ultimately could be more cost-effective than some of our legacy systems.

   I have also learned that some of the needed space capabilities, such as the Kinetic Energy Antisatellite or KE ASAT Program, can take longer than a career in Congress to deploy. Today we are only a modest amount of funding short of being ready to flight-test KE ASAT, one of our near-term space control programs.

   KE ASAT offers the promise of complete space control at minimal cost to the taxpayers and delivers the essential 4 Ds--i.e., the ability to disrupt, degrade, deny, and destroy--required to deal with the enemy threat.

   The old Soviet Union built a co-orbital satellite killer that it tested in space at least 20 times and which was operational with Soviet strategic forces for a decade. China is reportedly developing a hunter-killer microsatellite that would attach itself to an adversary's satellite and destroy it. Imagine the disruption that could cause us both militarily and commercially. We must be ready to protect against the deployment and use of such systems.

   We cannot shy away from, nor shortchange, our commitment to transform our military for the future. This is our challenge.

   I have carried the space banner through many tough fights,

   including the line-item veto by President Clinton of our emerging space power programs. Missile defense has survived, KE ASAT has survived, and the space plane, too. But these programs need ongoing commitment and funds toward deployment and real security for our Nation and our service men and women. They need to be reviewed at the highest levels of DOD, by the Secretary, by Under Secretaries Aldridge and Teets, and by the Secretary's trusted aide who served at the Space Commission as its Director, now at PA&E, Steve Cambone.

   Some of my friends have asked why I focused on space since there is not a strong space constituency in my home State of New Hampshire. I beg to differ. There is a major constituency in New Hampshire that demands a strong, cost-effective national defense. In fact, I would argue that same constituency stretches all across America--a constituency that supports our military every day, not just during trying times.

   If it is the right thing to do, whether you have a constituency in your State for it, we are here to lead. We are here to lead this Nation.

   New Hampshire also is proud of its high-tech industry. New Hampshire is also the State that sent astronaut Alan Shepard and Christa McAuliffe to participate in the National Space Program. Christa lost her life aboard the Challenger in 1986. Both of them had ``the right stuff,'' and they created a surge of enthusiasm for space exploration.

   As I prepare to leave the Senate, I look around and ask myself: Who is going to pick up the space banner I have carried? Who will advocate today for the needs of our future fighting men and women in space?

   Forty years ago, and spurred in part by the shock of the Soviet success with Sputnik in 1957, President Kennedy challenged the Nation to look into space. He criticized Republicans--the Eisenhower administration--in fact, for letting the Russians get ahead in space. President Kennedy recognized even in those early days of space exploration the criticality of space that General Horner witnessed in Desert Storm.

   President Kennedy told us the Nation that controls space will come to dominate the world. In a speech to Rice University in 1962, John F. Kennedy said the following:

   The exploration of space will go ahead, whether we join in it or not. And it is one of the great adventures of all time, and no nation which expects to be the leader of other nations can expect to stay behind in this race for space.

   We mean to lead it, for the eyes of the world now look into space, to the moon and

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   That was well said by a Democrat President. He was absolutely right.

   Who do you want to control the satellites in space? Who do you want to control what goes on in space: Communist China, Iraq, North Korea, Libya, or the United States of America?

   The day before his assassination, President Kennedy spoke at a dedication of the Aerospace Medical Health Center at Brooks Air Force Base in Texas, and he noted:

   This Nation has tossed its cap across the wall of space and we have no choice but to follow it.

   What a great visionary President Kennedy was on this issue. Leveraging space to ensure our freedom and to protect our allies is not a partisan issue. It is our moral obligation, pure and simple, just like it was to respond to the attacks of the Japanese and the Germans during World War II. It was our moral obligation to stop the killing by the Nazis, to stop the Bataan death marches, to stop the tyranny and the aggression. It is now our moral obligation to protect this Nation from the threat from space.

   In his now famous speech at the Citadel, candidate George W. Bush said:

   We need to skip a generation of technology.

   And in space,

   We must be able to protect our network of satellites essential to the flow of our commerce and the defense of our country.

   He called for a new spirit of innovation and recognized the fact that many officers express impatience with the prevalent bureaucratic mindset that frustrates--and, I would argue, fails to reward--creativity.

   We must reward creativity. George Bush called for a culture of command where change is welcomed and rewarded, not dreaded. To do that, we need to break with the past, get out of the box, put in charge people who are visionaries, who are ready to fulfill the President's and the Secretary of Defense's vision, to fulfill Ronald Reagan's vision for peace using space for peace. Even President Reagan, the hard-core conservative, offered to provide to the Soviet Union the technology to bring peace to the world if that was what it took.

   As we stand now on the brink of an expanded war with Iraq, I ask myself whether we have provided our sons and daughters, husbands, wives, fathers, mothers, sisters, brothers, all the best technology that this country has to help them accomplish their mission quickly and bring them home safely. Have we? I do not think we have, with all due respect. We have the opportunity to do it if we will think about it now.

   I think we can do better. I believe this body has the vision, the expertise, the knowledge, and the good people in it to ensure that we organize, train, and equip our military for the future, a future that leverages the full potential of space that we have only begun to realize. But we must exercise stringent oversight. We must serve as the catalyst to push a grudging--and it is a grudging--bureaucracy and military industrial complex into fulfilling that potential.

   Bureaucracies are not innovative. They basically exist. They do not like change. We need to give them change. We need to impose it upon them.

   President Reagan, speaking to the Young Astronauts program

   in 1986, told the participants that they were on ``the edge of our known world, standing on the shores of the infinite.''

   What a statement: We are standing on the edge of our known world, on the shores of the infinite.

   He called for them to touch the mystery of God's universe and to set sail across its waters into the most noble adventure of all. President Reagan achieved because he dreamed, because he motivated and he inspired. He understood that Americans, by nature, are dynamic people. They are good people. The change they bring is for the good, for the best of America, and that is all he worked on--for excellence, to rise to the challenge, the shining city on the hill, undaunted by threats, and with hope and optimism. That was President Reagan, following the words of President Kennedy.

   Through enormous sacrifice, America has preserved her own freedom and freed millions around the world. We go to far off countries, serve in combat, die on fields in countries we have never heard of, day in and day out, year after year. As leaders in Congress, we are committed to preserving these freedoms for future generations, but to achieve that goal we must reach into space with gusto for its science, for its mystery, for the security it can offer us.

   Control of space is more than a new mission to consider funding, it is our moral legacy. Moving into space is our next manifest destiny. It is our chance to create sanctity and security for centuries to come. It is our chance to do it. As I leave the Senate, I want to inspire my colleagues to pick up that cause because it is the right thing to do.

   SENATE SERVICE

   I know there are others who wish to speak, but I am going to take a couple of minutes, because I am leaving the Senate, and close on a few personal thoughts. I do respect my good friend, Senator Sessions. I will be only a few minutes.

   I remember when I came down to the floor to sign the book in December of 1990. Senator Byrd was there, as he always is, and he watched as I signed 1,794. He said: Senator Smith, you are the new Senator from New Hampshire. You want to remember there are tens of millions of people--I will never forget this--who have been part of the United States of America since 1776, and you are 1 of only 1,794 to have served in the Senate.

   I will never forget it, and I never have. Senator Byrd is one of the finest people to ever walked on to this floor. I admire him greatly. It has been an honor and privilege to serve with him, but it has been a great honor to serve the people of New Hampshire for 18 years, 12 in the Senate and 6 in the House. It has been an extraordinary privilege to occupy this desk, the desk of Daniel Webster, for 9 years.

   There is a very interesting story about this desk. Actually, Daniel Webster represented Massachusetts in the Senate, although he was from New Hampshire. He was a New Hampshire native. So when Senator Kennedy, TED KENNEDY, gave up the desk to take his brother John's desk, the desk became a free spirit, and Senator Norris Cotton passed a resolution in the Senate that the Webster desk will forever more belong to the senior Senator from the State of New Hampshire. That is a long time, forever more. So nobody else is going to get it.

   I have etched my name in the drawer, from Webster coming down through those great people who occupied this seat, down to where I have etched my name. It is a reminder, as I sit at this desk--these desks open from the top like so. There are very few desks in this Chamber that do not open that way, and one is Daniel Webster's because he did not want to pay to have

   it done because it cost too much money. It cost $5 to $10 in those days, and he said taxpayers should not have to pay for that, so it just has a drawer in it. Webster was a frugal person. He was also a great orator.

   Next to Webster's desk is the desk of Jefferson Davis, which is now occupied by Senator Cochran of Mississippi. I am reminded of the great speech Jefferson Davis gave with so much emotion that he left the Senate to go back to his home State of Mississippi during the Civil War.

   There is so much history in this Chamber. One of the things you do when you are leaving the Senate, you take time to smell the roses a little bit and you look around. President Reagan said history is a ribbon, always unfurling.

   History is a journey. Every one of us, Senator Sessions, Senator Inouye, my great friend who now occupies the chair, they are all part of history. It is unfurling as we stand. What we say today is a memory tomorrow. Life is nothing but memories. But we have a chance to make part of that history, to chart that course, for America, 1 of 100 people to do it at any given time in American history.

   I have learned more about friendship, patriotism, and loyalty in the last 18 years while a Member of Congress, from people in my State, my family, the Senate, so many wonderful people, good friends, than I could ever have imagined.

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   Senator Reid indicated a few moments ago he was sorry I did not win, but I am reminded of Theodore Roosevelt who won and lost his share of elections. This is a great quote for you young people. Think about it because you are going to be facing challenges. All the pages who are sitting here, you are going to win some and you are going to lose some.

   You will have great disappointments and you will have great successes. That is what life is. It is a heck of a lot more fun to win than it is to lose. I speak from experience on that.

   Teddy Roosevelt said: Far better it is to dare mighty things, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much because they live in the gray twilight that knows not victory or defeat.

   You can't succeed if you are afraid to fail. You have to fight the fight. You have to fight for the cause. The cause will go on. People will depart the stage. Webster departed; Lincoln departed; many people have departed the stage of running the United States of America--or even the world, Churchill--but others must step up. Maybe they don't step up quite at the level of the ones who are following but they step up.

   That is why America must go on. I want 500 years from now the Senator from Alabama--Senator Thurmond might be here--but Senator Sessions and I won't--I want those two Senators from New Hampshire and Alabama to be here on this floor in this great country, still the free country it is, having good debates just as we have done so many times.

   There are so many things one gets the opportunity to do as a Senator. What I have enjoyed the most is helping people, constituent service, working every day with people in the State. Somebody lost their medal that they deserved from World War II or perhaps they are trying to get a child from another country. We do these things every day. That is what I enjoy the most. That is what I will miss the most. I remember a young man who had leukemia. He was dying. He called my office and said his dream was to see a space launch at Cape Canaveral. He could not afford to go and he was very sick. I made it happen and arranged with NASA to have him go and see the space launch. He came back home and died. It is little things such as that. We did not ask for any press on it. Those are the things that I will remember.

   When you say you are a strong conservative--and people want to lock you in as somebody who does not care or who is not compassionate--I like to help people who sometimes cannot help themselves. Captain McVeigh, the Navy captain of the U.S.S. Indianapolis, who was wronged, who eventually committed suicide because of a terrible ordeal he went through where he was unfairly blamed for the loss of his ship, we cleared his name, thanks to the help of Senator JOHN WARNER, the chairman of the Armed Services Committee.

   Fighting so many issues--the POW/MIA, dealing with families of those people; serving as the chairman of the Ethics Committee, in the Senate, chosen by all of you to have that high honor--I could go on and on--chairing the Environment and Public Works Committee.

   I believe I came here on principle. My motto was Jimmy Stewart's in the movie ``Mr. Smith Goes To Washington.'' He went to right a wrong. They were going to flood some Boy Scout camp with a big dam. He came down and stopped it. That kind of ambition and enthusiasm and concern about your fellow man is what I brought here. I came with principle.

   I came here to Congress under Ronald Reagan. I am a Reagan Republican. I am leaving the Congress a Reagan Republican--a Republican who stands on his platform, who runs on that platform, not away from the platform. And, yes, that includes the right-to-life, that includes the right to protect the second amendment, that includes cutting taxes and spending and living within your means, helping our veterans, a strong national defense. That is what it means. That is our platform. I don't run from it. I don't run from it here in the Senate; I never have. That may be one of the reasons why I am leaving--involuntarily.

   A friend of mine, Mel Thompson, the former Governor of New Hampshire, said you stand for something or you stand for nothing. I can proudly say I have tried to stand up for what I believe in while I have been here.

   It has been a great honor, the highest honor of my life, to be here, to serve here, to make the friends I have made here. I will never, ever forget it.

   I say thank you in closing to several members of my staff. I know some have come onto the floor today since it is my last speech, unless I come back again--you never know. I appreciate them, and I ask unanimous consent that a list of my staff, both on the Environment and Public Works Committee and my personal staff, be printed in the RECORD to honor their service to our country.

   There being no objection, the material was ordered to be printed in the RECORD, as follows:

   Environment and Public Works Smith Staff

   David Conover, Chris Hessler, Martin Hall, Alex Johnson, Melinda Cross, Chelsea Maxwell, Angelina Giancarlo, Kristy Rose, Erin Hass, Genevieve Erny, Paul Jensen, Suzanne Matwyshen-Gillen, Michele Nellenbach, James Qualters, Megan Stanley, Nathan Richmond, Patricia Doerr, and Emma Dabson.

   Mr. SMITH of New Hampshire. I single out three or four people. My chief of staff, Pat Petty, who is no longer my chief of staff, but who served me for about 15 years, I recognize his service to the Senate, to the country. My current chief of staff, Dino Carluccio, who started in my office as basically an intern and went off to Europe to study in Italy sent me a note saying: You need me in your office. And I remember saying to my current chief, my chief of staff at the time, anybody who has that much self-confidence we ought to hire. We did. Now he is the chief of staff. He worked his way up in the true sense of the word. He is a great American.

   Lisa Harrison worked for one of my opponents in my primary, the first primary, the first time I won in 1984. She was working for the other guy, but I liked her. I thought she had a good personality, she was smart, and she was one of the few people on the other campaigns who said hello to me when I walked into the room. She got a job and has been with me for 18 years and is one of the best communication directors in the Senate.

   Ed Corrigan, my legislative director, has been with me for 10 years, a real conservative, committed guy. He knows the rules of the Senate, inside and out, a great American, great patriot.

   And Dave Conover, who is my chief of staff at the Environment and Public Works Committee, has done an outstanding job there. We had a great run for a year and a half. We preserved the Everglades and passed brownfields and MTBE legislation and other bills to make our air, land, water, and our wildlife habitat cleaner.

   I am proud to have served with them all. I had two people in my State staff, Dorothy Vatize and Marti Jones, who have served with me for 18 years, all 18 years I have been here. One is retiring and the other is leaving to do other things.

   It has been an honor to serve here--again, the highest honor of my life. I will never forget it. I am not sure what comes next, but as has been said many times, Chaplain Lloyd Ogilvie has said it a number of times to me, God closes one door and he opens another. He did close one, I am sure of that. The other one is not yet open, but we will find it.

   Having mentioned the chaplain, there is no finer person in the entire world than Lloyd Ogilvie. He is one of the most Christian men and such an inspiration to all of us in the Senate, a friendship I will have with me forever.

   I say thank you to all my colleagues and friends and others I have made here, and thank you to the people of New Hampshire for allowing me the privilege of serving you in this body and in the House of Representatives for 18 years.

   I yield the floor.

   The ACTING PRESIDENT pro tempore. The Republican leader.

3A) Iraqi Scientists Immigration Act of 2002
IRAQI SCIENTISTS IMMIGRATION ACT OF 2002 -- (Senate - November 20, 2002)

   Mr. REID. Mr. President, I ask unanimous consent that the Judiciary Committee be discharged from further consideration of S. 3079, and that the Senate proceed to its consideration.

   The PRESIDING OFFICER. The clerk will state the bill by title.

   The legislative clerk read as follows:

   A bill (S. 3079) to authorize the issuance of immigrant visas to, and the admission to the United States for permanent residence of, certain scientists, engineers, and technicians who have worked in Iraqi weapons of mass destruction programs.

   There being no objection, the Senate proceeded to consider the bill.

   Mr. REID. Mr. President, I ask unanimous consent that the Biden substitute amendment at the desk be agreed to, the bill, as amended, be read the third time and passed, the motion to reconsider be laid upon the table, with no intervening action or debate, and that any statements relating to the bill be printed in the RECORD.

   The PRESIDING OFFICER. Without objection, it is so ordered.

   The amendment (No. 4979) in the nature of a substitute was agreed to, as follows:

   Strike all after the enacting clause and insert the following:

   SECTION 1. SHORT TITLE.

   This Act may be cited as the ``Iraqi Scientists Immigration Act of 2002''.

   SEC. 2. ADMISSION OF CRITICAL ALIENS.

   (a) Section 101(a)(15) of the Immigration and Nationality Act, 8 U.S.C. 1101(a)(15), is amended--

   (1) by striking ``or'' at the end of the subparagraph (U);

   (2) by striking the period at the end of the subparagraph (V) and inserting ``; or''; and

   (3) by adding a new subparagraph (W), reading:

   ``(W) Subject to section 214(s), an alien--

   ``(i) who the Attorney General determines, in coordination with the Secretary of State, the Director of Central Intelligence and such other officials as he may deem appropriate, and in the Attorney General's unreviewable discretion, is an individual--

   ``(I) who has worked at any time in an Iraqi program to produce weapons of mass destruction or the means to deliver them;

   ``(II) who is in possession of critical and reliable information concerning any such Iraqi program;

   ``(III) who is willing to provide, or has provided, such information to the United States Government;

   ``(IV) who may be willing to provide, or has provided, such information to inspectors of the United Nations or of the International Atomic Energy Agency;

   ``(V) who will be or has been placed in danger as a result of providing such information; and

   ``(VI) whose admission would be in the public interest or in the interest of national security; or

   ``(ii) who is the spouse, married or unmarried son or daughter, parent, or other relative, as determined by the Attorney General in his unreviewable discretion, of an alien described in clause (i), if accompanying or following to join such alien, and whose admission the Attorney General, in coordination with the Secretary of State and the Director of Central Intelligence, determines in his unreviewable discretion is in the public interest or in the interest of national security.''

   (b) Section 214 of the Immigration and Nationality Act, 8 U.S.C. 1184, is amended by--

   (1) redesignating subsections second (m) (as added by section 105 of Public Law 106-313), (n) (as added by section 107(e) of Public Law 106-386), (o) (as added by section 1513(c) of Public Law 106-386), second (o) (as added by section 1102(b) of the Legal Immigration Family Equity Act), and (p) (as added by section 1503(b) of the Legal Immigration Family Equity Act), as subsections (n), (o), (p), (q), and (r), respectively; and

   (2) adding a new subsection (s) reading:

   ``(s) Numerical limitations and conditions of admission and stay for nonimmigrants admitted under section 101(a)(15)(W).

   ``(1) The number of aliens who may be admitted to the United States or otherwise granted status under section 101(a)(15)(W)(i) may not exceed a total of 500.

   ``(2) As a condition for the admission, and continued stay in lawful status, of any alien admitted to the United States or otherwise granted status as a nonimmigrant under section 101(a)(15)(W), the nonimmigrant--

   ``(A) shall report to the Attorney General such information concerning the alien's whereabouts and activities as the Attorney General may require;

   ``(B) may not be convicted of any criminal offense punishable by a term of imprisonment of 1 year or more after the date of such admission or grant of status;

   ``(C) must have executed a form that waives the nonimmigrant's right to contest, other than on the basis of an application for withholding of removal or for protection under the Convention Against Torture, any action for removal of the alien instituted before the alien obtains lawful permanent resident status;

   ``(D) shall cooperate fully with all requests for information from the United States Government including, but not limited to, fully and truthfully disclosing to the United States Government including, but not limited to, fully and truthfully disclosing to the United States Government all information in the alien's possession concerning any Iraqi program to produce weapons of mass destruction or the means to deliver them; and

   ``(E) shall abide by any other condition, limitation, or restriction imposed by the Attorney General.''

   (c) Section 245 of the Immigration and Nationality Act, §U.S.C. 1255, is amended by--

   (1) In subsection (c), striking ``or'' before ``(8)'' and inserting before the period, ``or (9) an alien who was admitted as a nonimmigrant described in section 101(a)(15)(W)'';

   (2) Redesignating subsection (1), relating to ``U'' visa nonimmigrants, as subsection (m); and

   (3) Adding a new subsection (n) reading:

   ``(n) Adjustment to permanent resident status of `W' nonimmigrants.

   ``(1) If, in the opinion of the Attorney General, a nonimmigrant admitted into the United States (or otherwise provided nonimmigrant status) under section 101(a)(15)(W)(i) has complied with section 214(s) since such admission or grant of status, the Attorney General may, in coordination with the Secretary of State and the Director of Central Intelligence, and in his unreviewable discretion, adjust the status of the alien (and any alien who has accompanied or followed to join such alien pursuant to section 101(a)(15)(W)(ii) and who has complied with section 214(s) since admission or grant of nonimmigrant status) to that of an alien lawfully admitted for permanent resident if the alien is not described in section 212(a)(3)(E).

   ``(2) Upon the approval of adjustment of status of any alien under paragraph (1), the Attorney General shall record the alien's lawful admission for permanent residence as of the date of such approval and the Secretary of State shall reduce by one the number of visas authorized to be issued under sections 201(d) and 203(b)(4) for the fiscal year then current.''

   (d) Section 212(d) of the Immigrantion and Nationality Act, §U.S.C. 1182(d), is amended by inserting a new paragraph (d)(2) reading:

   ``(2) The Attorney General shall determine whether a ground of inadmissibility exists with respect to a nonimmigrant described in section 101(a)(15)(W). The Attorney General, in the Attorney General's discretion, may waive the application of subsection (a) in the case of such a nonimmigrant if the Attorney General considers it to be in the public interest or in the interest of national security.''

   (e) Section 248(1) of the Immigration and Nationality Act, 8 U.S.C. 1258(I), is amended by striking ``or (S)'' and inserting ``(S), or (W)''.

   SEC. 3. WEAPON OF MASS DESTRUCTION DEFINED.

   (a) IN GENERAL.--In this Act, the term ``weapon of mass destruction'' has the meaning given the term in section 1403(1) of the Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104-201; 110 Stat. 2717; 50 U.S.C. 2302(1)), as amended by subsection (b).

   (b) TECHNICAL CORRECTION.--Section 1403(1)(B) of the Defense Against Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104-201; 110 Stat. 2717; 50 U.S.C. 2302(1)(B)) is amended by striking ``a disease organism'' and inserting ``a biological agent, toxin, or vector (as those terms are defined in section 178 of title 18, United States Code)''.

   The bill (S. 3079), as amended, was read the third time and passed.

4A) Smallpox Producer Liability Waivers
I would say of this 484 page bill, 98 percent of it is the Gramm-Miller substitute which we debated for weeks. There were several changes made that have been much discussed. I believe there is a more efficient way of characterizing those changes than the way they have been characterized. I want to try to explain them.

   Let me just first start by saying when the House writes a bill and the Senate writes a bill, there are often differences in the bill, and there is always give and take. Some have talked about extraneous material in the bill. I would have to say that in my 24 years in Congress, there are almost always issues dealt with in a bill that some people view as extraneous. I would say there are relatively few in this bill. But let me talk about the issues that are subject to the amendment Senator Lieberman has offered. This amendment strikes provisions in the compromise--I think there are seven of them. I don't have my notes with me, but I remember them well enough to talk about them.

   Three of these provisions have to do with liability. Let me remind my colleagues that since the Civil War, we have had provisions of law that have dealt with liability for people who were producing new products for war efforts. One of the ways of encouraging people to be innovative and one of the ways to get products from the drawing board to the battlefield quickly is to protect people from liability.

   There was a provision in the original Senate amendment, the Gramm-Miller amendment, that the Senators from Virginia were responsible for. That was a provision whereby the Federal Government would indemnify manufacturers of products that would be used in the war on terrorism, so that if a liability issue arose, the Federal Government would step in and basically cover the liability. I would have to say that was not my preferred option, but in putting the amendment together we accepted it.

   The House had another approach, which was to basically limit liability, require that lawsuits occur in Federal court, and set up a procedure to deal with liability that arose in these issues.

   In putting together the compromise with the House, we took something between the two that did not have the liability limits the House adopted but was a movement toward reducing runaway liability and removing the taxpayer from the line of fire.

   That accounts for three of the criticisms made. I want to address the one that is most discussed, and that is the one that has to do with mercury-based injections and smallpox vaccine.

   Under the bill, as it is now written, we are treating smallpox vaccine as an instrument of the war on terrorism. Before, we had dealt with it as a response to a disease. We had a liability fund for vaccines in the past, but now that we have eradicated smallpox , the only fear we have of it is the reintroduction by terrorist elements. So we bring smallpox vaccine under this liability limit.

   Those of my age will remember, if you get a smallpox shot, you get a skin reaction which produces a permanent scar. I say to my colleagues that this is pretty terrorism specific because no one would take a smallpox vaccination except for the terrorist threat because there are risks involved. Some small percentage of people have very negative reactions, some people die, and almost everybody has a scar from smallpox .

   This bill would require people who sue to enter into a negotiation with the Justice Department before they file suit, and to negotiate the possibility of a payment out of an indemnity fund.

   Some of our colleagues have said: Why did you make it retroactive? Wasn't that some kind of benefit to some vaccine producer? I remind my colleagues that nobody is taking smallpox vaccine now, nor would anybody take it unless there was an imminent threat. But we do have some of the vaccine stockpiled.

   Why would you make it retroactive to cover that stockpile that has already been produced? The reason you do that is, if you give a protection against liability for all vaccine produced in the future but not for what we have stockpiled, the manufacturers will destroy the stockpile and produce more vaccine. And if we had a sudden threat, we would not have the stockpile.

   So if this were a vaccine that was routinely taken, then I think the criticism would be well founded. But I think it is a total mischaracterization to say this is some kind of pharmaceutical bailout when it is targeted toward smallpox vaccine and the stockpile now has relevance only in terms of terrorism.

   In terms of manufactured products to use in the war on terrorism, I simply say, in every major conflict in modern history, we have had some liability limits for the people producing things for wartime use.

5A) Maritime Transportation Security Act
When he is reviewing project proposals and awarding grants, I encourage the Secretary of Transportation to give preference to those projects that incorporate technologies that are capable of automatically detecting shielded nuclear weapons, liquid and other explosives, and chemical and biological agents weapons in fully loaded cargo containers without the need for humans to open the containers to manually inspect them. Based on testimony received by the Congress, it would appear that pulsed fast neutron technology is capable today of meeting this need. As a result, I hope that this technology and other technologies will be identified, developed, and installed in our ports as part of the ongoing process of enhancing port security through this legislation.

Long Beach State's Center for the Commercial Deployment of Transportation Technologies (CCDoTT) has been developing maritime technology for many years, and has recently turned their attention to port security technology as well. In the FY03 Defense Appropriations bill CCDoTT was granted $4.3 million for continuation of their important work to develop more efficient cargo handling in ports, high-speed ship designs, and port security research. This funding will allow the center to continue assessing cargo inspection technologies that can help meet the needs of agencies such as the U.S. Customs Service and the Coast Guard.

Section 70107 of the accompanying report authorizes an additional $15 million for fiscal years 2003 through 2008 for research and development grants for port security. I am pleased that report language for the Port and Maritime Security Act of 2002 particularly notes the importance of the research being done at Long Beach State's Center for the Commercial Deployment of Transportation Technologies. This language encourages the Secretary of Transportation and the Secretary of Defense to obligate any current and prior year appropriations under the continuing cooperative agreement. The Center is sponsored by the U.S. Maritime Administration and U.S. Department of Defense and I am certain it will continue to provide invaluable research for America's maritime interests. Again, I am pleased with, and strongly support, this timely port security legislation.

5B) Department of Homeland Security
Mrs. CLINTON. I must confess I thought he was referring to the Senator from Arkansas who perhaps was in the Chamber.

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   As I said, I appreciate the Senator's yellow, flashing lights about some of the issues we are about to contend with going forward in the Homeland Security Department. In the months following September 11, which are really the time period that has brought us to this day, we knew as a Nation we had to take some additional steps, some unprecedented steps to protect ourselves. I believe we have attempted to do so certainly with respect to our men and women in military uniform.

   I am very proud of the support we have given to our armed

   forces. I am proud to represent the 10th Mountain Division in upstate New York. When I go there, when I speak with the young officers and enlisted men who come to see me or when I go to Fort Drum to see them, I feel confident I can look them in the eye and tell them we are doing all we know to do to make sure they are ready, well equipped, and compensated appropriately. They are trained to the best of their abilities, and we are doing all as a Nation we can to support them.

   I do not have that same level of confidence when I go to my firehouses, my police stations, my emergency rooms throughout New York. I cannot look into the eyes of our firefighters, our police officers, our emergency responders and tell them we have done all we need to do to make sure they are as well prepared, well trained, and safe in their defense here in the homeland.

   So are we safer today than we were on the morning of September 11, 2001? The answer is only marginally. Because somewhere along the way, we have not kept that laser-like focus we needed to match our will and our resources and to get those resources to the front lines at home as we have around the world.

   The people who we are going to count on to make our homeland safer are the ones who will pick up the phone when we dial 911. They will respond to the call. They will leave the firehouse and the police station. They will leave the emergency room. They will be there in order to protect us.

   The votes we cast this afternoon for the creation of a Homeland Security Department are just that. They are votes to create a Department here in Washington.

   My hope is the approval of this bill will set into motion a necessary reorganization process that will ultimately result in improved coordination, information sharing, and a stronger, safer America.

   But we have to be absolutely clear to the American people about what it is we are voting for. This bill has to do with structural reorganization. There are many things in this bill we absolutely need to make us safer. Unfortunately, there are many things in this bill that have absolutely nothing to do with our security.

   I am concerned that Americans will believe, because we have passed this bill, our Nation is safer. But when we pass it and when Americans read about it or see coverage about it on television, they need to know this measure does not increase patrols or technology along our northern borders. It does not give our firefighters, police officers, and emergency personnel the resources, training, and equipment they desperately need. It does not increase security measures at our ports, our railroads, our public transportation systems. It does not increase our capability of detecting biological, chemical, radiological, and nuclear weapons.

   What this bill does is fall short on many important measures. We had the opportunity to do this right, to do more than create a Department. The Senate's original bill coming out of the Governmental Affairs Committee under Senator Lieberman's leadership, on a bipartisan vote, would have included critical measures that would make our country safer today. In the end, we failed to act on those critical measures.

   There is a lot in this bill that secures the future for special interests at the expense of the security of the American people. I believe those who are using this legislation as a vehicle for their own particular commercial or special interest have done this country a grave disservice.

   That is why Congress cannot stop with this vote. As the distinguished Senator from Montana said: We have to watch this process with vigilance. We have to be involved in the rulemaking. We have to ask the hard questions about resources. We have to continue to fight to make sure every substantive measure we need to enhance our security gets passed in the next Congress.

   Let's start with the obvious. Let's support our first responders. They are the ones who are our front line soldiers at home. We need to do what we have been asked to do by mayors and police and fire commissioners. They have asked us for direct funding that they can best utilize to make sure those firehouses stay open, those hazardous material suits and equipment are bought and available. That is why I still believe we should pass legislation I introduced last November that would provide direct funding to local communities--the Homeland Security Block Grant Act.

   We also know the recent report by former Senators Hart and Rudman, the terrorism panel's report, clearly states we are not doing enough to support our first responders. That report expressed grave concern that 650,000 local and State police officers still operate without close U.S. intelligence information to combat terrorists.

   We have not done enough to help local and state officials detect and respond to biological attacks. The report expressed concerns that our firefighters and local law enforcement agencies still--more than a year later--do not have the proper equipment to respond to a chemical or biological attack. And they don't even have the communications systems that will let them talk to each other--police departments, fire departments--across municipal and county lines in an emergency.

   Madam President, I was also greatly disappointed that the SAFER Act, which would have allowed our Nation to hire 25,000 more firefighters over the next couple years, was completely eliminated from the bill. This is the time to do more for our first responders, not less.

   We also have to act immediately to secure our Nation's nuclear power infrastructure. While the homeland security bill creates a new Department, it does not adequately address the real threat of terrorist capabilities and desires to destroy our nuclear powerplants. Last year, Senators Jeffords, Reid, and I introduced the Nuclear Security Act. We moved that act through the committee. It is unfortunate the bill does not address nuclear security, particularly with respect to our nuclear powerplants. We clearly have a problem there, as we do with radiological attacks from a a so-called dirty bomb.

   Every day that goes by without us having those resources available in local communities around our country to respond is a day I cannot look into the eyes of my constituents and say, yes, we are safer today than we were.

   We have all gone over the many provisions in the bill that have absolutely nothing to do with security. I regret deeply that they were included in this bill, and the impact of them will be known for years to come.

   Madam President, this bill, which does some good by helping us better focus here in Washington, does not do nearly enough of what needs to be done out in our country. I am particularly concerned that New York does not have a specific coordinator as the bill provides for Washington, DC. We know from every intelligence report that New York City is still a high-risk area.

   This bill has much that perhaps can make us safer, but nothing that will immediately do so; and it does not address the most serious issues with respect to the resources that are needed.

   There is an article in this day's Washington Post about how the fact that we have not funded the war on terrorism here at home means that money--even if it passes in January--will not get to the people who need it the most for quite some number of months.

   This is, unfortunately, a day where we have adopted a piecemeal approach to homeland security without the resources and the comprehensive strategy that many experts have recommended. I hope we will come back in January and address the gaps in our homeland defense strategy going forward.

   I yield the floor. Mr. CARPER. Madam President, I am pleased to see that the Senate is finally ready to pass legislation creating a Department of Homeland Security. My colleagues and I on the Governmental Affairs Committee, under Senator LIEBERMAN's leadership, began this process more than a year ago. When we first started out, I must admit that I had some reservations about making such dramatic changes to the way the Federal Government is organized. The hearings Senator LIEBERMAN chaired during the first half of this year, however, showed me how truly ill prepared we really are to face the threat of terrorism. That is why I supported the original version of Senator LIEBERMAN's homeland security bill when it came before the Governmental Affairs Committee on May 22, 2002, some time before President Bush released his proposed reorganization plan. I supported it again on July 24 after we incorporated a number of the President's recommendations into our original draft.

   I believe we need to create a strong Department of Homeland Security that brings together under one roof the various Federal agencies charged with preventing and responding to terrorist attacks. I am a little disappointed, however, that we appear ready to do so in a way that disregards a good deal of the hard work that went into the bipartisan bill we reported out of Governmental Affairs.

   Among other things, the bill before us today abandons a compromise arrived at in committee on information sharing and the Freedom of Information Act and includes INS restructuring language that is different from anything included in the President's proposal, the House-passed bill or anything that we have debated here in the Senate. It also includes some controversial provisions we have never seen before that seemingly appeared overnight. In the 108th Congress, we can and should have a debate on tort reform. We can and should have a debate on the safety of childhood vaccines. What we should not have done is hastily slip brand new provisions into this critically important bill without debate at the behest of special interests. There are three changes, however, that are of the most concern to me.

   First, there is the new personnel language. This bill gives the Secretary of Homeland Security and the Director of the Office of Personnel Management (OPM) almost total authority to rewrite Federal civil service laws for Department of Homeland Security employees related to hiring and firing, job classification, pay, rules for labor-management relations, performance appraisal and employee appeals to the Merit Systems Protection Board. Thinking that the Secretary and OPM could not possibly know what kind of personnel system was needed at the new Department before they were able to start putting it together, our committee maintained current law and asked the Secretary to report on his or her progress in setting the Department up at least every 6 months and to ask Congress for specific changes in civil service protections to meet specific Department needs.

   As a former Governor who had to reorganize parts of his own State's government, I can appreciate President Bush's desire to have as much flexibility as possible when creating something as large, complex and important as a Department of Homeland Security. However, I do not believe it's necessary to give him or his new Secretary the power to unilaterally change or waive workplace rules over the objections of Department employees and Congress. That is why I supported the compromise put forward by Senators NELSON, BREAUX, and CHAFEE before we adjourned for the election. That language would have left the most important civil service protections related to union rights and employee appeals untouched and set up a system of binding arbitration so that the Secretary and OPM would have to work out any personnel system they draft with the employees who will be required to work under it. I wish that the personnel language in this bill was closer to that contained in Nelson-Breaux-Chafee bipartisan compromise.

   The second issue that is of concern to me in this bill is the language on collective bargaining rights. It says that the President can only use the authority he currently has to remove employees' collective bargaining rights on employees transferred into the new Department if their agency's mission materially changes and their duties involve intelligence, counterintelligence, or investigative work directly related to a terrorism investigation. It gives him broad authority to waive this test, however, and to use his authority regardless of whether or not the mission of the relevant agency has changed. Our committee-passed bill would have required the administration to go through the Federal Labor Relations Authority to remove employees' collective bargaining rights. I was comfortable with that provision, but even more so with the Nelson-Breaux-Chafee compromise on this issue, which includes the same restrictions on the President's authority included in this bill but which gives Department employees the assurances that their collective bargaining rights will not be taken away arbitrarily simply because they are working in something called the Department of Homeland Security. I wish this bill offered future employees of the Department of Homeland Security as much assurance that their rights would be protected.

   My greatest disappointment with this bill is the glaring omission of any meaningful provisions to improve the security of our Nation's railroads. It is inexplicable that we stand ready to create a Department of Homeland Security that does nothing to protect the millions of Americans who travel by rail every day. After the tragedy of September 11, this Congress and the President moved quickly to stabilize and secure our aviation system and to create the Transportation Security Administration with the mission of protecting all transportation modes.

   The Congress followed suit with the Maritime Transportation Security Act of 2002 to protect our ports and maritime industry, which successfully passed in the Senate last week. And now it seems that the Over-the-Road Bus Security legislation is poised to pass this body. Yet in all these efforts, we have done little to protect rail from terrorist attacks and security threats, creating an Achilles heel in our Nation's efforts to secure our transportation system. For all of our commendable focus and attention on preventing future attacks against the aviation industry, it is unconscionable that we would not work to ensure that the roughly 25 million intercity passengers and many millions more that commute aboard our trains are as safe as the ones in our skies.

   How can we ignore the FBI warnings made a few weeks ago that al-Qaida is considering directly targeting U.S. passenger trains and that operatives may try to destroy key rail bridges and sections of track to cause derailments? How could the Senate have voted to appropriate $2 million to remove jars of formaldehyde and alcohol from the Smithsonian's buildings here on the Mall because of their threat to the Capitol and yet leave the rail tunnel traveling under the Senate and House office buildings and the Supreme Court unprotected from terrorist attack? How can we end the 107th Congress having approved increased and strengthened security programs for every single transportation mode except rail, a mode we know that al-Qaida may currently be targeting?

   In creating the Department of Homeland Security, we had the chance to address this omission. We could have included provisions to secure the nation's critical rail infrastructure and facilities and augment the mission of the Transportation Security Administration. Recognizing the obvious need for greater rail security early on, Senators HOLLINGS, MCCAIN and others worked within the Commerce Committee to produce a bipartisan rail security bill to protect Amtrak and our vital rail infrastructure from attack or sabotage. This bill, S. 1550, was supported by the Bush Administration and reported unanimously out of the committee.

   They understood the important role that Amtrak played immediately following the tragic events of September 11, when, with the aviation system shut down and our highways clogged or closed, Amtrak kept people safely moving in the northeast and across the country. They know it is essential that we provide Amtrak with the means to harden their physical assets and protect the safety and security of the traveling public if we want to ensure that Amtrak can serve the nation in the future as it did after September 11. They realized that more people use Amtrak's Pennsylvania Station in one day than use all of New York's three airports combined. They recognized that, like our other modes, our rail network is essential to the mobility, defense, and economic vitality of our nation. Yet their efforts have been blocked in this body and our railroads remain largely unprotected.

   Following the Commerce Committee's good work and seeing the logical role for rail security within the new Department, I offered, and the Committee voted to accept, a rail security amendment to Senator LIEBERMAN's homeland security bill during the our markup in July. My amendment authorized funds through the Secretary of Homeland Security for critical security and safety needs across Amtrak's national network. Totaling $1.2 billion, my amendment authorized funds to assist the diligent efforts already being made by Amtrak's police force and other law enforcement agencies, giving them the tools to focus on real threats beyond the harmless rail fans police were chasing away as described in an article on the front page of the Washington Post last week. The amendment included: $375 million to finance systemwide security and safety enhancements. These funds would have been used to immediately address serious security risks by protecting infrastructure, stations, and facilities across the entire Amtrak system. Amtrak's top priorities to be addressed with these funds include:

   No. 1, securing tunnels, bridges, interlockings, towers, and yard and station facilities with surveillance equipment, perimeter fencing, security lighting, bomb detection equipment and bomb resistant trashcans for stations, vehicle barriers and other measures.

   No. 2, investing in passenger information systems to allow the creation of watch lists and passenger manifests for tracking purposes and data sharing between Amtrak Police Department and the FBI. Currently, Amtrak does not have the realtime ability to track who is onboard its trains.

   No. 3, communications and command/control upgrades to track and locate trains enroute, to ensure adequate radio coverage across the Amtrak system, and to provide automated data for incident response and crisis management;

   $778 million for life-safety and security improvements to the Amtrak tunnels in New York, Baltimore and Washington. The life-safety problems with the tunnels on the northeast corridor are well documented and require immediate action. The tunnels in New York, 1910, Baltimore, 1872, and Washington 1904 are nearing, or are over 100 year olds and constitute safety hazards due to problems with emergency exits and ventilation. Of specific concern, is a possible terrorist action involving these tunnels, which have limited evacuation capacity, antiquated stairwells, and poor lighting. The results could be catastrophic. The funds will enhance life safety features within the tunnels, including:

   No. 1. Washington, $40 million: upgraded emergency access and egress, improved ventilation and communications. This tunnel sees 50 Amtrak/VRE trains a day and 2 million passengers annually. Additionally, these tunnels pass directly under the Supreme Court and House and Senate Office Buildings.

   No. 2, Baltimore, $60 million: New fire standpipes; improved lighting and communications, egress improvements; and a preliminary design study of tunnel replacement options. This tunnel sees 125 Amtrak/MARC trains a day.

   No. 3, New York, $678 million, 6 tunnels: upgraded ventilation, access, and egress through new stairways and shafts; structural rehabilitation for tunnel access, and improved lighting and signage. The 6 New York Amtrak tunnels provide access to Penn station for Amtrak, New Jersey Transit and the Long Island Railroad. They are gateway to New York and the heart of the Northeast Corridor. Work on the tunnels has already begun with $220 million from the Long Island Railroad and the FRA, through $100 million from FY '02 DOD supplemental Appropriations Act. Funds authorized in this amendment would complete work on 3 of the 4 rebuilt ventilation and escapes shafts, dramatically improving the safety of passengers should an emergency occur in the tunnels;

   $55 million for wrecked equipment repair to ensure Amtrak adequate fleet capacity in the event of a national security emergency. At the time of my amendment, 96 damaged and wrecked cars and five locomotives, or nearly one out of every fifteen Amtrak cars, were sitting idle, out of service, and awaiting repair. Without these cars, Amtrak is in serious danger of being able to provide adequate equipment to service its current routes, let alone offer additional service should there be another national emergency. With these funds, Amtrak could have repaired about half of these, and have some equipment up and running again within 90 days. In our effort to strength the security of the homeland, that we must provide Amtrak with the equipment it needs to serve the existing routes and to handle increased traffic should another security crisis occur.

   After the Governmental Affairs markup and the inclusion of this amendment to the Lieberman substitute, I worked with Senators HOLLINGS and MCCAIN to create a bipartisan rail security package based on the previous Committee work and my amendment that would authorize needed resources while ensuring proper oversight and accountability. We agreed to work together to add this package to the homeland security legislation, in whatever form it took. I believe that Senator MCCAIN spoke briefly about his commitment to enhancing the security of our railroads on the floor last week, and I want to thank him for working with us to create a sound security proposal. I know that he and Senator HOLLINGS share my disappointment that we have not been able to get this package included in the current homeland security bill. Though we were unable to achieve success today, we are committed to doing so next year, and I urge my colleagues to join this effort. Until we have passed a rail security package, we cannot honestly say that we have secured our national transportation system.

   In conclusion, today we missed a tremendous opportunity to truly secure our entire transportation network. Surely, we all agree that doing so is one of the Federal government's chief responsibilities. Debates about the future of Amtrak should not stand in the way of this effort. The fact is that, today, several thousands of riders are on Amtrak trains and hundreds of thousands more use Amtrak's tracks for their daily commute to work. Securing these facilities and these services is not an issue that can wait. As the intelligence community has already warned, the risks to America's railroads are real and exist as we speak. We have a responsibility to act to protect our people and our nation. We must pass rail security legislation as soon as possible.

   Mr. KOHL. Madam President, I rise to discuss two provisions of the Homeland Security bill, those substantially transferring the Bureau of Alcohol, Tobacco and Firearms, ``ATF,'' to the Department of Justice and modifying and improving our explosives laws.

   A driving force behind the President's blueprint for the reorganized Government is the need for the various agencies and bureaus charged with enforcing Federal law to work more cooperatively and effectively in defending

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   Unfortunately, this realignment of Treasury's law enforcement agencies left out one vitally important bureau, one that has as its primary mission the enforcement of the explosives and firearms laws. The ATF has been the cornerstone of the Federal law enforcement functions at Treasury for decades, but now under the President's plan, it would be left as the only major law enforcement presence in the entire Department.

   The Department of the Treasury is entrusted with responsibilities primarily in the area of monetary policy such as budgets, taxes, and currency production and circulation. In contrast, the ATF's mission consists of enforcing the firearms, arson, and explosives laws as well as the criminal and regulatory functions of the alcohol and tobacco laws. Clearly, these two missions do not jibe.

   ATF serves an important role not only in the enforcement of the criminal laws regarding firearms, explosives, alcohol and tobacco, but also in waging the war on terrorism. We only need to remember the litany of terrorist bombings from the first attack on the World Trade Centers to Beirut in 1982, the East Africa embassies, the U.S.S. Cole, Khobar Towers, and Oklahoma City, among others, to understand the importance of the ATF's expertise in explosives and firearms on the war on terrorism. Indeed, in the last 20 years, the vast majority of terrorist attacks with Americans as targets have used explosives or firearms. Any effort to strengthen our homeland security that does not take note of this fact is a half measure.

   This bill understands ATF's importance in the war on terrorism by moving it to the Department of Justice where it can coordinate its efforts more easily with the FBI, DEA, and the other premier Federal law enforcement agencies. In addition, the bill authorizes the ATF for the first time as the Bureau of Alcohol, Tobacco, Firearms and Explosives, ATFE, and refocuses its mission. It will no longer be responsible for collecting alcohol and tobacco fees, but instead will focus entirely on the criminal enforcement of the explosives, firearms, arson, and tobacco and alcohol smuggling laws. the country against terrorism. The President's plan shifted several agencies charged with different aspects of Federal law enforcement to the proposed Department of Homeland Security, including the Secret Service and the Bureau of Customs, both formerly housed in the Department of the Treasury.

   Unfortunately, this realignment of Treasury's law enforcement agencies left out one vitally important bureau, one that has as its primary mission the enforcement of the explosives and firearms laws. The ATF has been the cornerstone of the Federal law enforcement functions at Treasury for decades, but now under the President's plan, it would be left as the only major law enforcement presence in the entire Department.

   The Department of the Treasury is entrusted with responsibilities primarily in the area of monetary policy such as budgets, taxes, and currency production and circulation. In contrast, the ATF's mission consists of enforcing the firearms, arson, and explosives laws as well as the criminal and regulatory functions of the alcohol and tobacco laws. Clearly, these two missions do not jibe.

   ATF serves an important role not only in the enforcement of the criminal laws regarding firearms, explosives, alcohol and tobacco, but also in waging the war on terrorism. We only need to remember the litany of terrorist bombings from the first attack on the World Trade Centers to Beirut in 1982, the East Africa embassies, the U.S.S. Cole, Khobar Towers, and Oklahoma City, among others, to understand the importance of the ATF's expertise in explosives and firearms on the war on terrorism. Indeed, in the last 20 years, the vast majority of terrorist attacks with Americans as targets have used explosives or firearms. Any effort to strengthen our homeland security that does not take note of this fact is a half measure.

   This bill understands ATF's importance in the war on terrorism by moving it to the Department of Justice where it can coordinate its efforts more easily with the FBI, DEA, and the other premier Federal law enforcement agencies. In addition, the bill authorizes the ATF for the first time as the Bureau of Alcohol, Tobacco, Firearms and Explosives, ATFE, and refocuses its mission. It will no longer be responsible for collecting alcohol and tobacco fees, but instead will focus entirely on the criminal enforcement of the explosives, firearms, arson, and tobacco and alcohol smuggling laws.

   The amendment makes clear that along with the transfer of enforcement of the explosives, firearms, and arson laws, the new ATFE will have jurisdiction over the criminal statutes in title 18 of the United States Code as they relate to tobacco or alcohol laws. These few criminal statutes are the extent of ATFE's jurisdiction over alcohol and tobacco. All alcohol and tobacco revenue collection and related regulatory functions performed by the current ATF will remain under the jurisdiction of the Tax and Trade Bureau of the Treasury Department.

   The renaming of the Bureau is more than simply symbolic. The addition of the ``E'' to the name of the Bureau demonstrates the importance of explosives in their mission. To coordinate better law enforcement training in explosives, we created the Explosives Training and Research Facility at Fort AP Hill, VA, where Federal, State and local law enforcement agents from around the country will be trained to investigate bombings.

   We trust that the Attorney General and the Department of Justice in conjunction with the Department of the Treasury will make ATFE's transition as efficient as possible. Moving a large law enforcement agency is not easily done. For that reason, the Homeland Security bill permits a sufficient time frame for the transitions to occur both to the new Department of Homeland Security as well as the ATFE's transition to the Department of Justice. It is our intent that the ATFE be permitted as much time to complete its transition as the other bureaus and agencies being shifted to the Department of Homeland Security.

   At the Department of Justice, the ATFE will have primary responsibility for the enforcement of the firearm, arson and explosives laws as well as criminal alcohol and tobacco laws. In that role, the ATFE will be able to work cooperatively with the FBI and the DEA in enforcing the criminal law while at the same time taking the lead when the case under investigation is primarily within their jurisdiction. According to recent news reports, the FBI and the ATF do not always have the best of relations. In fact, despite a long-standing memorandum of understanding between the two agencies allocating responsibilities, there is still a fair amount of competition between the two when it comes to areas where their respective jurisdiction overlaps. Now, with the ATFE working under the same leadership as the FBI, the Attorney General will be able to sort out these differences and maximize the cooperation between the two agencies. More cooperation will lead to a better focus on the war on terrorism.

   The establishment of the ATFE at the Department of Justice gives the Government a dynamic weapon in the war on terrorism and in the every day battle against violent crime involving explosives, firearms and arson. We look forward to the ATFE joining the Department of Justice and its other law enforcement agencies. We also look forward to the ATFE maximizing its capabilities in enforcing the explosives, firearms, and arson laws and fighting the war on terrorism.

   In addition to transferring ATF to the Department of Justice, this measure contains a subtitle that modifies our explosives laws. This provision is an amended version of S. 1956, the Safe Explosives Act, which was introduced earlier this year by Sen. ORRIN HATCH and me and H.R. 4864, the Anti-Terrorism Explosives Act, which was introduced earlier this year by Chairman SENSENBRENNER.

   The Senate Judiciary Committee unanimously approved the measure this summer. I want to explain some of the provisions in this title of the bill and provide a more detailed section by section analysis of it.

   Following the September 11 terrorist attacks on the World Trade Center and the Pentagon, we have had a growing sense that Congress needs to close numerous gaps in Federal law to help prevent future disasters. The current explosives laws are effective, but the Safe Explosives Act closes some loopholes and significantly improves its administration.

   The Safe Explosives Act effects two major changes in our explosives laws: first, it creates a systematic method of enforcing our laws regarding who can and cannot purchase and possess explosives; and second, it makes some commonsense additions to the list of people who are barred from purchasing and possessing explosives.

   Creating a systematic method for enforcing our laws makes sense in the current environment. Most Americans would be stunned to learn that in some States it is easier to get enough explosives to take down a house than it is to buy a gun, get a driver's license, or even obtain a fishing license. Currently, it is too easy for would-be terrorists and criminals to obtain explosive materials. Although permits are required for interstate purchases of explosives, there are no current uniform national limitations on the purchase of explosives within a single state by a resident of that State. As a result, a patchwork quilt of State regulations covers the intrastate purchase of explosive materials. In some States, anyone can walk into a hardware store and buy plastique explosives or a box of dynamite. No background check is conducted, and no effort is made to check whether the purchaser knows how to properly use this deadly material. In at least 16 States, there are little to no restrictions on the intrastate purchase of explosives.

   By addressing the intrastate sale and possession of explosives, the Safe Explosives Act would help close one such loophole that allows potential terrorists and criminals easy access to explosive materials. Let me elaborate. As I said, under current law anyone who is involved in interstate shipment, purchase, or possession of explosives must have a Federal permit. This legislation creates the same requirement for intrastate purchases. It calls for two types of permits for these intrastate purchasers: user permits and limited user permits. The user permit lasts for 3 years and allows unlimited explosives purchases. The limited user permit also expires after 3 years, but only allows

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   In addition to closing the intrastate loophole, this measure expands slightly the class of people who are barred from purchasing or possessing explosives. Current federal law prohibits certain categories of people from purchasing and possessing explosives. However, some important categories, such as people in the United States on a tourist visa, are not included in current federal explosives law. The committee feels that in addition to being barred from obtaining a firearm, these people should also be prohibited from purchasing and possessing explosive materials.

   Overall, this measure strikes a reasonable balance between stopping dangerous people from getting explosives and helping legitimate users obtain and possess explosives. Most large commercial users already have explosives permits because they engage in interstate explosives transport. These users would not be significantly affected by our legislation. The low-volume users will be able to quickly and cheaply get a limited permit. And high-volume intrastate purchasers who are running businesses that require explosives should easily be able to get an unlimited user permit. Also, the measure will not affect those who use black or smokeless powder for recreation, as the legislation does not change current regulations on those particular materials.

   Our goal is simple. We must take all possible steps to keep deadly explosives out of the hands of dangerous individuals seeking to threaten our livelihood and security. The Safe Explosives Act is critical legislation, supported by the administration. It is designed solely to the interest of public safety. It will significantly enhance our efforts to limit the proliferation of explosives to would be terrorists and criminals. It will close a loophole that could potentially cause mass destruction of property and life.

   Let me thank the many people who assisted us in drafting these provisions. Senators HATCH and LEAHY and Chairman SENSENBRENNER were vital, as were Senators BAUCUS and GRASSLEY. The staff and leadership of the Department of Treasury, the Department of Justice and the ATF were invaluable. We all worked together cooperatively and in close collaboration, and I believe that the finished product reflects the professionalism and dedication of the staff of those agencies. They are all to be congratulated.

   I ask unanimous consent that a section-by-section analysis of the measure be printed in the RECORD.

   There being no objection, the material was ordered to be printed in the RECORD, as follows:

   Section-by-Section Analysis of Title XI, Subtitle C

   Section 1121--Short title

   The short title of this bill is the ``Safe Explosives Act.''

   Section 1122--Permits for purchasers of explosives

   First, the following terms referenced in the bill are defined: permittee, alien, and responsible person.

   Second, this section would require all purchasers of explosives to obtain a permit from the Treasury's Bureau of Alcohol, Tobacco, and Firearms (ATF), a process that includes a background check, thereby reducing the availability of explosives to terrorists, felons, and others prohibited by law from possessing explosives. Although permits are now required for interstate purchases, there are no current Federal limitations on the purchase of explosives within a single state by a resident of that state.

   The new permit requirement would significantly enhance the government's ability to prevent the misuse and unsafe storage of explosives. As part of the permit application and renewal process, ATF would conduct background checks on all individuals wishing to acquire or possess explosives materials. Applicants would also be required to submit photographs and fingerprints along with their applications, to ensure that a thorough background check can be completed. Fingerprints are not necessary to conduct a background check, however it significantly reduces the work and amount of time for the positive identification of applicants, and therefore will greatly reduce the application turnaround time and workload for ATF.

   In the case of a corporation, partnership or association, the applicant would be required to submit fingerprints and photographs of responsible persons, meaning those individuals who possess the power to direct the management and policies of the corporation, partnership or association pertaining to explosive materials. Consistent with ATF's current policy, this section does not require corporate applicants for explosives licenses to list every single corporate director or officer as a ``responsible person'' on its application for a license or permit. Those officials within the corporation who have no power to direct the management and policies of the applicant with respect to explosive materials need not be listed on the application. For example, in a large corporation that uses explosives in just one of many business activities, there may be many corporate officials who have no responsibilities or authority in connection with the explosives aspects of the company's business. These officials would not be listed as ``responsible persons'' on the application, and would not need to submit fingerprints or photographs to ATF. Furthermore, if corporate bylaws provide that certain high-level corporate officials do not have the power or authority to direct the management and policies of the corporation with respect to explosive materials, then such officials will not be considered to be responsible persons.

   We encourage the Secretary to strive for balanced enforcement. In so doing, the Secretary should avoid imposing unnecessary burdens on applicants for explosives licenses and permits. There is no reason to require background checks for corporate officials who have no responsibilities or authority in connection with the explosives aspect of a company's business. By the same token, companies have an obligation to be forthright with the ATF, and we expect them to err on the side of overinclusiveness in deciding who may be a responsible person.

   This section will also require applicants to list the names of all employees who will have possession of the explosive materials, so that the ATF can verify that these individuals are not prohibited from receiving or possessing explosives. In order to prevent an overload of employee background checks all at once for the ATF, current licenses and permits will remain valid until that license or permit is revoked, expires, or until a timely application for renewal is acted upon. Under current law, it is too easy for would-be terrorists and criminals to obtain access to explosive materials by obtaining jobs (such as driving trucks) with explosives licensees. These expanded requirements would also apply to entities seeking to obtain a license to sell explosives.

   It is the Committee's intention that ATF should work closely with the regulated industry to develop guidance as to which employees are considered to be in ``possession'' of explosive materials in the course of their employment. Applicants for explosives licenses or permits are not required to list every single employee of the business. Instead they are only required to list employees who are expected to possess explosive materials as part of their duties.

   In developing these standards, ATF should be guided by the case law interpreting the term ``possession'' under the Gun Control Act of 1968, GCA, as amended. It is well established that possession under the GCA may be demonstrated through either actual or constructive possession. Actual possession exists when a person is in immediate possession or control of an object, and includes instances where a person knowingly has direct physical control over the object at a given time. Thus, employees who physically handle explosive materials would clearly be in possession of those materials. This would include, among others, employees who handle explosive materials, as defined by the law as part of a production process; employees who handle explosive materials in order to ship, transport, or sell them; and employees who actually use the explosive materials. All of these employees, as well as any other employees who actually possess explosive materials as part of their duties, must be listed on the application for a license or permit.

   Where direct physical contact is lacking, a person may nonetheless have constructive possession where he or she knowingly has the power and the intention at a given time to exercise dominion and control over the explosives, either directly or through others. Accordingly, this section would require applicants for licenses or permits to list all employees who will have constructive possession of explosive materials as part of their duties. For example, an employee who drives a truck with an explosives load is in constructive possession of the explosives even though he may not physically handle them. This individual has dominion and control over the explosives while he transports them; furthermore, he could easily divert them from their intended destination. Such an individual should be subject to the background check requirements of the amended law. Similarly, a supervisor at a construction site who keeps the keys for the building in which the explosives are stored, and directs the use of explosives by other employees, would be in constructive possession of those explosives.

   Finally, this section recognizes the distinction between small individual users of explosives and large commercial users by creating

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user permits and limited user permits. The user permit lasts for 3 years and allows unlimited explosives purchases. The limited user permit also expires after 3 years, but only allows

[Page: S11393]  GPO's PDF

   In addition to closing the intrastate loophole, this measure expands slightly the class of people who are barred from purchasing or possessing explosives. Current federal law prohibits certain categories of people from purchasing and possessing explosives. However, some important categories, such as people in the United States on a tourist visa, are not included in current federal explosives law. The committee feels that in addition to being barred from obtaining a firearm, these people should also be prohibited from purchasing and possessing explosive materials.

   Overall, this measure strikes a reasonable balance between stopping dangerous people from getting explosives and helping legitimate users obtain and possess explosives. Most large commercial users already have explosives permits because they engage in interstate explosives transport. These users would not be significantly affected by our legislation. The low-volume users will be able to quickly and cheaply get a limited permit. And high-volume intrastate purchasers who are running businesses that require explosives should easily be able to get an unlimited user permit. Also, the measure will not affect those who use black or smokeless powder for recreation, as the legislation does not change current regulations on those particular materials.

   Our goal is simple. We must take all possible steps to keep deadly explosives out of the hands of dangerous individuals seeking to threaten our livelihood and security. The Safe Explosives Act is critical legislation, supported by the administration. It is designed solely to the interest of public safety. It will significantly enhance our efforts to limit the proliferation of explosives to would be terrorists and criminals. It will close a loophole that could potentially cause mass destruction of property and life.

   Let me thank the many people who assisted us in drafting these provisions. Senators HATCH and LEAHY and Chairman SENSENBRENNER were vital, as were Senators BAUCUS and GRASSLEY. The staff and leadership of the Department of Treasury, the Department of Justice and the ATF were invaluable. We all worked together cooperatively and in close collaboration, and I believe that the finished product reflects the professionalism and dedication of the staff of those agencies. They are all to be congratulated.

   I ask unanimous consent that a section-by-section analysis of the measure be printed in the RECORD.

   There being no objection, the material was ordered to be printed in the RECORD, as follows:

   Section-by-Section Analysis of Title XI, Subtitle C

   Section 1121--Short title

   The short title of this bill is the ``Safe Explosives Act.''

   Section 1122--Permits for purchasers of explosives

   First, the following terms referenced in the bill are defined: permittee, alien, and responsible person.

   Second, this section would require all purchasers of explosives to obtain a permit from the Treasury's Bureau of Alcohol, Tobacco, and Firearms (ATF), a process that includes a background check, thereby reducing the availability of explosives to terrorists, felons, and others prohibited by law from possessing explosives. Although permits are now required for interstate purchases, there are no current Federal limitations on the purchase of explosives within a single state by a resident of that state.

   The new permit requirement would significantly enhance the government's ability to prevent the misuse and unsafe storage of explosives. As part of the permit application and renewal process, ATF would conduct background checks on all individuals wishing to acquire or possess explosives materials. Applicants would also be required to submit photographs and fingerprints along with their applications, to ensure that a thorough background check can be completed. Fingerprints are not necessary to conduct a background check, however it significantly reduces the work and amount of time for the positive identification of applicants, and therefore will greatly reduce the application turnaround time and workload for ATF.

   In the case of a corporation, partnership or association, the applicant would be required to submit fingerprints and photographs of responsible persons, meaning those individuals who possess the power to direct the management and policies of the corporation, partnership or association pertaining to explosive materials. Consistent with ATF's current policy, this section does not require corporate applicants for explosives licenses to list every single corporate director or officer as a ``responsible person'' on its application for a license or permit. Those officials within the corporation who have no power to direct the management and policies of the applicant with respect to explosive materials need not be listed on the application. For example, in a large corporation that uses explosives in just one of many business activities, there may be many corporate officials who have no responsibilities or authority in connection with the explosives aspects of the company's business. These officials would not be listed as ``responsible persons'' on the application, and would not need to submit fingerprints or photographs to ATF. Furthermore, if corporate bylaws provide that certain high-level corporate officials do not have the power or authority to direct the management and policies of the corporation with respect to explosive materials, then such officials will not be considered to be responsible persons.

   We encourage the Secretary to strive for balanced enforcement. In so doing, the Secretary should avoid imposing unnecessary burdens on applicants for explosives licenses and permits. There is no reason to require background checks for corporate officials who have no responsibilities or authority in connection with the explosives aspect of a company's business. By the same token, companies have an obligation to be forthright with the ATF, and we expect them to err on the side of overinclusiveness in deciding who may be a responsible person.

   This section will also require applicants to list the names of all employees who will have possession of the explosive materials, so that the ATF can verify that these individuals are not prohibited from receiving or possessing explosives. In order to prevent an overload of employee background checks all at once for the ATF, current licenses and permits will remain valid until that license or permit is revoked, expires, or until a timely application for renewal is acted upon. Under current law, it is too easy for would-be terrorists and criminals to obtain access to explosive materials by obtaining jobs (such as driving trucks) with explosives licensees. These expanded requirements would also apply to entities seeking to obtain a license to sell explosives.

   It is the Committee's intention that ATF should work closely with the regulated industry to develop guidance as to which employees are considered to be in ``possession'' of explosive materials in the course of their employment. Applicants for explosives licenses or permits are not required to list every single employee of the business. Instead they are only required to list employees who are expected to possess explosive materials as part of their duties.

   In developing these standards, ATF should be guided by the case law interpreting the term ``possession'' under the Gun Control Act of 1968, GCA, as amended. It is well established that possession under the GCA may be demonstrated through either actual or constructive possession. Actual possession exists when a person is in immediate possession or control of an object, and includes instances where a person knowingly has direct physical control over the object at a given time. Thus, employees who physically handle explosive materials would clearly be in possession of those materials. This would include, among others, employees who handle explosive materials, as defined by the law as part of a production process; employees who handle explosive materials in order to ship, transport, or sell them; and employees who actually use the explosive materials. All of these employees, as well as any other employees who actually possess explosive materials as part of their duties, must be listed on the application for a license or permit.

   Where direct physical contact is lacking, a person may nonetheless have constructive possession where he or she knowingly has the power and the intention at a given time to exercise dominion and control over the explosives, either directly or through others. Accordingly, this section would require applicants for licenses or permits to list all employees who will have constructive possession of explosive materials as part of their duties. For example, an employee who drives a truck with an explosives load is in constructive possession of the explosives even though he may not physically handle them. This individual has dominion and control over the explosives while he transports them; furthermore, he could easily divert them from their intended destination. Such an individual should be subject to the background check requirements of the amended law. Similarly, a supervisor at a construction site who keeps the keys for the building in which the explosives are stored, and directs the use of explosives by other employees, would be in constructive possession of those explosives.

   Finally, this section recognizes the distinction between small individual users of explosives and large commercial users by creating

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   All permittees, limited or otherwise, are subject to inspection by the ATF to ensure that the explosives are being properly stored. In the interest of minimizing the turnaround time for approval of licenses and permits, and in order to avoid overburdening ATF with an onrush of inspections immediately after this act takes effect, the bill gives ATF the discretion to defer immediate inspection of license and permit applicants at the time of application. However, because of concern for public safety, a provision requires ATF to inspect both permitees and licensees within three years of issuing a license or permit. Specifically, ATF must inspect limited permitees prior to a third consecutive renewal, and licensees or user permitees prior to the first renewal. It also increases the amount of time ATF has to approve or deny an application to 90 days. This will allow ATF ample time to conduct thorough background checks, especially important immediately following enactment of the bill when there will likely be a surge in applications. These provisions were put in the bill at the request of the House.

   This section also includes an important measure that ensures privacy for employees or potential employees of a company that applying for a user permit that are subject to a background check. The provision requires the Secretary of the Treasury to notify the employer as to whether or not an employee passes the background check. However, should an individual not pass the employer will not be told the reason why. Rather, the employee will be notified as to the reason(s) for not passing.

   Section 1123--Persons prohibited from receiving or possessing explosive materials

   This proposal expands the list of those people who are prohibited from purchasing or possessing explosives to include: mental incompetents, aliens other than lawful permanent resident aliens, people dishonorably discharged from the military, and Americans who have renounced their citizenship. The addition of such categories to the list of prohibited persons recognizes the potential for terrorists or other criminals to use explosives to carry out their attacks and brings the explosives law in line with most categories of prohibited people in the Gun Control Act.

   Congress has already determined that the possession of firearms by the above categories of people is dangerous to society. In order to combat terrorism and other violent crime, it is essential that Federal law prohibit the receipt or possession of explosive materials by such individuals already deemed too dangerous to possess firearms. The language relating to non-immigrant aliens differs slightly from that in the Gun Control Act, as technical changes have been made to improve the clarity of the provision.

   Section 1124--Requirement to provide samples of explosive materials and ammonium nitrate

   This section would enhance the ATF's ability to solve cases involving explosives by requiring Federally licensed explosives manufacturers and importers and persons who manufacture or import ammonium nitrate to provide to ATF, upon request, with samples of, or chemical information on, the products they manufacture or import. The ATF fulfills a critical investigative role in the solving of crimes or acts of terrorism committed by explosives. Such information is essential to ATF's ability to prevent and solve bombings and to trace explosive materials that are used in terrorist activities and other violent crimes by matching residue with the manufacturers' samples. Also, the ability to evaluate such samples as well as information on the chemical composition of these products will allow the ATF to familiarize themselves with products that may be diverted to criminal misuse.

   Section 1125--Destruction of property of institutions receiving federal financial assistance

   This section expands ATF's authority to investigate destruction of property by fire or explosion if the property receives federal assistance.

   Section 1126--Relief from disabilities

   This section allows for a person who is prohibited from the above mentioned explosive material possession, purchase, etc. to apply to the Attorney General for relief from disabilities. The Attorney General may grant that relief if the circumstances regarding the disability are such that the applicant is not likely to be dangerous to the public if allowed to work with the above mentioned explosive materials, and that it would not be contrary to the best interest of the public.

   Section 1127--Theft reporting requirement

   According to this section, all licensees and permittees are required to report the known theft of explosive materials from that user no later than 24 hours after the discovery of theft. Failure to do so can result in a fine not more than $10,000, or imprisonment not more than 5 years, or both. It is essential that ATF investigate theft of explosives in order to prevent accidental or criminal misuse.

   Sec. 1128--Authorization of appropriations

   This section authorizes the appropriation to carry out the provisions of the bill.

   The PRESIDING OFFICER. The Senator from Maine. Ms. SNOWE. I would like to enter into a colloquy with several of my colleagues from coastal States regarding Section 888 of the final version of the Homeland Security Act of 2002. The provisions of Section 888 were drafted to preserve the traditional roles and missions of the Coast Guard and ensure they are not altered or diminished.

   Since September 11, 2001, the Coast Guard has taken on additional homeland security responsibilities resulting in its largest peacetime port security operation since World War II. While our new reality requires the Coast Guard to maintain a robust homeland security posture, these new priorities must not diminish the Coast Guard's focus on its other traditional missions such as marine safety, search and rescue, aids to navigation, fisheries law enforcement, and marine environmental protection.

   As a Senator from a coastal State, and as the ranking member on the Oceans, Atmosphere, and Fisheries Subcommittee of the Senate Commerce Committee, I can attest that all these missions are critically important and that the American people rely on the Coast Guard to perform them each and every day.

   The language in Section 888, which I developed with Senators STEVENS and COLLINS, strikes the proper balance and ensures the Coast Guard's non-homeland security missions will not be compromised or decreased in any substantial or significant way by the transfer to the new Department of Homeland Security.

   First and foremost, it ensures that the Coast Guard will remain in distinct entity and continue in its role as one of the five Armed Services. The Coast Guard plays a unique role in our government, in which it serves as both an armed service as well as a law enforcement agency, and this must not be changed or altered.

   This language in Section 888 maintains the primacy of the Coast Guard's diverse missions by establishing the Coast Guard as a distinct agency under the Secretary of Homeland Security and mandates that the Coast Guard Commandant will report directly to the Secretary, rather than to or through a Deputy Secretary.

   Additionally, this section prevents the Secretary of this new Department from making substantial or significant changes to the Coast Guard's non-homeland security missions or alter its capabilities to carry out these missions, except as specified in subsequent Acts. It also prohibits the new department from transferring any Coast Guard missions, functions, or assets to another agency in the new Department except for personnel details and assignments that do not reduce the Service's capability to perform its non-homeland security missions.

   This section also requires the Inspector General of the new Department to review and assess annually the Coast Guard's performance of its non-homeland security missions and to report the findings to the Congress.

   I also am pleased to see the inclusion of my amendment requiring the new Homeland Secretary, in consultation with the Commandant, to report to Congress within 90 days of enactment of this Act on the benefits of accelerating the Coast Guard's Deepwater procurement time line from 20 years to 10 years. The Deepwater project, which will recapitalize all of the Coast Guard assets operating 50 or more miles from our coasts, is already underway. However, the Coast Guard must wait up to 20 years, in some instances, to acquire already existing technology. I believe that we must accelerate the Deepwater acquisition project and acquire these much-needed assets for the Coast Guard now, not 20 years down the road.

   Madam President, Section 888 is a strong statement by the Congress that the Coast Guard is an essential component of the new Department and that its non-homeland security missions and capabilities must be maintained due to their overriding importance, not only to coastal States such as Maine, but also to the entire nation.

   Mr. KERRY. Madam President, since September 11, 2001, many in Congress have been assiduously working to create a Department of Homeland Security, and I am pleased that today we are finally completing our work. After the terrorist attacks on New York and Washington it became clear that to thwart future attacks on the United States the Federal Government would have to do a better job gathering and coordinating intelligence. Since September 11 I, along with several colleagues, have believed that a reorganization of the Federal Government is critical to improving the security of this country. Though the President and many Congressional Republicans initially opposed this major reorganization, there is now consensus on the need to create a new department.

   It is imperative that we move quickly and urgently to reorganize the Federal Government. Vulnerabilities exist in our homeland security infrastructure and we should not squander a single day addressing them. An independent task force, chaired by former Senators Gary Hart and Warren Rudman, recently advised that ``America remains dangerously unprepared to prevent and respond to a catastrophic attack on U.S. soil.'' There is also new evidence that Osama bin Laden is alive and recently recorded an audio tape. We must act now to create this agency and to ensure that the United States Government is doing everything in its power to better protect its borders, coasts, cities, and towns.

   The Transportation Security Agency continues to play a vital role in our domestic security policy under this legislation. At no time in our Nation's history has increased security for our transportation infrastructure been as critical, and I am confident that as part of this new department the TSA will perform up to task and help ease the fears many Americans have concerning the safety of our airports, trains, and ports.

   The legislation also address the impending baggage screening deadline. Although the Congress mandated a December 31, 2002 deadline for screening all baggage at airports, deploying and installing the necessary devices for the over 400 airports has proved to be a monumental challenge and it is clear that many airports are unable to meet this requirement. I am pleased that this legislation includes a common sense provision to extend the deadline for the major airports and strictly monitor their progress in screening baggage. The extension through December 31, 2003 will also give the TSA more time to properly train and deploy the 22,000 federal baggage screeners necessary to staff the devices and oversee the screening process. Rushing this process in anticipation of the deadline would have seriously compromised the effectiveness of the enhanced security measures.

   Also included in this legislation is a provision that will allow financially strapped airlines to purchase ``war risk'' insurance from the Government at a reasonable cost, alleviating some of the costs the industry has incurred after September 11. This provision is critically important, as many airlines have been forced to spend upwards of $100 million to insure their planes against war and the continued threat of terrorism. Tens of thousands of aviation workers have lost their jobs because of the financial crisis in the industry. It is my hope that Government issued insurance will help expedite the recovery of this important sector of our economy.

   As Chairman of the Oceans, Atmosphere and Fisheries Subcommittee, which has jurisdiction over the Coast Guard, I want to make a few comments about the Coast Guard provisions in the legislation. The Coast Guard is comprised of approximately 36,000 military personnel, roughly the size of the New York City Police Department. Recently passed legislation will expand the Coast Guard to 45,500 military personnel by the end of this fiscal year. Expansion is important to homeland security when you consider that the Coast Guard must patrol and protect more than 1,000 harbor channels, and 25,000 miles of inland, intra coastal, and coastal waterways that serve more than 300 ports. The Coast Guard is also responsible for a number of non-homeland security missions such as search and rescue, maintaining aids to navigation, marine safety, marine environmental protection and fisheries law enforcement.

   I am pleased that this legislation does not split up the Coast Guard. The Coast Guard is a multi-mission agency with personnel and assets that are capable of performing a variety of missions with little or no notice. The legislation preserves this flexibility by keeping the Coast Guard in tact. In addition the bill ensures that the Coast Guard receives the proper attention it deserves in the new Department by requiring the commandant of the Coast Guard to report directly to the new Secretary. The commandant has this authority within the Department of Transportation, clearly he should have the same authority in the Department of Homeland Security.

   Since September 11, the Coast Guard has had to divert resources from its non-homeland security missions in order to beef up homeland security. I asked the General Accounting Office to document the change in Coast Guard missions since September 11 and to make recommendations on how best for the Coast Guard to operate under the ``new normalcy'' post September 11. The GAO just released its report and they note that many of the Coast Guard's core missions, including enforcement of fisheries and other environmental laws, are still not back to pre-September 11 levels. The GAO recommends that the Coast Guard develop a long-range strategic plan for achieving all of their missions, as well as a means to easily monitor progress in achieving these goals.

   Many of us are concerned, that the traditional non-homeland security missions of the Coast Guard will suffer once the agency is transferred. In response to these concerns this bill contains safeguards that will ensure that non-homeland security missions will get done. I look forward to working with the Coast Guard to ensure these missions are getting done. Search and rescue, oil spill response and fisheries law enforcement are important and we cannot afford to ignore or under fund these missions.

   This bill also includes a study on accelerating the Integrated Deepwater System, a long overdue modernization of Coast Guard ships and aircraft that operate off-shore in the deepwater environment. The Coast Guard is operating World War II-era cutters in the deepwater environment to perform environmental protection, national defense, and law enforcement missions. Coast Guard aircraft, which are operated in a maintenance intensive salt water environment, are reaching the end of their useful lives as well. Besides high operating costs, these assets are technologically and operationally obsolete. The Integrated Deepwater System will not only reduce operational and maintenance costs, but will significantly improve upon

   current command and control capabilities in the deepwater environment. I support this study. I look forward to reviewing the results of this study next year and if acceleration makes sense, supporting that well.

   While I support much of what this legislation does and while I believe we should quickly move forward to create the Department, I have serious concerns with particular provisions of the bill. First, I am extremely disappointed that this legislation provides the administration with the authority to rewrite civil service laws without guaranteeing that Federal workers will receive fair treatment without regard to political affiliation, equal pay for equal work, and protection for whistleblowers. The hallmark of civil service is protection from political influence through laws designed to ensure the independent hiring, promotion, and firing of employees based exclusively on merit. And by allowing the administration to rewrite the civil service laws

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   I am also troubled by a provision in this legislation that gives the President essentially unfettered discretion to forbid Department of Homeland Security employees to belong to unions if he determines that is necessary not only for the interest of national security but also to protect the Department's ability to protect homeland security. I do not object to working to reform how government operates, to make it easier to manage and more effective. But what has been proposed in this legislation is not an improvement in the system, it just takes rights away from workers.

   One of the most troubling provisions in this legislation deals with protecting critical infrastructure information that is voluntarily submitted to the Department, a worthy goal and one that I strongly support. After all, companies will be unwilling to turn over information about possible vulnerabilities if doing so would make them subject to public disclosure or regulatory actions. To encourage companies to provide this valuable information to the Department, the legislation would exempt the information from public disclosure under the Freedom of Information Act. The reason for my concern, is that the definition of information is so broad that it could include any information that a company turns over to Department of Homeland Security. What this means is that information that is currently available to the public would be barred from release if it is labeled by the company as critical infrastructure. One can easily imagine a company turning over incriminating documents to the Government so that it would not be accessible by anyone else. I am discouraged by inclusion of this provision, because earlier in this debate we developed a compromise that more narrowly defined what information could be exempt from FOIA, one that protected critical infrastructure information without opening up a loophole for companies to avoid Government regulation and public disclosure.

   I am concerned by how the Immigration and Naturalization Service will be treated in the new Department under this legislation. For years the INS has been badly in need of reform and it seemed that creating the Department of Homeland Security would provide an opportunity to make improvements in enforcement and provide better visa and processing services. Under the Lieberman proposal to create the Department of Homeland Security, there was an Under Secretary for Immigration Affairs who would act as a central authority to ensure a uniform immigration policy and provide effective coordination between the service and enforcement functions. The Republican legislation unfortunately does not include an elevated immigration function headed by one under secretary, and instead buries the immigration enforcement function within the ``Border and Transportation Security'' division and places the immigration services function with the Deputy Secretary of Homeland Security.

   There is no easy split between border enforcement and services. For example, countering schemes for wrongful entry is not just a border challenge, it requires close coordination among all units within immigration responsibilities. Both functions rely on shared information and intelligence. I am afraid, that with two people interpreting immigration law and policy there are likely to be conflicting interpretations, a situation that could exacerbate the current coordination and communications problems that exist within INS.

   I am extremely concerned that this legislation includes liability protections inserted by the House for manufacturers of anti-terrorism technology and childhood vaccines. The new provisions allow the Secretary to designate equipment and technology used by the Department as official ``anti-terrorism technology.'' In the event of a terrorist attack this designation will prevent injured parties from seeking compensation against manufacturers of such technology, even if a manufacturer exercised gross negligence in marketing its product. The same is true for manufacturers of childhood vaccines who will be exempt from liability if a child dies or sustains injury as a result of negligence stemming from the inclusion of a ``component or ingredient'' in any vaccine listed under the Vaccine Injury Table. This provision is absolutely unconscionable. We should not give manufacturers an incentive to experiment with questionable formulas or risky ingredients for vaccines which are intended to immunize children from disease. Likewise, we should not give manufacturers of anti-terrorism technologies any incentive to sell a product they know to be below par.

   Another provision added by the House would remove Senate-approved legislation to bar Government contracts with corporations that have moved their headquarters offshore to avoid U.S. taxes. The Republicans say that this provision will unnecessarily interfere with our national security. Well, I believe that it also affects our national security when corporate use of tax havens and loopholes is at an all-time high. Various estimates show that this sort of tax evasion is costing the government tens of billions of dollars a year which means that tax burdens must be higher on law-abiding citizens and small businesses that pay by the rules. To remove this sound provision at the last minute is not only bad policy, it also insults the memory of Senator Wellstone, who worked so hard to ensure that this provision was passed.

   Despite my concerns with particular provisions in this legislation, I do support the creation of the Department of Homeland Security and believe it is an important element in our efforts to protect the American people from terrorism.

   Mr. CRAPO. Madam President, providing for homeland security and securing our Nation against the threat of terrorism must continue to be our foremost challenge. However, many of my Senate colleagues and I recognize the budgetary strains caused by the mounting expenditures of our limited resources--and the potential future costs--of responding to the multiple and varied threats of terrorism. Our State, county, and local agencies are struggling to fund the prevention and mitigation of every imaginable attack on our citizens and our critical infrastructure. Further, providing multi-million dollar allocations at the Federal level to prevent or mitigate all perceived threats to homeland security, or to respond to each terrorism incident, could in itself bankrupt our national economy.

   The best management decisions at all levels of Government and industry on allocating scarce resources to the war on terrorism need an effective analytical approach to help understand the risks and to help improve the strategic and operational decisions to address those risks. Most current approaches to analyzing the ``terrorist threat'' are limited to addressing the vulnerability of--or what will happen to--critical infrastructure if it is attacked. These ``vulnerability analyses'' generally produce long lists of security-related deficiencies and equally long checklists of expensive things to do to correct the deficiencies, but they do not help communities appropriately allocate scarce resources, people, time, and money, in the context of an organization's strategic-level goals and objectives. A more robust approach is needed to support decision-making, one that can enable Government officials and private company executives to characterize the risks of rare, high-consequence events; to identify those that pose the greatest threats; and to best evaluate mitigation alternatives.

   Mr. GRAHAM. Would Senator Crapo yield a minute of his time?

   Mr. CRAPO. Yes. Mr. DASCHLE. Mr. President, I will have more to say about our departing colleagues tomorrow, but let me share as well my admiration for our colleague Senator Gramm. He is a hardened legislative adversary, but I have a great deal of respect for his ability and the manner with which he conducts himself on the floor. I have fond memories of the many years we have served together.

   I recall so vividly our first days together riding a bus as freshmen Congressman in 1979. So we wish him well. As I said, I will have much more to say about him and about our colleagues tomorrow.

   I wanted to come to the floor simply to express what I have said on several occasions. It is with some misgivings that I will cast my vote tonight in favor of the creation of this Department. I do so, fearful we have not done the kind of work on this legislation I wish we could have. I do so even though language has been inserted in the bill I think we are going to regret, but I do so recognizing we have to start rebuilding our infrastructure, reorganizing our Government, recognizing

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   This bill still needs work. This Department needs work. But as much work as it needs, not to have done anything in recognition of the tremendous challenges we face as a country is something I could not accept either. So I will support it, recognizing as well that it is critical for us to provide the funding--and there is no funding. In fact, if I have any regret about what we are doing tonight, it is that we are not passing the requisite resources needed to get started in an earnest and successful way. We are going to have to wait until next year. The more we wait, the harder it will be. The more we wait, the more complicated our mission. The more we wait, the more underfunded will be our effort in so many other ways.

   I regret we are not willing to commit the resources that match the infrastructure we will be authorizing tonight.

   Finally, let me say there are many people who deserve recognition and thanks. I acknowledge especially the leadership of Senator JOE LIEBERMAN, the chair of the Governmental Affairs Committee. He and others on the committee have done an outstanding job getting us to this point, whether or not you agree with all of the components of the bill. I congratulate Senator Thompson as the ranking member. They worked oftentimes together, and where they could not work together, they worked in a way that was not disagreeable.

   I thank the whole Governmental Affairs Committee for the work they did in getting us to this point over the many months they have been involved.

   Let me say I also thank Senator Byrd. He and I may come down on different sides tonight, but he has done the Senate and the country a real service. I have admired him for many reasons for many years.

   But his powerful advocacy of his position, the extraordinary effort he has made to enlighten us, to educate us, to sensitize us, and to ensure that we are fully aware of all of the concerns he has about the creation of this Department is something for which we all ought to express our deep indebtedness to him. I thank him for what he has done in adding to the debate, acknowledging as he has the inevitability of our consideration and ultimately the passage of this legislation tonight. There are many others, including Senator HARRY REID, our extraordinary deputy Democratic leader, all the work he has done to allow this opportunity to complete our work tonight.

   As I said, we will be in session tomorrow and we will have much more to say about many of these issues, reflecting back, but I close simply by thanking our colleagues for the work they have done. I hope we can complete our work and pass this legislation tonight.

   I also ask, following the first vote, all subsequent votes be limited to 10 minutes.

   The PRESIDING OFFICER. Without objection, it is so ordered.

   Mr. DASCHLE. I yield the floor.

   The PRESIDING OFFICER. The Senator from Texas.

   Mr. GRAMM. Mr. President, it is my understanding we have 2 minutes remaining.

   The PRESIDING OFFICER. Two minutes.

   Mr. GRAMM. I could hardly say what I feel in my heart in 2 minutes. Too often, as people leave the Senate, they talk about things they are unhappy about. I want people to know I am not discouraged; I am not disillusioned; I am not disappointed. I am proud and I am honored. I am proud to have had an opportunity to serve the greatest country in the history of the world. I am proud to have served with extraordinary men and women. I think we are so close to them and what they have done here that it is hard to put it all in perspective. But someday when I am sitting in a nursing home talking to my grandchildren, I think I will have that perspective right and there will be names such as Senator Byrd, Senator Domenici, and others that will flow from my lips as men I was honored to know and to love.

   I thank the people of Texas for giving me an opportunity to serve. I conclude by reading a remark by, of all people, Aaron Burr. Senator Byrd is familiar with it. It is wonderful and I want to conclude by reading it. Aaron Burr was leaving the Senate, and he concluded with these remarks:

   ..... this house is a sanctuary and a citadel of law, of order, of liberty--and it is here--it is here--in this exalted--refuge, here, if anywhere will resistance be made to the storms of popular phrenzy and the silent arts of corruption:--And if the Constitution be destined ever to perish by the sacrilegious hands of the demagogue of the Usurper, which God avert, its expiring agonies will be witnessed on this floor.

   I am honored to have served here. I am honored to have served with those who will be sure, in their efforts, in their work, that the Constitution never expires.

   I yield the floor.

   The PRESIDING OFFICER. All time has expired. The question is on the engrossment of the amendments and third reading of the bill.

   The amendments were ordered to be engrossed and the bill to be read a third time.

   The bill was read a third time.

   Mr. GRAMM. I ask for the yeas and nays.

   The PRESIDING OFFICER. Is there a sufficient second?

   There is a sufficient second.

   The bill having been read the third time, the question is, Shall the bill pass?

   The clerk will call the roll.

   The assistant legislative clerk called the roll.

   Mr. NICKLES. I announce that the Senator from Alaska (Mr. MURKOWSKI) is necessarily absent.

   The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote?

   The result was announced--yeas 90, nays 9, as follows:

   [Rollcall Vote No. 249 Leg.]

   Allard

   Allen

   Barkley

   Baucus

   Bayh

   Bennett

   Biden

   Bingaman

   Bond

   Boxer

   Breaux

   Brownback

   Bunning

   Burns

   Campbell

   Cantwell

   Carnahan

   Carper

   Chafee

   Cleland

   Clinton

   Cochran

   Collins

   Conrad

   Corzine

   Craig

   Crapo

   Daschle

   Dayton

   DeWine

   Dodd

   Domenici

   Dorgan

   Durbin

   Edwards

   Ensign

   Enzi

   Feinstein

   Fitzgerald

   Frist

   Graham

   Gramm

   Grassley

   Gregg

   Hagel

   Harkin

   Hatch

   Helms

   Hutchinson

   Hutchison

   Inhofe

   Johnson

   Kerry

   Kohl

   Kyl

   Landrieu

   Leahy

   Lieberman

   Lincoln

   Lott

   Lugar

   McCain

   McConnell

   Mikulski

   Miller

   Murray

   Nelson (FL)

   Nelson (NE)

   Nickles

   Reed

   Reid

   Roberts

   Rockefeller

   Santorum

   Schumer

   Sessions

   Shelby

   Smith (NH)

   Smith (OR)

   Snowe

   Specter

   Stabenow

   Stevens

   Thomas

   Thompson

   Thurmond

   Torricelli

   Voinovich

   Warner

   Wyden

   Akaka

   Byrd

   Feingold

   Hollings

   Inouye

   Jeffords

   Kennedy

   Levin

   Sarbanes

   Murkowski

5C) Department of Homeland Security
The bill (H.R. 5005), as amended, was passed, as follows:

   Resolved, That the bill from the House of Representatives (H.R. 5005) entitled ``An Act to establish the Department of Homeland Security, and for other purposes.'', do pass with the following amendment:

   Strike out all after the enacting clause and insert:

   SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE.--This Act may be cited as the ``Homeland Security Act of 2002''.

    (b) TABLE OF CONTENTS.--The table of contents for this Act is as follows:

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

   Sec..2..Definitions.

   Sec..3..Construction; severability.

   Sec..4..Effective date.

   TITLE I--DEPARTMENT OF HOMELAND SECURITY

   Sec..101..Executive department; mission.

   Sec..102..Secretary; functions.

   Sec..103..Other officers.

   TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

   Subtitle A--Directorate for Information Analysis and Infrastructure Protection; Access to Information

   Sec..201..Directorate for Information Analysis and Infrastructure Protection.

   Sec..202..Access to information.

   Subtitle B--Critical Infrastructure Information

   Sec..211..Short title.

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   Sec..212..Definitions.

   Sec..213..Designation of critical infrastructure protection program.

   Sec..214..Protection of voluntarily shared critical infrastructure information.

   Sec..215..No private right of action.

   Subtitle C--Information Security

   Sec..221..Procedures for sharing information.

   Sec..222..Privacy Officer.

   Sec..223..Enhancement of non-Federal cybersecurity.

   Sec..224..Net guard.

   Sec..225..Cyber Security Enhancement Act of 2002.

   Subtitle D--Office of Science and Technology

   Sec..231..Establishment of office; Director.

   Sec..232..Mission of office; duties.

   Sec..233..Definition of law enforcement technology.

   Sec..234..Abolishment of Office of Science and Technology of National Institute of Justice; transfer of functions.

   Sec..235..National Law Enforcement and Corrections Technology Centers.

   Sec..236..Coordination with other entities within Department of Justice.

   Sec..237..Amendments relating to National Institute of Justice.

   TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

   Sec..301..Under Secretary for Science and Technology.

   Sec..302..Responsibilities and authorities of the Under Secretary for Science and Technology.

   Sec..303..Functions transferred.

   Sec..304..Conduct of certain public health-related activities.

   Sec..305..Federally funded research and development centers.

   Sec..306..Miscellaneous provisions.

   Sec..307..Homeland Security Advanced Research Projects Agency.

   Sec..308..Conduct of research, development, demonstration, testing and evaluation.

   Sec..309..Utilization of Department of Energy national laboratories and sites in support of homeland security activities.

   Sec..310..Transfer of Plum Island Animal Disease Center, Department of Agriculture.

   Sec..311..Homeland Security Science and Technology Advisory Committee.

   Sec..312..Homeland Security Institute.

   Sec..313..Technology clearinghouse to encourage and support innovative solutions to enhance homeland security.

   TITLE IV--DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

   Subtitle A--Under Secretary for Border and Transportation Security

   Sec..401..Under Secretary for Border and Transportation Security.

   Sec..402..Responsibilities.

   Sec..403..Functions transferred.

   Subtitle B--United States Customs Service

   Sec..411..Establishment; Commissioner of Customs.

   Sec..412..Retention of customs revenue functions by Secretary of the Treasury.

   Sec..413..Preservation of customs funds.

   Sec..414..Separate budget request for customs.

   Sec..415..Definition.

   Sec..416..GAO report to Congress.

   Sec..417..Allocation of resources by the Secretary.

   Sec..418..Reports to Congress.

   Sec..419..Customs user fees.

   Subtitle C--Miscellaneous Provisions

   Sec..421..Transfer of certain agricultural inspection functions of the Department of Agriculture.

   Sec..422..Functions of Administrator of General Services.

   Sec..423..Functions of Transportation Security Administration.

   Sec..424..Preservation of Transportation Security Administration as a distinct entity.

   Sec..425..Explosive detection systems.

   Sec..426..Transportation security.

   Sec..427..Coordination of information and information technology.

   Sec..428..Visa issuance.

   Sec..429..Information on visa denials required to be entered into electronic data system.

   Sec..430..Office for Domestic Preparedness.

   Subtitle D--Immigration Enforcement Functions

   Sec..441..Transfer of functions to Under Secretary for Border and Transportation Security.

   Sec..442..Establishment of Bureau of Border Security.

   Sec..443..Professional responsibility and quality review.

   Sec..444..Employee discipline.

   Sec..445..Report on improving enforcement functions.

   Sec..446..Sense of Congress regarding construction of fencing near San Diego, California.

   Subtitle E--Citizenship and Immigration Services

   Sec..451..Establishment of Bureau of Citizenship and Immigration Services.

   Sec..452..Citizenship and Immigration Services Ombudsman.

   Sec..453..Professional responsibility and quality review.

   Sec..454..Employee discipline.

   Sec..455..Effective date.

   Sec..456..Transition.

   Sec..457..Funding for citizenship and immigration services.

   Sec..458..Backlog elimination.

   Sec..459..Report on improving immigration services.

   Sec..460..Report on responding to fluctuating needs.

   Sec..461..Application of Internet-based technologies.

   Sec..462..Children's affairs.

   Subtitle F--General Immigration Provisions

   Sec..471..Abolishment of INS.

   Sec..472..Voluntary separation incentive payments.

   Sec..473..Authority to conduct a demonstration project relating to disciplinary action.

   Sec..474..Sense of Congress.

   Sec..475..Director of Shared Services.

   Sec..476..Separation of funding.

   Sec..477..Reports and implementation plans.

   Sec..478..Immigration functions.

   TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

   Sec..501..Under Secretary for Emergency Preparedness and Response.

   Sec..502..Responsibilities.

   Sec..503..Functions transferred.

   Sec..504..Nuclear incident response.

   Sec..505..Conduct of certain public health-related activities.

   Sec..506..Definition.

   Sec..507..Role of Federal Emergency Management Agency.

   Sec..508..Use of national private sector networks in emergency response.

   Sec..509..Use of commercially available technology, goods, and services.

   TITLE VI--TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS

   Sec..601..Treatment of charitable trusts for members of the Armed Forces of the United States and other governmental organizations.

   TITLE VII--MANAGEMENT

   Sec..701..Under Secretary for Management.

   Sec..702..Chief Financial Officer.

   Sec..703..Chief Information Officer.

   Sec..704..Chief Human Capital Officer.

   Sec..705..Establishment of Officer for Civil Rights and Civil Liberties.

   Sec..706..Consolidation and co-location of offices.

   TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

   Subtitle A--Coordination with Non-Federal Entities

   Sec..801..Office for State and Local Government Coordination.

   Subtitle B--Inspector General

   Sec..811..Authority of the Secretary.

   Sec..812..Law enforcement powers of Inspector General agents.

   Subtitle C--United States Secret Service

   Sec..821..Functions transferred.

   Subtitle D--Acquisitions

   Sec..831..Research and development projects.

   Sec..832..Personal services.

   Sec..833..Special streamlined acquisition authority.

   Sec..834..Unsolicited proposals.

   Sec..835..Prohibition on contracts with corporate expatriates.

   Subtitle E--Human Resources Management

   Sec..841..Establishment of Human Resources Management System.

   Sec..842..Labor-management relations.

   Subtitle F--Federal Emergency Procurement Flexibility

   Sec..851..Definition.

   Sec..852..Procurements for defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack.

   Sec..853..Increased simplified acquisition threshold for procurements in support of humanitarian or peacekeeping operations or contingency operations.

   Sec..854..Increased micro-purchase threshold for certain procurements.

   Sec..855..Application of certain commercial items authorities to certain procurements.

   Sec..856..Use of streamlined procedures.

   Sec..857..Review and report by Comptroller General.

   Sec..858..Identification of new entrants into the Federal marketplace.

   Subtitle G--Support Anti-terrorism by Fostering Effective Technologies Act of 2002

   Sec..861..Short title.

   Sec..862..Administration.

   Sec..863..Litigation management.

   Sec..864..Risk management.

   Sec..865..Definitions.

   Subtitle H--Miscellaneous Provisions

   Sec..871..Advisory committees.

   Sec..872..Reorganization.

   Sec..873..Use of appropriated funds.

   Sec..874..Future Year Homeland Security Program.

   Sec..875..Miscellaneous authorities.

   Sec..876..Military activities.

   Sec..877..Regulatory authority and preemption.

   Sec..878..Counternarcotics officer.

   Sec..879..Office of International Affairs.

   Sec..880..Prohibition of the Terrorism Information and Prevention System.

   Sec..881..Review of pay and benefit plans.

   Sec..882..Office for National Capital Region Coordination.

   Sec..883..Requirement to comply with laws protecting equal employment opportunity and providing whistleblower protections.

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   Sec..884..Federal Law Enforcement Training Center.

   Sec..885..Joint Interagency Task Force.

   Sec..886..Sense of Congress reaffirming the continued importance and applicability of the Posse Comitatus Act.

   Sec..887..Coordination with the Department of Health and Human Services under the Public Health Service Act.

   Sec..888..Preserving Coast Guard mission performance.

   Sec..889..Homeland security funding analysis in President's budget.

   Sec..890..Air Transportation Safety and System Stabilization Act.

   Subtitle I--Information Sharing

   Sec..891..Short title; findings; and sense of Congress.

   Sec..892..Facilitating homeland security information sharing procedures.

   Sec..893..Report.

   Sec..894..Authorization of appropriations.

   Sec..895..Authority to share grand jury information.

   Sec..896..Authority to share electronic, wire, and oral interception information.

   Sec..897..Foreign intelligence information.

   Sec..898..Information acquired from an electronic surveillance.

   Sec..899..Information acquired from a physical search.

   TITLE IX--NATIONAL HOMELAND SECURITY COUNCIL

   Sec..901..National Homeland Security Council.

   Sec..902..Function.

   Sec..903..Membership.

   Sec..904..Other functions and activities.

   Sec..905..Staff composition.

   Sec..906..Relation to the National Security Council.

   TITLE X--INFORMATION SECURITY

   Sec..1001..Information security.

   Sec..1002..Management of information technology.

   Sec..1003..National Institute of Standards and Technology.

   Sec..1004..Information Security and Privacy Advisory Board.

   Sec..1005..Technical and conforming amendments.

   Sec..1006..Construction.

   TITLE XI--DEPARTMENT OF JUSTICE DIVISIONS

   Subtitle A--Executive Office for Immigration Review

   Sec..1101..Legal status of EOIR.

   Sec..1102..Authorities of the Attorney General.

   Sec..1103..Statutory construction.

   Subtitle B--Transfer of the Bureau of Alcohol, Tobacco and Firearms to the Department of Justice

   Sec..1111..Bureau of Alcohol, Tobacco, Firearms, and Explosives.

   Sec..1112..Technical and conforming amendments.

   Sec..1113..Powers of agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

   Sec..1114..Explosives training and research facility.

   Sec..1115..Personnel management demonstration project.

   Subtitle C--Explosives

   Sec..1121..Short title.

   Sec..1122..Permits for purchasers of explosives.

   Sec..1123..Persons prohibited from receiving or possessing explosive materials.

   Sec..1124..Requirement to provide samples of explosive materials and ammonium nitrate.

   Sec..1125..Destruction of property of institutions receiving Federal financial assistance.

   Sec..1126..Relief from disabilities.

   Sec..1127..Theft reporting requirement.

   Sec..1128..Authorization of appropriations.

   TITLE XII--AIRLINE WAR RISK INSURANCE LEGISLATION

   Sec..1201..Air carrier liability for third party claims arising out of acts of terrorism.

   Sec..1202..Extension of insurance policies.

   Sec..1203..Correction of reference.

   Sec..1204..Report.

   TITLE XIII--FEDERAL WORKFORCE IMPROVEMENT

   Subtitle A--Chief Human Capital Officers

   Sec..1301..Short title.

   Sec..1302..Agency Chief Human Capital Officers.

   Sec..1303..Chief Human Capital Officers Council.

   Sec..1304..Strategic human capital management.

   Sec..1305..Effective date.

   Subtitle B--Reforms Relating to Federal Human Capital Management

   Sec..1311..Inclusion of agency human capital strategic planning in performance plans and programs performance reports.

   Sec..1312..Reform of the competitive service hiring process.

   Sec..1313..Permanent extension, revision, and expansion of authorities for use of voluntary separation incentive pay and voluntary early retirement.

   Sec..1314..Student volunteer transit subsidy.

   Subtitle C--Reforms Relating to the Senior Executive Service

   Sec..1321..Repeal of recertification requirements of senior executives.

   Sec..1322..Adjustment of limitation on total annual compensation.

   Subtitle D--Academic Training

   Sec..1331..Academic training.

   Sec..1332..Modifications to National Security Education Program.

   TITLE XIV--ARMING PILOTS AGAINST TERRORISM

   Sec..1401..Short title.

   Sec..1402..Federal Flight Deck Officer Program.

   Sec..1403..Crew training.

   Sec..1404..Commercial airline security study.

   Sec..1405..Authority to arm flight deck crew with less-than-lethal weapons.

   Sec..1406..Technical amendments.

   TITLE XV--TRANSITION

   Subtitle A--Reorganization Plan

   Sec..1501..Definitions.

   Sec..1502..Reorganization plan.

   Sec..1503..Review of congressional committee structures.

   Subtitle B--Transitional Provisions

   Sec..1511..Transitional authorities.

   Sec..1512..Savings provisions.

   Sec..1513..Terminations.

   Sec..1514..National identification system not authorized.

   Sec..1515..Continuity of Inspector General oversight.

   Sec..1516..Incidental transfers.

   Sec..1517..Reference.

   TITLE XVI--CORRECTIONS TO EXISTING LAW RELATING TO AIRLINE TRANSPORTATION SECURITY

   Sec..1601..Retention of security sensitive information authority at Department of Transportation.

   Sec..1602..Increase in civil penalties.

   Sec..1603..Allowing United States citizens and United States nationals as screeners.

   TITLE XVII--CONFORMING AND TECHNICAL AMENDMENTS

   Sec..1701..Inspector General Act of 1978.

   Sec..1702..Executive Schedule.

   Sec..1703..United States Secret Service.

   Sec..1704..Coast Guard.

   Sec..1705..Strategic national stockpile and smallpox vaccine development.

   Sec..1706..Transfer of certain security and law enforcement functions and authorities.

   Sec..1707..Transportation security regulations.

   Sec..1708..National Bio-Weapons Defense Analysis Center.

   Sec..1709..Collaboration with the Secretary of Homeland Security.

   Sec..1710..Railroad safety to include railroad security.

   Sec..1711..Hazmat safety to include hazmat security.

   Sec..1712..Office of Science and Technology Policy.

   Sec..1713..National Oceanographic Partnership Program.

   Sec..1714..Clarification of definition of manufacturer.

   Sec..1715..Clarification of definition of vaccine-related injury or death.

   Sec..1716..Clarification of definition of vaccine.

   Sec..1717..Effective date.

   SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:

    (1) Each of the terms ``American homeland'' and ``homeland'' means the United States.

    (2) The term ``appropriate congressional committee'' means any committee of the House of Representatives or the Senate having legislative or oversight jurisdiction under the Rules of the House of Representatives or the Senate, respectively, over the matter concerned.

    (3) The term ``assets'' includes contracts, facilities, property, records, unobligated or unexpended balances of appropriations, and other funds or resources (other than personnel).

    (4) The term ``critical infrastructure'' has the meaning given that term in section 1016(e) of Public Law 107-56 (42 U.S.C. 5195c(e)).

    (5) The term ``Department'' means the Department of Homeland Security.

    (6) The term ``emergency response providers'' includes Federal, State, and local emergency public safety, law enforcement, emergency response, emergency medical (including hospital emergency facilities), and related personnel, agencies, and authorities.

    (7) The term ``executive agency'' means an executive agency and a military department, as defined, respectively, in sections 105 and 102 of title 5, United States Code.

    (8) The term ``functions'' includes authorities, powers, rights, privileges, immunities, programs, projects, activities, duties, and responsibilities.

    (9) The term ``key resources'' means publicly or privately controlled resources essential to the minimal operations of the economy and government.

    (10) The term ``local government'' means--

    (A) a county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments (regardless of whether the council of governments is incorporated as a nonprofit corporation under State law), regional or interstate government entity, or agency or instrumentality of a local government;

    (B) an Indian tribe or authorized tribal organization, or in Alaska a Native village or Alaska Regional Native Corporation; and

    (C) a rural community, unincorporated town or village, or other public entity.

    (11) The term ``major disaster'' has the meaning given in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122).

    (12) The term ``personnel'' means officers and employees.

    (13) The term ``Secretary'' means the Secretary of Homeland Security.

    (14) The term ``State'' means any State of the United States, the District of Columbia, the

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    (15) The term ``terrorism'' means any activity that--

    (A) involves an act that--

    (i) is dangerous to human life or potentially destructive of critical infrastructure or key resources; and

    (ii) is a violation of the criminal laws of the United States or of any State or other subdivision of the United States; and

    (B) appears to be intended--

    (i) to intimidate or coerce a civilian population;

    (ii) to influence the policy of a government by intimidation or coercion; or

    (iii) to affect the conduct of a government by mass destruction, assassination, or kidnapping.

    (16)(A) The term ``United States'', when used in a geographic sense, means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, any possession of the United States, and any waters within the jurisdiction of the United States.

    (B) Nothing in this paragraph or any other provision of this Act shall be construed to modify the definition of ``United States'' for the purposes of the Immigration and Nationality Act or any other immigration or nationality law.

   SEC. 3. CONSTRUCTION; SEVERABILITY.

    Any provision of this Act held to be invalid or unenforceable by its terms, or as applied to any person or circumstance, shall be construed so as to give it the maximum effect permitted by law, unless such holding shall be one of utter invalidity or unenforceability, in which event such provision shall be deemed severable from this Act and shall not affect the remainder thereof, or the application of such provision to other persons not similarly situated or to other, dissimilar circumstances.

   SEC. 4. EFFECTIVE DATE.

    This Act shall take effect 60 days after the date of enactment.

   SEC. 101. EXECUTIVE DEPARTMENT; MISSION.

    (a) ESTABLISHMENT.--There is established a Department of Homeland Security, as an executive department of the United States within the meaning of title 5, United States Code.

    (b) MISSION.--

    (1) IN GENERAL.--The primary mission of the Department is to--

    (A) prevent terrorist attacks within the United States;

    (B) reduce the vulnerability of the United States to terrorism;

    (C) minimize the damage, and assist in the recovery, from terrorist attacks that do occur within the United States;

    (D) carry out all functions of entities transferred to the Department, including by acting as a focal point regarding natural and manmade crises and emergency planning;

    (E) ensure that the functions of the agencies and subdivisions within the Department that are not related directly to securing the homeland are not diminished or neglected except by a specific explicit Act of Congress;

    (F) ensure that the overall economic security of the United States is not diminished by efforts, activities, and programs aimed at securing the homeland; and

    (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.

    (2) RESPONSIBILITY FOR INVESTIGATING AND PROSECUTING TERRORISM.--Except as specifically provided by law with respect to entities transferred to the Department under this Act, primary responsibility for investigating and prosecuting acts of terrorism shall be vested not in the Department, but rather in Federal, State, and local law enforcement agencies with jurisdiction over the acts in question.

   SEC. 102. SECRETARY; FUNCTIONS.

    (a) SECRETARY.--

    (1) IN GENERAL.--There is a Secretary of Homeland Security, appointed by the President, by and with the advice and consent of the Senate.

    (2) HEAD OF DEPARTMENT.--The Secretary is the head of the Department and shall have direction, authority, and control over it.

    (3) FUNCTIONS VESTED IN SECRETARY.--All functions of all officers, employees, and organizational units of the Department are vested in the Secretary.

    (b) FUNCTIONS.--The Secretary--

    (1) except as otherwise provided by this Act, may delegate any of the Secretary's functions to any officer, employee, or organizational unit of the Department;

    (2) shall have the authority to make contracts, grants, and cooperative agreements, and to enter into agreements with other executive agencies, as may be necessary and proper to carry out the Secretary's responsibilities under this Act or otherwise provided by law; and

    (3) shall take reasonable steps to ensure that information systems and databases of the Department are compatible with each other and with appropriate databases of other Departments.

    (c) COORDINATION WITH NON-FEDERAL ENTITIES.--With respect to homeland security, the Secretary shall coordinate through the Office of State and Local Coordination (established under section 801) (including the provision of training and equipment) with State and local government personnel, agencies, and authorities, with the private sector, and with other entities, including by--

    (1) coordinating with State and local government personnel, agencies, and authorities, and with the private sector, to ensure adequate planning, equipment, training, and exercise activities;

    (2) coordinating and, as appropriate, consolidating, the Federal Government's communications and systems of communications relating to homeland security with State and local government personnel, agencies, and authorities, the private sector, other entities, and the public; and

    (3) distributing or, as appropriate, coordinating the distribution of, warnings and information to State and local government personnel, agencies, and authorities and to the public.

    (d) MEETINGS OF NATIONAL SECURITY COUNCIL.--The Secretary may, subject to the direction of the President, attend and participate in meetings of the National Security Council.

    (e) ISSUANCE OF REGULATIONS.--The issuance of regulations by the Secretary shall be governed by the provisions of chapter 5 of title 5, United States Code, except as specifically provided in this Act, in laws granting regulatory authorities that are transferred by this Act, and in laws enacted after the date of enactment of this Act.

    (f) SPECIAL ASSISTANT TO THE SECRETARY.--The Secretary shall appoint a Special Assistant to the Secretary who shall be responsible for--

    (1) creating and fostering strategic communications with the private sector to enhance the primary mission of the Department to protect the American homeland;

    (2) advising the Secretary on the impact of the Department's policies, regulations, processes, and actions on the private sector;

    (3) interfacing with other relevant Federal agencies with homeland security missions to assess the impact of these agencies' actions on the private sector;

    (4) creating and managing private sector advisory councils composed of representatives of industries and associations designated by the Secretary to--

    (A) advise the Secretary on private sector products, applications, and solutions as they relate to homeland security challenges; and

    (B) advise the Secretary on homeland security policies, regulations, processes, and actions that affect the participating industries and associations;

    (5) working with Federal laboratories, Federally funded research and development centers, other Federally funded organizations, academia, and the private sector to develop innovative approaches to address homeland security challenges to produce and deploy the best available technologies for homeland security missions;

    (6) promoting existing public-private partnerships and developing new public-private partnerships to provide for collaboration and mutual support to address homeland security challenges; and

    (7) assisting in the development and promotion of private sector best practices to secure critical infrastructure.

    (g) STANDARDS POLICY.--All standards activities of the Department shall be conducted in accordance with section 12(d) of the National Technology Transfer Advancement Act of 1995 (15 U.S.C. 272 note) and Office of Management and Budget Circular A-119.

   SEC. 103. OTHER OFFICERS.

    (a) DEPUTY SECRETARY; 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, United States Code.

    (2) An Under Secretary for Information Analysis and Infrastructure Protection.

    (3) An Under Secretary for Science and Technology.

    (4) An Under Secretary for Border and Transportation Security.

    (5) An Under Secretary for Emergency Preparedness and Response.

    (6) A Director of the Bureau of Citizenship and Immigration Services.

    (7) An Under Secretary for Management.

    (8) Not more than 12 Assistant Secretaries.

    (9) A General Counsel, who shall be the chief legal officer of the department.

    (b) INSPECTOR GENERAL.--There is an Inspector General, who shall be appointed as provided in section 3(a) of the Inspector General Act of 1978.

    (c) COMMANDANT OF THE COAST GUARD.--To assist the Secretary in the performance of the Secretary's functions, there is a Commandant of the Coast Guard, who shall be appointed as provided in section 44 of title 14, United States Code, and who shall report directly to the Secretary. In addition to such duties as may be provided in this Act and as assigned to the Commandant by the Secretary, the duties of the Commandant shall include those required by section 2 of title 14, United States Code.

    (d) OTHER OFFICERS.--To assist the Secretary in the performance of the Secretary's functions, there are the following officers, appointed by the President:

    (1) A Director of the Secret Service.

    (2) A Chief Information Officer.

    (3) A Chief Human Capital Officer.

    (4) A Chief Financial Officer.

    (5) An Officer for Civil Rights and Civil Liberties.

    (e) PERFORMANCE OF SPECIFIC FUNCTIONS.--Subject to the provisions of this Act, every officer of the Department shall perform the functions specified by law for the official's office or prescribed by the Secretary.

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   SEC. 201. DIRECTORATE FOR INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION.

    (a) UNDER SECRETARY OF HOMELAND SECURITY FOR INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION.--

    (1) IN GENERAL.--There shall be in the Department a Directorate for Information Analysis and Infrastructure Protection headed by an Under Secretary for Information Analysis and Infrastructure Protection, who shall be appointed by the President, by and with the advice and consent of the Senate.

    (2) RESPONSIBILITIES.--The Under Secretary shall assist the Secretary in discharging the responsibilities assigned by the Secretary.

    (b) ASSISTANT SECRETARY FOR INFORMATION ANALYSIS; ASSISTANT SECRETARY FOR INFRASTRUCTURE PROTECTION.--

    (1) ASSISTANT SECRETARY FOR INFORMATION ANALYSIS.--There shall be in the Department an Assistant Secretary for Information Analysis, who shall be appointed by the President.

    (2) ASSISTANT SECRETARY FOR INFRASTRUCTURE PROTECTION.--There shall be in the Department an Assistant Secretary for Infrastructure Protection, who shall be appointed by the President.

    (3) RESPONSIBILITIES.--The Assistant Secretary for Information Analysis and the Assistant Secretary for Infrastructure Protection shall assist the Under Secretary for Information Analysis and Infrastructure Protection in discharging the responsibilities of the Under Secretary under this section.

    (c) DISCHARGE OF INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION.--The Secretary shall ensure that the responsibilities of the Department regarding information analysis and infrastructure protection are carried out through the Under Secretary for Information Analysis and Infrastructure Protection.

    (d) RESPONSIBILITIES OF UNDER SECRETARY.--Subject to the direction and control of the Secretary, the responsibilities of the Under Secretary for Information Analysis and Infrastructure Protection shall be as follows:

    (1) To access, receive, and analyze law enforcement information, intelligence information, and other information from agencies of the Federal Government, State and local government agencies (including law enforcement agencies), and private sector entities, and to integrate such information in order to--

    (A) identify and assess the nature and scope of terrorist threats to the homeland;

    (B) detect and identify threats of terrorism against the United States; and

    (C) understand such threats in light of actual and potential vulnerabilities of the homeland.

    (2) To carry out comprehensive assessments of the vulnerabilities of the key resources and critical infrastructure of the United States, including the performance of risk assessments to determine the risks posed by particular types of terrorist attacks within the United States (including an assessment of the probability of success of such attacks and the feasibility and potential efficacy of various countermeasures to such attacks).

    (3) To integrate relevant information, analyses, and vulnerability assessments (whether such information, analyses, or assessments are provided or produced by the Department or others) in order to identify priorities for protective and support measures by the Department, other agencies of the Federal Government, State and local government agencies and authorities, the private sector, and other entities.

    (4) To ensure, pursuant to section 202, the timely and efficient access by the Department to all information necessary to discharge the responsibilities under this section, including obtaining such information from other agencies of the Federal Government.

    (5) To develop a comprehensive national plan for securing the key resources and critical infrastructure of the United States, including 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.

    (6) To recommend measures necessary to protect the key resources and critical infrastructure of the United States in coordination with other agencies of the Federal Government and in cooperation with State and local government agencies and authorities, the private sector, and other entities.

    (7) To administer the Homeland Security Advisory System, including--

    (A) exercising primary responsibility for public advisories related to threats to homeland security; and

    (B) in coordination with other agencies of the Federal Government, providing specific warning information, and advice about appropriate protective measures and countermeasures, to State and local government agencies and authorities, the private sector, other entities, and the public.

    (8) To review, analyze, and make recommendations for improvements in the policies and procedures governing the sharing of law enforcement information, intelligence information, intelligence-related information, and other information relating to homeland security within the Federal Government and between the Federal Government and State and local government agencies and authorities.

    (9) To disseminate, as appropriate, information analyzed by the Department within the Department, to other agencies of the Federal Government with responsibilities relating to homeland security, and to agencies of State and local governments and private sector entities with such responsibilities in order to assist in the deterrence, prevention, preemption of, or response to, terrorist attacks against the United States.

    (10) To consult with the Director of Central Intelligence and other appropriate intelligence, law enforcement, or other elements of the Federal Government to establish collection priorities and strategies for information, including law enforcement-related information, relating to threats of terrorism against the United States through such means as the representation of the Department in discussions regarding requirements and priorities in the collection of such information.

    (11) To consult with State and local governments and private sector entities to ensure appropriate exchanges of information, including law enforcement-related information, relating to threats of terrorism against the United States.

    (12) To ensure that--

    (A) any material received pursuant to this Act is protected from unauthorized disclosure and handled and used only for the performance of official duties; and

    (B) any intelligence information under this Act is shared, retained, and disseminated consistent with the authority of the Director of Central Intelligence to protect intelligence sources and methods under the National Security Act of 1947 (50 U.S.C. 401 et seq.) and related procedures and, as appropriate, similar authorities of the Attorney General concerning sensitive law enforcement information.

    (13) To request additional information from other agencies of the Federal Government, State and local government agencies, and the private sector relating to threats of terrorism in the United States, or relating to other areas of responsibility assigned by the Secretary, including the entry into cooperative agreements through the Secretary to obtain such information.

    (14) To establish and utilize, in conjunction with the chief information officer of the Department, a secure communications and information technology infrastructure, including data-mining and other advanced analytical tools, in order to access, receive, and analyze data and information in furtherance of the responsibilities under this section, and to disseminate information acquired and analyzed by the Department, as appropriate.

    (15) To ensure, in conjunction with the chief information officer of the Department, that any information databases and analytical tools developed or utilized by the Department--

    (A) are compatible with one another and with relevant information databases of other agencies of the Federal Government; and

    (B) treat information in such databases in a manner that complies with applicable Federal law on privacy.

    (16) To coordinate training and other support to the elements and personnel of the Department, other agencies of the Federal Government, and State and local governments that provide information to the Department, or are consumers of information provided by the Department, in order to facilitate the identification and sharing of information revealed in their ordinary duties and the optimal utilization of information received from the Department.

    (17) To coordinate with elements of the intelligence community and with Federal, State, and local law enforcement agencies, and the private sector, as appropriate.

    (18) To provide intelligence and information analysis and support to other elements of the Department.

    (19) To perform such other duties relating to such responsibilities as the Secretary may provide.

    (e) STAFF.--

    (1) IN GENERAL.--The Secretary shall provide the Directorate with a staff of analysts having appropriate expertise and experience to assist the Directorate in discharging responsibilities under this section.

    (2) PRIVATE SECTOR ANALYSTS.--Analysts under this subsection may include analysts from the private sector.

    (3) SECURITY CLEARANCES.--Analysts under this subsection shall possess security clearances appropriate for their work under this section.

    (f) DETAIL OF PERSONNEL.--

    (1) IN GENERAL.--In order to assist the Directorate in discharging responsibilities under this section, personnel of the agencies referred to in paragraph (2) may be detailed to the Department for the performance of analytic functions and related duties.

    (2) COVERED AGENCIES.--The agencies referred to in this paragraph are as follows:

    (A) The Department of State.

    (B) The Central Intelligence Agency.

    (C) The Federal Bureau of Investigation.

    (D) The National Security Agency.

    (E) The National Imagery and Mapping Agency.

    (F) The Defense Intelligence Agency.

    (G) Any other agency of the Federal Government that the President considers appropriate.

    (3) COOPERATIVE AGREEMENTS.--The Secretary and the head of the agency concerned may enter into cooperative agreements for the purpose of detailing personnel under this subsection.

    (4) BASIS.--The detail of personnel under this subsection may be on a reimbursable or non-reimbursable basis.

    (g) FUNCTIONS TRANSFERRED.--In accordance with title XV, there shall be transferred to the Secretary, for assignment to the Under Secretary for Information Analysis and Infrastructure Protection under this section, the functions, personnel, assets, and liabilities of the following:

    (1) The National Infrastructure Protection Center of the Federal Bureau of Investigation (other than the Computer Investigations and Operations Section), including the functions of the Attorney General relating thereto.

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    (2) The National Communications System of the Department of Defense, including the functions of the Secretary of Defense relating thereto.

    (3) The Critical Infrastructure Assurance Office of the Department of Commerce, including the functions of the Secretary of Commerce relating thereto.

    (4) The National Infrastructure Simulation and Analysis Center of the Department of Energy and the energy security and assurance program and activities of the Department, including the functions of the Secretary of Energy relating thereto.

    (5) The Federal Computer Incident Response Center of the General Services Administration, including the functions of the Administrator of General Services relating thereto.

    (h) INCLUSION OF CERTAIN ELEMENTS OF THE DEPARTMENT AS ELEMENTS OF THE INTELLIGENCE COMMUNITY.--Section 3(4) of the National Security Act of 1947 (50 U.S.C. 401(a)) is amended--

    (1) by striking ``and'' at the end of subparagraph (I);

    (2) by redesignating subparagraph (J) as subparagraph (K); and

    (3) by inserting after subparagraph (I) the following new subparagraph:

    ``(J) the elements of the Department of Homeland Security concerned with the analyses of foreign intelligence information; and''.

   SEC. 202. ACCESS TO INFORMATION.

    (a) IN GENERAL.--

    (1) THREAT AND VULNERABILITY INFORMATION.--Except as otherwise directed by the President, the Secretary shall have such access as the Secretary considers necessary to all information, including reports, assessments, analyses, and unevaluated intelligence relating to threats of terrorism against the United States and to other areas of responsibility assigned by the Secretary, and to all information concerning infrastructure or other vulnerabilities of the United States to terrorism, whether or not such information has been analyzed, that may be collected, possessed, or prepared by any agency of the Federal Government.

    (2) OTHER INFORMATION.--The Secretary shall also have access to other information relating to matters under the responsibility of the Secretary that may be collected, possessed, or prepared by an agency of the Federal Government as the President may further provide.

    (b) MANNER OF ACCESS.--Except as otherwise directed by the President, with respect to information to which the Secretary has access pursuant to this section--

    (1) the Secretary may obtain such material upon request, and may enter into cooperative arrangements with other executive agencies to provide such material or provide Department officials with access to it on a regular or routine basis, including requests or arrangements involving broad categories of material, access to electronic databases, or both; and

    (2) regardless of whether the Secretary has made any request or entered into any cooperative arrangement pursuant to paragraph (1), all agencies of the Federal Government shall promptly provide to the Secretary--

    (A) all reports (including information reports containing intelligence which has not been fully evaluated), assessments, and analytical information relating to threats of terrorism against the United States and to other areas of responsibility assigned by the Secretary;

    (B) all information concerning the vulnerability of the infrastructure of the United States, or other vulnerabilities of the United States, to terrorism, whether or not such information has been analyzed;

    (C) all other information relating to significant and credible threats of terrorism against the United States, whether or not such information has been analyzed; and

    (D) such other information or material as the President may direct.

    (c) TREATMENT UNDER CERTAIN LAWS.--The Secretary shall be deemed to be a Federal law enforcement, intelligence, protective, national defense, immigration, or national security official, and shall be provided with all information from law enforcement agencies that is required to be given to the Director of Central Intelligence, under any provision of the following:

    (1) The USA PATRIOT Act of 2001 (Public Law 107-56).

    (2) Section 2517(6) of title 18, United States Code.

    (3) Rule 6(e)(3)(C) of the Federal Rules of Criminal Procedure.

    (d) ACCESS TO INTELLIGENCE AND OTHER INFORMATION.--

    (1) ACCESS BY ELEMENTS OF FEDERAL GOVERNMENT.--Nothing in this title shall preclude any element of the intelligence community (as that term is defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)), or other any element of the Federal Government with responsibility for analyzing terrorist threat information, from receiving any intelligence or other information relating to terrorism.

    (2) SHARING OF INFORMATION.--The Secretary, in consultation with the Director of Central Intelligence, shall work to ensure that intelligence or other information relating to terrorism to which the Department has access is appropriately shared with the elements of the Federal Government referred to in paragraph (1), as well as with State and local governments, as appropriate.

   SEC. 211. SHORT TITLE.

    This subtitle may be cited as the ``Critical Infrastructure Information Act of 2002''.

   SEC. 212. DEFINITIONS.

    In this subtitle:

    (1) AGENCY.--The term ``agency'' has the meaning given it in section 551 of title 5, United States Code.

    (2) COVERED FEDERAL AGENCY.--The term ``covered Federal agency'' means the Department of Homeland Security.

    (3) CRITICAL INFRASTRUCTURE INFORMATION.--The term ``critical infrastructure information'' means information not customarily in the public domain and related to the security of critical infrastructure or protected systems--

    (A) actual, potential, or threatened interference with, attack on, compromise of, or incapacitation of critical infrastructure or protected systems by either physical or computer-based attack or other similar conduct (including the misuse of or unauthorized access to all types of communications and data transmission systems) that violates Federal, State, or local law, harms interstate commerce of the United States, or threatens public health or safety;

    (B) the ability of any critical infrastructure or protected system to resist such interference, compromise, or incapacitation, including any planned or past assessment, projection, or estimate of the vulnerability of critical infrastructure or a protected system, including security testing, risk evaluation thereto, risk management planning, or risk audit; or

    (C) any planned or past operational problem or solution regarding critical infrastructure or protected systems, including repair, recovery, reconstruction, insurance, or continuity, to the extent it is related to such interference, compromise, or incapacitation.

    (4) CRITICAL INFRASTRUCTURE PROTECTION PROGRAM.--The term ``critical infrastructure protection program'' means any component or bureau of a covered Federal agency that has been designated by the President or any agency head to receive critical infrastructure information.

    (5) INFORMATION SHARING AND ANALYSIS ORGANIZATION.--The term ``Information Sharing and Analysis Organization'' means any formal or informal entity or collaboration created or employed by public or private sector organizations, for purposes of--

    (A) gathering and analyzing critical infrastructure information in order to better understand security problems and interdependencies related to critical infrastructure and protected systems, so as to ensure the availability, integrity, and reliability thereof;

    (B) communicating or disclosing critical infrastructure information to help prevent, detect, mitigate, or recover from the effects of a interference, compromise, or a incapacitation problem related to critical infrastructure or protected systems; and

    (C) voluntarily disseminating critical infrastructure information to its members, State, local, and Federal Governments, or any other entities that may be of assistance in carrying out the purposes specified in subparagraphs (A) and (B).

    (6) PROTECTED SYSTEM.--The term ``protected system''--

    (A) means any service, physical or computer-based system, process, or procedure that directly or indirectly affects the viability of a facility of critical infrastructure; and

    (B) includes any physical or computer-based system, including a computer, computer system, computer or communications network, or any component hardware or element thereof, software program, processing instructions, or information or data in transmission or storage therein, irrespective of the medium of transmission or storage.

    (7) VOLUNTARY.--

    (A) IN GENERAL.--The term ``voluntary'', in the case of any submittal of critical infrastructure information to a covered Federal agency, means the submittal thereof in the absence of such agency's exercise of legal authority to compel access to or submission of such information and may be accomplished by a single entity or an Information Sharing and Analysis Organization on behalf of itself or its members.

    (B) EXCLUSIONS.--The term ``voluntary''--

    (i) in the case of any action brought under the securities laws as is defined in section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47))--

    (I) does not include information or statements contained in any documents or materials filed with the Securities and Exchange Commission, or with Federal banking regulators, pursuant to section 12(i) of the Securities Exchange Act of 1934 (15 U.S.C. 781(I)); and

    (II) with respect to the submittal of critical infrastructure information, does not include any disclosure or writing that when made accompanied the solicitation of an offer or a sale of securities; and

    (ii) does not include information or statements submitted or relied upon as a basis for making licensing or permitting determinations, or during regulatory proceedings.

   SEC. 213. DESIGNATION OF CRITICAL INFRASTRUCTURE PROTECTION PROGRAM.

    A critical infrastructure protection program may be designated as such by one of the following:

    (1) The President.

    (2) The Secretary of Homeland Security.

   SEC. 214. PROTECTION OF VOLUNTARILY SHARED CRITICAL INFRASTRUCTURE INFORMATION.

    (a) PROTECTION.--

    (1) IN GENERAL.--Notwithstanding any other provision of law, critical infrastructure information (including the identity of the submitting person or entity) that is voluntarily submitted to a covered Federal agency for use by that agency regarding the security of critical infrastructure and protected systems, analysis, warning, interdependency study, recovery, reconstitution, or other informational purpose, when accompanied by an express statement specified in paragraph (2)--

    (A) shall be exempt from disclosure under section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act);

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    (B) shall not be subject to any agency rules or judicial doctrine regarding ex parte communications with a decision making official;

    (C) shall not, without the written consent of the person or entity submitting such information, be used directly by such agency, any other Federal, State, or local authority, or any third party, in any civil action arising under Federal or State law if such information is submitted in good faith;

    (D) shall not, without the written consent of the person or entity submitting such information, be used or disclosed by any officer or employee of the United States for purposes other than the purposes of this subtitle, except--

    (i) in furtherance of an investigation or the prosecution of a criminal act; or

    (ii) when disclosure of the information would be--

    (I) to either House of Congress, or to the extent of matter within its jurisdiction, any committee or subcommittee thereof, any joint committee thereof or subcommittee of any such joint committee; or

    (II) to the Comptroller General, or any authorized representative of the Comptroller General, in the course of the performance of the duties of the General Accounting Office.

    (E) shall not, if provided to a State or local government or government agency--

    (i) be made available pursuant to any State or local law requiring disclosure of information or records;

    (ii) otherwise be disclosed or distributed to any party by said State or local government or government agency without the written consent of the person or entity submitting such information; or

    (iii) be used other than for the purpose of protecting critical infrastructure or protected systems, or in furtherance of an investigation or the prosecution of a criminal act; and

    (F) does not constitute a waiver of any applicable privilege or protection provided under law, such as trade secret protection.

    (2) EXPRESS STATEMENT.--For purposes of paragraph (1), the term ``express statement'', with respect to information or records, means--

    (A) in the case of written information or records, a written marking on the information or records substantially similar to the following: ``This information is voluntarily submitted to the Federal Government in expectation of protection from disclosure as provided by the provisions of the Critical Infrastructure Information Act of 2002.''; or

    (B) in the case of oral information, a similar written statement submitted within a reasonable period following the oral communication.

    (b) LIMITATION.--No communication of critical infrastructure information to a covered Federal agency made pursuant to this subtitle shall be considered to be an action subject to the requirements of the Federal Advisory Committee Act (5 U.S.C. App. 2).

    (c) INDEPENDENTLY OBTAINED INFORMATION.--Nothing in this section shall be construed to limit or otherwise affect the ability of a State, local, or Federal Government entity, agency, or authority, or any third party, under applicable law, to obtain critical infrastructure information in a manner not covered by subsection (a), including any information lawfully and properly disclosed generally or broadly to the public and to use such information in any manner permitted by law.

    (d) TREATMENT OF VOLUNTARY SUBMITTAL OF INFORMATION.--The voluntary submittal to the Government of information or records that are protected from disclosure by this subtitle shall not be construed to constitute compliance with any requirement to submit such information to a Federal agency under any other provision of law.

    (e) PROCEDURES.--

    (1) IN GENERAL.--The Secretary of the Department of Homeland Security shall, in consultation with appropriate representatives of the National Security Council and the Office of Science and Technology Policy, establish uniform procedures for the receipt, care, and storage by Federal agencies of critical infrastructure information that is voluntarily submitted to the Government. The procedures shall be established not later than 90 days after the date of the enactment of this subtitle.

    (2) ELEMENTS.--The procedures established under paragraph (1) shall include mechanisms regarding--

    (A) the acknowledgement of receipt by Federal agencies of critical infrastructure information that is voluntarily submitted to the Government;

    (B) the maintenance of the identification of such information as voluntarily submitted to the Government for purposes of and subject to the provisions of this subtitle;

    (C) the care and storage of such information; and

    (D) the protection and maintenance of the confidentiality of such information so as to permit the sharing of such information within the Federal Government and with State and local governments, and the issuance of notices and warnings related to the protection of critical infrastructure and protected systems, in such manner as to protect from public disclosure the identity of the submitting person or entity, or information that is proprietary, business sensitive, relates specifically to the submitting person or entity, and is otherwise not appropriately in the public domain.

    (f) PENALTIES.--Whoever, being an officer or employee of the United States or of any department or agency thereof, knowingly publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by law, any critical infrastructure information protected from disclosure by this subtitle coming to him in the course of this employment or official duties or by reason of any examination or investigation made by, or return, report, or record made to or filed with, such department or agency or officer or employee thereof, shall be fined under title 18 of the United States Code, imprisoned not more than 1 year, or both, and shall be removed from office or employment.

    (g) AUTHORITY TO ISSUE WARNINGS.--The Federal Government may provide advisories, alerts, and warnings to relevant companies, targeted sectors, other governmental entities, or the general public regarding potential threats to critical infrastructure as appropriate. In issuing a warning, the Federal Government shall take appropriate actions to protect from disclosure--

    (1) the source of any voluntarily submitted critical infrastructure information that forms the basis for the warning; or

    (2) information that is proprietary, business sensitive, relates specifically to the submitting person or entity, or is otherwise not appropriately in the public domain.

    (h) AUTHORITY TO DELEGATE.--The President may delegate authority to a critical infrastructure protection program, designated under section 213, to enter into a voluntary agreement to promote critical infrastructure security, including with any Information Sharing and Analysis Organization, or a plan of action as otherwise defined in section 708 of the Defense Production Act of 1950 (50 U.S.C. App. 2158).

   SEC. 215. NO PRIVATE RIGHT OF ACTION.

    Nothing in this subtitle may be construed to create a private right of action for enforcement of any provision of this Act.

   SEC. 221. PROCEDURES FOR SHARING INFORMATION.

    The Secretary shall establish procedures on the use of information shared under this title that--

    (1) limit the redissemination of such information to ensure that it is not used for an unauthorized purpose;

    (2) ensure the security and confidentiality of such information;

    (3) protect the constitutional and statutory rights of any individuals who are subjects of such information; and

    (4) provide data integrity through the timely removal and destruction of obsolete or erroneous names and information.

   SEC. 222. PRIVACY OFFICER.

    The Secretary shall appoint a senior official in the Department to assume primary responsibility for privacy policy, including--

    (1) assuring that the use of technologies sustain, and do not erode, privacy protections relating to the use, collection, and disclosure of personal information;

    (2) assuring that personal information contained in Privacy Act systems of records is handled in full compliance with fair information practices as set out in the Privacy Act of 1974;

    (3) evaluating legislative and regulatory proposals involving collection, use, and disclosure of personal information by the Federal Government;

    (4) conducting a privacy impact assessment of proposed rules of the Department or that of the Department on the privacy of personal information, including the type of personal information collected and the number of people affected; and

    (5) preparing a report to Congress on an annual basis on activities of the Department that affect privacy, including complaints of privacy violations, implementation of the Privacy Act of 1974, internal controls, and other matters.

   SEC. 223. 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 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 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.

   SEC. 224. 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.

   SEC. 225. CYBER SECURITY ENHANCEMENT ACT OF 2002.

    (a) SHORT TITLE.--This section may be cited as the ``Cyber Security Enhancement Act of 2002''.

    (b) AMENDMENT OF SENTENCING GUIDELINES RELATING TO CERTAIN COMPUTER CRIMES.--

    (1) DIRECTIVE TO THE UNITED STATES SENTENCING COMMISSION.--Pursuant to its authority under section 994(p) of title 28, United States Code, and in accordance with this subsection, the United States Sentencing Commission shall review and, if appropriate, amend its guidelines and its policy statements applicable to persons convicted of an offense under section 1030 of title 18, United States Code.

    (2) REQUIREMENTS.--In carrying out this subsection, the Sentencing Commission shall--

    (A) ensure that the sentencing guidelines and policy statements reflect the serious nature of the offenses described in paragraph (1), the

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    (B) consider the following factors and the extent to which the guidelines may or may not account for them--

    (i) the potential and actual loss resulting from the offense;

    (ii) the level of sophistication and planning involved in the offense;

    (iii) whether the offense was committed for purposes of commercial advantage or private financial benefit;

    (iv) whether the defendant acted with malicious intent to cause harm in committing the offense;

    (v) the extent to which the offense violated the privacy rights of individuals harmed;

    (vi) whether the offense involved a computer used by the government in furtherance of national defense, national security, or the administration of justice;

    (vii) whether the violation was intended to or had the effect of significantly interfering with or disrupting a critical infrastructure; and

    (viii) whether the violation was intended to or had the effect of creating a threat to public health or safety, or injury to any person;

    (C) assure reasonable consistency with other relevant directives and with other sentencing guidelines;

    (D) account for any additional aggravating or mitigating circumstances that might justify exceptions to the generally applicable sentencing ranges;

    (E) make any necessary conforming changes to the sentencing guidelines; and

    (F) assure that the guidelines adequately meet the purposes of sentencing as set forth in section 3553(a)(2) of title 18, United States Code.

    (c) STUDY AND REPORT ON COMPUTER CRIMES.--Not later than May 1, 2003, the United States Sentencing Commission shall submit a brief report to Congress that explains any actions taken by the Sentencing Commission in response to this section and includes any recommendations the Commission may have regarding statutory penalties for offenses under section 1030 of title 18, United States Code.

    (d) EMERGENCY DISCLOSURE EXCEPTION.--

    (1) IN GENERAL.--Section 2702(b) of title 18, United States Code, is amended--

    (A) in paragraph (5), by striking ``or'' at the end;

    (B) in paragraph (6)(A), by inserting ``or'' at the end;

    (C) by striking paragraph (6)(C); and

    (D) by adding at the end the following:

    ``(7) to a Federal, State, or local governmental entity, if the provider, in good faith, believes that an emergency involving danger of death or serious physical injury to any person requires disclosure without delay of communications relating to the emergency.''.

    (2) REPORTING OF DISCLOSURES.--A government entity that receives a disclosure under section 2702(b) of title 18, United States Code, shall file, not later than 90 days after such disclosure, a report to the Attorney General stating the paragraph of that section under which the disclosure was made, the date of the disclosure, the entity to which the disclosure was made, the number of customers or subscribers to whom the information disclosed pertained, and the number of communications, if any, that were disclosed. The Attorney General shall publish all such reports into a single report to be submitted to Congress 1 year after the date of enactment of this Act.

    (e) GOOD FAITH EXCEPTION.--Section 2520(d)(3) of title 18, United States Code, is amended by inserting ``or 2511(2)(i)'' after ``2511(3)''.

    (f) INTERNET ADVERTISING OF ILLEGAL DEVICES.--Section 2512(1)(c) of title 18, United States Code, is amended--

    (1) by inserting ``or disseminates by electronic means'' after ``or other publication''; and

    (2) by inserting ``knowing the content of the advertisement and'' before ``knowing or having reason to know''.

    (g) STRENGTHENING PENALTIES.--Section 1030(c) of title 18, United States Code, is amended--

    (1) by striking ``and'' at the end of paragraph (3);

    (2) in each of subparagraphs (A) and (C) of paragraph (4), by inserting ``except as provided in paragraph (5),'' before ``a fine under this title'';

    (3) in paragraph (4)(C), by striking the period at the end and inserting ``; and''; and

    (4) by adding at the end the following:

    ``(5)(A) if the offender knowingly or recklessly causes or attempts to cause serious bodily injury from conduct in violation of subsection (a)(5)(A)(i), a fine under this title or imprisonment for not more than 20 years, or both; and

    ``(B) if the offender knowingly or recklessly causes or attempts to cause death from conduct in violation of subsection (a)(5)(A)(i), a fine under this title or imprisonment for any term of years or for life, or both.''.

    (h) PROVIDER ASSISTANCE.--

    (1) SECTION 2703.--Section 2703(e) of title 18, United States Code, is amended by inserting ``, statutory authorization'' after ``subpoena''.

    (2) SECTION 2511.--Section 2511(2)(a)(ii) of title 18, United States Code, is amended by inserting ``, statutory authorization,'' after ``court order'' the last place it appears.

    (i) EMERGENCIES.--Section 3125(a)(1) of title 18, United States Code, is amended--

    (1) in subparagraph (A), by striking ``or'' at the end;

    (2) in subparagraph (B), by striking the comma at the end and inserting a semicolon; and

    (3) by adding at the end the following:

    ``(C) an immediate threat to a national security interest; or

    ``(D) an ongoing attack on a protected computer (as defined in section 1030) that constitutes a crime punishable by a term of imprisonment greater than one year;''.

    (j) PROTECTING PRIVACY.--

    (1) SECTION 2511.--Section 2511(4) of title 18, United States Code, is amended--

    (A) by striking paragraph (b); and

    (B) by redesignating paragraph (c) as paragraph (b).

    (2) SECTION 2701.--Section 2701(b) of title 18, United States Code, is amended--

    (A) in paragraph (1), by inserting ``, or in furtherance of any criminal or tortious act in violation of the Constitution or laws of the United States or any State'' after ``commercial gain'';

    (B) in paragraph (1)(A), by striking ``one year'' and inserting ``5 years'';

    (C) in paragraph (1)(B), by striking ``two years'' and inserting ``10 years''; and

    (D) by striking paragraph (2) and inserting the following:

    ``(2) in any other case--

    ``(A) a fine under this title or imprisonment for not more than 1 year or both, in the case of a first offense under this paragraph; and

    ``(B) a fine under this title or imprisonment for not more than 5 years, or both, in the case of an offense under this subparagraph that occurs after a conviction of another offense under this section.''.

   SEC. 231. ESTABLISHMENT OF OFFICE; DIRECTOR.

    (a) ESTABLISHMENT.--

    (1) IN GENERAL.--There is hereby established within the Department of Justice an Office of Science and Technology (hereinafter in this title referred to as the ``Office'').

    (2) AUTHORITY.--The Office shall be under the general authority of the Assistant Attorney General, Office of Justice Programs, and shall be established within the National Institute of Justice.

    (b) DIRECTOR.--The Office shall be headed by a Director, who shall be an individual appointed based on approval by the Office of Personnel Management of the executive qualifications of the individual.

   SEC. 232. MISSION OF OFFICE; DUTIES.

    (a) MISSION.--The mission of the Office shall be--

    (1) to serve as the national focal point for work on law enforcement technology; and

    (2) to carry out programs that, through the provision of equipment, training, and technical assistance, improve the safety and effectiveness of law enforcement technology and improve access to such technology by Federal, State, and local law enforcement agencies.

    (b) DUTIES.--In carrying out its mission, the Office shall have the following duties:

    (1) To provide recommendations and advice to the Attorney General.

    (2) To establish and maintain advisory groups (which shall be exempt from the provisions of the Federal Advisory Committee Act (5 U.S.C. App.)) to assess the law enforcement technology needs of Federal, State, and local law enforcement agencies.

    (3) To establish and maintain performance standards in accordance with the National Technology Transfer and Advancement Act of 1995 (Public Law 104-113) for, and test and evaluate law enforcement technologies that may be used by, Federal, State, and local law enforcement agencies.

    (4) To establish and maintain a program to certify, validate, and mark or otherwise recognize law enforcement technology products that conform to standards established and maintained by the Office in accordance with the National Technology Transfer and Advancement Act of 1995 (Public Law 104-113). The program may, at the discretion of the Office, allow for supplier's declaration of conformity with such standards.

    (5) To work with other entities within the Department of Justice, other Federal agencies, and the executive office of the President to establish a coordinated Federal approach on issues related to law enforcement technology.

    (6) To carry out research, development, testing, evaluation, and cost-benefit analyses in fields that would improve the safety, effectiveness, and efficiency of law enforcement technologies used by Federal, State, and local law enforcement agencies, including, but not limited to--

    (A) weapons capable of preventing use by unauthorized persons, including personalized guns;

    (B) protective apparel;

    (C) bullet-resistant and explosion-resistant glass;

    (D) monitoring systems and alarm systems capable of providing precise location information;

    (E) wire and wireless interoperable communication technologies;

    (F) tools and techniques that facilitate investigative and forensic work, including computer forensics;

    (G) equipment for particular use in counterterrorism, including devices and technologies to disable terrorist devices;

    (H) guides to assist State and local law enforcement agencies;

    (I) DNA identification technologies; and

    (J) tools and techniques that facilitate investigations of computer crime.

    (7) To administer a program of research, development, testing, and demonstration to improve the interoperability of voice and data public safety communications.

    (8) To serve on the Technical Support Working Group of the Department of Defense, and on other relevant interagency panels, as requested.

    (9) To develop, and disseminate to State and local law enforcement agencies, technical assistance and training materials for law enforcement personnel, including prosecutors.

    (10) To operate the regional National Law Enforcement and Corrections Technology Centers

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    (11) To administer a program of acquisition, research, development, and dissemination of advanced investigative analysis and forensic tools to assist State and local law enforcement agencies in combating cybercrime.

    (12) To support research fellowships in support of its mission.

    (13) To serve as a clearinghouse for information on law enforcement technologies.

    (14) To represent the United States and State and local law enforcement agencies, as requested, in international activities concerning law enforcement technology.

    (15) To enter into contracts and cooperative agreements and provide grants, which may require in-kind or cash matches from the recipient, as necessary to carry out its mission.

    (16) To carry out other duties assigned by the Attorney General to accomplish the mission of the Office.

    (c) COMPETITION REQUIRED.--Except as otherwise expressly provided by law, all research and development carried out by or through the Office shall be carried out on a competitive basis.

    (d) INFORMATION FROM FEDERAL AGENCIES.--Federal agencies shall, upon request from the Office and in accordance with Federal law, provide the Office with any data, reports, or other information requested, unless compliance with such request is otherwise prohibited by law.

    (e) PUBLICATIONS.--Decisions concerning publications issued by the Office shall rest solely with the Director of the Office.

    (f) TRANSFER OF FUNDS.--The Office may transfer funds to other Federal agencies or provide funding to non-Federal entities through grants, cooperative agreements, or contracts to carry out its duties under this section.

    (g) ANNUAL REPORT.--The Director of the Office shall include with the budget justification materials submitted to Congress in support of the Department of Justice budget for each fiscal year (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) a report on the activities of the Office. Each such report shall include the following:

    (1) For the period of 5 fiscal years beginning with the fiscal year for which the budget is submitted--

    (A) the Director's assessment of the needs of Federal, State, and local law enforcement agencies for assistance with respect to law enforcement technology and other matters consistent with the mission of the Office; and

    (B) a strategic plan for meeting such needs of such law enforcement agencies.

    (2) For the fiscal year preceding the fiscal year for which such budget is submitted, a description of the activities carried out by the Office and an evaluation of the extent to which those activities successfully meet the needs assessed under paragraph (1)(A) in previous reports.

   SEC. 233. DEFINITION OF LAW ENFORCEMENT TECHNOLOGY.

    For the purposes of this title, the term ``law enforcement technology'' includes investigative and forensic technologies, corrections technologies, and technologies that support the judicial process.

   SEC. 234. ABOLISHMENT OF OFFICE OF SCIENCE AND TECHNOLOGY OF NATIONAL INSTITUTE OF JUSTICE; TRANSFER OF FUNCTIONS.

    (a) AUTHORITY TO TRANSFER FUNCTIONS.--The Attorney General may transfer to the Office any other program or activity of the Department of Justice that the Attorney General, in consultation with the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives, determines to be consistent with the mission of the Office.

    (b) TRANSFER OF PERSONNEL AND ASSETS.--With respect to any function, power, or duty, or any program or activity, that is established in the Office, those employees and assets of the element of the Department of Justice from which the transfer is made that the Attorney General determines are needed to perform that function, power, or duty, or for that program or activity, as the case may be, shall be transferred to the Office.

    (c) REPORT ON IMPLEMENTATION.--Not later than 1 year after the date of the enactment of this Act, the Attorney General shall submit to the Committee on the Judiciary of the Senate and the Committee on the Judiciary of the House of Representatives a report on the implementation of this title. The report shall--

    (1) provide an accounting of the amounts and sources of funding available to the Office to carry out its mission under existing authorizations and appropriations, and set forth the future funding needs of the Office; and

    (2) include such other information and recommendations as the Attorney General considers appropriate.

   SEC. 235. NATIONAL LAW ENFORCEMENT AND CORRECTIONS TECHNOLOGY CENTERS.

    (a) IN GENERAL.--The Director of the Office shall operate and support National Law Enforcement and Corrections Technology Centers (hereinafter in this section referred to as ``Centers'') and, to the extent necessary, establish new centers through a merit-based, competitive process.

    (b) PURPOSE OF CENTERS.--The purpose of the Centers shall be to--

    (1) support research and development of law enforcement technology;

    (2) support the transfer and implementation of technology;

    (3) assist in the development and dissemination of guidelines and technological standards; and

    (4) provide technology assistance, information, and support for law enforcement, corrections, and criminal justice purposes.

    (c) ANNUAL MEETING.--Each year, the Director shall convene a meeting of the Centers in order to foster collaboration and communication between Center participants.

    (d) REPORT.--Not later than 12 months after the date of the enactment of this Act, the Director shall transmit to the Congress a report assessing the effectiveness of the existing system of Centers and identify the number of Centers necessary to meet the technology needs of Federal, State, and local law enforcement in the United States.

   SEC. 236. COORDINATION WITH OTHER ENTITIES WITHIN DEPARTMENT OF JUSTICE.

    Section 102 of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3712) is amended in subsection (a)(5) by inserting ``coordinate and'' before ``provide''.

   SEC. 237. AMENDMENTS RELATING TO NATIONAL INSTITUTE OF JUSTICE.

    Section 202(c) of the Omnibus Crime Control and Safety Streets Act of 1968 (42 U.S.C. 3722(c)) is amended--

    (1) in paragraph (3) by inserting ``, including cost effectiveness where practical,'' before ``of projects''; and

    (2) by striking ``and'' after the semicolon at the end of paragraph (8), striking the period at the end of paragraph (9) and inserting ``; and'', and by adding at the end the following:

    ``(10) research and development of tools and technologies relating to prevention, detection, investigation, and prosecution of crime; and

    ``(11) support research, development, testing, training, and evaluation of tools and technology for Federal, State, and local law enforcement agencies.''.

   SEC. 301. UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY.

    There shall be in the Department a Directorate of Science and Technology headed by an Under Secretary for Science and Technology.

   SEC. 302. RESPONSIBILITIES AND AUTHORITIES OF THE UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY.

    The Secretary, acting through the Under Secretary for Science and Technology, shall have the responsibility for--

    (1) advising the Secretary regarding research and development efforts and priorities in support of the Department's missions;

    (2) developing, in consultation with other appropriate executive agencies, a national policy and strategic plan for, identifying priorities, goals, objectives and policies for, and coordinating the Federal Government's civilian efforts to identify and develop countermeasures to chemical, biological, radiological, nuclear, and other emerging terrorist threats, including the development of comprehensive, research-based definable goals for such efforts and development of annual measurable objectives and specific targets to accomplish and evaluate the goals for such efforts;

    (3) supporting the Under Secretary for Information Analysis and Infrastructure Protection, by assessing and testing homeland security vulnerabilities and possible threats;

    (4) conducting basic and applied research, development, demonstration, testing, and evaluation activities that are relevant to any or all elements of the Department, through both intramural and extramural programs, except that such responsibility does not extend to human health-related research and development activities;

    (5) establishing priorities for, directing, funding, and conducting national research, development, test and evaluation, and procurement of technology and systems for--

    (A) preventing the importation of chemical, biological, radiological, nuclear, and related weapons and material; and

    (B) detecting, preventing, protecting against, and responding to terrorist attacks;

    (6) establishing a system for transferring homeland security developments or technologies to federal, state, local government, and private sector entities;

    (7) entering into work agreements, joint sponsorships, contracts, or any other agreements with the Department of Energy regarding the use of the national laboratories or sites and support of the science and technology base at those facilities;

    (8) collaborating with the Secretary of Agriculture and the Attorney General as provided in section 212 of the Agricultural Bioterrorism Protection Act of 2002 (7 U.S.C. 8401), as amended by section 1709(b);

    (9) collaborating with the Secretary of Health and Human Services and the Attorney General in determining any new biological agents and toxins that shall be listed as ``select agents'' in Appendix A of part 72 of title 42, Code of Federal Regulations, pursuant to section 351A of the Public Health Service Act (42 U.S.C. 262a);

    (10) supporting United States leadership in science and technology;

    (11) establishing and administering the primary research and development activities of the Department, including the long-term research and development needs and capabilities for all elements of the Department;

    (12) coordinating and integrating all research, development, demonstration, testing, and evaluation activities of the Department;

    (13) coordinating with other appropriate executive agencies in developing and carrying out the science and technology agenda of the Department to reduce duplication and identify unmet needs; and

    (14) developing and overseeing the administration of guidelines for merit review of research and development projects throughout the Department, and for the dissemination of research conducted or sponsored by the Department.

   SEC. 303. FUNCTIONS TRANSFERRED.

    In accordance with title XV, there shall be transferred to the Secretary the functions, personnel, assets, and liabilities of the following entities:

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    (1) The following programs and activities of the Department of Energy, including the functions of the Secretary of Energy relating thereto (but not including programs and activities relating to the strategic nuclear defense posture of the United States):

    (A) The chemical and biological national security and supporting programs and activities of the nonproliferation and verification research and development program.

    (B) The nuclear smuggling programs and activities within the proliferation detection program of the nonproliferation and verification research and development program. The programs and activities described in this subparagraph may be designated by the President either for transfer to the Department or for joint operation by the Secretary and the Secretary of Energy.

    (C) The nuclear assessment program and activities of the assessment, detection, and cooperation program of the international materials protection and cooperation program.

    (D) Such life sciences activities of the biological and environmental research program related to microbial pathogens as may be designated by the President for transfer to the Department.

    (E) The Environmental Measurements Laboratory.

    (F) The advanced scientific computing research program and activities at Lawrence Livermore National Laboratory.

    (2) The National Bio-Weapons Defense Analysis Center of the Department of Defense, including the functions of the Secretary of Defense related thereto.

   SEC. 304. CONDUCT OF CERTAIN PUBLIC HEALTH-RELATED ACTIVITIES.

    (a) IN GENERAL.--With respect to civilian human health-related research and development activities relating to countermeasures for chemical, biological, radiological, and nuclear and other emerging terrorist threats carried out by the Department of Health and Human Services (including the Public Health Service), the Secretary of Health and Human Services shall set priorities, goals, objectives, and policies and develop a coordinated strategy for such activities in collaboration with the Secretary of Homeland Security to ensure consistency with the national policy and strategic plan developed pursuant to section 302(2).

    (b) EVALUATION OF PROGRESS.--In carrying out subsection (a), the Secretary of Health and Human Services shall collaborate with the Secretary in developing specific benchmarks and outcome measurements for evaluating progress toward achieving the priorities and goals described in such subsection.

    (c) ADMINISTRATION OF COUNTERMEASURES AGAINST SMALLPOX.--Section 224 of the Public Health Service Act (42 U.S.C. 233) is amended by adding the following:

    ``(p) ADMINISTRATION OF SMALLPOX COUNTERMEASURES BY HEALTH PROFESSIONALS.--

    ``(1) IN GENERAL.--For purposes of this section, and subject to other provisions of this subsection, a covered person shall be deemed to be an employee of the Public Health Service with respect to liability arising out of administration of a covered countermeasure against smallpox to an individual during the effective period of a declaration by the Secretary under paragraph (2)(A).

    ``(2) DECLARATION BY SECRETARY CONCERNING COUNTERMEASURE AGAINST SMALLPOX.--

    ``(A) AUTHORITY TO ISSUE DECLARATION.--

    ``(i) IN GENERAL.--The Secretary may issue a declaration, pursuant to this paragraph, concluding that an actual or potential bioterrorist incident or other actual or potential public health emergency makes advisable the administration of a covered countermeasure to a category or categories of individuals.

    ``(ii) COVERED COUNTERMEASURE.--The Secretary shall specify in such declaration the substance or substances that shall be considered covered countermeasures (as defined in paragraph (8)(A)) for purposes of administration to individuals during the effective period of the declaration.

    ``(iii) EFFECTIVE PERIOD.--The Secretary shall specify in such declaration the beginning and ending dates of the effective period of the declaration, and may subsequently amend such declaration to shorten or extend such effective period, provided that the new closing date is after the date when the declaration is amended.

    ``(iv) PUBLICATION.--The Secretary shall promptly publish each such declaration and amendment in the Federal Register.

    ``(B) LIABILITY OF UNITED STATES ONLY FOR ADMINISTRATIONS WITHIN SCOPE OF DECLARATION.--Except as provided in paragraph (5)(B)(ii), the United States shall be liable under this subsection with respect to a claim arising out of the administration of a covered countermeasure to an individual only if--

    ``(i) the countermeasure was administered by a qualified person, for a purpose stated in paragraph (7)(A)(i), and during the effective period of a declaration by the Secretary under subparagraph (A) with respect to such countermeasure; and

    ``(ii)(I) the individual was within a category of individuals covered by the declaration; or

    ``(II) the qualified person administering the countermeasure had reasonable grounds to believe that such individual was within such category.

    ``(C) PRESUMPTION OF ADMINISTRATION WITHIN SCOPE OF DECLARATION IN CASE OF ACCIDENTAL VACCINIA INOCULATION.--

    ``(i) IN GENERAL.--If vaccinia vaccine is a covered countermeasure specified in a declaration under subparagraph (A), and an individual to whom the vaccinia vaccine is not administered contracts vaccinia, then, under the circumstances specified in clause (ii), the individual--

    ``(I) shall be rebuttably presumed to have contracted vaccinia from an individual to whom such vaccine was administered as provided by clauses (i) and (ii) of subparagraph (B); and

    ``(II) shall (unless such presumption is rebutted) be deemed for purposes of this subsection to be an individual to whom a covered countermeasure was administered by a qualified person in accordance with the terms of such declaration and as described by subparagraph (B).

    ``(ii) CIRCUMSTANCES IN WHICH PRESUMPTION APPLIES.--The presumption and deeming stated in clause (i) shall apply if--

    ``(I) the individual contracts vaccinia during the effective period of a declaration under subparagraph (A) or by the date 30 days after the close of such period; or

    ``(II) the individual resides or has resided with an individual to whom such vaccine was administered as provided by clauses (i) and (ii) of subparagraph (B) and contracts vaccinia after such date.

    ``(3) EXCLUSIVITY OF REMEDY.--The remedy provided by subsection (a) shall be exclusive of any other civil action or proceeding for any claim or suit this subsection encompasses.

    ``(4) CERTIFICATION OF ACTION BY ATTORNEY GENERAL.--Subsection (c) applies to actions under this subsection, subject to the following provisions:

    ``(A) NATURE OF CERTIFICATION.--The certification by the Attorney General that is the basis for deeming an action or proceeding to be against the United States, and for removing an action or proceeding from a State court, is a certification that the action or proceeding is against a covered person and is based upon a claim alleging personal injury or death arising out of the administration of a covered countermeasure.

    ``(B) CERTIFICATION OF ATTORNEY GENERAL CONCLUSIVE.--The certification of the Attorney General of the facts specified in subparagraph (A) shall conclusively establish such facts for purposes of jurisdiction pursuant to this subsection.

    ``(5) DEFENDANT TO COOPERATE WITH UNITED STATES.--

    ``(A) IN GENERAL.--A covered person shall cooperate with the United States in the processing and defense of a claim or action under this subsection based upon alleged acts or omissions of such person.

    ``(B) CONSEQUENCES OF FAILURE TO COOPERATE.--Upon the motion of the United States or any other party and upon finding that such person has failed to so cooperate--

    ``(i) the court shall substitute such person as the party defendant in place of the United States and, upon motion, shall remand any such suit to the court in which it was instituted if it appears that the court lacks subject matter jurisdiction;

    ``(ii) the United States shall not be liable based on the acts or omissions of such person; and

    ``(iii) the Attorney General shall not be obligated to defend such action.

    ``(6) RECOURSE AGAINST COVERED PERSON IN CASE OF GROSS MISCONDUCT OR CONTRACT VIOLATION.--

    ``(A) IN GENERAL.--Should payment be made by the United States to any claimant bringing a claim under this subsection, either by way of administrative determination, settlement, or court judgment, the United States shall have, notwithstanding any provision of State law, the right to recover for that portion of the damages so awarded or paid, as well as interest and any costs of litigation, resulting from the failure of any covered person to carry out any obligation or responsibility assumed by such person under a contract with the United States or from any grossly negligent, reckless, or illegal conduct or willful misconduct on the part of such person.

    ``(B) VENUE.--The United States may maintain an action under this paragraph against such person in the district court of the United States in which such person resides or has its principal place of business.

    ``(7) DEFINITIONS.--As used in this subsection, terms have the following meanings:

    ``(A) COVERED COUNTERMEASURE.--The term `covered countermeasure', or `covered countermeasure against smallpox', means a substance that is--

    ``(i)(I) used to prevent or treat smallpox (including the vaccinia or another vaccine); or

    ``(II) vaccinia immune globulin used to control or treat the adverse effects of vaccinia inoculation; and

    ``(ii) specified in a declaration under paragraph (2).

    ``(B) COVERED PERSON.--The term `covered person', when used with respect to the administration of a covered countermeasure, includes any person who is--

    ``(i) a manufacturer or distributor of such countermeasure;

    ``(ii) a health care entity under whose auspices such countermeasure was administered;

    ``(iii) a qualified person who administered such countermeasure; or

    ``(iv) an official, agent, or employee of a person described in clause (i), (ii), or (iii).

    ``(C) QUALIFIED PERSON.--The term `qualified person', when used with respect to the administration of a covered countermeasure, means a licensed health professional or other individual who is authorized to administer such countermeasure under the law of the State in which the countermeasure was administered.''.

   SEC. 305. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

    The Secretary, acting through the Under Secretary for Science and Technology, shall have the authority to establish or contract with 1 or more federally funded research and development centers to provide independent analysis of homeland security issues, or to carry out other responsibilities under this Act, including coordinating and integrating both the extramural and intramural programs described in section 308.

   SEC. 306. MISCELLANEOUS PROVISIONS.

    (a) CLASSIFICATION.--To the greatest extent practicable, research conducted or supported by the Department shall be unclassified.

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    (b) CONSTRUCTION.--Nothing in this title shall be construed to preclude any Under Secretary of the Department from carrying out research, development, demonstration, or deployment activities, as long as such activities are coordinated through the Under Secretary for Science and Technology.

    (c) REGULATIONS.--The Secretary, acting through the Under Secretary for Science and Technology, may issue necessary regulations with respect to research, development, demonstration, testing, and evaluation activities of the Department, including the conducting, funding, and reviewing of such activities.

    (d) NOTIFICATION OF PRESIDENTIAL LIFE SCIENCES DESIGNATIONS.--Not later than 60 days before effecting any transfer of Department of Energy life sciences activities pursuant to section 303(1)(D) of this Act, the President shall notify the appropriate congressional committees of the proposed transfer and shall include the reasons for the transfer and a description of the effect of the transfer on the activities of the Department of Energy.

   SEC. 307. HOMELAND SECURITY ADVANCED RESEARCH PROJECTS AGENCY.

    (a) DEFINITIONS.--In this section:

    (1) FUND.--The term ``Fund'' means the Acceleration Fund for Research and Development of Homeland Security Technologies established in subsection (c).

    (2) HOMELAND SECURITY RESEARCH.--The term ``homeland security research'' means research relevant to the detection of, prevention of, protection against, response to, attribution of, and recovery from homeland security threats, particularly acts of terrorism.

    (3) HSARPA.--The term ``HSARPA'' means the Homeland Security Advanced Research Projects Agency established in subsection (b).

    (4) UNDER SECRETARY.--The term ``Under Secretary'' means the Under Secretary for Science and Technology.

    (b) HSARPA.--

    (1) ESTABLISHMENT.--There is established the Homeland Security Advanced Research Projects Agency.

    (2) DIRECTOR.--HSARPA shall be headed by a Director, who shall be appointed by the Secretary. The Director shall report to the Under Secretary.

    (3) RESPONSIBILITIES.--The Director shall administer the Fund to award competitive, merit-reviewed grants, cooperative agreements or contracts to public or private entities, including businesses, federally funded research and development centers, and universities. The Director shall administer the Fund to--

    (A) support basic and applied homeland security research to promote revolutionary changes in technologies that would promote homeland security;

    (B) advance the development, testing and evaluation, and deployment of critical homeland security technologies; and

    (C) accelerate the prototyping and deployment of technologies that would address homeland security vulnerabilities.

    (4) TARGETED COMPETITIONS.--The Director may solicit proposals to address specific vulnerabilities identified by the Director.

    (5) COORDINATION.--The Director shall ensure that the activities of HSARPA are coordinated with those of other relevant research agencies, and may run projects jointly with other agencies.

    (6) PERSONNEL.--In hiring personnel for HSARPA, the Secretary shall have the hiring and management authorities described in section 1101 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note; Public Law 105-261). The term of appointments for employees under subsection (c)(1) of that section may not exceed 5 years before the granting of any extension under subsection (c)(2) of that section.

    (7) DEMONSTRATIONS.--The Director, periodically, shall hold homeland security technology demonstrations to improve contact among technology developers, vendors and acquisition personnel.

    (c) FUND.--

    (1) ESTABLISHMENT.--There is established the Acceleration Fund for Research and Development of Homeland Security Technologies, which shall be administered by the Director of HSARPA.

    (2) AUTHORIZATION OF APPROPRIATIONS.--There are authorized to be appropriated $500,000,000 to the Fund for fiscal year 2003 and such sums as may be necessary thereafter.

    (3) COAST GUARD.--Of the funds authorized to be appropriated under paragraph (2), not less than 10 percent of such funds for each fiscal year through fiscal year 2005 shall be authorized only for the Under Secretary, through joint agreement with the Commandant of the Coast Guard, to carry out research and development of improved ports, waterways and coastal security surveillance and perimeter protection capabilities for the purpose of minimizing the possibility that Coast Guard cutters, aircraft, helicopters, and personnel will be diverted from non-homeland security missions to the ports, waterways and coastal security mission.

   SEC. 308. CONDUCT OF RESEARCH, DEVELOPMENT, DEMONSTRATION, TESTING AND EVALUATION.

    (a) IN GENERAL.--The Secretary, acting through the Under Secretary for Science and Technology, shall carry out the responsibilities under section 302(4) through both extramural and intramural programs.

    (b) EXTRAMURAL PROGRAMS.--

    (1) IN GENERAL.--The Secretary, acting through the Under Secretary for Science and Technology, shall operate extramural research, development, demonstration, testing, and evaluation programs so as to--

    (A) ensure that colleges, universities, private research institutes, and companies (and consortia thereof) from as many areas of the United States as practicable participate;

    (B) ensure that the research funded is of high quality, as determined through merit review processes developed under section 302(14); and

    (C) distribute funds through grants, cooperative agreements, and contracts.

    (2) UNIVERSITY-BASED CENTERS FOR HOMELAND SECURITY.--

    (A) ESTABLISHMENT.--The Secretary, acting through the Under Secretary for Science and Technology, shall establish within 1 year of the date of enactment of this Act a university-based center or centers for homeland security. The purpose of this center or centers shall be to establish a coordinated, university-based system to enhance the Nation's homeland security.

    (B) CRITERIA FOR SELECTION.--In selecting colleges or universities as centers for homeland security, the Secretary shall consider the following criteria:

    (i) Demonstrated expertise in the training of first responders.

    (ii) Demonstrated expertise in responding to incidents involving weapons of mass destruction and biological warfare.

    (iii) Demonstrated expertise in emergency medical services.

    (iv) Demonstrated expertise in chemical, biological, radiological, and nuclear countermeasures.

    (v) Strong affiliations with animal and plant diagnostic laboratories.

    (vi) Demonstrated expertise in food safety.

    (vii) Affiliation with Department of Agriculture laboratories or training centers.

    (viii) Demonstrated expertise in water and wastewater operations.

    (ix) Demonstrated expertise in port and waterway security.

    (x) Demonstrated expertise in multi-modal transportation.

    (xi) Nationally recognized programs in information security.

    (xii) Nationally recognized programs in engineering.

    (xiii) Demonstrated expertise in educational outreach and technical assistance.

    (xiv) Demonstrated expertise in border transportation and security.

    (xv) Demonstrated expertise in interdisciplinary public policy research and communication outreach regarding science, technology, and public policy.

    (C) DISCRETION OF SECRETARY.--The Secretary shall have the discretion to establish such centers and to consider additional criteria as necessary to meet the evolving needs of homeland security and shall report to Congress concerning the implementation of this paragraph as necessary.

    (D) AUTHORIZATION OF APPROPRIATIONS.--There are authorized to be appropriated such sums as may be necessary to carry out this paragraph.

    (c) INTRAMURAL PROGRAMS.--

    (1) CONSULTATION.--In carrying out the duties under section 302, the Secretary, acting through the Under Secretary for Science and Technology, may draw upon the expertise of any laboratory of the Federal Government, whether operated by a contractor or the Government.

    (2) LABORATORIES.--The Secretary, acting through the Under Secretary for Science and Technology, may establish a headquarters laboratory for the Department at any laboratory or site and may establish additional laboratory units at other laboratories or sites.

    (3) CRITERIA FOR HEADQUARTERS LABORATORY.--If the Secretary chooses to establish a headquarters laboratory pursuant to paragraph (2), then the Secretary shall do the following:

    (A) Establish criteria for the selection of the headquarters laboratory in consultation with the National Academy of Sciences, appropriate Federal agencies, and other experts.

    (B) Publish the criteria in the Federal Register.

    (C) Evaluate all appropriate laboratories or sites against the criteria.

    (D) Select a laboratory or site on the basis of the criteria.

    (E) Report to the appropriate congressional committees on which laboratory was selected, how the selected laboratory meets the published criteria, and what duties the headquarters laboratory shall perform.

    (4) LIMITATION ON OPERATION OF LABORATORIES.--No laboratory shall begin operating as the headquarters laboratory of the Department until at least 30 days after the transmittal of the report required by paragraph (3)(E).

   SEC. 309. UTILIZATION OF DEPARTMENT OF ENERGY NATIONAL LABORATORIES AND SITES IN SUPPORT OF HOMELAND SECURITY ACTIVITIES.

    (a) AUTHORITY TO UTILIZE NATIONAL LABORATORIES AND SITES.--

    (1) IN GENERAL.--In carrying out the missions of the Department, the Secretary may utilize the Department of Energy national laboratories and sites through any 1 or more of the following methods, as the Secretary considers appropriate:

    (A) A joint sponsorship arrangement referred to in subsection (b).

    (B) A direct contract between the Department and the applicable Department of Energy laboratory or site, subject to subsection (c).

    (C) Any ``work for others'' basis made available by that laboratory or site.

    (D) Any other method provided by law.

    (2) ACCEPTANCE AND PERFORMANCE BY LABS AND SITES.--Notwithstanding any other law governing the administration, mission, use, or operations of any of the Department of Energy national laboratories and sites, such laboratories and sites are authorized to accept and perform work for the Secretary, consistent with resources provided, and perform such work on an equal basis to other missions at the laboratory and not on a noninterference basis with other missions of such laboratory or site.

    (b) JOINT SPONSORSHIP ARRANGEMENTS.--

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    (1) LABORATORIES.--The Department may be a joint sponsor, under a multiple agency sponsorship arrangement with the Department of Energy, of 1 or more Department of Energy national laboratories in the performance of work.

    (2) SITES.--The Department may be a joint sponsor of a Department of Energy site in the performance of work as if such site were a federally funded research and development center and the work were performed under a multiple agency sponsorship arrangement with the Department.

    (3) PRIMARY SPONSOR.--The Department of Energy shall be the primary sponsor under a multiple agency sponsorship arrangement referred to in paragraph (1) or (2).

    (4) LEAD AGENT.--The Secretary of Energy shall act as the lead agent in coordinating the formation and performance of a joint sponsorship arrangement under this subsection between the Department and a Department of Energy national laboratory or site.

    (5) FEDERAL ACQUISITION REGULATION.--Any work performed by a Department of Energy national laboratory or site under a joint sponsorship arrangement under this subsection shall comply with the policy on the use of federally funded research and development centers under the Federal Acquisition Regulations.

    (6) FUNDING.--The Department shall provide funds for work at the Department of Energy national laboratories or sites, as the case may be, under a joint sponsorship arrangement under this subsection under the same terms and conditions as apply to the primary sponsor of such national laboratory under section 303(b)(1)(C) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253 (b)(1)(C)) or of such site to the extent such section applies to such site as a federally funded research and development center by reason of this subsection.

    (c) SEPARATE CONTRACTING.--To the extent that programs or activities transferred by this Act from the Department of Energy to the Department of Homeland Security are being carried out through direct contracts with the operator of a national laboratory or site of the Department of Energy, the Secretary of Homeland Security and the Secretary of Energy shall ensure that direct contracts for such programs and activities between the Department of Homeland Security and such operator are separate from the direct contracts of the Department of Energy with such operator.

    (d) AUTHORITY WITH RESPECT TO COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS AND LICENSING AGREEMENTS.--In connection with any utilization of the Department of Energy national laboratories and sites under this section, the Secretary may permit the director of any such national laboratory or site to enter into cooperative research and development agreements or to negotiate licensing agreements with any person, any agency or instrumentality, of the United States, any unit of State or local government, and any other entity under the authority granted by section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a). Technology may be transferred to a non-Federal party to such an agreement consistent with the provisions of sections 11 and 12 of that Act (15 U.S.C. 3710, 3710a).

    (e) REIMBURSEMENT OF COSTS.--In the case of an activity carried out by the operator of a Department of Energy national laboratory or site in connection with any utilization of such laboratory or site under this section, the Department of Homeland Security shall reimburse the Department of Energy for costs of such activity through a method under which the Secretary of Energy waives any requirement for the Department of Homeland Security to pay administrative charges or personnel costs of the Department of Energy or its contractors in excess of the amount that the Secretary of Energy pays for an activity carried out by such contractor and paid for by the Department of Energy.

    (f) LABORATORY DIRECTED RESEARCH AND DEVELOPMENT BY THE DEPARTMENT OF ENERGY.--No funds authorized to be appropriated or otherwise made available to the Department in any fiscal year may be obligated or expended for laboratory directed research and development activities carried out by the Department of Energy unless such activities support the missions of the Department of Homeland Security.

    (g) OFFICE FOR NATIONAL LABORATORIES.--There is established within the Directorate of Science and Technology an Office for National Laboratories, which shall be responsible for the coordination and utilization of the Department of Energy national laboratories and sites under this section in a manner to create a networked laboratory system for the purpose of supporting the missions of the Department.

    (h) DEPARTMENT OF ENERGY COORDINATION ON HOMELAND SECURITY RELATED RESEARCH.--The Secretary of Energy shall ensure that any research, development, test, and evaluation activities conducted within the Department of Energy that are directly or indirectly related to homeland security are fully coordinated with the Secretary to minimize duplication of effort and maximize the effective application of Federal budget resources.

   SEC. 310. TRANSFER OF PLUM ISLAND ANIMAL DISEASE CENTER, DEPARTMENT OF AGRICULTURE.

    (a) IN GENERAL.--In accordance with title XV, the Secretary of Agriculture shall transfer to the Secretary of Homeland Security the Plum Island Animal Disease Center of the Department of Agriculture, including the assets and liabilities of the Center.

    (b) CONTINUED DEPARTMENT OF AGRICULTURE ACCESS.--On completion of the transfer of the Plum Island Animal Disease Center under subsection (a), the Secretary of Homeland Security and the Secretary of Agriculture shall enter into an agreement to ensure that the Department of Agriculture is able to carry out research, diagnostic, and other activities of the Department of Agriculture at the Center.

    (c) DIRECTION OF ACTIVITIES.--The Secretary of Agriculture shall continue to direct the research, diagnostic, and other activities of the Department of Agriculture at the Center described in subsection (b).

    (d) NOTIFICATION.--

    (1) IN GENERAL.--At least 180 days before any change in the biosafety level at the Plum Island Animal Disease Center, the President shall notify Congress of the change and describe the reasons for the change.

    (2) LIMITATION.--No change described in paragraph (1) may be made earlier than 180 days after the completion of the transition period (as defined in section 1501.

   SEC. 311. 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 1 year, 1 a term of 2 years, and the other a term of 3 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 1-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 1 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 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 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.

    (j) TERMINATION.--The Department of Homeland Security Science and Technology Advisory Committee shall terminate 3 years after the effective date of this Act.

   SEC. 312. 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

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    (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, nonprofit institutions, other Government agencies, and federally funded research and development centers.

    (e) USE OF CENTERS.--The Institute shall utilize the capabilities of the National Infrastructure Simulation and Analysis Center.

    (f) ANNUAL REPORTS.--The Institute shall transmit to the Secretary and Congress an annual report on the activities of the Institute under this section.

    (g) TERMINATION.--The Homeland Security Institute shall terminate 3 years after the effective date of this Act.

   SEC. 313. 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).

   SEC. 401. UNDER SECRETARY FOR BORDER AND TRANSPORTATION SECURITY.

    There shall be in the Department a Directorate of Border and Transportation Security headed by an Under Secretary for Border and Transportation Security.

   SEC. 402. RESPONSIBILITIES.

    The Secretary, acting through the Under Secretary for Border and Transportation Security, shall be responsible for the following:

    (1) Preventing the entry of terrorists and the instruments of terrorism into the United States.

    (2) Securing the borders, territorial waters, ports, terminals, waterways, and air, land, and sea transportation systems of the United States, including managing and coordinating those functions transferred to the Department at ports of entry.

    (3) Carrying out the immigration enforcement functions vested by statute in, or performed by, the Commissioner of Immigration and Naturalization (or any officer, employee, or component of the Immigration and Naturalization Service) immediately before the date on which the transfer of functions specified under section 441 takes effect.

    (4) Establishing and administering rules, in accordance with section 428, governing the granting of visas or other forms of permission, including parole, to enter the United States to individuals who are not a citizen or an alien lawfully admitted for permanent residence in the United States.

    (5) Establishing national immigration enforcement policies and priorities.

    (6) Except as provided in subtitle C, administering the customs laws of the United States.

    (7) Conducting the inspection and related administrative functions of the Department of Agriculture transferred to the Secretary of Homeland Security under section 421.

    (8) In carrying out the foregoing responsibilities, ensuring the speedy, orderly, and efficient flow of lawful traffic and commerce.

   SEC. 403. FUNCTIONS TRANSFERRED.

    In accordance with title XV (relating to transition provisions), there shall be transferred to the Secretary the functions, personnel, assets, and liabilities of--

    (1) the United States Customs Service of the Department of the Treasury, including the functions of the Secretary of the Treasury relating thereto;

    (2) the Transportation Security Administration of the Department of Transportation, including the functions of the Secretary of Transportation, and of the Under Secretary of Transportation for Security, relating thereto;

    (3) the Federal Protective Service of the General Services Administration, including the functions of the Administrator of General Services relating thereto;

    (4) the Federal Law Enforcement Training Center of the Department of the Treasury; and

    (5) the Office for Domestic Preparedness of the Office of Justice Programs, including the functions of the Attorney General relating thereto.

   SEC. 411. ESTABLISHMENT; COMMISSIONER OF CUSTOMS.

    (a) ESTABLISHMENT.--There is established in the Department the United States Customs Service, under the authority of the Under Secretary for Border and Transportation Security, which shall be vested with those functions including, but not limited to those set forth in section 415(7), and the personnel, assets, and liabilities attributable to those functions.

    (b) COMMISSIONER OF CUSTOMS.--

    (1) IN GENERAL.--There shall be at the head of the Customs Service a Commissioner of Customs, who shall be appointed by the President, by and with the advice and consent of the Senate.

    (2) COMPENSATION.--Section 5314 of title 5, United States Code, is amended by striking

    ``Commissioner of Customs, Department of the Treasury''

   and inserting

    ``Commissioner of Customs, Department of Homeland Security.''.

    (3) CONTINUATION IN OFFICE.--The individual serving as the Commissioner of Customs on the day before the effective date of this Act may serve as the Commissioner of Customs on and after such effective date until a Commissioner of Customs is appointed under paragraph (1).

   SEC. 412. RETENTION OF CUSTOMS REVENUE FUNCTIONS BY SECRETARY OF THE TREASURY.

    (a) RETENTION OF CUSTOMS REVENUE FUNCTIONS BY SECRETARY OF THE TREASURY.--

    (1) RETENTION OF AUTHORITY.--Notwithstanding section 403(a)(1), authority related to Customs revenue functions that was vested in the Secretary of the Treasury by law before the effective date of this Act under those provisions of law set forth in paragraph (2) shall not be transferred to the Secretary by reason of this Act, and on and after the effective date of this Act, the Secretary of the Treasury may delegate any such authority to the Secretary at the discretion of the Secretary of the Treasury. The Secretary of the Treasury shall consult with the Secretary regarding the exercise of any such authority not delegated to the Secretary.

    (2) STATUTES.--The provisions of law referred to in paragraph (1) are the following: the Tariff Act of 1930; section 249 of the Revised Statutes of the United States (19 U.S.C. 3); section 2 of the Act of March 4, 1923 (19 U.S.C. 6); section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c); section 251 of the Revised Statutes of the United States (19 U.S.C. 66); section 1 of the Act of June 26, 1930 (19 U.S.C. 68); the Foreign Trade Zones Act (19 U.S.C. 81a et seq.); section 1 of the Act of March 2, 1911 (19 U.S.C. 198); the Trade Act of 1974; the Trade Agreements Act of 1979; the North American Free Trade Area Implementation Act; the Uruguay Round Agreements Act; the Caribbean Basin Economic Recovery Act; the Andean Trade Preference Act; the African Growth and Opportunity Act; and any

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    (b) MAINTENANCE OF CUSTOMS REVENUE FUNCTIONS.--

    (1) MAINTENANCE OF FUNCTIONS.--Notwithstanding any other provision of this Act, the Secretary may not consolidate, discontinue, or diminish those functions described in paragraph (2) performed by the United States Customs Service (as established under section 411) on or after the effective date of this Act, reduce the staffing level, or reduce the resources attributable to such functions, and the Secretary shall ensure that an appropriate management structure is implemented to carry out such functions.

    (2) FUNCTIONS.--The functions referred to in paragraph (1) are those functions performed by the following personnel, and associated support staff, of the United States Customs Service on the day before the effective date of this Act: Import Specialists, Entry Specialists, Drawback Specialists, National Import Specialist, Fines and Penalties Specialists, attorneys of the Office of Regulations and Rulings, Customs Auditors, International Trade Specialists, Financial Systems Specialists.

    (c) NEW PERSONNEL.--The Secretary of the Treasury is authorized to appoint up to 20 new personnel to work with personnel of the Department in performing customs revenue functions.

   SEC. 413. PRESERVATION OF CUSTOMS FUNDS.

    Notwithstanding any other provision of this Act, no funds available to the United States Customs Service or collected under paragraphs (1) through (8) of section 13031(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 may be transferred for use by any other agency or office in the Department.

   SEC. 414. SEPARATE BUDGET REQUEST FOR CUSTOMS.

    The President shall include in each budget transmitted to Congress under section 1105 of title 31, United States Code, a separate budget request for the United States Customs Service.

   SEC. 415. DEFINITION.

    In this subtitle, the term ``customs revenue function'' means the following:

    (1) Assessing and collecting customs duties (including antidumping and countervailing duties and duties imposed under safeguard provisions), excise taxes, fees, and penalties due on imported merchandise, including classifying and valuing merchandise for purposes of such assessment.

    (2) Processing and denial of entry of persons, baggage, cargo, and mail, with respect to the assessment and collection of import duties.

    (3) Detecting and apprehending persons engaged in fraudulent practices designed to circumvent the customs laws of the United States.

    (4) Enforcing section 337 of the Tariff Act of 1930 and provisions relating to import quotas and the marking of imported merchandise, and providing Customs Recordations for copyrights, patents, and trademarks.

    (5) Collecting accurate import data for compilation of international trade statistics.

    (6) Enforcing reciprocal trade agreements.

    (7) Functions performed by the following personnel, and associated support staff, of the United States Customs Service on the day before the effective date of this Act: Import Specialists, Entry Specialists, Drawback Specialists, National Import Specialist, Fines and Penalties Specialists, attorneys of the Office of Regulations and Rulings, Customs Auditors, International Trade Specialists, Financial Systems Specialists.

    (8) Functions performed by the following offices, with respect to any function described in any of paragraphs (1) through (7), and associated support staff, of the United States Customs Service on the day before the effective date of this Act: the Office of Information and Technology, the Office of Laboratory Services, the Office of the Chief Counsel, the Office of Congressional Affairs, the Office of International Affairs, and the Office of Training and Development.

   SEC. 416. GAO REPORT TO CONGRESS.

    Not later than 3 months after the effective date of this Act, the Comptroller General of the United States shall submit to Congress a report that sets forth all trade functions performed by the executive branch, specifying each agency that performs each such function.

   SEC. 417. ALLOCATION OF RESOURCES BY THE SECRETARY.

    (a) IN GENERAL.--The Secretary shall ensure that adequate staffing is provided to assure that levels of customs revenue services provided on the day before the effective date of this Act shall continue to be provided.

    (b) NOTIFICATION OF CONGRESS.--The Secretary shall notify the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate at least 90 days prior to taking any action which would--

    (1) result in any significant reduction in customs revenue services, including hours of operation, provided at any office within the Department or any port of entry;

    (2) eliminate or relocate any office of the Department which provides customs revenue services; or

    (3) eliminate any port of entry.

    (c) DEFINITION.--In this section, the term ``customs revenue services'' means those customs revenue functions described in paragraphs (1) through (6) and paragraph (8) of section 415.

   SEC. 418. REPORTS TO CONGRESS.

    (a) CONTINUING REPORTS.--The United States Customs Service shall, on and after the effective date of this Act, continue to submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate any report required, on the day before such the effective date of this Act, to be so submitted under any provision of law.

    (b) REPORT ON CONFORMING AMENDMENTS.--Not later than 60 days after the date of enactment of this Act, the Secretary of the Treasury shall submit a report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives of proposed conforming amendments to the statutes set forth under section 412(a)(2) in order to determine the appropriate allocation of legal authorities described under this subsection. The Secretary of the Treasury shall also identify those authorities vested in the Secretary of the Treasury that are exercised by the Commissioner of Customs on or before the effective date of this section.

   SEC. 419. CUSTOMS USER FEES.

    (a) IN GENERAL.--Section 13031(f) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)) is amended--

    (1) in paragraph (1), by striking subparagraph (B) and inserting the following:

    ``(B) amounts deposited into the Customs Commercial and Homeland Security Automation Account under paragraph (5).'';

    (2) in paragraph (4), by striking ``(other than the excess fees determined by the Secretary under paragraph (5))''; and

    (3) by striking paragraph (5) and inserting the following:

    ``(5)(A) There is created within the general fund of the Treasury a separate account that shall be known as the `Customs Commercial and Homeland Security Automation Account'. In each of fiscal years 2003, 2004, and 2005 there shall be deposited into the Account from fees collected under subsection (a)(9)(A), $350,000,000.

    ``(B) There is authorized to be appropriated from the Account in fiscal years 2003 through 2005 such amounts as are available in that Account for the development, establishment, and implementation of the Automated Commercial Environment computer system for the processing of merchandise that is entered or released and for other purposes related to the functions of the Department of Homeland Security. Amounts appropriated pursuant to this subparagraph are authorized to remain available until expended.

    ``(C) In adjusting the fee imposed by subsection (a)(9)(A) for fiscal year 2006, the Secretary of the Treasury shall reduce the amount estimated to be collected in fiscal year 2006 by the amount by which total fees deposited to the Account during fiscal years 2003, 2004, and 2005 exceed total appropriations from that Account.''.

    (b) CONFORMING AMENDMENT.--Section 311(b) of the Customs Border Security Act of 2002 (Public Law 107-210) is amended by striking paragraph (2).

   SEC. 421. TRANSFER OF CERTAIN AGRICULTURAL INSPECTION FUNCTIONS OF THE DEPARTMENT OF AGRICULTURE.

    (a) TRANSFER OF AGRICULTURAL IMPORT AND ENTRY INSPECTION FUNCTIONS.--There shall be transferred to the Secretary the functions of the Secretary of Agriculture relating to agricultural import and entry inspection activities under the laws specified in subsection (b).

    (b) COVERED ANIMAL AND PLANT PROTECTION LAWS.--The laws referred to in subsection (a) are the following:

    (1) The Act commonly known as the Virus-Serum-Toxin Act (the eighth paragraph under the heading ``Bureau of Animal Industry'' in the Act of March 4, 1913; 21 U.S.C. 151 et seq.).

    (2) Section 1 of the Act of August 31, 1922 (commonly known as the Honeybee Act; 7 U.S.C. 281).

    (3) Title III of the Federal Seed Act (7 U.S.C. 1581 et seq.).

    (4) The Plant Protection Act (7 U.S.C. 7701 et seq.).

    (5) The Animal Health Protection Act (subtitle E of title X of Public Law 107-171; 7 U.S.C. 8301 et seq.).

    (6) The Lacey Act Amendments of 1981 (16 U.S.C. 3371 et seq.).

    (7) Section 11 of the Endangered Species Act of 1973 (16 U.S.C. 1540).

    (c) EXCLUSION OF QUARANTINE ACTIVITIES.--For purposes of this section, the term ``functions'' does not include any quarantine activities carried out under the laws specified in subsection (b).

    (d) EFFECT OF TRANSFER.--

    (1) COMPLIANCE WITH DEPARTMENT OF AGRICULTURE REGULATIONS.--The authority transferred pursuant to subsection (a) shall be exercised by the Secretary in accordance with the regulations, policies, and procedures issued by the Secretary of Agriculture regarding the administration of the laws specified in subsection (b).

    (2) RULEMAKING COORDINATION.--The Secretary of Agriculture shall coordinate with the Secretary whenever the Secretary of Agriculture prescribes regulations, policies, or procedures for administering the functions transferred under subsection (a) under a law specified in subsection (b).

    (3) EFFECTIVE ADMINISTRATION.--The Secretary, in consultation with the Secretary of Agriculture, may issue such directives and guidelines as are necessary to ensure the effective use of personnel of the Department of Homeland Security to carry out the functions transferred pursuant to subsection (a).

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    (e) TRANSFER AGREEMENT.--

    (1) AGREEMENT REQUIRED; REVISION.--Before the end of the transition period, as defined in section 1501, the Secretary of Agriculture and the Secretary shall enter into an agreement to effectuate the transfer of functions required by subsection (a). The Secretary of Agriculture and the Secretary may jointly revise the agreement as necessary thereafter.

    (2) REQUIRED TERMS.--The agreement required by this subsection shall specifically address the following:

    (A) The supervision by the Secretary of Agriculture of the training of employees of the Secretary to carry out the functions transferred pursuant to subsection (a).

    (B) The transfer of funds to the Secretary under subsection (f).

    (3) COOPERATION AND RECIPROCITY.--The Secretary of Agriculture and the Secretary may include as part of the agreement the following:

    (A) Authority for the Secretary to perform functions delegated to the Animal and Plant Health Inspection Service of the Department of Agriculture regarding the protection of domestic livestock and plants, but not transferred to the Secretary pursuant to subsection (a).

    (B) Authority for the Secretary of Agriculture to use employees of the Department of Homeland Security to carry out authorities delegated to the Animal and Plant Health Inspection Service regarding the protection of domestic livestock and plants.

    (f) PERIODIC TRANSFER OF FUNDS TO DEPARTMENT OF HOMELAND SECURITY.--

    (1) TRANSFER OF FUNDS.--Out of funds collected by fees authorized under sections 2508 and 2509 of the Food, Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 136, 136a), the Secretary of Agriculture shall transfer, from time to time in accordance with the agreement under subsection (e), to the Secretary funds for activities carried out by the Secretary for which such fees were collected.

    (2) LIMITATION.--The proportion of fees collected pursuant to such sections that are transferred to the Secretary under this subsection may not exceed the proportion of the costs incurred by the Secretary to all costs incurred to carry out activities funded by such fees.

    (g) TRANSFER OF DEPARTMENT OF AGRICULTURE EMPLOYEES.--Not later than the completion of the transition period defined under section 1501, the Secretary of Agriculture shall transfer to the Secretary not more than 3,200 full-time equivalent positions of the Department of Agriculture.

    (h) PROTECTION OF INSPECTION ANIMALS.--Title V of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 2279e, 2279f) is amended--

    (1) in section 501(a)--

    (A) by inserting ``or the Department of Homeland Security'' after ``Department of Agriculture''; and

    (B) by inserting ``or the Secretary of Homeland Security'' after ``Secretary of Agriculture'';

    (2) by striking ``Secretary'' each place it appears (other than in sections 501(a) and 501(e)) and inserting ``Secretary concerned''; and

    (3) by adding at the end of section 501 the following new subsection:

    ``(e) SECRETARY CONCERNED DEFINED.--In this title, the term `Secretary concerned' means--

    ``(1) the Secretary of Agriculture, with respect to an animal used for purposes of official inspections by the Department of Agriculture; and

    ``(2) the Secretary of Homeland Security, with respect to an animal used for purposes of official inspections by the Department of Homeland Security.''.

   SEC. 422. FUNCTIONS OF ADMINISTRATOR OF GENERAL SERVICES.

    (a) OPERATION, MAINTENANCE, AND PROTECTION OF FEDERAL BUILDINGS AND GROUNDS.--Nothing in this Act may be construed to affect the functions or authorities of the Administrator of General Services with respect to the operation, maintenance, and protection of buildings and grounds owned or occupied by the Federal Government and under the jurisdiction, custody, or control of the Administrator. Except for the law enforcement and related security functions transferred under section 403(3), the Administrator shall retain all powers, functions, and authorities vested in the Administrator under chapter 10 of title 40, United States Code, and other provisions of law that are necessary for the operation, maintenance, and protection of such buildings and grounds.

    (b) COLLECTION OF RENTS AND FEES; FEDERAL BUILDINGS FUND.--

    (1) STATUTORY CONSTRUCTION.--Nothing in this Act may be construed--

    (A) to direct the transfer of, or affect, the authority of the Administrator of General Services to collect rents and fees, including fees collected for protective services; or

    (B) to authorize the Secretary or any other official in the Department to obligate amounts in the Federal Buildings Fund established by section 490(f) of title 40, United States Code.

    (2) USE OF TRANSFERRED AMOUNTS.--Any amounts transferred by the Administrator of General Services to the Secretary out of rents and fees collected by the Administrator shall be used by the Secretary solely for the protection of buildings or grounds owned or occupied by the Federal Government.

   SEC. 423. FUNCTIONS OF TRANSPORTATION SECURITY ADMINISTRATION.

    (a) CONSULTATION WITH FEDERAL AVIATION ADMINISTRATION.--The Secretary and other officials in the Department shall consult with the Administrator of the Federal Aviation Administration before taking any action that might affect aviation safety, air carrier operations, aircraft airworthiness, or the use of airspace. The Secretary shall establish a liaison office within the Department for the purpose of consulting with the Administrator of the Federal Aviation Administration.

    (b) REPORT TO CONGRESS.--Not later than 60 days after the date of enactment of this Act, the Secretary of Transportation shall transmit to Congress a report containing a plan for complying with the requirements of section 44901(d) of title 49, United States Code, as amended by section 425 of this Act.

    (c) LIMITATIONS ON STATUTORY CONSTRUCTION.--

    (1) GRANT OF AUTHORITY.--Nothing in this Act may be construed to vest in the Secretary or any other official in the Department any authority over transportation security that is not vested in the Under Secretary of Transportation for Security, or in the Secretary of Transportation under chapter 449 of title 49, United States Code, on the day before the date of enactment of this Act.

    (2) OBLIGATION OF AIP FUNDS.--Nothing in this Act may be construed to authorize the Secretary or any other official in the Department to obligate amounts made available under section 48103 of title 49, United States Code.

   SEC. 424. PRESERVATION OF TRANSPORTATION SECURITY ADMINISTRATION AS A DISTINCT ENTITY.

    (a) IN GENERAL.--Notwithstanding any other provision of this Act, and subject to subsection (b), the Transportation Security Administration shall be maintained as a distinct entity within the Department under the Under Secretary for Border Transportation and Security.

    (b) SUNSET.--Subsection (a) shall cease to apply 2 years after the date of enactment of this Act.

   SEC. 425. EXPLOSIVE DETECTION SYSTEMS.

    Section 44901(d) of title 49, United States Code, is amended by adding at the end the following:

    ``(2) DEADLINE.--

    ``(A) IN GENERAL.--If, in his discretion or at the request of an airport, the Under Secretary of Transportation for Security determines that the Transportation Security Administration is not able to deploy explosive detection systems required to be deployed under paragraph (1) at all airports where explosive detection systems are required by December 31, 2002, then with respect to each airport for which the Under Secretary makes that determination--

    ``(i) the Under Secretary shall submit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a detailed plan (which may be submitted in classified form) for the deployment of the number of explosive detection systems at that airport necessary to meet the requirements of paragraph (1) as soon as practicable at that airport but in no event later than December 31, 2003; and

    ``(ii) the Under Secretary shall take all necessary action to ensure that alternative means of screening all checked baggage is implemented until the requirements of paragraph (1) have been met.

    ``(B) CRITERIA FOR DETERMINATION.--In making a determination under subparagraph (A), the Under Secretary shall take into account--

    ``(i) the nature and extent of the required modifications to the airport's terminal buildings, and the technical, engineering, design and construction issues;

    ``(ii) the need to ensure that such installations and modifications are effective; and

    ``(iii) the feasibility and cost-effectiveness of deploying explosive detection systems in the baggage sorting area or other non-public area rather than the lobby of an airport terminal building.

    ``(C) RESPONSE.--The Under Secretary shall respond to the request of an airport under subparagraph (A) within 14 days of receiving the request. A denial of request shall create no right of appeal or judicial review.

    ``(D) AIRPORT EFFORT REQUIRED.--Each airport with respect to which the Under Secretary makes a determination under subparagraph (A) shall--

    ``(i) cooperate fully with the Transportation Security Administration with respect to screening checked baggage and changes to accommodate explosive detection systems; and

    ``(ii) make security projects a priority for the obligation or expenditure of funds made available under chapter 417 or 471 until explosive detection systems required to be deployed under paragraph (1) have been deployed at that airport.

    ``(3) REPORTS.--Until the Transportation Security Administration has met the requirements of paragraph (1), the Under Secretary shall submit a classified report every 30 days after the date of enactment of this Act to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure describing the progress made toward meeting such requirements at each airport.''.

   SEC. 426. TRANSPORTATION SECURITY.

    (a) TRANSPORTATION SECURITY OVERSIGHT BOARD.--

    (1) ESTABLISHMENT.--Section 115(a) of title 49, United States Code, is amended by striking ``Department of Transportation'' and inserting ``Department of Homeland Security''.

    (2) MEMBERSHIP.--Section 115(b)(1) of title 49, United States Code, is amended--

    (A) by striking subparagraph (G);

    (B) by redesignating subparagraphs (A) through (F) as subparagraphs (B) through (G), respectively; and

    (C) by inserting before subparagraph (B) (as so redesignated) the following:

    ``(A) The Secretary of Homeland Security, or the Secretary's designee.''.

    (3) CHAIRPERSON.--Section 115(b)(2) of title 49, United States Code, is amended by striking ``Secretary of Transportation'' and inserting ``Secretary of Homeland Security''.

    (b) APPROVAL OF AIP GRANT APPLICATIONS FOR SECURITY ACTIVITIES.--Section 47106 of title

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    ``(g) CONSULTATION WITH SECRETARY OF HOMELAND SECURITY.--The Secretary shall consult with the Secretary of Homeland Security before approving an application under this subchapter for an airport development project grant for activities described in section 47102(3)(B)(ii) only as they relate to security equipment or section 47102(3)(B)(x) only as they relate to installation of bulk explosive detection system.''.

   SEC. 427. COORDINATION OF INFORMATION AND INFORMATION TECHNOLOGY.

    (a) DEFINITION OF AFFECTED AGENCY.--In this section, the term ``affected agency'' means--

    (1) the Department;

    (2) the Department of Agriculture;

    (3) the Department of Health and Human Services; and

    (4) any other department or agency determined to be appropriate by the Secretary.

    (b) COORDINATION.--The Secretary, in coordination with the Secretary of Agriculture, the Secretary of Health and Human Services, and the head of each other department or agency determined to be appropriate by the Secretary, shall ensure that appropriate information (as determined by the Secretary) concerning inspections of articles that are imported or entered into the United States, and are inspected or regulated by 1 or more affected agencies, is timely and efficiently exchanged between the affected agencies.

    (c) REPORT AND PLAN.--Not later than 18 months after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Agriculture, the Secretary of Health and Human Services, and the head of each other department or agency determined to be appropriate by the Secretary, shall submit to Congress--

    (1) a report on the progress made in implementing this section; and

    (2) a plan to complete implementation of this section.

   SEC. 428. VISA ISSUANCE.

    (a) DEFINITION.--In this subsection, the term ``consular office'' has the meaning given that term under section 101(a)(9) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(9)).

    (b) IN GENERAL.--Notwithstanding section 104(a) of the Immigration and Nationality Act (8 U.S.C. 1104(a)) or any other provision of law, and except as provided in subsection (c) of this section, the Secretary--

    (1) shall be vested exclusively with all authorities to issue regulations with respect to, administer, and enforce the provisions of such Act, and of all other immigration and nationality laws, relating to the functions of consular officers of the United States in connection with the granting or refusal of visas, and shall have the authority to refuse visas in accordance with law and to develop programs of homeland security training for consular officers (in addition to consular training provided by the Secretary of State), which authorities shall be exercised through the Secretary of State, except that the Secretary shall not have authority to alter or reverse the decision of a consular officer to refuse a visa to an alien; and

    (2) shall have authority to confer or impose upon any officer or employee of the United States, with the consent of the head of the executive agency under whose jurisdiction such officer or employee is serving, any of the functions specified in paragraph (1).

    (c) AUTHORITY OF THE SECRETARY OF STATE.--

    (1) IN GENERAL.--Notwithstanding subsection (b), the Secretary of State may direct a consular officer to refuse a visa to an alien if the Secretary of State deems such refusal necessary or advisable in the foreign policy or security interests of the United States.

    (2) CONSTRUCTION REGARDING AUTHORITY.--Nothing in this section, consistent with the Secretary of Homeland Security's authority to refuse visas in accordance with law, shall be construed as affecting the authorities of the Secretary of State under the following provisions of law:

    (A) Section 101(a)(15)(A) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(A)).

    (B) Section 204(d)(2) of the Immigration and Nationality Act (8 U.S.C. 1154) (as it will take effect upon the entry into force of the Convention on Protection of Children and Cooperation in Respect to Inter-Country adoption).

    (C) Section 212(a)(3)(B)(i)(IV)(bb) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(B)(i)(IV)(bb)).

    (D) Section 212(a)(3)(B)(i)(VI) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(B)(i)(VI)).

    (E) Section 212(a)(3)(B)(vi)(II) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(B)(vi)(II)).

    (F) Section 212(a)(3(C) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(C)).

    (G) Section 212(a)(10)(C) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(10)(C)).

    (H) Section 212(f) of the Immigration and Nationality Act (8 U.S.C. 1182(f)).

    (I) Section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)).

    (J) Section 237(a)(4)(C) of the Immigration and Nationality Act (8 U.S.C. 1227(a)(4)(C)).

    (K) Section 401 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6034; Public Law 104-114).

    (L) Section 613 of the Departments of Commerce, Justice, and State, the Judiciary and Related Agencies Appropriations Act, 1999 (as contained in section 101(b) of division A of Public Law 105-277) (Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999); 112 Stat. 2681; H.R. 4328 (originally H.R. 4276) as amended by section 617 of Public Law 106-553.

    (M) Section 103(f) of the Chemical Weapon Convention Implementation Act of 1998 (112 Stat. 2681-865).

    (N) Section 801 of H.R. 3427, the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001, as enacted by reference in Public Law 106-113.

    (O) Section 568 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115).

    (P) Section 51 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2723).

    (d) CONSULAR OFFICERS AND CHIEFS OF MISSIONS.--

    (1) IN GENERAL.--Nothing in this section may be construed to alter or affect--

    (A) the employment status of consular officers as employees of the Department of State; or

    (B) the authority of a chief of mission under section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927).

    (2) CONSTRUCTION REGARDING DELEGATION OF AUTHORITY.--Nothing in this section shall be construed to affect any delegation of authority to the Secretary of State by the President pursuant to any proclamation issued under section 212(f) of the Immigration and Nationality Act (8 U.S.C. 1182(f)), consistent with the Secretary of Homeland Security's authority to refuse visas in accordance with law.

    (e) ASSIGNMENT OF HOMELAND SECURITY EMPLOYEES TO DIPLOMATIC AND CONSULAR POSTS.--

    (1) IN GENERAL.--The Secretary is authorized to assign employees of the Department to each diplomatic and consular post at which visas are issued, unless the Secretary determines that such an assignment at a particular post would not promote homeland security.

    (2) FUNCTIONS.--Employees assigned under paragraph (1) shall perform the following functions:

    (A) Provide expert advice and training to consular officers regarding specific security threats relating to the adjudication of individual visa applications or classes of applications.

    (B) Review any such applications, either on the initiative of the employee of the Department or upon request by a consular officer or other person charged with adjudicating such applications.

    (C) Conduct investigations with respect to consular matters under the jurisdiction of the Secretary.

    (3) EVALUATION OF CONSULAR OFFICERS.--The Secretary of State shall evaluate, in consultation with the Secretary, as deemed appropriate by the Secretary, the performance of consular officers with respect to the processing and adjudication of applications for visas in accordance with performance standards developed by the Secretary for these procedures.

    (4) REPORT.--The Secretary shall, on an annual basis, submit a report to Congress that describes the basis for each determination under paragraph (1) that the assignment of an employee of the Department at a particular diplomatic post would not promote homeland security.

    (5) PERMANENT ASSIGNMENT; PARTICIPATION IN TERRORIST LOOKOUT COMMITTEE.--When appropriate, employees of the Department assigned to perform functions described in paragraph (2) may be assigned permanently to overseas diplomatic or consular posts with country-specific or regional responsibility. If the Secretary so directs, any such employee, when present at an overseas post, shall participate in the terrorist lookout committee established under section 304 of the Enhanced Border Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1733).

    (6) TRAINING AND HIRING.--

    (A) IN GENERAL.--The Secretary shall ensure, to the extent possible, that any employees of the Department assigned to perform functions under paragraph (2) and, as appropriate, consular officers, shall be provided the necessary training to enable them to carry out such functions, including training in foreign languages, interview techniques, and fraud detection techniques, in conditions in the particular country where each employee is assigned, and in other appropriate areas of study.

    (B) USE OF CENTER.--The Secretary is authorized to use the National Foreign Affairs Training Center, on a reimbursable basis, to obtain the training described in subparagraph (A).

    (7) REPORT.--Not later than 1 year after the date of enactment of this Act, the Secretary and the Secretary of State shall submit to Congress--

    (A) a report on the implementation of this subsection; and

    (B) any legislative proposals necessary to further the objectives of this subsection.

    (8) EFFECTIVE DATE.--This subsection shall take effect on the earlier of--

    (A) the date on which the President publishes notice in the Federal Register that the President has submitted a report to Congress setting forth a memorandum of understanding between the Secretary and the Secretary of State governing the implementation of this section; or

    (B) the date occurring 1 year after the date of enactment of this Act.

    (f) NO CREATION OF PRIVATE RIGHT OF ACTION.--Nothing in this section shall be construed to create or authorize a private right of action to challenge a decision of a consular officer or other United States official or employee to grant or deny a visa.

    (g) STUDY REGARDING USE OF FOREIGN NATIONALS.--

    (1) IN GENERAL.--The Secretary of Homeland Security shall conduct a study of the role of foreign nationals in the granting or refusal of visas and other documents authorizing entry of aliens into the United States. The study shall address the following:

    (A) The proper role, if any, of foreign nationals in the process of rendering decisions on such grants and refusals.

    (B) Any security concerns involving the employment of foreign nationals.

    (C) Whether there are cost-effective alternatives to the use of foreign nationals.

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    (2) REPORT.--Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report containing the findings of the study conducted under paragraph (1) to the Committee on the Judiciary, the Committee on International Relations, and the Committee on Government Reform of the House of Representatives, and the Committee on the Judiciary, the Committee on Foreign Relations, and the Committee on Government Affairs of the Senate.

    (h) REPORT.--Not later than 120 days after the date of the enactment of this Act, the Director of the Office of Science and Technology Policy shall submit to Congress a report on how the provisions of this section will affect procedures for the issuance of student visas.

    (i) VISA ISSUANCE PROGRAM FOR SAUDI ARABIA.--Notwithstanding any other provision of law, after the date of the enactment of this Act all third party screening programs in Saudi Arabia shall be terminated. On-site personnel of the Department of Homeland Security shall review all visa applications prior to adjudication.

   SEC. 429. INFORMATION ON VISA DENIALS REQUIRED TO BE ENTERED INTO ELECTRONIC DATA SYSTEM.

    (a) IN GENERAL.--Whenever a consular officer of the United States denies a visa to an applicant, the consular officer shall enter the fact and the basis of the denial and the name of the applicant into the interoperable electronic data system implemented under section 202(a) of the Enhanced Border Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1722(a)).

    (b) PROHIBITION.--In the case of any alien with respect to whom a visa has been denied under subsection (a)--

    (1) no subsequent visa may be issued to the alien unless the consular officer considering the alien's visa application has reviewed the information concerning the alien placed in the interoperable electronic data system, has indicated on the alien's application that the information has been reviewed, and has stated for the record why the visa is being issued or a waiver of visa ineligibility recommended in spite of that information; and

    (2) the alien may not be admitted to the United States without a visa issued in accordance with the procedures described in paragraph (1).

   SEC. 430. OFFICE FOR DOMESTIC PREPAREDNESS.

    (a) IN GENERAL.--The Office for Domestic Preparedness shall be within the Directorate of Border and Transportation Security.

    (b) DIRECTOR.--There shall be a Director of the Office for Domestic Preparedness, who shall be appointed by the President, by and with the advice and consent of the Senate. The Director of the Office for Domestic Preparedness shall report directly to the Under Secretary for Border and Transportation Security.

    (c) RESPONSIBILITIES.--The Office for Domestic Preparedness shall have the primary responsibility within the executive branch of Government for the preparedness of the United States for acts of terrorism, including--

    (1) coordinating preparedness efforts at the Federal level, and working with all State, local, tribal, parish, and private sector emergency response providers on all matters pertaining to combating terrorism, including training, exercises, and equipment support;

    (2) coordinating or, as appropriate, consolidating communications and systems of communications relating to homeland security at all levels of government;

    (3) directing and supervising terrorism preparedness grant programs of the Federal Government (other than those programs administered by the Department of Health and Human Services) for all emergency response providers;

    (4) incorporating the Strategy priorities into planning guidance on an agency level for the preparedness efforts of the Office for Domestic Preparedness;

    (5) providing agency-specific training for agents and analysts within the Department, other agencies, and State and local agencies and international entities;

    (6) as the lead executive branch agency for preparedness of the United States for acts of terrorism, cooperating closely with the Federal Emergency Management Agency, which shall have the primary responsibility within the executive branch to prepare for and mitigate the effects of nonterrorist-related disasters in the United States;

    (7) assisting and supporting the Secretary, in coordination with other Directorates and entities outside the Department, in conducting appropriate risk analysis and risk management activities of State, local, and tribal governments consistent with the mission and functions of the Directorate; and

    (8) those elements of the Office of National Preparedness of the Federal Emergency Management Agency which relate to terrorism, which shall be consolidated within the Department in the Office for Domestic Preparedness established under this section.

    (d) FISCAL YEARS 2003 and 2004.--During fiscal year 2003 and fiscal year 2004, the Director of the Office for Domestic Preparedness established under this section shall manage and carry out those functions of the Office for Domestic Preparedness of the Department of Justice (transferred under this section) before September 11, 2001, under the same terms, conditions, policies, and authorities, and with the required level of personnel, assets, and budget before September 11, 2001.

   SEC. 441. TRANSFER OF FUNCTIONS TO UNDER SECRETARY FOR BORDER AND TRANSPORTATION SECURITY.

    In accordance with title XV (relating to transition provisions), there shall be transferred from the Commissioner of Immigration and Naturalization to the Under Secretary for Border and Transportation Security all functions performed under the following programs, and all personnel, assets, and liabilities pertaining to such programs, immediately before such transfer occurs:

    (1) The Border Patrol program.

    (2) The detention and removal program.

    (3) The intelligence program.

    (4) The investigations program.

    (5) The inspections program.

   SEC. 442. ESTABLISHMENT OF BUREAU OF BORDER SECURITY.

    (a) ESTABLISHMENT OF BUREAU.--

    (1) IN GENERAL.--There shall be in the Department of Homeland Security a bureau to be known as the ``Bureau of Border Security''.

    (2) ASSISTANT SECRETARY.--The head of the Bureau of Border Security shall be the Assistant Secretary of the Bureau of Border Security, who--

    (A) shall report directly to the Under Secretary for Border and Transportation Security; and

    (B) shall have a minimum of 5 years professional experience in law enforcement, and a minimum of 5 years of management experience.

    (3) FUNCTIONS.--The Assistant Secretary of the Bureau of Border Security--

    (A) shall establish the policies for performing such functions as are--

    (i) transferred to the Under Secretary for Border and Transportation Security by section 441 and delegated to the Assistant Secretary by the Under Secretary for Border and Transportation Security; or

    (ii) otherwise vested in the Assistant Secretary by law;

    (B) shall oversee the administration of such policies; and

    (C) shall advise the Under Secretary for Border and Transportation Security with respect to any policy or operation of the Bureau of Border Security that may affect the Bureau of Citizenship and Immigration Services established under subtitle E, including potentially conflicting policies or operations.

    (4) PROGRAM TO COLLECT INFORMATION RELATING TO FOREIGN STUDENTS.--The Assistant Secretary of the Bureau of Border Security shall be responsible for administering the program to collect information relating to nonimmigrant foreign students and other exchange program participants described in section 641 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1372), including the Student and Exchange Visitor Information System established under that section, and shall use such information to carry out the enforcement functions of the Bureau.

    (5) MANAGERIAL ROTATION PROGRAM.--

    (A) IN GENERAL.--Not later than 1 year after the date on which the transfer of functions specified under section 441 takes effect, the Assistant Secretary of the Bureau of Border Security shall design and implement a managerial rotation program under which employees of such bureau holding positions involving supervisory or managerial responsibility and classified, in accordance with chapter 51 of title 5, United States Code, as a GS-14 or above, shall--

    (i) gain some experience in all the major functions performed by such bureau; and

    (ii) work in at least one local office of such bureau.

    (B) REPORT.--Not later than 2 years after the date on which the transfer of functions specified under section 441 takes effect, the Secretary shall submit a report to the Congress on the implementation of such program.

    (b) CHIEF OF POLICY AND STRATEGY.--

    (1) IN GENERAL.--There shall be a position of Chief of Policy and Strategy for the Bureau of Border Security.

    (2) FUNCTIONS.--In consultation with Bureau of Border Security personnel in local offices, the Chief of Policy and Strategy shall be responsible for--

    (A) making policy recommendations and performing policy research and analysis on immigration enforcement issues; and

    (B) coordinating immigration policy issues with the Chief of Policy and Strategy for the Bureau of Citizenship and Immigration Services (established under subtitle E), as appropriate.

    (c) LEGAL ADVISOR.--There shall be a principal legal advisor to the Assistant Secretary of the Bureau of Border Security. The legal advisor shall provide specialized legal advice to the Assistant Secretary of the Bureau of Border Security and shall represent the bureau in all exclusion, deportation, and removal proceedings before the Executive Office for Immigration Review.

   SEC. 443. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

    The Under Secretary for Border and Transportation Security shall be responsible for--

    (1) conducting investigations of noncriminal allegations of misconduct, corruption, and fraud involving any employee of the Bureau of Border Security that are not subject to investigation by the Inspector General for the Department;

    (2) inspecting the operations of the Bureau of Border Security and providing assessments of the quality of the operations of such bureau as a whole and each of its components; and

    (3) providing an analysis of the management of the Bureau of Border Security.

   SEC. 444. EMPLOYEE DISCIPLINE.

    The Under Secretary for Border and Transportation Security may, notwithstanding any other provision of law, impose disciplinary action, including termination of employment, pursuant to policies and procedures applicable to employees of the Federal Bureau of Investigation, on any employee of the Bureau of Border Security who willfully deceives the Congress or agency leadership on any matter.

   SEC. 445. REPORT ON IMPROVING ENFORCEMENT FUNCTIONS.

    (a) IN GENERAL.--The Secretary, not later than 1 year after being sworn into office, shall

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    (b) CONSULTATION.--In carrying out subsection (a), the Secretary of Homeland Security shall consult with the Attorney General, the Secretary of State, the Director of the Federal Bureau of Investigation, the Secretary of the Treasury, the Secretary of Labor, the Commissioner of Social Security, the Director of the Executive Office for Immigration Review, and the heads of State and local law enforcement agencies to determine how to most effectively conduct enforcement operations.

   SEC. 446. 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.

   SEC. 451. ESTABLISHMENT OF BUREAU OF CITIZENSHIP AND IMMIGRATION SERVICES.

    (a) ESTABLISHMENT OF BUREAU.--

    (1) IN GENERAL.--There shall be in the Department a bureau to be known as the ``Bureau of Citizenship and Immigration Services''.

    (2) DIRECTOR.--The head of the Bureau of Citizenship and Immigration Services shall be the Director of the Bureau of Citizenship and Immigration Services, who--

    (A) shall report directly to the Deputy Secretary;

    (B) shall have a minimum of 5 years of management experience; and

    (C) shall be paid at the same level as the Assistant Secretary of the Bureau of Border Security.

    (3) FUNCTIONS.--The Director of the Bureau of Citizenship and Immigration Services--

    (A) shall establish the policies for performing such functions as are transferred to the Director by this section or this Act or otherwise vested in the Director by law;

    (B) shall oversee the administration of such policies;

    (C) shall advise the Deputy Secretary with respect to any policy or operation of the Bureau of Citizenship and Immigration Services that may affect the Bureau of Border Security of the Department, including potentially conflicting policies or operations;

    (D) shall establish national immigration services policies and priorities;

    (E) shall meet regularly with the Ombudsman described in section 452 to correct serious service problems identified by the Ombudsman; and

    (F) shall establish procedures requiring a formal response to any recommendations submitted in the Ombudsman's annual report to Congress within 3 months after its submission to Congress.

    (4) MANAGERIAL ROTATION PROGRAM.--

    (A) IN GENERAL.--Not later than 1 year after the effective date specified in section 455, the Director of the Bureau of Citizenship and Immigration Services shall design and implement a managerial rotation program under which employees of such bureau holding positions involving supervisory or managerial responsibility and classified, in accordance with chapter 51 of title 5, United States Code, as a GS-14 or above, shall--

    (i) gain some experience in all the major functions performed by such bureau; and

    (ii) work in at least one field office and one service center of such bureau.

    (B) REPORT.--Not later than 2 years after the effective date specified in section 455, the Secretary shall submit a report to Congress on the implementation of such program.

    (5) PILOT INITIATIVES FOR BACKLOG ELIMINATION.--The Director of the Bureau of Citizenship and Immigration Services is authorized to implement innovative pilot initiatives to eliminate any remaining backlog in the processing of immigration benefit applications, and to prevent any backlog in the processing of such applications from recurring, in accordance with section 204(a) of the Immigration Services and Infrastructure Improvements Act of 2000 (8 U.S.C. 1573(a)). Such initiatives may include measures such as increasing personnel, transferring personnel to focus on areas with the largest potential for backlog, and streamlining paperwork.

    (b) TRANSFER OF FUNCTIONS FROM COMMISSIONER.--In accordance with title XV (relating to transition provisions), there are transferred from the Commissioner of Immigration and Naturalization to the Director of the Bureau of Citizenship and Immigration Services the following functions, and all personnel, infrastructure, and funding provided to the Commissioner in support of such functions immediately before the effective date specified in section 455:

    (1) Adjudications of immigrant visa petitions.

    (2) Adjudications of naturalization petitions.

    (3) Adjudications of asylum and refugee applications.

    (4) Adjudications performed at service centers.

    (5) All other adjudications performed by the Immigration and Naturalization Service immediately before the effective date specified in section 455.

    (c) CHIEF OF POLICY AND STRATEGY.--

    (1) IN GENERAL.--There shall be a position of Chief of Policy and Strategy for the Bureau of Citizenship and Immigration Services.

    (2) FUNCTIONS.--In consultation with Bureau of Citizenship and Immigration Services personnel in field offices, the Chief of Policy and Strategy shall be responsible for--

    (A) making policy recommendations and performing policy research and analysis on immigration services issues; and

    (B) coordinating immigration policy issues with the Chief of Policy and Strategy for the Bureau of Border Security of the Department.

    (d) LEGAL ADVISOR.--

    (1) IN GENERAL.--There shall be a principal legal advisor to the Director of the Bureau of Citizenship and Immigration Services.

    (2) FUNCTIONS.--The legal advisor shall be responsible for--

    (A) providing specialized legal advice, opinions, determinations, regulations, and any other assistance to the Director of the Bureau of Citizenship and Immigration Services with respect to legal matters affecting the Bureau of Citizenship and Immigration Services; and

    (B) representing the Bureau of Citizenship and Immigration Services in visa petition appeal proceedings before the Executive Office for Immigration Review.

    (e) BUDGET OFFICER.--

    (1) IN GENERAL.--There shall be a Budget Officer for the Bureau of Citizenship and Immigration Services.

    (2) FUNCTIONS.--

    (A) IN GENERAL.--The Budget Officer shall be responsible for--

    (i) formulating and executing the budget of the Bureau of Citizenship and Immigration Services;

    (ii) financial management of the Bureau of Citizenship and Immigration Services; and

    (iii) collecting all payments, fines, and other debts for the Bureau of Citizenship and Immigration Services.

    (f) CHIEF OF OFFICE OF CITIZENSHIP.--

    (1) IN GENERAL.--There shall be a position of Chief of the Office of Citizenship for the Bureau of Citizenship and Immigration Services.

    (2) FUNCTIONS.--The Chief of the Office of Citizenship for the Bureau of Citizenship and Immigration Services shall be responsible for promoting instruction and training on citizenship responsibilities for aliens interested in becoming naturalized citizens of the United States, including the development of educational materials.

   SEC. 452. CITIZENSHIP AND IMMIGRATION SERVICES OMBUDSMAN.

    (a) IN GENERAL.--Within the Department, there shall be a position of Citizenship and Immigration Services Ombudsman (in this section referred to as the ``Ombudsman''). The Ombudsman shall report directly to the Deputy Secretary. The Ombudsman shall have a background in customer service as well as immigration law.

    (b) FUNCTIONS.--It shall be the function of the Ombudsman--

    (1) to assist individuals and employers in resolving problems with the Bureau of Citizenship and Immigration Services;

    (2) to identify areas in which individuals and employers have problems in dealing with the Bureau of Citizenship and Immigration Services; and

    (3) to the extent possible, to propose changes in the administrative practices of the Bureau of Citizenship and Immigration Services to mitigate problems identified under paragraph (2).

    (c) ANNUAL REPORTS.--

    (1) OBJECTIVES.--Not later than June 30 of each calendar year, the Ombudsman shall report to the Committee on the Judiciary of the House of Representatives and the Senate on the objectives of the Office of the Ombudsman for the fiscal year beginning in such calendar year. Any such report shall contain full and substantive analysis, in addition to statistical information, and--

    (A) shall identify the recommendations the Office of the Ombudsman has made on improving services and responsiveness of the Bureau of Citizenship and Immigration Services;

    (B) shall contain a summary of the most pervasive and serious problems encountered by individuals and employers, including a description of the nature of such problems;

    (C) shall contain an inventory of the items described in subparagraphs (A) and (B) for which action has been taken and the result of such action;

    (D) shall contain an inventory of the items described in subparagraphs (A) and (B) for which action remains to be completed and the period during which each item has remained on such inventory;

    (E) shall contain an inventory of the items described in subparagraphs (A) and (B) for which no action has been taken, the period during which each item has remained on such inventory, the reasons for the inaction, and shall identify any official of the Bureau of Citizenship and Immigration Services who is responsible for such inaction;

    (F) shall contain recommendations for such administrative action as may be appropriate to resolve problems encountered by individuals and employers, including problems created by excessive backlogs in the adjudication and processing of immigration benefit petitions and applications; and

    (G) shall include such other information as the Ombudsman may deem advisable.

    (2) REPORT TO BE SUBMITTED DIRECTLY.--Each report required under this subsection shall be provided directly to the committees described in paragraph (1) without any prior comment or amendment from the Secretary, Deputy Secretary, Director of the Bureau of Citizenship and Immigration Services, or any other officer or employee of the Department or the Office of Management and Budget.

    (d) OTHER RESPONSIBILITIES.--The Ombudsman--

    (1) shall monitor the coverage and geographic allocation of local offices of the Ombudsman;

    (2) shall develop guidance to be distributed to all officers and employees of the Bureau of Citizenship and Immigration Services outlining the

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    (3) shall ensure that the local telephone number for each local office of the Ombudsman is published and available to individuals and employers served by the office; and

    (4) shall meet regularly with the Director of the Bureau of Citizenship and Immigration Services to identify serious service problems and to present recommendations for such administrative action as may be appropriate to resolve problems encountered by individuals and employers.

    (e) PERSONNEL ACTIONS.--

    (1) IN GENERAL.--The Ombudsman shall have the responsibility and authority--

    (A) to appoint local ombudsmen and make available at least 1 such ombudsman for each State; and

    (B) to evaluate and take personnel actions (including dismissal) with respect to any employee of any local office of the Ombudsman.

    (2) CONSULTATION.--The Ombudsman may consult with the appropriate supervisory personnel of the Bureau of Citizenship and Immigration Services in carrying out the Ombudsman's responsibilities under this subsection.

    (f) RESPONSIBILITIES OF BUREAU OF CITIZENSHIP AND IMMIGRATION SERVICES.--The Director of the Bureau of Citizenship and Immigration Services shall establish procedures requiring a formal response to all recommendations submitted to such director by the Ombudsman within 3 months after submission to such director.

    (g) OPERATION OF LOCAL OFFICES.--

    (1) IN GENERAL.--Each local ombudsman--

    (A) shall report to the Ombudsman or the delegate thereof;

    (B) may consult with the appropriate supervisory personnel of the Bureau of Citizenship and Immigration Services regarding the daily operation of the local office of such ombudsman;

    (C) shall, at the initial meeting with any individual or employer seeking the assistance of such local office, notify such individual or employer that the local offices of the Ombudsman operate independently of any other component of the Department and report directly to Congress through the Ombudsman; and

    (D) at the local ombudsman's discretion, may determine not to disclose to the Bureau of Citizenship and Immigration Services contact with, or information provided by, such individual or employer.

    (2) MAINTENANCE OF INDEPENDENT COMMUNICATIONS.--Each local office of the Ombudsman shall maintain a phone, facsimile, and other means of electronic communication access, and a post office address, that is separate from those maintained by the Bureau of Citizenship and Immigration Services, or any component of the Bureau of Citizenship and Immigration Services.

   SEC. 453. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

    (a) IN GENERAL.--The Director of the Bureau of Citizenship and Immigration Services shall be responsible for--

    (1) conducting investigations of noncriminal allegations of misconduct, corruption, and fraud involving any employee of the Bureau of Citizenship and Immigration Services that are not subject to investigation by the Inspector General for the Department;

    (2) inspecting the operations of the Bureau of Citizenship and Immigration Services and providing assessments of the quality of the operations of such bureau as a whole and each of its components; and

    (3) providing an analysis of the management of the Bureau of Citizenship and Immigration Services.

    (b) SPECIAL CONSIDERATIONS.--In providing assessments in accordance with subsection (a)(2) with respect to a decision of the Bureau of Citizenship and Immigration Services, or any of its components, consideration shall be given to--

    (1) the accuracy of the findings of fact and conclusions of law used in rendering the decision;

    (2) any fraud or misrepresentation associated with the decision; and

    (3) the efficiency with which the decision was rendered.

   SEC. 454. EMPLOYEE DISCIPLINE.

    The Director of the Bureau of Citizenship and Immigration Services may, notwithstanding any other provision of law, impose disciplinary action, including termination of employment, pursuant to policies and procedures applicable to employees of the Federal Bureau of Investigation, on any employee of the Bureau of Citizenship and Immigration Services who willfully deceives Congress or agency leadership on any matter.

   SEC. 455. EFFECTIVE DATE.

    Notwithstanding section 4, sections 451 through 456, and the amendments made by such sections, shall take effect on the date on which the transfer of functions specified under section 441 takes effect.

   SEC. 456. TRANSITION.

    (a) REFERENCES.--With respect to any function transferred by this subtitle to, and exercised on or after the effective date specified in section 455 by, the Director of the Bureau of Citizenship and Immigration Services, any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a component of government from which such function is transferred--

    (1) to the head of such component is deemed to refer to the Director of the Bureau of Citizenship and Immigration Services; or

    (2) to such component is deemed to refer to the Bureau of Citizenship and Immigration Services.

    (b) OTHER TRANSITION ISSUES.--

    (1) EXERCISE OF AUTHORITIES.--Except as otherwise provided by law, a Federal official to whom a function is transferred by this subtitle may, for purposes of performing the function, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date specified in section 455.

    (2) TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL.--The personnel of the Department of Justice employed in connection with the functions transferred by this subtitle (and functions that the Secretary determines are properly related to the functions of the Bureau of Citizenship and Immigration Services), and the assets, liabilities, contracts, property, records, and unexpended balance of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available to, the Immigration and Naturalization Service in connection with the functions transferred by this subtitle, subject to section 202 of the Budget and Accounting Procedures Act of 1950, shall be transferred to the Director of the Bureau of Citizenship and Immigration Services for allocation to the appropriate component of the Department. Unexpended funds transferred pursuant to this paragraph shall be used only for the purposes for which the funds were originally authorized and appropriated. The Secretary shall have the right to adjust or realign transfers of funds and personnel effected pursuant to this subtitle for a period of 2 years after the effective date specified in section 455.

   SEC. 457. FUNDING FOR CITIZENSHIP AND IMMIGRATION SERVICES.

    Section 286(m) of the Immigration and Nationality Act (8 U.S.C. 1356(m)) is amended by striking ``services, including the costs of similar services provided without charge to asylum applicants or other immigrants.'' and inserting ``services.''.

   SEC. 458. BACKLOG ELIMINATION.

    Section 204(a)(1) of the Immigration Services and Infrastructure Improvements Act of 2000 (8 U.S.C. 1573(a)(1)) is amended by striking ``not later than one year after the date of enactment of this Act;'' and inserting ``1 year after the date of the enactment of the Homeland Security Act of 2002;''.

   SEC. 459. REPORT ON IMPROVING IMMIGRATION SERVICES.

    (a) IN GENERAL.--The Secretary, not later than 1 year after the effective date of this Act, shall submit to the Committees on the Judiciary and Appropriations of the House of Representatives and of the Senate a report with a plan detailing how the Bureau of Citizenship and Immigration Services, after the transfer of functions specified in this subtitle takes effect, will complete efficiently, fairly, and within a reasonable time, the adjudications described in paragraphs (1) through (5) of section 451(b).

    (b) CONTENTS.--For each type of adjudication to be undertaken by the Director of the Bureau of Citizenship and Immigration Services, the report shall include the following:

    (1) Any potential savings of resources that may be implemented without affecting the quality of the adjudication.

    (2) The goal for processing time with respect to the application.

    (3) Any statutory modifications with respect to the adjudication that the Secretary considers advisable.

    (c) CONSULTATION.--In carrying out subsection (a), the Secretary shall consult with the Secretary of State, the Secretary of Labor, the Assistant Secretary of the Bureau of Border Security of the Department, and the Director of the Executive Office for Immigration Review to determine how to streamline and improve the process for applying for and making adjudications described in section 451(b) and related processes.

   SEC. 460. REPORT ON RESPONDING TO FLUCTUATING NEEDS.

    Not later than 30 days after the date of the enactment of this Act, the Attorney General shall submit to Congress a report on changes in law, including changes in authorizations of appropriations and in appropriations, that are needed to permit the Immigration and Naturalization Service, and, after the transfer of functions specified in this subtitle takes effect, the Bureau of Citizenship and Immigration Services of the Department, to ensure a prompt and timely response to emergent, unforeseen, or impending changes in the number of applications for immigration benefits, and otherwise to ensure the accommodation of changing immigration service needs.

   SEC. 461. APPLICATION OF INTERNET-BASED TECHNOLOGIES.

    (a) ESTABLISHMENT OF TRACKING SYSTEM.--The Secretary, not later than 1 year after the effective date of this Act, in consultation with the Technology Advisory Committee established under subsection (c), shall establish an Internet-based system, that will permit a person, employer, immigrant, or nonimmigrant who has filings with the Secretary for any benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), access to online information about the processing status of the filing involved.

    (b) FEASIBILITY STUDY FOR ONLINE FILING AND IMPROVED PROCESSING.--

    (1) ONLINE FILING.--The Secretary, in consultation with the Technology Advisory Committee established under subsection (c), shall conduct a feasibility study on the online filing of the filings described in subsection (a). The study shall include a review of computerization and technology of the Immigration and Naturalization Service relating to the immigration services and processing of filings related to immigrant services. The study shall also include an estimate of the timeframe and cost and shall consider other factors in implementing such a filing system, including the feasibility of fee payment online.

    (2) REPORT.--A report on the study under this subsection shall be submitted to the Committees on the Judiciary of the House of Representatives

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    (c) TECHNOLOGY ADVISORY COMMITTEE.--

    (1) ESTABLISHMENT.--The Secretary shall establish, not later than 60 days after the effective date of this Act, an advisory committee (in this section referred to as the ``Technology Advisory Committee'') to assist the Secretary in--

    (A) establishing the tracking system under subsection (a); and

    (B) conducting the study under subsection (b).

   The Technology Advisory Committee shall be established after consultation with the Committees on the Judiciary of the House of Representatives and the Senate.

    (2) COMPOSITION.--The Technology Advisory Committee shall be composed of representatives from high technology companies capable of establishing and implementing the system in an expeditious manner, and representatives of persons who may use the tracking system described in subsection (a) and the online filing system described in subsection (b)(1).

   SEC. 462. CHILDREN'S AFFAIRS.

    (a) TRANSFER OF FUNCTIONS.--There are transferred to the Director of the Office of Refugee Resettlement of the Department of Health and Human Services functions under the immigration laws of the United States with respect to the care of unaccompanied alien children that were vested by statute in, or performed by, the Commissioner of Immigration and Naturalization (or any officer, employee, or component of the Immigration and Naturalization Service) immediately before the effective date specified in subsection (d).

    (b) FUNCTIONS.--

    (1) IN GENERAL.--Pursuant to the transfer made by subsection (a), the Director of the Office of Refugee Resettlement shall be responsible for--

    (A) coordinating and implementing the care and placement of unaccompanied alien children who are in Federal custody by reason of their immigration status, including developing a plan to be submitted to Congress on how to ensure that qualified and independent legal counsel is timely appointed to represent the interests of each such child, consistent with the law regarding appointment of counsel that is in effect on the date of the enactment of this Act;

    (B) ensuring that the interests of the child are considered in decisions and actions relating to the care and custody of an unaccompanied alien child;

    (C) making placement determinations for all unaccompanied alien children who are in Federal custody by reason of their immigration status;

    (D) implementing the placement determinations;

    (E) implementing policies with respect to the care and placement of unaccompanied alien children;

    (F) identifying a sufficient number of qualified individuals, entities, and facilities to house unaccompanied alien children;

    (G) overseeing the infrastructure and personnel of facilities in which unaccompanied alien children reside;

    (H) reuniting unaccompanied alien children with a parent abroad in appropriate cases;

    (I) compiling, updating, and publishing at least annually a state-by-state list of professionals or other entities qualified to provide guardian and attorney representation services for unaccompanied alien children;

    (J) maintaining statistical information and other data on unaccompanied alien children for whose care and placement the Director is responsible, which shall include--

    (i) biographical information, such as a child's name, gender, date of birth, country of birth, and country of habitual residence;

    (ii) the date on which the child came into Federal custody by reason of his or her immigration status;

    (iii) information relating to the child's placement, removal, or release from each facility in which the child has resided;

    (iv) in any case in which the child is placed in detention or released, an explanation relating to the detention or release; and

    (v) the disposition of any actions in which the child is the subject;

    (K) collecting and compiling statistical information from the Department of Justice, the Department of Homeland Security, and the Department of State on each department's actions relating to unaccompanied alien children; and

    (L) conducting investigations and inspections of facilities and other entities in which unaccompanied alien children reside.

    (2) COORDINATION WITH OTHER ENTITIES; NO RELEASE ON OWN RECOGNIZANCE.--In making determinations described in paragraph (1)(C), the Director of the Office of Refugee Resettlement--

    (A) shall consult with appropriate juvenile justice professionals, the Director of the Bureau of Citizenship and Immigration Services, and the Assistant Secretary of the Bureau of Border Security to ensure that such determinations ensure that unaccompanied alien children described in such subparagraph--

    (i) are likely to appear for all hearings or proceedings in which they are involved;

    (ii) are protected from smugglers, traffickers, or others who might seek to victimize or otherwise engage them in criminal, harmful, or exploitive activity; and

    (iii) are placed in a setting in which they not likely to pose a danger to themselves or others; and

    (B) shall not release such children upon their own recognizance.

    (3) DUTIES WITH RESPECT TO FOSTER CARE.--In carrying out the duties described in paragraph (1)(G), the Director of the Office of Refugee Resettlement is encouraged to use the refugee children foster care system established pursuant to section 412(d) of the Immigration and Nationality Act (8 U.S.C. 1522(d)) for the placement of unaccompanied alien children.

    (c) RULE OF CONSTRUCTION.--Nothing in this section may be construed to transfer the responsibility for adjudicating benefit determinations under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) from the authority of any official of the Department of Justice, the Department of Homeland Security, or the Department of State.

    (d) EFFECTIVE DATE.--Notwithstanding section 4, this section shall take effect on the date on which the transfer of functions specified under section 441 takes effect.

    (e) REFERENCES.--With respect to any function transferred by this section, any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a component of government from which such function is transferred--

    (1) to the head of such component is deemed to refer to the Director of the Office of Refugee Resettlement; or

    (2) to such component is deemed to refer to the Office of Refugee Resettlement of the Department of Health and Human Services.

    (f) OTHER TRANSITION ISSUES.--

    (1) EXERCISE OF AUTHORITIES.--Except as otherwise provided by law, a Federal official to whom a function is transferred by this section may, for purposes of performing the function, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date specified in subsection (d).

    (2) SAVINGS PROVISIONS.--Subsections (a), (b), and (c) of section 1512 shall apply to a transfer of functions under this section in the same manner as such provisions apply to a transfer of functions under this Act to the Department of Homeland Security.

    (3) TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL.--The personnel of the Department of Justice employed in connection with the functions transferred by this section, and the assets, liabilities, contracts, property, records, and unexpended balance of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available to, the Immigration and Naturalization Service in connection with the functions transferred by this section, subject to section 202 of the Budget and Accounting Procedures Act of 1950, shall be transferred to the Director of the Office of Refugee Resettlement for allocation to the appropriate component of the Department of Health and Human Services. Unexpended funds transferred pursuant to this paragraph shall be used only for the purposes for which the funds were originally authorized and appropriated.

    (g) DEFINITIONS.--As used in this section--

    (1) the term ``placement'' means the placement of an unaccompanied alien child in either a detention facility or an alternative to such a facility; and

    (2) the term ``unaccompanied alien child'' means a child who--

    (A) has no lawful immigration status in the United States;

    (B) has not attained 18 years of age; and

    (C) with respect to whom--

    (i) there is no parent or legal guardian in the United States; or

    (ii) no parent or legal guardian in the United States is available to provide care and physical custody.

   SEC. 471. ABOLISHMENT OF INS.

    (a) IN GENERAL.--Upon completion of all transfers from the Immigration and Naturalization Service as provided for by this Act, the Immigration and Naturalization Service of the Department of Justice is abolished.

    (b) PROHIBITION.--The authority provided by section 1502 may be used to reorganize functions or organizational units within the Bureau of Border Security or the Bureau of Citizenship and Immigration Services, but may not be used to recombine the two bureaus into a single agency or otherwise to combine, join, or consolidate functions or organizational units of the two bureaus with each other.

   SEC. 472. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) DEFINITIONS.--For purposes of this section--

    (1) the term ``employee'' means an employee (as defined by section 2105 of title 5, United States Code) who--

    (A) has completed at least 3 years of current continuous service with 1 or more covered entities; and

    (B) is serving under an appointment without time limitation;

   but does not include any person under subparagraphs (A)-(G) of section 663(a)(2) of Public Law 104-208 (5 U.S.C. 5597 note);

    (2) the term ``covered entity'' means--

    (A) the Immigration and Naturalization Service;

    (B) the Bureau of Border Security of the Department of Homeland Security; and

    (C) the Bureau of Citizenship and Immigration Services of the Department of Homeland Security; and

    (3) the term ``transfer date'' means the date on which the transfer of functions specified under section 441 takes effect.

    (b) STRATEGIC RESTRUCTURING PLAN.--Before the Attorney General or the Secretary obligates any resources for voluntary separation incentive payments under this section, such official shall submit to the appropriate committees of Congress a strategic restructuring plan, which shall include--

    (1) an organizational chart depicting the covered entities after their restructuring pursuant to this Act;

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    (2) a summary description of how the authority under this section will be used to help carry out that restructuring; and

    (3) the information specified in section 663(b)(2) of Public Law 104-208 (5 U.S.C. 5597 note).

   As used in the preceding sentence, the ``appropriate committees of Congress'' are the Committees on Appropriations, Government Reform, and the Judiciary of the House of Representatives, and the Committees on Appropriations, Governmental Affairs, and the Judiciary of the Senate.

    (c) AUTHORITY.--The Attorney General and the Secretary may, to the extent necessary to help carry out their respective strategic restructuring plan described in subsection (b), make voluntary separation incentive payments to employees. Any such payment--

    (1) shall be paid to the employee, in a lump sum, after the employee has separated from service;

    (2) shall be paid from appropriations or funds available for the payment of basic pay of the employee;

    (3) shall be equal to the lesser of--

    (A) the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code; or

    (B) an amount not to exceed $25,000, as determined by the Attorney General or the Secretary;

    (4) may not be made except in the case of any qualifying employee who voluntarily separates (whether by retirement or resignation) before the end of--

    (A) the 3-month period beginning on the date on which such payment is offered or made available to such employee; or

    (B) the 3-year period beginning on the date of the enactment of this Act,

   whichever occurs first;

    (5) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; and

    (6) shall not be taken into account in determining the amount of any severance pay to which the employee may be entitled under section 5595 of title 5, United States Code, based on any other separation.

    (d) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND.--

    (1) IN GENERAL.--In addition to any payments which it is otherwise required to make, the Department of Justice and the Department of Homeland Security shall, for each fiscal year with respect to which it makes any voluntary separation incentive payments under this section, remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund the amount required under paragraph (2).

    (2) AMOUNT REQUIRED.--The amount required under this paragraph shall, for any fiscal year, be the amount under subparagraph (A) or (B), whichever is greater.

    (A) FIRST METHOD.--The amount under this subparagraph shall, for any fiscal year, be equal to the minimum amount necessary to offset the additional costs to the retirement systems under title 5, United States Code (payable out of the Civil Service Retirement and Disability Fund) resulting from the voluntary separation of the employees described in paragraph (3), as determined under regulations of the Office of Personnel Management.

    (B) SECOND METHOD.--The amount under this subparagraph shall, for any fiscal year, be equal to 45 percent of the sum total of the final basic pay of the employees described in paragraph (3).

    (3) COMPUTATIONS TO BE BASED ON SEPARATIONS OCCURRING IN THE FISCAL YEAR INVOLVED.--The employees described in this paragraph are those employees who receive a voluntary separation incentive payment under this section based on their separating from service during the fiscal year with respect to which the payment under this subsection relates.

    (4) FINAL BASIC PAY DEFINED.--In this subsection, the term ``final basic pay'' means, with respect to an employee, the total amount of basic pay which would be payable for a year of service by such employee, computed using the employee's final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor.

    (e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.--An individual who receives a voluntary separation incentive payment under this section and who, within 5 years after the date of the separation on which the payment is based, accepts any compensated employment with the Government or works for any agency of the Government through a personal services contract, shall be required to pay, prior to the individual's first day of employment, the entire amount of the incentive payment. Such payment shall be made to the covered entity from which the individual separated or, if made on or after the transfer date, to the Deputy Secretary or the Under Secretary for Border and Transportation Security (for transfer to the appropriate component of the Department of Homeland Security, if necessary).

    (f) EFFECT ON EMPLOYMENT LEVELS.--

    (1) INTENDED EFFECT.--Voluntary separations under this section are not intended to necessarily reduce the total number of full-time equivalent positions in any covered entity.

    (2) USE OF VOLUNTARY SEPARATIONS.--A covered entity may redeploy or use the full-time equivalent positions vacated by voluntary separations under this section to make other positions available to more critical locations or more critical occupations.

   SEC. 473. AUTHORITY TO CONDUCT A DEMONSTRATION PROJECT RELATING TO DISCIPLINARY ACTION.

    (a) IN GENERAL.--The Attorney General and the Secretary may each, during a period ending not later than 5 years after the date of the enactment of this Act, conduct a demonstration project for the purpose of determining whether one or more changes in the policies or procedures relating to methods for disciplining employees would result in improved personnel management.

    (b) SCOPE.--A demonstration project under this section--

    (1) may not cover any employees apart from those employed in or under a covered entity; and

    (2) shall not be limited by any provision of chapter 43, 75, or 77 of title 5, United States Code.

    (c) PROCEDURES.--Under the demonstration project--

    (1) the use of alternative means of dispute resolution (as defined in section 571 of title 5, United States Code) shall be encouraged, whenever appropriate; and

    (2) each covered entity under the jurisdiction of the official conducting the project shall be required to provide for the expeditious, fair, and independent review of any action to which section 4303 or subchapter II of chapter 75 of such title 5 would otherwise apply (except an action described in section 7512(5) of such title 5).

    (d) ACTIONS INVOLVING DISCRIMINATION.--Notwithstanding any other provision of this section, if, in the case of any matter described in section 7702(a)(1)(B) of title 5, United States Code, there is no judicially reviewable action under the demonstration project within 120 days after the filing of an appeal or other formal request for review (referred to in subsection (c)(2)), an employee shall be entitled to file a civil action to the same extent and in the same manner as provided in section 7702(e)(1) of such title 5 (in the matter following subparagraph (C) thereof).

    (e) CERTAIN EMPLOYEES.--Employees shall not be included within any project under this section if such employees are--

    (1) neither managers nor supervisors; and

    (2) within a unit with respect to which a labor organization is accorded exclusive recognition under chapter 71 of title 5, United States Code.

   Notwithstanding the preceding sentence, an aggrieved employee within a unit (referred to in paragraph (2)) may elect to participate in a complaint procedure developed under the demonstration project in lieu of any negotiated grievance procedure and any statutory procedure (as such term is used in section 7121 of such title 5).

    (f) REPORTS.--The General Accounting Office shall prepare and submit to the Committees on Government Reform and the Judiciary of the House of Representatives and the Committees on Governmental Affairs and the Judiciary of the Senate periodic reports on any demonstration project conducted under this section, such reports to be submitted after the second and fourth years of its operation. Upon request, the Attorney General or the Secretary shall furnish such information as the General Accounting Office may require to carry out this subsection.

    (g) DEFINITION.--In this section, the term ``covered entity'' has the meaning given such term in section 472(a)(2).

   SEC. 474. SENSE OF CONGRESS.

    It is the sense of Congress that--

    (1) the missions of the Bureau of Border Security and the Bureau of Citizenship and Immigration Services are equally important and, accordingly, they each should be adequately funded; and

    (2) the functions transferred under this subtitle should not, after such transfers take effect, operate at levels below those in effect prior to the enactment of this Act.

   SEC. 475. DIRECTOR OF SHARED SERVICES.

    (a) IN GENERAL.--Within the Office of Deputy Secretary, there shall be a Director of Shared Services.

    (b) FUNCTIONS.--The Director of Shared Services shall be responsible for the coordination of resources for the Bureau of Border Security and the Bureau of Citizenship and Immigration Services, including--

    (1) information resources management, including computer databases and information technology;

    (2) records and file management; and

    (3) forms management.

   SEC. 476. SEPARATION OF FUNDING.

    (a) IN GENERAL.--There shall be established separate accounts in the Treasury of the United States for appropriated funds and other deposits available for the Bureau of Citizenship and Immigration Services and the Bureau of Border Security.

    (b) SEPARATE BUDGETS.--To ensure that the Bureau of Citizenship and Immigration Services and the Bureau of Border Security are funded to the extent necessary to fully carry out their respective functions, the Director of the Office of Management and Budget shall separate the budget requests for each such entity.

    (c) FEES.--Fees imposed for a particular service, application, or benefit shall be deposited into the account established under subsection (a) that is for the bureau with jurisdiction over the function to which the fee relates.

    (d) FEES NOT TRANSFERABLE.--No fee may be transferred between the Bureau of Citizenship and Immigration Services and the Bureau of Border Security for purposes not authorized by section 286 of the Immigration and Nationality Act (8 U.S.C. 1356).

   SEC. 477. REPORTS AND IMPLEMENTATION PLANS.

    (a) DIVISION OF FUNDS.--The Secretary, not later than 120 days after the effective date of this Act, shall submit to the Committees on Appropriations and the Judiciary of the House of Representatives and of the Senate a report on the proposed division and transfer of funds, including unexpended funds, appropriations, and fees, between the Bureau of Citizenship and Immigration Services and the Bureau of Border Security.

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    (b) DIVISION OF PERSONNEL.--The Secretary, not later than 120 days after the effective date of this Act, shall submit to the Committees on Appropriations and the Judiciary of the House of Representatives and of the Senate a report on the proposed division of personnel between the Bureau of Citizenship and Immigration Services and the Bureau of Border Security.

    (c) IMPLEMENTATION PLAN.--

    (1) IN GENERAL.--The Secretary, not later than 120 days after the effective date of this Act, and every 6 months thereafter until the termination of fiscal year 2005, shall submit to the Committees on Appropriations and the Judiciary of the House of Representatives and of the Senate an implementation plan to carry out this Act.

    (2) CONTENTS.--The implementation plan should include details concerning the separation of the Bureau of Citizenship and Immigration Services and the Bureau of Border Security, including the following:

    (A) Organizational structure, including the field structure.

    (B) Chain of command.

    (C) Procedures for interaction among such bureaus.

    (D) Fraud detection and investigation.

    (E) The processing and handling of removal proceedings, including expedited removal and applications for relief from removal.

    (F) Recommendations for conforming amendments to the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

    (G) Establishment of a transition team.

    (H) Methods to phase in the costs of separating the administrative support systems of the Immigration and Naturalization Service in order to provide for separate administrative support systems for the Bureau of Citizenship and Immigration Services and the Bureau of Border Security.

    (d) COMPTROLLER GENERAL STUDIES AND REPORTS.--

    (1) STATUS REPORTS ON TRANSITION.--Not later than 18 months after the date on which the transfer of functions specified under section 441 takes effect, and every 6 months thereafter, until full implementation of this subtitle has been completed, the Comptroller General of the United States shall submit to the Committees on Appropriations and on the Judiciary of the House of Representatives and the Senate a report containing the following:

    (A) A determination of whether the transfers of functions made by subtitles D and E have been completed, and if a transfer of functions has not taken place, identifying the reasons why the transfer has not taken place.

    (B) If the transfers of functions made by subtitles D and E have been completed, an identification of any issues that have arisen due to the completed transfers.

    (C) An identification of any issues that may arise due to any future transfer of functions.

    (2) REPORT ON MANAGEMENT.--Not later than 4 years after the date on which the transfer of functions specified under section 441 takes effect, the Comptroller General of the United States shall submit to the Committees on Appropriations and on the Judiciary of the House of Representatives and the Senate a report, following a study, containing the following:

    (A) Determinations of whether the transfer of functions from the Immigration and Naturalization Service to the Bureau of Citizenship and Immigration Services and the Bureau of Border Security have improved, with respect to each function transferred, the following:

    (i) Operations.

    (ii) Management, including accountability and communication.

    (iii) Financial administration.

    (iv) Recordkeeping, including information management and technology.

    (B) A statement of the reasons for the determinations under subparagraph (A).

    (C) Any recommendations for further improvements to the Bureau of Citizenship and Immigration Services and the Bureau of Border Security.

    (3) REPORT ON FEES.--Not later than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committees on the Judiciary of the House of Representatives and of the Senate a report examining whether the Bureau of Citizenship and Immigration Services is likely to derive sufficient funds from fees to carry out its functions in the absence of appropriated funds.

   SEC. 478. IMMIGRATION FUNCTIONS.

    (a) ANNUAL REPORT.--

    (1) IN GENERAL.--One year after the date of the enactment of this Act, and each year thereafter, the Secretary shall submit a report to the President, to the Committees on the Judiciary and Government Reform of the House of Representatives, and to the Committees on the Judiciary and Government Affairs of the Senate, on the impact the transfers made by this subtitle has had on immigration functions.

    (2) MATTER INCLUDED.--The report shall address the following with respect to the period covered by the report:

    (A) The aggregate number of all immigration applications and petitions received, and processed, by the Department;

    (B) Region-by-region statistics on the aggregate number of immigration applications and petitions filed by an alien (or filed on behalf of an alien) and denied, disaggregated by category of denial and application or petition type.

    (C) The quantity of backlogged immigration applications and petitions that have been processed, the aggregate number awaiting processing, and a detailed plan for eliminating the backlog.

    (D) The average processing period for immigration applications and petitions, disaggregated by application or petition type.

    (E) The number and types of immigration-related grievances filed with any official of the Department of Justice, and if those grievances were resolved.

    (F) Plans to address grievances and improve immigration services.

    (G) Whether immigration-related fees were used consistent with legal requirements regarding such use.

    (H) Whether immigration-related questions conveyed by customers to the Department (whether conveyed in person, by telephone, or by means of the Internet) were answered effectively and efficiently.

    (b) SENSE OF CONGRESS REGARDING IMMIGRATION SERVICES.--It is the sense of Congress that--

    (1) the quality and efficiency of immigration services rendered by the Federal Government should be improved after the transfers made by this subtitle take effect; and

    (2) the Secretary should undertake efforts to guarantee that concerns regarding the quality and efficiency of immigration services are addressed after such effective date.

   SEC. 501. UNDER SECRETARY FOR EMERGENCY PREPAREDNESS AND RESPONSE.

    There shall be in the Department a Directorate of Emergency Preparedness and Response headed by an Under Secretary for Emergency Preparedness and Response.

   SEC. 502. RESPONSIBILITIES.

    The Secretary, acting through the Under Secretary for Emergency Preparedness and Response, shall include--

    (1) helping to ensure the effectiveness of emergency response providers to terrorist attacks, major disasters, and other emergencies;

    (2) with respect to the Nuclear Incident Response Team (regardless of whether it is operating as an organizational unit of the Department pursuant to this title)--

    (A) establishing standards and certifying when those standards have been met;

    (B) conducting joint and other exercises and training and evaluating performance; and

    (C) providing funds to the Department of Energy and the Environmental Protection Agency, as appropriate, for homeland security planning, exercises and training, and equipment;

    (3) providing the Federal Government's response to terrorist attacks and major disasters, including--

    (A) managing such response;

    (B) directing the Domestic Emergency Support Team, the Strategic National Stockpile, the National Disaster Medical System, and (when operating as an organizational unit of the Department pursuant to this title) the Nuclear Incident Response Team;

    (C) overseeing the Metropolitan Medical Response System; and

    (D) coordinating other Federal response resources in the event of a terrorist attack or major disaster;

    (4) aiding the recovery from terrorist attacks and major disasters;

    (5) building a comprehensive national incident management system with Federal, State, and local government personnel, agencies, and authorities, to respond to such attacks and disasters;

    (6) consolidating existing Federal Government emergency response plans into a single, coordinated national response plan; and

    (7) developing comprehensive programs for developing interoperative communications technology, and helping to ensure that emergency response providers acquire such technology.

   SEC. 503. FUNCTIONS TRANSFERRED.

    In accordance with title XV, there shall be transferred to the Secretary the functions, personnel, assets, and liabilities of the following entities:

    (1) The Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto.

    (2) The Integrated Hazard Information System of the National Oceanic and Atmospheric Administration, which shall be renamed ``FIRESAT''.

    (3) The National Domestic Preparedness Office of the Federal Bureau of Investigation, including the functions of the Attorney General relating thereto.

    (4) The Domestic Emergency Support Teams of the Department of Justice, including the functions of the Attorney General relating thereto.

    (5) The Office of Emergency Preparedness, the National Disaster Medical System, and the Metropolitan Medical Response System of the Department of Health and Human Services, including the functions of the Secretary of Health and Human Services and the Assistant Secretary for Public Health Emergency Preparedness relating thereto.

    (6) The Strategic National Stockpile of the Department of Health and Human Services, including the functions of the Secretary of Health and Human Services relating thereto.

   SEC. 504. NUCLEAR INCIDENT RESPONSE.

    (a) IN GENERAL.--At the direction of the Secretary (in connection with an actual or threatened terrorist attack, major disaster, or other emergency in the United States), the Nuclear Incident Response Team shall operate as an organizational unit of the Department. While so operating, the Nuclear Incident Response Team shall be subject to the direction, authority, and control of the Secretary.

    (b) RULE OF CONSTRUCTION.--Nothing in this title shall be construed to limit the ordinary responsibility of the Secretary of Energy and the Administrator of the Environmental Protection Agency for organizing, training, equipping, and utilizing their respective entities in the Nuclear Incident Response Team, or (subject to the provisions of this title) from exercising direction, authority, and control over them when they are not operating as a unit of the Department.

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   SEC. 505. CONDUCT OF CERTAIN PUBLIC HEALTH-RELATED ACTIVITIES.

    (a) IN GENERAL.--With respect to all public health-related activities to improve State, local, and hospital preparedness and response to chemical, biological, radiological, and nuclear and other emerging terrorist threats carried out by the Department of Health and Human Services (including the Public Health Service), the Secretary of Health and Human Services shall set priorities and preparedness goals and further develop a coordinated strategy for such activities in collaboration with the Secretary.

    (b) EVALUATION OF PROGRESS.--In carrying out subsection (a), the Secretary of Health and Human Services shall collaborate with the Secretary in developing specific benchmarks and outcome measurements for evaluating progress toward achieving the priorities and goals described in such subsection.

   SEC. 506. DEFINITION.

    In this title, the term ``Nuclear Incident Response Team'' means a resource that includes--

    (1) those entities of the Department of Energy that perform nuclear or radiological emergency support functions (including accident response, search response, advisory, and technical operations functions), radiation exposure functions at the medical assistance facility known as the Radiation Emergency Assistance Center/Training Site (REAC/TS), radiological assistance functions, and related functions; and

    (2) those entities of the Environmental Protection Agency that perform such support functions (including radiological emergency response functions) and related functions.

   SEC. 507. ROLE OF FEDERAL EMERGENCY MANAGEMENT AGENCY.

    (a) IN GENERAL.--The functions of the Federal Emergency Management Agency include 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 planning for building the emergency management profession to prepare effectively for, mitigate against, respond to, and recover from any hazard;

    (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 mitigation, planning, response, and recovery.

    (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.

   SEC. 508. USE OF NATIONAL PRIVATE SECTOR NETWORKS IN EMERGENCY RESPONSE.

    To the maximum extent practicable, the Secretary shall use national private sector networks and infrastructure for emergency response to chemical, biological, radiological, nuclear, or explosive disasters, and other major disasters.

   SEC. 509. USE OF COMMERCIALLY AVAILABLE TECHNOLOGY, GOODS, AND SERVICES.

    It is the sense of Congress that--

    (1) the Secretary should, to the maximum extent possible, use off-the-shelf commercially developed technologies to ensure that the Department's information technology systems allow the Department to collect, manage, share, analyze, and disseminate information securely over multiple channels of communication; and

    (2) in order to further the policy of the United States to avoid competing commercially with the private sector, the Secretary should rely on commercial sources to supply the goods and services needed by the Department.

   SEC. 601. TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS.

    (a) FINDINGS.--Congress finds the following:

    (1) Members of the Armed Forces of the United States defend the freedom and security of our Nation.

    (2) Members of the Armed Forces of the United States have lost their lives while battling the evils of terrorism around the world.

    (3) Personnel of the Central Intelligence Agency (CIA) charged with the responsibility of covert observation of terrorists around the world are often put in harm's way during their service to the United States.

    (4) Personnel of the Central Intelligence Agency have also lost their lives while battling the evils of terrorism around the world.

    (5) Employees of the Federal Bureau of Investigation (FBI) and other Federal agencies charged with domestic protection of the United States put their lives at risk on a daily basis for the freedom and security of our Nation.

    (6) United States military personnel, CIA personnel, FBI personnel, and other Federal agents in the service of the United States are patriots of the highest order.

    (7) CIA officer Johnny Micheal Spann became the first American to give his life for his country in the War on Terrorism declared by President George W. Bush following the terrorist attacks of September 11, 2001.

    (8) Johnny Micheal Spann left behind a wife and children who are very proud of the heroic actions of their patriot father.

    (9) Surviving dependents of members of the Armed Forces of the United States who lose their lives as a result of terrorist attacks or military operations abroad receive a $6,000 death benefit, plus a small monthly benefit.

    (10) The current system of compensating spouses and children of American patriots is inequitable and needs improvement.

    (b) DESIGNATION OF JOHNNY MICHEAL SPANN PATRIOT TRUSTS.--Any charitable corporation, fund, foundation, or trust (or separate fund or account thereof) which otherwise meets all applicable requirements under law with respect to charitable entities and meets the requirements described in subsection (c) shall be eligible to characterize itself as a ``Johnny Micheal Spann Patriot Trust''.

    (c) REQUIREMENTS FOR THE DESIGNATION OF JOHNNY MICHEAL SPANN PATRIOT TRUSTS.--The requirements described in this subsection are as follows:

    (1) Not taking into account funds or donations reasonably necessary to establish a trust, at least 85 percent of all funds or donations (including any earnings on the investment of such funds or donations) received or collected by any Johnny Micheal Spann Patriot Trust must be distributed to (or, if placed in a private foundation, held in trust for) surviving spouses, children, or dependent parents, grandparents, or siblings of 1 or more of the following:

    (A) members of the Armed Forces of the United States;

    (B) personnel, including contractors, of elements of the intelligence community, as defined in section 3(4) of the National Security Act of 1947;

    (C) employees of the Federal Bureau of Investigation; and

    (D) officers, employees, or contract employees of the United States Government,

   whose deaths occur in the line of duty and arise out of terrorist attacks, military operations, intelligence operations, or law enforcement operations or accidents connected with activities occurring after September 11, 2001, and related to domestic or foreign efforts to curb international terrorism, including the Authorization for Use of Military Force (Public Law 107-40; 115 Stat. 224).

    (2) Other than funds or donations reasonably necessary to establish a trust, not more than 15 percent of all funds or donations (or 15 percent of annual earnings on funds invested in a private foundation) may be used for administrative purposes.

    (3) No part of the net earnings of any Johnny Micheal Spann Patriot Trust may inure to the benefit of any individual based solely on the position of such individual as a shareholder, an officer or employee of such Trust.

    (4) None of the activities of any Johnny Micheal Spann Patriot Trust shall be conducted in a manner inconsistent with any law that prohibits attempting to influence legislation.

    (5) No Johnny Micheal Spann Patriot Trust may participate in or intervene in any political campaign on behalf of (or in opposition to) any candidate for public office, including by publication or distribution of statements.

    (6) Each Johnny Micheal Spann Patriot Trust shall comply with the instructions and directions of the Director of Central Intelligence, the Attorney General, or the Secretary of Defense relating to the protection of intelligence sources and methods, sensitive law enforcement information, or other sensitive national security information, including methods for confidentially disbursing funds.

    (7) Each Johnny Micheal Spann Patriot Trust that receives annual contributions totaling more than $1,000,000 must be audited annually by an independent certified public accounting firm. Such audits shall be filed with the Internal Revenue Service, and shall be open to public inspection, except that the conduct, filing, and availability of the audit shall be consistent with the protection of intelligence sources and methods, of sensitive law enforcement information, and of other sensitive national security information.

    (8) Each Johnny Micheal Spann Patriot Trust shall make distributions to beneficiaries described in paragraph (1) at least once every calendar year, beginning not later than 12 months after the formation of such Trust, and all funds and donations received and earnings not placed in a private foundation dedicated to such beneficiaries must be distributed within 36 months after the end of the fiscal year in which such funds, donations, and earnings are received.

    (9)(A) When determining the amount of a distribution to any beneficiary described in paragraph (1), a Johnny Micheal Spann Patriot Trust should take into account the amount of any collateral source compensation that the beneficiary has received or is entitled to receive as a result of the death of an individual described in paragraph (1).

    (B) Collateral source compensation includes all compensation from collateral sources, including life insurance, pension funds, death benefit programs, and payments by Federal, State, or local governments related to the death of an individual described in paragraph (1).

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    (d) TREATMENT OF JOHNNY MICHEAL SPANN PATRIOT TRUSTS.--Each Johnny Micheal Spann Patriot Trust shall refrain from conducting the activities described in clauses (i) and (ii) of section 301(20)(A) of the Federal Election Campaign Act of 1971 so that a general solicitation of funds by an individual described in paragraph (1) of section 323(e) of such Act will be permissible if such solicitation meets the requirements of paragraph (4)(A) of such section.

    (e) NOTIFICATION OF TRUST BENEFICIARIES.--Notwithstanding any other provision of law, and in a manner consistent with the protection of intelligence sources and methods and sensitive law enforcement information, and other sensitive national security information, the Secretary of Defense, the Director of the Federal Bureau of Investigation, or the Director of Central Intelligence, or their designees, as applicable, may forward information received from an executor, administrator, or other legal representative of the estate of a decedent described in subparagraph (A), (B), (C), or (D) of subsection (c)(1), to a Johnny Micheal Spann Patriot Trust on how to contact individuals eligible for a distribution under subsection (c)(1) for the purpose of providing assistance from such Trust; provided that, neither forwarding nor failing to forward any information under this subsection shall create any cause of action against any Federal department, agency, officer, agent, or employee.

    (f) REGULATIONS.--Not later than 90 days after the date of enactment of this Act, the Secretary of Defense, in coordination with the Attorney General, the Director of the Federal Bureau of Investigation, and the Director of Central Intelligence, shall prescribe regulations to carry out this section.

   SEC. 701. UNDER SECRETARY FOR MANAGEMENT.

    (a) IN GENERAL.--The Secretary, acting through the Under Secretary 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) Identification and tracking of performance measures relating to the responsibilities of the Department.

    (8) Grants and other assistance management programs.

    (9) The transition and reorganization process, to ensure an efficient and orderly transfer of functions and personnel to the Department, including the development of a transition plan.

    (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), the Under Secretary 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 441 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 title XV, there shall be transferred to the Under Secretary 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.

   SEC. 702. CHIEF FINANCIAL OFFICER.

    The Chief Financial Officer shall report to the Secretary, or to another official of the Department, as the Secretary may direct.

   SEC. 703. CHIEF INFORMATION OFFICER.

    The Chief Information Officer shall report to the Secretary, or to another official of the Department, as the Secretary may direct.

   SEC. 704. CHIEF HUMAN CAPITAL OFFICER.

    The Chief Human Capital Officer shall report to the Secretary, or to another official of the Department, as the Secretary may direct and shall ensure that all employees of the Department are informed of their rights and remedies under chapters 12 and 23 of title 5, United States Code, by--

    (1) participating in the 2302(c) Certification Program of the Office of Special Counsel;

    (2) achieving certification from the Office of Special Counsel of the Department's compliance with section 2302(c) of title 5, United States Code; and

    (3) informing Congress of such certification not later than 24 months after the date of enactment of this Act.

   SEC. 705. ESTABLISHMENT OF OFFICER FOR CIVIL RIGHTS AND CIVIL LIBERTIES.

    (a) IN GENERAL.--The Secretary shall appoint in the Department an Officer for Civil Rights and Civil Liberties, who shall--

    (1) review and assess information alleging abuses of civil rights, civil liberties, and racial and ethnic profiling by employees and officials of the Department; and

    (2) make public through the Internet, radio, television, or newspaper advertisements information on the responsibilities and functions of, and how to contact, the Officer.

    (b) REPORT.--The Secretary shall submit to the President of the Senate, the Speaker of the House of Representatives, and the appropriate committees and subcommittees of Congress on an annual basis a report on the implementation of this section, including the use of funds appropriated to carry out this section, and detailing any allegations of abuses described under subsection (a)(1) and any actions taken by the Department in response to such allegations.

   SEC. 706. 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 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.

   SEC. 801. 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.

   SEC. 811. AUTHORITY OF THE SECRETARY.

    (a) IN GENERAL.--Notwithstanding the last two sentences of section 3(a) of the Inspector General Act of 1978, the Inspector General shall be under the authority, direction, and control of the Secretary with respect to audits or investigations, or the issuance of subpoenas, that require access to sensitive information concerning--

    (1) intelligence, counterintelligence, or counterterrorism matters;

    (2) ongoing criminal investigations or proceedings;

    (3) undercover operations;

    (4) the identity of confidential sources, including protected witnesses;

    (5) other matters the disclosure of which would, in the Secretary's judgment, constitute a serious threat to the protection of any person or property authorized protection by section 3056 of title 18, United States Code, section 202 of title 3 of such Code, or any provision of the Presidential Protection Assistance Act of 1976; or

    (6) other matters the disclosure of which would, in the Secretary's judgment, constitute a serious threat to national security.

    (b) PROHIBITION OF CERTAIN INVESTIGATIONS.--With respect to the information described in subsection (a), the Secretary may prohibit the Inspector General from carrying out or completing any audit or investigation, or from issuing any subpoena, after such Inspector General has decided to initiate, carry out, or complete such audit or investigation or to issue such subpoena, if the Secretary determines that such prohibition is necessary to prevent the disclosure of any information described in subsection (a), to preserve the national security, or to prevent a significant impairment to the interests of the United States.

    (c) NOTIFICATION REQUIRED.--If the Secretary exercises any power under subsection (a) or (b), the Secretary shall notify the Inspector General of the Department in writing stating the reasons for such exercise. Within 30 days after receipt of any such notice, the Inspector General shall transmit a copy of such notice and a written response thereto that includes--

    (1) a statement as to whether the Inspector General agrees or disagrees with such exercise; and

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    (2) the reasons for any disagreement, to the President of the Senate and the Speaker of the House of Representatives and to appropriate committees and subcommittees of Congress.

    (d) ACCESS TO INFORMATION BY CONGRESS.--The exercise of authority by the Secretary described in subsection (b) should not be construed as limiting the right of Congress or any committee of Congress to access any information it seeks.

    (e) OVERSIGHT RESPONSIBILITY--The Inspector General Act of 1978 (5 U.S.C. App.) is amended by inserting after section 8I the following:

   ``SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF HOMELAND SECURITY

    ``SEC. 8J. Notwithstanding any other provision of law, in carrying out the duties and responsibilities specified in this Act, the Inspector General of the Department of Homeland Security shall have oversight responsibility for the internal investigations performed by the Office of Internal Affairs of the United States Customs Service and the Office of Inspections of the United States Secret Service. The head of each such office shall promptly report to the Inspector General the significant activities being carried out by such office.''.

   SEC. 812. LAW ENFORCEMENT POWERS OF INSPECTOR GENERAL AGENTS.

    (a) IN GENERAL.--Section 6 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following:

    ``(e)(1) In addition to the authority otherwise provided by this Act, each Inspector General appointed under section 3, any Assistant Inspector General for Investigations under such an Inspector General, and any special agent supervised by such an Assistant Inspector General may be authorized by the Attorney General to--

    ``(A) carry a firearm while engaged in official duties as authorized under this Act or other statute, or as expressly authorized by the Attorney General;

    ``(B) make an arrest without a warrant while engaged in official duties as authorized under this Act or other statute, or as expressly authorized by the Attorney General, for any offense against the United States committed in the presence of such Inspector General, Assistant Inspector General, or agent, or for any felony cognizable under the laws of the United States if such Inspector General, Assistant Inspector General, or agent has reasonable grounds to believe that the person to be arrested has committed or is committing such felony; and

    ``(C) seek and execute warrants for arrest, search of a premises, or seizure of evidence issued under the authority of the United States upon probable cause to believe that a violation has been committed.

    ``(2) The Attorney General may authorize exercise of the powers under this subsection only upon an initial determination that--

    ``(A) the affected Office of Inspector General is significantly hampered in the performance of responsibilities established by this Act as a result of the lack of such powers;

    ``(B) available assistance from other law enforcement agencies is insufficient to meet the need for such powers; and

    ``(C) adequate internal safeguards and management procedures exist to ensure proper exercise of such powers.

    ``(3) The Inspector General offices of the Department of Commerce, Department of Education, Department of Energy, Department of Health and Human Services, Department of Homeland Security, Department of Housing and Urban Development, Department of the Interior, Department of Justice, Department of Labor, Department of State, Department of Transportation, Department of the Treasury, Department of Veterans Affairs, Agency for International Development, Environmental Protection Agency, Federal Deposit Insurance Corporation, Federal Emergency Management Agency, General Services Administration, National Aeronautics and Space Administration, Nuclear Regulatory Commission, Office of Personnel Management, Railroad Retirement Board, Small Business Administration, Social Security Administration, and the Tennessee Valley Authority are exempt from the requirement of paragraph (2) of an initial determination of eligibility by the Attorney General.

    ``(4) The Attorney General shall promulgate, and revise as appropriate, guidelines which shall govern the exercise of the law enforcement powers established under paragraph (1).

    ``(5)(A) Powers authorized for an Office of Inspector General under paragraph (1) may be rescinded or suspended upon a determination by the Attorney General that any of the requirements under paragraph (2) is no longer satisfied or that the exercise of authorized powers by that Office of Inspector General has not complied with the guidelines promulgated by the Attorney General under paragraph (4).

    ``(B) Powers authorized to be exercised by any individual under paragraph (1) may be rescinded or suspended with respect to that individual upon a determination by the Attorney General that such individual has not complied with guidelines promulgated by the Attorney General under paragraph (4).

    ``(6) A determination by the Attorney General under paragraph (2) or (5) shall not be reviewable in or by any court.

    ``(7) To ensure the proper exercise of the law enforcement powers authorized by this subsection, the Offices of Inspector General described under paragraph (3) shall, not later than 180 days after the date of enactment of this subsection, collectively enter into a memorandum of understanding to establish an external review process for ensuring that adequate internal safeguards and management procedures continue to exist within each Office and within any Office that later receives an authorization under paragraph (2). The review process shall be established in consultation with the Attorney General, who shall be provided with a copy of the memorandum of understanding that establishes the review process. Under the review process, the exercise of the law enforcement powers by each Office of Inspector General shall be reviewed periodically by another Office of Inspector General or by a committee of Inspectors General. The results of each review shall be communicated in writing to the applicable Inspector General and to the Attorney General.

    ``(8) No provision of this subsection shall limit the exercise of law enforcement powers established under any other statutory authority, including United States Marshals Service special deputation.''.

    (b) PROMULGATION OF INITIAL GUIDELINES.--

    (1) DEFINITION.--In this subsection, the term ``memoranda of understanding'' means the agreements between the Department of Justice and the Inspector General offices described under section 6(e)(3) of the Inspector General Act of 1978 (5 U.S.C. App) (as added by subsection (a) of this section) that--

    (A) are in effect on the date of enactment of this Act; and

    (B) authorize such offices to exercise authority that is the same or similar to the authority under section 6(e)(1) of such Act.

    (2) IN GENERAL.--Not later than 180 days after the date of enactment of this Act, the Attorney General shall promulgate guidelines under section 6(e)(4) of the Inspector General Act of 1978 (5 U.S.C. App) (as added by subsection (a) of this section) applicable to the Inspector General offices described under section 6(e)(3) of that Act.

    (3) MINIMUM REQUIREMENTS.--The guidelines promulgated under this subsection shall include, at a minimum, the operational and training requirements in the memoranda of understanding.

    (4) NO LAPSE OF AUTHORITY.--The memoranda of understanding in effect on the date of enactment of this Act shall remain in effect until the guidelines promulgated under this subsection take effect.

    (c) EFFECTIVE DATES.--

    (1) IN GENERAL.--Subsection (a) shall take effect 180 days after the date of enactment of this Act.

    (2) INITIAL GUIDELINES.--Subsection (b) shall take effect on the date of enactment of this Act.

   SEC. 821. FUNCTIONS TRANSFERRED.

    In accordance with title XV, there shall be transferred to the Secretary the functions, personnel, assets, and obligations of the United States Secret Service, which shall be maintained as a distinct entity within the Department, including the functions of the Secretary of the Treasury relating thereto.

   SEC. 831. RESEARCH AND DEVELOPMENT PROJECTS.

    (a) AUTHORITY.--During the 5-year period following the effective date of this Act, the Secretary may carry out a pilot program under which the Secretary may exercise the following authorities:

    (1) IN GENERAL.--When the Secretary carries out basic, applied, and advanced research and development projects, including the expenditure of funds for such projects, the Secretary may exercise the same authority (subject to the same limitations and conditions) with respect to such research and projects as the Secretary of Defense may exercise under section 2371 of title 10, United States Code (except for subsections (b) and (f)), after making a determination that the use of a contract, grant, or cooperative agreement for such project is not feasible or appropriate. The annual report required under subsection (b) of this section, as applied to the Secretary by this paragraph, shall be submitted to the President of the Senate and the Speaker of the House of Representatives.

    (2) PROTOTYPE PROJECTS.--The Secretary may, under the authority of paragraph (1), carry out prototype projects in accordance with the requirements and conditions provided for carrying out prototype projects under section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160). In applying the authorities of that section 845, subsection (c) of that section shall apply with respect to prototype projects under this paragraph, and the Secretary shall perform the functions of the Secretary of Defense under subsection (d) thereof.

    (b) REPORT.--Not later than 2 years after the effective date of this Act, and annually thereafter, the Comptroller General shall report to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate on--

    (1) whether use of the authorities described in subsection (a) attracts nontraditional Government contractors and results in the acquisition of needed technologies; and

    (2) if such authorities were to be made permanent, whether additional safeguards are needed with respect to the use of such authorities.

    (c) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES.--The Secretary may--

    (1) procure the temporary or intermittent services of experts or consultants (or organizations thereof) in accordance with section 3109(b) of title 5, United States Code; and

    (2) whenever necessary due to an urgent homeland security need, procure temporary (not to exceed 1 year) or intermittent personal services, including the services of experts or consultants (or organizations thereof), without regard to the pay limitations of such section 3109.

    (d) DEFINITION OF NONTRADITIONAL GOVERNMENT CONTRACTOR.--In this section, the term ``nontraditional Government contractor'' has the same meaning as the term ``nontraditional defense contractor'' as defined in section 845(e) of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note).

   SEC. 832. PERSONAL SERVICES.

    The Secretary--

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    (1) may procure the temporary or intermittent services of experts or consultants (or organizations thereof) in accordance with section 3109 of title 5, United States Code; and

    (2) may, whenever necessary due to an urgent homeland security need, procure temporary (not to exceed 1 year) or intermittent personal services, including the services of experts or consultants (or organizations thereof), without regard to the pay limitations of such section 3109.

   SEC. 833. SPECIAL STREAMLINED ACQUISITION AUTHORITY.

    (a) AUTHORITY.--

    (1) IN GENERAL.--The Secretary may use the authorities set forth in this section with respect to any procurement made during the period beginning on the effective date of this Act and ending September 30, 2007, if the Secretary determines in writing that the mission of the Department (as described in section 101) would be seriously impaired without the use of such authorities.

    (2) DELEGATION.--The authority to make the determination described in paragraph (1) may not be delegated by the Secretary to an officer of the Department who is not appointed by the President with the advice and consent of the Senate.

    (3) NOTIFICATION.--Not later than the date that is 7 days after the date of any determination under paragraph (1), the Secretary shall submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate--

    (A) notification of such determination; and

    (B) the justification for such determination.

    (b) INCREASED MICRO-PURCHASE THRESHOLD FOR CERTAIN PROCUREMENTS.--

    (1) IN GENERAL.--The Secretary may designate certain employees of the Department to make procurements described in subsection (a) for which in the administration of section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428) the amount specified in subsections (c), (d), and (f) of such section 32 shall be deemed to be $7,500.

    (2) NUMBER OF EMPLOYEES.--The number of employees designated under paragraph (1) shall be--

    (A) fewer than the number of employees of the Department who are authorized to make purchases without obtaining competitive quotations, pursuant to section 32(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 428(c));

    (B) sufficient to ensure the geographic dispersal of the availability of the use of the procurement authority under such paragraph at locations reasonably considered to be potential terrorist targets; and

    (C) sufficiently limited to allow for the careful monitoring of employees designated under such paragraph.

    (3) REVIEW.--Procurements made under the authority of this subsection shall be subject to review by a designated supervisor on not less than a monthly basis. The supervisor responsible for the review shall be responsible for no more than 7 employees making procurements under this subsection.

    (c) SIMPLIFIED ACQUISITION PROCEDURES.--

    (1) IN GENERAL.--With respect to a procurement described in subsection (a), the Secretary may deem the simplified acquisition threshold referred to in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)) to be--

    (A) in the case of a contract to be awarded and performed, or purchase to be made, within the United States, $200,000; and

    (B) in the case of a contract to be awarded and performed, or purchase to be made, outside of the United States, $300,000.

    (2) CONFORMING AMENDMENTS.--Section 18(c)(1) of the Office of Federal Procurement Policy Act is amended--

    (A) by striking ``or'' at the end of subparagraph (F);

    (B) by striking the period at the end of subparagraph (G) and inserting ``; or''; and

    (C) by adding at the end the following:

    ``(H) the procurement is by the Secretary of Homeland Security pursuant to the special procedures provided in section 833(c) of the Homeland Security Act of 2002.''.

    (d) APPLICATION OF CERTAIN COMMERCIAL ITEMS AUTHORITIES.--

    (1) IN GENERAL.--With respect to a procurement described in subsection (a), the Secretary may deem any item or service to be a commercial item for the purpose of Federal procurement laws.

    (2) LIMITATION.--The $5,000,000 limitation provided in section 31(a)(2) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(a)(2)) and section 303(g)(1)(B) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(B)) shall be deemed to be $7,500,000 for purposes of property or services under the authority of this subsection.

    (3) CERTAIN AUTHORITY.--Authority under a provision of law referred to in paragraph (2) that expires under section 4202(e) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 10 U.S.C. 2304 note) shall, notwithstanding such section, continue to apply for a procurement described in subsection (a).

    (e) REPORT.--Not later than 180 days after the end of fiscal year 2005, the Comptroller General shall submit to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives a report on the use of the authorities provided in this section. The report shall contain the following:

    (1) An assessment of the extent to which property and services acquired using authorities provided under this section contributed to the capacity of the Federal workforce to facilitate the mission of the Department as described in section 101.

    (2) An assessment of the extent to which prices for property and services acquired using authorities provided under this section reflected the best value.

    (3) The number of employees designated by each executive agency under subsection (b)(1).

    (4) An assessment of the extent to which the Department has implemented subsections (b)(2) and (b)(3) to monitor the use of procurement authority by employees designated under subsection (b)(1).

    (5) Any recommendations of the Comptroller General for improving the effectiveness of the implementation of the provisions of this section.

   SEC. 834. UNSOLICITED PROPOSALS.

    (a) REGULATIONS REQUIRED.--Within 1 year of the date of enactment of this Act, the Federal Acquisition Regulation shall be revised to include regulations with regard to unsolicited proposals.

    (b) CONTENT OF REGULATIONS.--The regulations prescribed under subsection (a) shall require that before initiating a comprehensive evaluation, an agency contact point shall consider, among other factors, that the proposal--

    (1) is not submitted in response to a previously published agency requirement; and

    (2) contains technical and cost information for evaluation and overall scientific, technical or socioeconomic merit, or cost-related or price-related factors.

   SEC. 835. PROHIBITION ON CONTRACTS WITH CORPORATE EXPATRIATES.

    (a) IN GENERAL.--The Secretary may not enter into any contract with a foreign incorporated entity which is treated as an inverted domestic corporation under subsection (b).

    (b) INVERTED DOMESTIC CORPORATION.--For purposes of this section, a foreign incorporated entity shall be treated as an inverted domestic corporation if, pursuant to a plan (or a series of related transactions)--

    (1) the entity completes after the date of enactment of this Act, the direct or indirect acquisition of substantially all of the properties held directly or indirectly by a domestic corporation or substantially all of the properties constituting a trade or business of a domestic partnership;

    (2) after the acquisition at least 80 percent of the stock (by vote or value) of the entity is held--

    (A) in the case of an acquisition with respect to a domestic corporation, by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation; or

    (B) in the case of an acquisition with respect to a domestic partnership, by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership; and

    (3) the expanded affiliated group which after the acquisition includes the entity does not have substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group.

    (c) DEFINITIONS AND SPECIAL RULES.--

    (1) RULES FOR APPLICATION OF SUBSECTION (b).--In applying subsection (b) for purposes of subsection (a), the following rules shall apply:

    (A) CERTAIN STOCK DISREGARDED.--There shall not be taken into account in determining ownership for purposes of subsection (b)(2)--

    (i) stock held by members of the expanded affiliated group which includes the foreign incorporated entity; or

    (ii) stock of such entity which is sold in a public offering related to the acquisition described in subsection (b)(1).

    (B) PLAN DEEMED IN CERTAIN CASES.--If a foreign incorporated entity acquires directly or indirectly substantially all of the properties of a domestic corporation or partnership during the 4-year period beginning on the date which is after the date of enactment of this Act and which is 2 years before the ownership requirements of subsection (b)(2) are met, such actions shall be treated as pursuant to a plan.

    (C) CERTAIN TRANSFERS DISREGARDED.--The transfer of properties or liabilities (including by contribution or distribution) shall be disregarded if such transfers are part of a plan a principal purpose of which is to avoid the purposes of this section.

    (D) SPECIAL RULE FOR RELATED PARTNERSHIPS.--For purposes of applying subsection (b) to the acquisition of a domestic partnership, except as provided in regulations, all domestic partnerships which are under common control (within the meaning of section 482 of the Internal Revenue Code of 1986) shall be treated as I partnership.

    (E) TREATMENT OF CERTAIN RIGHTS.--The Secretary shall prescribe such regulations as may be necessary to--

    (i) treat warrants, options, contracts to acquire stock, convertible debt instruments, and other similar interests as stock; and

    (ii) treat stock as not stock.

    (2) EXPANDED AFFILIATED GROUP.--The term ``expanded affiliated group'' means an affiliated group as defined in section 1504(a) of the Internal Revenue Code of 1986 (without regard to section 1504(b) of such Code), except that section 1504 of such Code shall be applied by substituting ``more than 50 percent'' for ``at least 80 percent'' each place it appears.

    (3) FOREIGN INCORPORATED ENTITY.--The term ``foreign incorporated entity'' means any entity which is, or but for subsection (b) would be, treated as a foreign corporation for purposes of the Internal Revenue Code of 1986.

    (4) OTHER DEFINITIONS.--The terms ``person'', ``domestic'', and ``foreign'' have the meanings given such terms by paragraphs (1), (4), and (5) of section 7701 (a) of the Internal Revenue Code of 1986, respectively.

    (d) WAIVERS.--The Secretary shall waive subsection (a) with respect to any specific contract if the Secretary determines that the waiver is required in the interest of homeland security, or to

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   SEC. 841. ESTABLISHMENT OF HUMAN RESOURCES MANAGEMENT SYSTEM.

    (a) AUTHORITY.--

    (1) SENSE OF CONGRESS.--It is the sense of 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.

    (2) IN GENERAL.--Subpart I of part III of title 5, United States Code, is amended by adding at the end the following:

   ``Sec.

   ``9701. Establishment of human resources management system.``§9701. Establishment of human resources management system

    ``(a) IN GENERAL.--Notwithstanding any other provision of this part, the Secretary of Homeland Security may, in regulations prescribed jointly with the Director of the Office of Personnel Management, establish, and from time to time adjust, a human resources management system for some or all of the organizational units of the Department of Homeland Security.

    ``(b) SYSTEM REQUIREMENTS.--Any system established under subsection (a) shall--

    ``(1) be flexible;

    ``(2) be contemporary;

    ``(3) not waive, modify, or otherwise affect--

    ``(A) the public employment principles of merit and fitness set forth in section 2301, including the principles of hiring based on merit, fair treatment without regard to political affiliation or other nonmerit considerations, equal pay for equal work, and protection of employees against reprisal for whistleblowing;

    ``(B) any provision of section 2302, relating to prohibited personnel practices;

    ``(C)(i) any provision of law referred to in section 2302(b)(1), (8), and (9); or

    ``(ii) any provision of law implementing any provision of law referred to in section 2302(b)(1), (8), and (9) by--

    ``(I) providing for equal employment opportunity through affirmative action; or

    ``(II) providing any right or remedy available to any employee or applicant for employment in the civil service;

    ``(D) any other provision of this part (as described in subsection (c)); or

    ``(E) any rule or regulation prescribed under any provision of law referred to in any of the preceding subparagraphs of this paragraph;

    ``(4) ensure that employees may organize, bargain collectively, and participate through labor organizations of their own choosing in decisions which affect them, subject to any exclusion from coverage or limitation on negotiability established by law; and

    ``(5) permit the use of a category rating system for evaluating applicants for positions in the competitive service.

    ``(c) OTHER NONWAIVABLE PROVISIONS.--The other provisions of this part as referred to in subsection (b)(3)(D), are (to the extent not otherwise specified in subparagraph (A), (B), (C), or (D) of subsection (b)(3))--

    ``(1) subparts A, B, E, G, and H of this part; and

    ``(2) chapters 41, 45, 47, 55, 57, 59, 72, 73, and 79, and this chapter.

    ``(d) LIMITATIONS RELATING TO PAY.--Nothing in this section shall constitute authority--

    ``(1) to modify the pay of 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;

    ``(2) to fix pay for any employee or position at an annual rate greater than the maximum amount of cash compensation allowable under section 5307 of such title 5 in a year; or

    ``(3) to exempt any employee from the application of such section 5307.

    ``(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 participation of employee representatives in the planning, development, and implementation of any human resources management system or adjustments to such system 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.--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 30 calendar 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 representatives under clause (ii) full and fair consideration in deciding whether or how to proceed with the proposal.

    ``(B) PRE-IMPLEMENTATION CONGRESSIONAL NOTIFICATION, CONSULTATION, AND MEDIATION.--Following receipt of recommendations, if any, from employee representatives with respect to a proposal described in subparagraph (A), the Secretary and the Director shall accept such modifications to the proposal in response to the recommendations as they determine advisable and shall, with respect to any parts of the proposal as to which they have not accepted the recommendations--

    ``(i) notify Congress of those parts of the proposal, together with the recommendations of employee representatives;

    ``(ii) meet and confer for not less than 30 calendar days with any representatives who have made recommendations, in order to attempt to reach agreement on whether or how to proceed with those parts of the proposal; and

    ``(iii) at the Secretary's option, or if requested by a majority of the employee representatives who have made recommendations, use the services of the Federal Mediation and Conciliation Service during such meet and confer period to facilitate the process of attempting to reach agreement.

    ``(C) IMPLEMENTATION.--

    ``(i) Any part of the proposal as to which the representatives do not make a recommendation, or as to which their recommendations are accepted by the Secretary and the Director, may be implemented immediately.

    ``(ii) With respect to any parts of the proposal as to which recommendations have been made but not accepted by the Secretary and the Director, at any time after 30 calendar days have elapsed since the initiation of the congressional notification, consultation, and mediation procedures set forth in subparagraph (B), if the Secretary determines, in the Secretary's sole and unreviewable discretion, that further consultation and mediation is unlikely to produce agreement, the Secretary may implement any or all of such parts, including any modifications made in response to the recommendations as the Secretary determines advisable.

    ``(iii) The Secretary shall promptly notify Congress of the implementation of any part of the proposal and shall furnish with such notice an explanation of the proposal, any changes made to the proposal as a result of recommendations from employee representatives, and of the reasons why implementation is appropriate under this subparagraph.

    ``(D) 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 as internal rules of departmental procedure which shall not be subject to review. 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 the subsection;

    ``(C) the fair and expeditious handling of the consultation and mediation process described in subparagraph (B) of paragraph (1), including procedures by which, if the number of employee representatives providing recommendations exceeds 5, such representatives select a committee or other unified representative with which the Secretary and Director may meet and confer; and

    ``(D) the selection of representatives in a manner consistent with the relative number 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 Congress that--

    ``(A) employees of the Department 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 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;

    ``(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; and

    ``(C) shall modify procedures under chapter 77 only insofar as such modifications are designed to further the fair, efficient, and expeditious resolution of matters involving the employees of the Department.

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    ``(g) PROVISIONS RELATING TO LABOR-MANAGEMENT RELATIONS.--Nothing in this section shall be construed as conferring authority on the Secretary of Homeland Security to modify any of the provisions of section 842 of the Homeland Security Act of 2002.

    ``(h) SUNSET PROVISION.--Effective 5 years after the conclusion of the transition period defined under section 1501 of the Homeland Security Act of 2002, all authority to issue regulations under this section (including regulations which would modify, supersede, or terminate any regulations previously issued under this section) shall cease to be available.''.

    (3) TECHNICAL AND CONFORMING AMENDMENT.--The table of chapters for part III of title 5, United States Code, is amended by adding at the end of the following:

   ``97. Department of Homeland Security

   9701''.

    (b) EFFECT ON PERSONNEL.--

    (1) NONSEPARATION OR NONREDUCTION IN GRADE OR COMPENSATION OF FULL-TIME PERSONNEL AND PART-TIME PERSONNEL HOLDING PERMANENT POSITIONS.--Except as otherwise provided in this Act, the transfer under this Act of full-time personnel (except special Government employees) and part-time personnel holding permanent positions shall not cause any such employee to be separated or reduced in grade or compensation for 1 year after the date of transfer to the Department.

    (2) POSITIONS COMPENSATED IN ACCORDANCE WITH EXECUTIVE SCHEDULE.--Any person who, on the day preceding such person's date of transfer pursuant to this Act, held a position compensated in accordance with the Executive Schedule prescribed in chapter 53 of title 5, United States Code, and who, without a break in service, is appointed in the Department to a position having duties comparable to the duties performed immediately preceding such appointment shall continue to be compensated in such new position at not less than the rate provided for such position, for the duration of the service of such person in such new position.

    (3) COORDINATION RULE.--Any exercise of authority under chapter 97 of title 5, United States Code (as amended by subsection (a)), including under any system established under such chapter, shall be in conformance with the requirements of this subsection.

   SEC. 842. 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) WAIVER.--If the President determines that the application of subsections (a), (b), and (d) would have a substantial adverse impact on the ability of the Department to protect homeland security, the President may waive the application of such subsections 10 days after the President has submitted to Congress a written explanation of the reasons for such determination.

    (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.

    (e) RULE OF CONSTRUCTION.--Nothing in section 9701(e) of title 5, United States Code, shall be considered to apply with respect to any agency or subdivision of any agency, which is excluded from the coverage of chapter 71 of title 5, United States Code, by virtue of an order issued in accordance with section 7103(b) of such title and the preceding provisions of this section (as applicable), or to any employees of any such agency or subdivision or to any individual or entity representing any such employees or any representatives thereof.

   SEC. 851. DEFINITION.

    In this subtitle, the term ``executive agency'' has the meaning given that term under section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).

   SEC. 852. PROCUREMENTS FOR DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

    The authorities provided in this subtitle apply to any procurement of property or services by or for an executive agency that, as determined by the head of the executive agency, are to be used to facilitate defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack, but only if a solicitation of offers for the procurement is issued during the 1-year period beginning on the date of the enactment of this Act.

   SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESHOLD FOR PROCUREMENTS IN SUPPORT OF HUMANITARIAN OR PEACEKEEPING OPERATIONS OR CONTINGENCY OPERATIONS.

    (a) TEMPORARY THRESHOLD AMOUNTS.--For a procurement referred to in section 852 that is carried out in support of a humanitarian or peacekeeping operation or a contingency operation, the simplified acquisition threshold definitions shall be applied as if the amount determined under the exception provided for such an operation in those definitions were--

    (1) in the case of a contract to be awarded and performed, or purchase to be made, inside the United States, $200,000; or

    (2) in the case of a contract to be awarded and performed, or purchase to be made, outside the United States, $300,000.

    (b) SIMPLIFIED ACQUISITION THRESHOLD DEFINITIONS.--In this section, the term ``simplified acquisition threshold definitions'' means the following:

    (1) Section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)).

    (2) Section 309(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(d)).

    (3) Section 2302(7) of title 10, United States Code.

    (c) SMALL BUSINESS RESERVE.--For a procurement carried out pursuant to subsection (a), section 15(j) of the Small Business Act (15 U.S.C. 644(j)) shall be applied as if the maximum anticipated value identified therein is equal to the amounts referred to in subsection (a).

   SEC. 854. INCREASED MICRO-PURCHASE THRESHOLD FOR CERTAIN PROCUREMENTS.

    In the administration of section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428) with respect to a procurement referred to in section 852, the amount specified in subsections (c), (d), and (f) of such section 32 shall be deemed to be $7,500.

   SEC. 855. APPLICATION OF CERTAIN COMMERCIAL ITEMS AUTHORITIES TO CERTAIN PROCUREMENTS.

    (a) AUTHORITY.--

    (1) IN GENERAL.--The head of an executive agency may apply the provisions of law listed in paragraph (2) to a procurement referred to in section 852 without regard to whether the property or services are commercial items.

    (2) COMMERCIAL ITEM LAWS.--The provisions of law referred to in paragraph (1) are as follows:

    (A) Sections 31 and 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 427, 430).

    (B) Section 2304(g) of title 10, United States Code.

    (C) Section 303(g) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)).

    (b) INAPPLICABILITY OF LIMITATION ON USE OF SIMPLIFIED ACQUISITION PROCEDURES.--

    (1) IN GENERAL.--The $5,000,000 limitation provided in section 31(a)(2) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(a)(2)), section 2304(g)(1)(B) of title 10, United States Code, and section 303(g)(1)(B) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(B)) shall not apply to purchases of property or services to which any of the provisions of law referred to in subsection (a) are applied under the authority of this section.

    (2) OMB GUIDANCE.--The Director of the Office of Management and Budget shall issue guidance and procedures for the use of simplified acquisition procedures for a purchase of property or services in excess of $5,000,000 under the authority of this section.

    (c) CONTINUATION OF AUTHORITY FOR SIMPLIFIED PURCHASE PROCEDURES.--Authority under a provision of law referred to in subsection (a)(2) that expires under section 4202(e) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 10 U.S.C. 2304 note) shall, notwithstanding such section, continue to apply for use by the head of an executive agency as provided in subsections (a) and (b).

   SEC. 856. USE OF STREAMLINED PROCEDURES.

    (a) REQUIRED USE.--The head of an executive agency shall, when appropriate, use streamlined acquisition authorities and procedures authorized by law for a procurement referred to in section 852, including authorities and procedures that are provided under the following provisions of law:

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    (1) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949.--In title III of the Federal Property and Administrative Services Act of 1949:

    (A) Paragraphs (1), (2), (6), and (7) of subsection (c) of section 303 (41 U.S.C. 253), relating to use of procedures other than competitive procedures under certain circumstances (subject to subsection (e) of such section).

    (B) Section 303J (41 U.S.C. 253j), relating to orders under task and delivery order contracts.

    (2) TITLE 10, UNITED STATES CODE.--In chapter 137 of title 10, United States Code:

    (A) Paragraphs (1), (2), (6), and (7) of subsection (c) of section 2304, relating to use of procedures other than competitive procedures under certain circumstances (subject to subsection (e) of such section).

    (B) Section 2304c, relating to orders under task and delivery order contracts.

    (3) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.--Paragraphs (1)(B), (1)(D), and (2) of section 18(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(c)), relating to inapplicability of a requirement for procurement notice.

    (b) WAIVER OF CERTAIN SMALL BUSINESS THRESHOLD REQUIREMENTS.--Subclause (II) of section 8(a)(1)(D)(i) of the Small Business Act (15 U.S.C. 637(a)(1)(D)(i)) and clause (ii) of section 31(b)(2)(A) of such Act (15 U.S.C. 657a(b)(2)(A)) shall not apply in the use of streamlined acquisition authorities and procedures referred to in paragraphs (1)(A) and (2)(A) of subsection (a) for a procurement referred to in section 852.

   SEC. 857. REVIEW AND REPORT BY COMPTROLLER GENERAL.

    (a) REQUIREMENTS.--Not later than March 31, 2004, the Comptroller General shall--

    (1) complete a review of the extent to which procurements of property and services have been made in accordance with this subtitle; and

    (2) submit a report on the results of the review to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives.

    (b) CONTENT OF REPORT.--The report under subsection (a)(2) shall include the following matters:

    (1) ASSESSMENT.--The Comptroller General's assessment of--

    (A) the extent to which property and services procured in accordance with this title have contributed to the capacity of the workforce of Federal Government employees within each executive agency to carry out the mission of the executive agency; and

    (B) the extent to which Federal Government employees have been trained on the use of technology.

    (2) RECOMMENDATIONS.--Any recommendations of the Comptroller General resulting from the assessment described in paragraph (1).

    (c) CONSULTATION.--In preparing for the review under subsection (a)(1), the Comptroller shall consult with the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives on the specific issues and topics to be reviewed. The extent of coverage needed in areas such as technology integration, employee training, and human capital management, as well as the data requirements of the study, shall be included as part of the consultation.

   SEC. 858. IDENTIFICATION OF NEW ENTRANTS INTO THE FEDERAL MARKETPLACE.

    The head of each executive agency shall conduct market research on an ongoing basis to identify effectively the capabilities, including the capabilities of small businesses and new entrants into Federal contracting, that are available in the marketplace for meeting the requirements of the executive agency in furtherance of defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack. The head of the executive agency shall, to the maximum extent practicable, take advantage of commercially available market research methods, including use of commercial databases, to carry out the research.

   SEC. 861. SHORT TITLE.

    This subtitle may be cited as the ``Support Anti-terrorism by Fostering Effective Technologies Act of 2002'' or the ``SAFETY Act''.

   SEC. 862. ADMINISTRATION.

    (a) IN GENERAL.--The Secretary shall be responsible for the administration of this subtitle.

    (b) DESIGNATION OF QUALIFIED ANTI-TERRORISM TECHNOLOGIES.--The Secretary may designate anti-terrorism technologies that qualify for protection under the system of risk management set forth in this subtitle in accordance with criteria that shall include, but not be limited to, the following:

    (1) Prior United States government use or demonstrated substantial utility and effectiveness.

    (2) Availability of the technology for immediate deployment in public and private settings.

    (3) Existence of extraordinarily large or extraordinarily unquantifiable potential third party liability risk exposure to the Seller or other provider of such anti-terrorism technology.

    (4) Substantial likelihood that such anti-terrorism technology will not be deployed unless protections under the system of risk management provided under this subtitle are extended.

    (5) Magnitude of risk exposure to the public if such anti-terrorism technology is not deployed.

    (6) Evaluation of all scientific studies that can be feasibly conducted in order to assess the capability of the technology to substantially reduce risks of harm.

    (7) Anti-terrorism technology that would be effective in facilitating the defense against acts of terrorism, including technologies that prevent, defeat or respond to such acts.

    (c) REGULATIONS.--The Secretary may issue such regulations, after notice and comment in accordance with section 553 of title 5, United States, Code, as may be necessary to carry out this subtitle.

   SEC. 863. LITIGATION MANAGEMENT.

    (a) FEDERAL CAUSE OF ACTION.--

    (1) IN GENERAL.--There shall exist a Federal cause of action for claims arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act and such claims result or may result in loss to the Seller. The substantive law for decision in any such action shall be derived from the law, including choice of law principles, of the State in which such acts of terrorism occurred, unless such law is inconsistent with or preempted by Federal law. Such Federal cause of action shall be brought only for claims for injuries that are proximately caused by sellers that provide qualified anti-terrorism technology to Federal and non-Federal government customers.

    (2) JURISDICTION.--Such appropriate district court of the United States shall have original and exclusive jurisdiction over all actions for any claim for loss of property, personal injury, or death arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act and such claims result or may result in loss to the Seller.

    (b) SPECIAL RULES.--In an action brought under this section for damages the following provisions apply:

    (1) PUNITIVE DAMAGES.--No punitive damages intended to punish or deter, exemplary damages, or other damages not intended to compensate a plaintiff for actual losses may be awarded, nor shall any party be liable for interest prior to the judgment.

    (2) NONECONOMIC DAMAGES.--

    (A) IN GENERAL.--Noneconomic damages may be awarded against a defendant only in an amount directly proportional to the percentage of responsibility of such defendant for the harm to the plaintiff, and no plaintiff may recover noneconomic damages unless the plaintiff suffered physical harm.

    (B) DEFINITION.--For purposes of subparagraph (A), the term ``noneconomic damages'' means damages for losses for physical and emotional pain, suffering, inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium, hedonic damages, injury to reputation, and any other nonpecuniary losses.

    (c) COLLATERAL SOURCES.--Any recovery by a plaintiff in an action under this section shall be reduced by the amount of collateral source compensation, if any, that the plaintiff has received or is entitled to receive as a result of such acts of terrorism that result or may result in loss to the Seller.

    (d) GOVERNMENT CONTRACTOR DEFENSE.--

    (1) IN GENERAL.--Should a product liability or other lawsuit be filed for claims arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies approved by the Secretary, as provided in paragraphs (2) and (3) of this subsection, have been deployed in defense against or response or recovery from such act and such claims result or may result in loss to the Seller, there shall be a rebuttable presumption that the government contractor defense applies in such lawsuit. This presumption shall only be overcome by evidence showing that the Seller acted fraudulently or with willful misconduct in submitting information to the Secretary during the course of the Secretary's consideration of such technology under this subsection. This presumption of the government contractor defense shall apply regardless of whether the claim against the Seller arises from a sale of the product to Federal Government or non-Federal Government customers.

    (2) EXCLUSIVE RESPONSIBILITY.--The Secretary will be exclusively responsible for the review and approval of anti-terrorism technology for purposes of establishing a government contractor defense in any product liability lawsuit for claims arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies approved by the Secretary, as provided in this paragraph and paragraph (3), have been deployed in defense against or response or recovery from such act and such claims result or may result in loss to the Seller. Upon the Seller's submission to the Secretary for approval of anti-terrorism technology, the Secretary will conduct a comprehensive review of the design of such technology and determine whether it will perform as intended, conforms to the Seller's specifications, and is safe for use as intended. The Seller will conduct safety and hazard analyses on such technology and will supply the Secretary with all such information.

    (3) CERTIFICATE.--For anti-terrorism technology reviewed and approved by the Secretary, the Secretary will issue a certificate of conformance to the Seller and place the anti-terrorism technology on an Approved Product List for Homeland Security.

    (e) EXCLUSION.--Nothing in this section shall in any way limit the ability of any person to seek any form of recovery from any person, government, or other entity that--

    (1) attempts to commit, knowingly participates in, aids and abets, or commits any act of terrorism, or any criminal act related to or resulting from such act of terrorism; or

    (2) participates in a conspiracy to commit any such act of terrorism or any such criminal act.

   SEC. 864. RISK MANAGEMENT.

    (a) IN GENERAL.--

    (1) LIABILITY INSURANCE REQUIRED.--Any person or entity that sells or otherwise provides a qualified anti-terrorism technology to Federal

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    (2) MAXIMUM AMOUNT.--For the total claims related to 1 such act of terrorism, the Seller is not required to obtain liability insurance of more than the maximum amount of liability insurance reasonably available from private sources on the world market at prices and terms that will not unreasonably distort the sales price of Seller's anti-terrorism technologies.

    (3) SCOPE OF COVERAGE.--Liability insurance obtained pursuant to this subsection shall, in addition to the Seller, protect the following, to the extent of their potential liability for involvement in the manufacture, qualification, sale, use, or operation of qualified anti-terrorism technologies deployed in defense against or response or recovery from an act of terrorism:

    (A) contractors, subcontractors, suppliers, vendors and customers of the Seller.

    (B) contractors, subcontractors, suppliers, and vendors of the customer.

    (4) THIRD PARTY CLAIMS.--Such liability insurance under this section shall provide coverage against third party claims arising out of, relating to, or resulting from the sale or use of anti-terrorism technologies.

    (b) RECIPROCAL WAIVER OF CLAIMS.--The Seller shall enter into a reciprocal waiver of claims with its contractors, subcontractors, suppliers, vendors and customers, and contractors and subcontractors of the customers, involved in the manufacture, sale, use or operation of qualified anti-terrorism technologies, under which each party to the waiver agrees to be responsible for losses, including business interruption losses, that it sustains, or for losses sustained by its own employees resulting from an activity resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act.

    (c) EXTENT OF LIABILITY.--Notwithstanding any other provision of law, liability for all claims against a Seller arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act and such claims result or may result in loss to the Seller, whether for compensatory or punitive damages or for contribution or indemnity, shall not be in an amount greater than the limits of liability insurance coverage required to be maintained by the Seller under this section.

   SEC. 865. DEFINITIONS.

    For purposes of this subtitle, the following definitions apply:

    (1) QUALIFIED ANTI-TERRORISM TECHNOLOGY.--For purposes of this subtitle, the term ``qualified anti-terrorism technology'' means any product, equipment, service (including support services), device, or technology (including information technology) designed, developed, modified, or procured for the specific purpose of preventing, detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise cause, that is designated as such by the Secretary.

    (2) ACT OF TERRORISM.--(A) The term ``act of terrorism'' means any act that the Secretary determines meets the requirements under subparagraph (B), as such requirements are further defined and specified by the Secretary.

    (B) REQUIREMENTS.--An act meets the requirements of this subparagraph if the act--

    (i) is unlawful;

    (ii) causes harm to a person, property, or entity, in the United States, or in the case of a domestic United States air carrier or a United States-flag vessel (or a vessel based principally in the United States on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), in or outside the United States; and

    (iii) uses or attempts to use instrumentalities, weapons or other methods designed or intended to cause mass destruction, injury or other loss to citizens or institutions of the United States.

    (3) INSURANCE CARRIER.--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.

    (4) LIABILITY INSURANCE.--

    (A) IN GENERAL.--The term ``liability insurance'' means insurance for legal liabilities incurred by the insured resulting from--

    (i) loss of or damage to property of others;

    (ii) ensuing loss of income or extra expense incurred because of loss of or damage to property of others;

    (iii) bodily injury (including) to persons other than the insured or its employees; or

    (iv) loss resulting from debt or default of another.

    (5) LOSS.--The term ``loss'' means death, bodily injury, or loss of or damage to property, including business interruption loss.

    (6) NON-FEDERAL GOVERNMENT CUSTOMERS.--The term ``non-Federal Government customers'' means any customer of a Seller that is not an agency or instrumentality of the United States Government with authority under Public Law 85-804 to provide for indemnification under certain circumstances for third-party claims against its contractors, including but not limited to State and local authorities and commercial entities.

   SEC. 871. ADVISORY COMMITTEES.

    (a) IN GENERAL.--The Secretary may establish, appoint members of, and use the services of, advisory committees, as the Secretary may deem necessary. An advisory committee established under this section may be exempted by the Secretary from Public Law 92-463, but the Secretary shall publish notice in the Federal Register announcing the establishment of such a committee and identifying its purpose and membership. Notwithstanding the preceding sentence, members of an advisory committee that is exempted by the Secretary under the preceding sentence who are special Government employees (as that term is defined in section 202 of title 18, United States Code) shall be eligible for certifications under subsection (b)(3) of section 208 of title 18, United States Code, for official actions taken as a member of such advisory committee.

    (b) TERMINATION.--Any advisory committee established by the Secretary shall terminate 2 years after the date of its establishment, unless the Secretary makes a written determination to extend the advisory committee to a specified date, which shall not be more than 2 years after the date on which such determination is made. The Secretary may make any number of subsequent extensions consistent with this subsection.

   SEC. 872. REORGANIZATION.

    (a) REORGANIZATION.--The Secretary may allocate or reallocate functions among the officers of the Department, and may establish, consolidate, alter, or discontinue organizational units within the Department, but only--

    (1) pursuant to section 1502(b); or

    (2) after the expiration of 60 days after providing notice of such action to the appropriate congressional committees, which shall include an explanation of the rationale for the action.

    (b) LIMITATIONS.--

    (1) IN GENERAL.--Authority under subsection (a)(1) does not extend to the abolition of any agency, entity, organizational unit, program, or function established or required to be maintained by this Act.

    (2) ABOLITIONS.--Authority under subsection (a)(2) does not extend to the abolition of any agency, entity, organizational unit, program, or function established or required to be maintained by statute.

   SEC. 873. USE OF APPROPRIATED FUNDS.

    (a) DISPOSAL OF PROPERTY.--

    (1) STRICT COMPLIANCE.--If specifically authorized to dispose of real property in this or any other Act, the Secretary shall exercise this authority in strict compliance with section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485).

    (2) DEPOSIT OF PROCEEDS.--The Secretary shall deposit the proceeds of any exercise of property disposal authority into the miscellaneous receipts of the Treasury in accordance with section 3302(b) of title 31, United States Code.

    (b) GIFTS.--Gifts or donations of services or property of or for the Department may not be accepted, used, or disposed of unless specifically permitted in advance in an appropriations Act and only under the conditions and for the purposes specified in such appropriations Act.

    (c) BUDGET REQUEST.--Under section 1105 of title 31, United States Code, the President shall submit to Congress a detailed budget request for the Department for fiscal year 2004, and for each subsequent fiscal year.

   SEC. 874. FUTURE YEAR HOMELAND SECURITY PROGRAM.

    (a) IN GENERAL.--Each budget request submitted to Congress for the Department under section 1105 of title 31, United States Code, shall, at or about the same time, be accompanied by a Future Years Homeland Security Program.

    (b) CONTENTS.--The Future Years Homeland Security Program under subsection (a) shall be structured, and include the same type of information and level of detail, as the Future Years Defense Program submitted to Congress by the Department of Defense under section 221 of title 10, United States Code.

    (c) EFFECTIVE DATE.--This section shall take effect with respect to the preparation and submission of the fiscal year 2005 budget request for the Department and for any subsequent fiscal year, except that the first Future Years Homeland Security Program shall be submitted not later than 90 days after the Department's fiscal year 2005 budget request is submitted to Congress.

   SEC. 875. MISCELLANEOUS AUTHORITIES.

    (a) SEAL.--The Department shall have a seal, whose design is subject to the approval of the President.

    (b) PARTICIPATION OF MEMBERS OF THE ARMED FORCES.--With respect to the Department, the Secretary shall have the same authorities that the Secretary of Transportation has with respect to the Department of Transportation under section 324 of title 49, United States Code.

    (c) REDELEGATION OF FUNCTIONS.--Unless otherwise provided in the delegation or by law, any function delegated under this Act may be redelegated to any subordinate.

   SEC. 876. MILITARY ACTIVITIES.

    Nothing in this Act shall confer upon the Secretary any authority to engage in warfighting, the military defense of the United States, or other military activities, nor shall anything in this Act limit the existing authority of the Department of Defense or the Armed Forces to engage in warfighting, the military defense of the United States, or other military activities.

   SEC. 877. REGULATORY AUTHORITY AND PREEMPTION.

    (a) REGULATORY AUTHORITY.--Except as otherwise provided in sections 306(c), 862(c), and 1706(b), this Act vests no new regulatory authority in the Secretary or any other Federal official, and transfers to the Secretary or another Federal official only such regulatory authority

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    (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.

   SEC. 878. COUNTERNARCOTICS OFFICER.

    The Secretary shall appoint a senior official in the Department to assume primary responsibility for coordinating policy and operations within the Department and between the Department and other Federal departments and agencies with respect to interdicting the entry of illegal drugs into the United States, and tracking and severing connections between illegal drug trafficking and terrorism. 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.

   SEC. 879. OFFICE OF INTERNATIONAL AFFAIRS.

    (a) ESTABLISHMENT.--There is established within the Office of the Secretary an Office of International Affairs. The Office shall be headed by a Director, who shall be a senior official appointed by the Secretary.

    (b) DUTIES OF THE DIRECTOR.--The Director shall have the following duties:

    (1) To promote information and education exchange with nations friendly to the United States in order to promote sharing of best practices and technologies relating to homeland security. Such exchange shall include the following:

    (A) Exchange of information on research and development on homeland security technologies.

    (B) Joint training exercises of first responders.

    (C) Exchange of expertise on terrorism prevention, response, and crisis management.

    (2) To identify areas for homeland security information and training exchange where the United States has a demonstrated weakness and another friendly nation or nations have a demonstrated expertise.

    (3) To plan and undertake international conferences, exchange programs, and training activities.

    (4) To manage international activities within the Department in coordination with other Federal officials with responsibility for counter-terrorism matters.

   SEC. 880. PROHIBITION OF THE TERRORISM INFORMATION AND PREVENTION SYSTEM.

    Any and all activities of the Federal Government to implement the proposed component program of the Citizen Corps known as Operation TIPS (Terrorism Information and Prevention System) are hereby prohibited.

   SEC. 881. REVIEW OF PAY AND BENEFIT PLANS.

    Notwithstanding any other provision of this Act, the Secretary shall, in consultation with the Director of the Office of Personnel Management, review the pay and benefit plans of each agency whose functions are transferred under this Act to the Department and, within 90 days after the date of enactment, submit a plan to the President of the Senate and the Speaker of the House of Representatives and the appropriate committees and subcommittees of Congress, for ensuring, to the maximum extent practicable, the elimination of disparities in pay and benefits throughout the Department, especially among law enforcement personnel, that are inconsistent with merit system principles set forth in section 2301 of title 5, United States Code.

   SEC. 882. OFFICE FOR NATIONAL CAPITAL REGION COORDINATION.

    (a) ESTABLISHMENT.--

    (1) IN GENERAL.--There is established within the Office of the Secretary the Office of National Capital Region Coordination, to oversee and coordinate Federal programs for and relationships with State, local, and regional authorities in the National Capital Region, as defined under section 2674(f)(2) of title 10, United States Code.

    (2) DIRECTOR.--The Office established under paragraph (1) shall be headed by a Director, who shall be appointed by the Secretary.

    (3) COOPERATION.--The Secretary shall cooperate with the Mayor of the District of Columbia, the Governors of Maryland and Virginia, and other State, local, and regional officers in the National Capital Region to integrate the District of Columbia, Maryland, and Virginia into the planning, coordination, and execution of the activities of the Federal Government for the enhancement of domestic preparedness against the consequences of terrorist attacks.

    (b) RESPONSIBILITIES.--The Office established under subsection (a)(1) shall--

    (1) coordinate the activities of the Department relating to the National Capital Region, including cooperation with the Office for State and Local Government Coordination;

    (2) assess, and advocate for, the resources needed by State, local, and regional authorities in the National Capital Region to implement efforts to secure the homeland;

    (3) provide State, local, and regional authorities in the National Capital Region with regular information, research, and technical support to assist the efforts of State, local, and regional authorities in the National Capital Region in securing the homeland;

    (4) develop a process for receiving meaningful input from State, local, and regional authorities and the private sector in the National Capital Region to assist in the development of the homeland security plans and activities of the Federal Government;

    (5) coordinate with Federal agencies in the National Capital Region on terrorism preparedness, to ensure adequate planning, information sharing, training, and execution of the Federal role in domestic preparedness activities;

    (6) coordinate with Federal, State, local, and regional agencies, and the private sector in the National Capital Region on terrorism preparedness to ensure adequate planning, information sharing, training, and execution of domestic preparedness activities among these agencies and entities; and

    (7) serve as a liaison between the Federal Government and State, local, and regional authorities, and private sector entities in the National Capital Region to facilitate access to Federal grants and other programs.

    (c) ANNUAL REPORT.--The Office established under subsection (a) shall submit an annual report to Congress that includes--

    (1) the identification of the resources required to fully implement homeland security efforts in the National Capital Region;

    (2) an assessment of the progress made by the National Capital Region in implementing homeland security efforts; and

    (3) recommendations to Congress regarding the additional resources needed to fully implement homeland security efforts in the National Capital Region.

    (d) LIMITATION.--Nothing contained in this section shall be construed as limiting the power of State and local governments.

   SEC. 883. 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) and (9) of such title and the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002).

   SEC. 884. 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 Homeland Security under this Act shall continue to be carried out at the locations such activities were carried out before such transfer.

   SEC. 885. 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.

   SEC. 886. SENSE OF CONGRESS REAFFIRMING THE CONTINUED IMPORTANCE AND APPLICABILITY OF THE POSSE COMITATUS ACT.

    (a) FINDINGS.--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

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    (b) SENSE OF CONGRESS.--Congress reaffirms the continued importance of section 1385 of title 18, United States Code, and it is the sense of 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.

   SEC. 887. COORDINATION WITH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER THE PUBLIC HEALTH SERVICE ACT.

    (a) IN GENERAL.--The annual Federal response plan developed by the Department shall be consistent with section 319 of the Public Health Service Act (42 U.S.C. 247d).

    (b) DISCLOSURES AMONG RELEVANT AGENCIES.--

    (1) IN GENERAL.--Full disclosure among relevant agencies shall be made in accordance with this subsection.

    (2) PUBLIC HEALTH EMERGENCY.--During the period in which the Secretary of Health and Human Services has declared the existence of a public health emergency under section 319(a) of the Public Health Service Act (42 U.S.C. 247d(a)), the Secretary of Health and Human Services shall keep relevant agencies, including the Department of Homeland Security, the Department of Justice, and the Federal Bureau of Investigation, fully and currently informed.

    (3) POTENTIAL PUBLIC HEALTH EMERGENCY.--In cases involving, or potentially involving, a public health emergency, but in which no determination of an emergency by the Secretary of Health and Human Services under section 319(a) of the Public Health Service Act (42 U.S.C. 247d(a)), has been made, all relevant agencies, including the Department of Homeland Security, the Department of Justice, and the Federal Bureau of Investigation, shall keep the Secretary of Health and Human Services and the Director of the Centers for Disease Control and Prevention fully and currently informed.

   SEC. 888. PRESERVING COAST GUARD MISSION PERFORMANCE.

    (a) DEFINITIONS.--In this section:

    (1) NON-HOMELAND SECURITY MISSIONS.--The term ``non-homeland security missions'' means the following missions of the Coast Guard:

    (A) Marine safety.

    (B) Search and rescue.

    (C) Aids to navigation.

    (D) Living marine resources (fisheries law enforcement).

    (E) Marine environmental protection.

    (F) Ice operations.

    (2) HOMELAND SECURITY MISSIONS.--The term ``homeland security missions'' means the following missions of the Coast Guard:

    (A) Ports, waterways and coastal security.

    (B) Drug interdiction.

    (C) Migrant interdiction.

    (D) Defense readiness.

    (E) Other law enforcement.

    (b) TRANSFER.--There are transferred to the Department the authorities, functions, personnel, and assets of the Coast Guard, which shall be maintained as a distinct entity within the Department, including the authorities and functions of the Secretary of Transportation relating thereto.

    (c) MAINTENANCE OF STATUS OF FUNCTIONS AND ASSETS.--Notwithstanding any other provision of this Act, the authorities, functions, and capabilities of the Coast Guard to perform its missions shall be maintained intact and without significant reduction after the transfer of the Coast Guard to the Department, except as specified in subsequent Acts.

    (d) CERTAIN TRANSFERS PROHIBITED.--No mission, function, or asset (including for purposes of this subsection any ship, aircraft, or helicopter) of the Coast Guard may be diverted to the principal and continuing use of any other organization, unit, or entity of the Department, except for details or assignments that do not reduce the Coast Guard's capability to perform its missions.

    (e) CHANGES TO MISSIONS.--

    (1) PROHIBITION.--The Secretary may not substantially or significantly reduce the missions of the Coast Guard or the Coast Guard's capability to perform those missions, except as specified in subsequent Acts.

    (2) WAIVER.--The Secretary may waive the restrictions under paragraph (1) for a period of not to exceed 90 days upon a declaration and certification by the Secretary to Congress that a clear, compelling, and immediate need exists for such a waiver. A certification under this paragraph shall include a detailed justification for the declaration and certification, including the reasons and specific information that demonstrate that the Nation and the Coast Guard cannot respond effectively if the restrictions under paragraph (1) are not waived.

    (f) ANNUAL REVIEW.--

    (1) IN GENERAL.--The Inspector General of the Department shall conduct an annual review that shall assess thoroughly the performance by the Coast Guard of all missions of the Coast Guard (including non-homeland security missions and homeland security missions) with a particular emphasis on examining the non-homeland security missions.

    (2) REPORT.--The report under this paragraph shall be submitted to--

    (A) the Committee on Governmental Affairs of the Senate;

    (B) the Committee on Government Reform of the House of Representatives;

    (C) the Committees on Appropriations of the Senate and the House of Representatives;

    (D) the Committee on Commerce, Science, and Transportation of the Senate; and

    (E) the Committee on Transportation and Infrastructure of the House of Representatives.

    (g) DIRECT REPORTING TO SECRETARY.--Upon the transfer of the Coast Guard to the Department, the Commandant shall report directly to the Secretary without being required to report through any other official of the Department.

    (h) OPERATION AS A SERVICE IN THE NAVY.--None of the conditions and restrictions in this section shall apply when the Coast Guard operates as a service in the Navy under section 3 of title 14, United States Code.

    (i) REPORT ON ACCELERATING THE INTEGRATED DEEPWATER SYSTEM.--Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the Commandant of the Coast Guard, shall submit a report to the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committees on Appropriations of the Senate and the House of Representatives that--

    (1) analyzes the feasibility of accelerating the rate of procurement in the Coast Guard's Integrated Deepwater System from 20 years to 10 years;

    (2) includes an estimate of additional resources required;

    (3) describes the resulting increased capabilities;

    (4) outlines any increases in the Coast Guard's homeland security readiness;

    (5) describes any increases in operational efficiencies; and

    (6) provides a revised asset phase-in time line.

   SEC. 889. HOMELAND SECURITY FUNDING ANALYSIS IN PRESIDENT'S BUDGET.

    (a) IN GENERAL.--Section 1105(a) of title 31, United States Code, is amended by adding at the end the following:

    ``(33)(A)(i) a detailed, separate analysis, by budget function, by agency, and by initiative area (as determined by the administration) for the prior fiscal year, the current fiscal year, the fiscal years for which the budget is submitted, and the ensuing fiscal year identifying the amounts of gross and net appropriations or obligational authority and outlays that contribute to homeland security, with separate displays for mandatory and discretionary amounts, including--

    ``(I) summaries of the total amount of such appropriations or new obligational authority and outlays requested for homeland security;

    ``(II) an estimate of the current service levels of homeland security spending;

    ``(III) the most recent risk assessment and summary of homeland security needs in each initiative area (as determined by the administration); and

    ``(IV) an estimate of user fees collected by the Federal Government on behalf of homeland security activities;

    ``(ii) with respect to subclauses (I) through (IV) of clause (i), amounts shall be provided by account for each program, project and activity; and

    ``(iii) an estimate of expenditures for homeland security activities by State and local governments and the private sector for the prior fiscal year and the current fiscal year.

    ``(B) In this paragraph, consistent with the Office of Management and Budget's June 2002 `Annual Report to Congress on Combatting Terrorism', the term `homeland security' refers to those activities that detect, deter, protect against, and respond to terrorist attacks occurring within the United States and its territories.

    ``(C) In implementing this paragraph, including determining what Federal activities or accounts constitute homeland security for purposes of budgetary classification, the Office of Management and Budget is directed to consult periodically, but at least annually, with the House and Senate Budget Committees, the House and Senate Appropriations Committees, and the Congressional Budget Office.''.

    (b) REPEAL OF DUPLICATIVE REPORTS.--The following sections are repealed:

    (1) Section 1051 of Public Law 105-85.

    (2) Section 1403 of Public Law 105-261.

    (c) EFFECTIVE DATE.--This section and the amendment made by this section shall apply beginning with respect to the fiscal year 2005 budget submission.

   SEC. 890. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION ACT.

    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 and commenced services no later than February 17, 2002, to provide such security, and had not been or are not debarred for any period within 6 months from that date.''.

   SEC. 891. SHORT TITLE; FINDINGS; AND SENSE OF CONGRESS.

    (a) SHORT TITLE.--This subtitle may be cited as the ``Homeland Security Information Sharing Act''.

    (b) FINDINGS.--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.

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    (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.

    (c) 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. 892. 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 1 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. 893. 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 892. The report shall include any recommendations for additional measures or appropriation requests, beyond the requirements of section 892, 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.

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    (2) The Select Committee on Intelligence and the Committee on the Judiciary of the Senate.

   SEC. 894. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be necessary to carry out section 892.

   SEC. 895. 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. 896. 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 Attorney General and Director of Central Intelligence shall jointly issue.''.

   SEC. 897. FOREIGN INTELLIGENCE INFORMATION.

    (a) DISSEMINATION AUTHORIZED.--Section 203(d)(1) of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (Public Law 107-56; 50 U.S.C. 403-5d) is amended by adding at the end the following: ``Consistent with the responsibility of the Director of Central Intelligence to protect intelligence sources and methods, and the responsibility of the Attorney General to protect sensitive law enforcement information, it shall be lawful for information revealing 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, obtained as part of a criminal investigation to be disclosed to any appropriate Federal, State, local, or foreign government official 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 Attorney General and Director of Central Intelligence shall jointly issue.''.

    (b) CONFORMING AMENDMENTS.--Section 203(c) of that Act is amended--

    (1) by striking ``section 2517(6)'' and inserting ``paragraphs (6) and (8) of section 2517 of title 18, United States Code,''; and

    (2) by inserting ``and (VI)'' after ``Rule 6(e)(3)(C)(i)(V)''.

   SEC. 898. INFORMATION ACQUIRED FROM AN ELECTRONIC SURVEILLANCE.

    Section 106(k)(1) of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1806) is amended by inserting after ``law enforcement officers'' the following: ``or law enforcement personnel of a State or political subdivision of a State (including the chief executive officer of that State or political subdivision who has the authority to appoint or direct the chief law enforcement officer of that State or political subdivision)''.

   SEC. 899. INFORMATION ACQUIRED FROM A PHYSICAL SEARCH.

    Section 305(k)(1) of the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1825) is amended by inserting after ``law enforcement officers'' the following: ``or law enforcement personnel of a State or political subdivision of a State (including the chief executive officer of that State or political subdivision who has the authority to appoint or direct the chief law enforcement officer of that State or political subdivision)''.

   SEC. 901. NATIONAL HOMELAND SECURITY COUNCIL.

    There is established within the Executive Office of the President a council to be known as the ``Homeland Security Council'' (in this title referred to as the ``Council'').

   SEC. 902. FUNCTION.

    The function of the Council shall be to advise the President on homeland security matters.

   SEC. 903. MEMBERSHIP.

    The members of the Council shall be the following:

    (1) The President.

    (2) The Vice President.

    (3) The Secretary of Homeland Security.

    (4) The Attorney General.

    (5) The Secretary of Defense.

    (6) Such other individuals as may be designated by the President.

   SEC. 904. OTHER FUNCTIONS AND ACTIVITIES.

    For the purpose of more effectively coordinating the policies and functions of the United States Government relating to homeland security, the Council shall--

    (1) assess the objectives, commitments, and risks of the United States in the interest of homeland security and to make resulting recommendations to the President;

    (2) oversee and review homeland security policies of the Federal Government and to make resulting recommendations to the President; and

    (3) perform such other functions as the President may direct.

   SEC. 905. STAFF COMPOSITION.

    The Council shall have a staff, the head of which shall be a civilian Executive Secretary, who shall be appointed by the President. The President is authorized to fix the pay of the Executive Secretary at a rate not to exceed the rate of pay payable to the Executive Secretary of the National Security Council.

   SEC. 906. RELATION TO THE NATIONAL SECURITY COUNCIL.

    The President may convene joint meetings of the Homeland Security Council and the National Security Council with participation by members of either Council or as the President may otherwise direct.

   SEC. 1001. INFORMATION SECURITY.

    (a) SHORT TITLE.--This title may be cited as the ``Federal Information Security Management Act of 2002''.

    (b) INFORMATION SECURITY.--

    (1) IN GENERAL.--Subchapter II of chapter 35 of title 44, United States Code, is amended to read as follows:

    ``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

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    ``(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.''.``§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 11101 of title 40; 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.''.``§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 11331 of title 40;

    ``(2) overseeing the implementation of policies, principles, standards, and guidelines on information security;

    ``(3) requiring agencies, consistent with the standards promulgated under such section 11331 and the requirements of this subchapter, to identify and provide information security protections commensurate with the risk and magnitude of the harm resulting from the unauthorized access, use, disclosure, disruption, modification, or destruction of--

    ``(A) information collected or maintained by or on behalf of an agency; or

    ``(B) information systems used or operated by an agency or by a contractor of an agency or other organization on behalf of an agency;

    ``(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 11303(b)(5) of title 40, 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(d)(9) 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.``§3534. Federal agency responsibilities

    ``(a) The head of each agency shall--

    ``(1) be responsible for--

    ``(A) providing information security protections commensurate with the risk and magnitude of the harm resulting from unauthorized access, use, disclosure, disruption, modification, or destruction of--

    ``(i) information collected or maintained by or on behalf of the agency; and

    ``(ii) information systems used or operated by an agency or by a contractor of an agency or other organization on behalf of an agency;

    ``(B) complying with the requirements of this subchapter and related policies, procedures, standards, and guidelines, including--

    ``(i) information security standards promulgated by the Director under section 11331 of title 40; and

    ``(ii) information security standards and guidelines for national security systems issued in accordance with law and as directed by the President; and

    ``(C) ensuring that information security management processes are integrated with agency strategic and operational planning processes;

    ``(2) ensure that senior agency officials provide information security for the information and information systems that support the operations and assets under their control, including through--

    ``(A) assessing the risk and magnitude of the harm that could result from the unauthorized access, use, disclosure, disruption, modification, or destruction of such information or information systems;

    ``(B) determining the levels of information security appropriate to protect such information and information systems in accordance with standards promulgated under section 11331 of title 40 for information security classifications and related requirements;

    ``(C) implementing policies and procedures to cost-effectively reduce risks to an acceptable level; and

    ``(D) periodically testing and evaluating information security controls and techniques to ensure that they are effectively implemented;

    ``(3) delegate to the agency Chief Information Officer established under section 3506 (or comparable official in an agency not covered by such section) the authority to ensure compliance with the requirements imposed on the agency under this subchapter, including--

    ``(A) designating a senior agency information security officer who shall--

    ``(i) carry out the Chief Information Officer's responsibilities under this section;

    ``(ii) possess professional qualifications, including training and experience, required to administer the functions described under this section;

    ``(iii) have information security duties as that official's primary duty; and

    ``(iv) head an office with the mission and resources to assist in ensuring agency compliance with this section;

    ``(B) developing and maintaining an agencywide information security program as required by subsection (b);

    ``(C) developing and maintaining information security policies, procedures, and control techniques to address all applicable requirements, including those issued under section 3533 of this title, and section 11331 of title 40;

    ``(D) training and overseeing personnel with significant responsibilities for information security with respect to such responsibilities; and

    ``(E) assisting senior agency officials concerning their responsibilities under paragraph (2);

    ``(4) ensure that the agency has trained personnel sufficient to assist the agency in complying with the requirements of this subchapter and related policies, procedures, standards, and guidelines; and

    ``(5) ensure that the agency Chief Information Officer, in coordination with other senior agency officials, reports annually to the agency head on the effectiveness of the agency information security program, including progress of remedial actions.

    ``(b) Each agency shall develop, document, and implement an agencywide information security program, approved by the Director under section 3533(a)(5), to provide information security for the information and information systems that support the operations and assets of the agency, including those provided or managed by another agency, contractor, or other source, that includes--

    ``(1) periodic assessments of the risk and magnitude of the harm that could result from the unauthorized access, use, disclosure, disruption, modification, or destruction of information and information systems that support the operations and assets of the agency;

    ``(2) policies and procedures that--

    ``(A) are based on the risk assessments required by paragraph (1);

    ``(B) cost-effectively reduce information security risks to an acceptable level;

    ``(C) ensure that information security is addressed throughout the life cycle of each agency information system; and

    ``(D) ensure compliance with--

    ``(i) the requirements of this subchapter;

    ``(ii) policies and procedures as may be prescribed by the Director, and information security standards promulgated under section 11331 of title 40;

    ``(iii) minimally acceptable system configuration requirements, as determined by the agency; and

    ``(iv) any other applicable requirements, including standards and guidelines for national security systems issued in accordance with law and as directed by the President;

    ``(3) subordinate plans for providing adequate information security for networks, facilities, and

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    ``(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 subtitle III of title 40;

    ``(D) program performance under sections 1105 and 1115 through 1119 of title 31, and sections 2801 and 2805 of title 39;

    ``(E) financial management under chapter 9 of title 31, and the Chief Financial Officers Act of 1990 (31 U.S.C. 501 note; Public Law 101-576) (and the amendments made by that Act);

    ``(F) financial management systems under the Federal Financial Management Improvement Act (31 U.S.C. 3512 note); and

    ``(G) internal accounting and administrative controls under section 3512 of title 31, 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; 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.``§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.``§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.``§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. ``§3538. Effect on existing law

    ``Nothing in this subchapter, section 11331 of title 40, or section 20 of the National Standards and Technology Act (15 U.S.C. 278g-3) may be construed as affecting the authority of the President, the Office of Management and Budget or the Director thereof, the National Institute of Standards and Technology, or the head of any agency, with respect to the authorized use or disclosure of information, including with regard to the protection of personal privacy under section 552a of title 5, the disclosure of information under section 552 of title 5, the management and disposition of records under chapters 29, 31, or 33 of title 44, the management of information resources under subchapter I of chapter 35 of this title, or the disclosure of information to 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.

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    (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. 1002. MANAGEMENT OF INFORMATION TECHNOLOGY.

    (a) IN GENERAL.--Section 11331 of title 40, United States Code, is amended to read as follows:

``§11331. Responsibilities for Federal information systems standards

    ``(a) DEFINITION.--In this section, the term `information security' has the meaning given that term in section 3532(b)(1) of title 44.

    ``(b) REQUIREMENT TO PRESCRIBE STANDARDS.--

    ``(1) IN GENERAL.--

    ``(A) REQUIREMENT.--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) REQUIRED STANDARDS.--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) REQUIRED STANDARDS BINDING.--Information security standards described under subparagraph (B) shall be compulsory and binding.

    ``(2) STANDARDS AND GUIDELINES FOR NATIONAL SECURITY SYSTEMS.--Standards and guidelines for national security systems, as defined under section 3532(3) of title 44, shall be developed, promulgated, enforced, and overseen as otherwise authorized by law and as directed by the President.

    ``(c) APPLICATION OF MORE STRINGENT STANDARDS.--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.

    ``(d) REQUIREMENTS REGARDING DECISIONS BY DIRECTOR.--

    ``(1) DEADLINE.--The decision regarding the promulgation of any standard by the Director under subsection (b) 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) NOTICE AND COMMENT.--A decision by the Director to significantly modify, or not promulgate, a proposed standard submitted to the Director by the National Institute of Standards and Technology, as provided under section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3), shall be made after the public is given an opportunity to comment on the Director's proposed decision.''.

    (b) CLERICAL AMENDMENT.--The table of sections at the beginning of chapter 113 of title 40, United States Code, is amended by striking the item relating to section 11331 and inserting the following:

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

   SEC. 1003. 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 11331 of title 40, United States Code--

    ``(A) standards, as required under subsection (b)(1)(A), no later than 12 months after the date of the enactment of this section; and

    ``(B) minimum information security requirements for each category, as required under subsection (b)(1)(C), no later than 36 months after the date of the enactment of this section;

    ``(4) issue guidelines as required under subsection (b)(1)(B), no later than 18 months after the date of the enactment of this 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 11331 of title 40, United States Code;

    ``(2) provide assistance to agencies regarding--

    ``(A) compliance with the standards and guidelines developed under subsection (a);

    ``(B) detecting and handling information security incidents; and

    ``(C) information security policies, procedures, and practices;

    ``(3) conduct research, as needed, to determine the nature and extent of information security vulnerabilities and techniques for providing cost-effective information security;

    ``(4) develop and periodically revise performance indicators and measures for agency information security policies and practices;

    ``(5) evaluate private sector information security policies and practices and commercially available information technologies to assess potential application by agencies to strengthen information security;

    ``(6) evaluate security policies and practices developed for national security systems to assess potential application by agencies to strengthen information security;

    ``(7) periodically assess the effectiveness of standards and guidelines developed under this section and undertake revisions as appropriate;

    ``(8) solicit and consider the recommendations of the Information Security and Privacy Advisory Board, established by section 21, regarding standards and guidelines developed under subsection (a) and submit such recommendations to the Director of the Office of Management and Budget with such standards submitted to the Director; and

    ``(9) prepare an annual public report on activities undertaken in the previous year, and planned for the coming year, to carry out responsibilities under this section.

    ``(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 11101 of title 40, United States Code; and

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    ``(5) the term `national security system' has the same meaning as provided in section 3532(b)(2) of such title.''.

   SEC. 1004. 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. 1005. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) FEDERAL COMPUTER SYSTEM SECURITY TRAINING AND PLAN.--

    (1) REPEAL.--Section 11332 of title 40, United States Code, is repealed.

    (2) CLERICAL AMENDMENT.--The table of sections at the beginning of chapter 113 of title 40, United States Code, as amended by striking the item relating to section 11332.

    (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 (44 U.S.C. 3531 note).

    (c) PAPERWORK REDUCTION ACT.--(1) Section 3504(g) of title 44, United States Code, is amended--

    (A) by adding ``and'' at the end of paragraph (1);

    (B) in paragraph (2)--

    (i) by striking ``sections 11331 and 11332(b) and (c) of title 40'' and inserting ``section 11331 of title 40 and subchapter II of this 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 the following:

    ``(c) INVENTORY OF INFORMATION SYSTEMS.--(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), subtitle III of title 40, and related laws and guidance;

    ``(iii) monitoring, testing, and evaluation of information security controls under subchapter II;

    ``(iv) preparation of the index of major information systems required under section 552(g) of title 5, United States Code; and

    ``(v) preparation of information system inventories required for records management under chapters 21, 29, 31, and 33.

    ``(4) The Director shall issue guidance for and oversee the implementation of the requirements of this subsection.''.

    (3) Section 3506(g) of such title is amended--

    (A) by adding ``and'' at the end of paragraph (1);

    (B) in paragraph (2)--

    (i) by striking ``section 11332 of title 40'' and inserting ``subchapter II of this chapter''; and

    (ii) by striking ``; and'' and inserting a period; and

    (C) by striking paragraph (3).

   SEC. 1006. 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)).

   SEC. 1101. LEGAL STATUS OF EOIR.

    (a) EXISTENCE OF EOIR.--There is in the Department of Justice the Executive Office for Immigration Review, which shall be subject to the direction and regulation of the Attorney General under section 103(g) of the Immigration and Nationality Act, as added by section 1102.

   SEC. 1102. AUTHORITIES OF THE ATTORNEY GENERAL.

    Section 103 of the Immigration and Nationality Act (8 U.S.C. 1103) as amended by this Act, is further amended by--

    (1) amending the heading to read as follows:

   ``POWERS AND DUTIES OF THE SECRETARY, THE UNDER SECRETARY, AND THE ATTORNEY GENERAL'';

    (2) in subsection (a)--

    (A) by inserting ``Attorney General,'' after ``President,''; and

    (B) by redesignating paragraphs (8), (9), (8) (as added by section 372 of Public Law 104-208), and (9) (as added by section 372 of Public Law 104-208) as paragraphs (8), (9), (10), and (11), respectively; and

    (3) by adding at the end the following new subsection:

    ``(g) ATTORNEY GENERAL.--

    ``(1) IN GENERAL.--The Attorney General shall have such authorities and functions under this Act and all other laws relating to the immigration and naturalization of aliens as were exercised by the Executive Office for Immigration Review, or by the Attorney General with respect to the Executive Office for Immigration Review, on the day before the effective date of the Immigration Reform, Accountability and Security Enhancement Act of 2002.

    ``(2) POWERS.--The Attorney General shall establish such regulations, prescribe such forms of bond, reports, entries, and other papers, issue such instructions, review such administrative determinations in immigration proceedings, delegate such authority, and perform such other acts as the Attorney General determines to be necessary for carrying out this section.''.

   SEC. 1103. STATUTORY CONSTRUCTION.

    Nothing in this Act, any amendment made by this Act, or in section 103 of the Immigration and Nationality Act, as amended by section 1102, shall be construed to limit judicial deference to regulations, adjudications, interpretations, orders, decisions, judgments, or any other actions of the Secretary of Homeland Security or the Attorney General.

   SEC. 1111. BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES.

    (a) ESTABLISHMENT.--

    (1) IN GENERAL.--There is established within the Department of Justice under the general authority of the Attorney General the Bureau of Alcohol, Tobacco, Firearms, and Explosives (in this section referred to as the ``Bureau'').

    (2) DIRECTOR.--There shall be at the head of the Bureau a Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives (in this subtitle referred to as the ``Director''). The Director shall be appointed by the Attorney General and shall perform such functions as the Attorney General shall direct. The Director shall receive compensation at the rate prescribed by law under section 5314 of title V, United States Code, for positions at level III of the Executive Schedule.

    (3) COORDINATION.--The Attorney General, acting through the Director and such other officials of the Department of Justice as the Attorney General may designate, shall provide for the coordination of all firearms, explosives, tobacco enforcement, and arson enforcement functions vested in the Attorney General so as to assure maximum cooperation between and among any officer, employee, or agency of the Department of Justice involved in the performance of these and related functions.

    (4) PERFORMANCE OF TRANSFERRED FUNCTIONS.--The Attorney General may make such provisions as the Attorney General determines appropriate to authorize the performance by any officer, employee, or agency of the Department of Justice of any function transferred to the Attorney General under this section.

    (b) RESPONSIBILITIES.--Subject to the direction of the Attorney General, the Bureau shall be responsible for investigating--

    (1) criminal and regulatory violations of the Federal firearms, explosives, arson, alcohol, and tobacco smuggling laws;

    (2) the functions transferred by subsection (c); and

    (3) any other function related to the investigation of violent crime or domestic terrorism that is delegated to the Bureau by the Attorney General.

    (c) TRANSFER OF AUTHORITIES, FUNCTIONS, PERSONNEL, AND ASSETS TO THE DEPARTMENT OF JUSTICE.--

    (1) IN GENERAL.--Subject to paragraph (2), but notwithstanding any other provision of law, there are transferred to the Department of Justice the authorities, functions, personnel, and assets of the Bureau of Alcohol, Tobacco and Firearms, which shall be maintained as a distinct entity within the Department of Justice, including the related functions of the Secretary of the Treasury.

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    (2) ADMINISTRATION AND REVENUE COLLECTION FUNCTIONS.--There shall be retained within the Department of the Treasury the authorities, functions, personnel, and assets of the Bureau of Alcohol, Tobacco and Firearms relating to the administration and enforcement of chapters 51 and 52 of the Internal Revenue Code of 1986, sections 4181 and 4182 of the Internal Revenue Code of 1986, and title 27, United States Code.

    (3) BUILDING PROSPECTUS.--Prospectus PDC-98W10, giving the General Services Administration the authority for site acquisition, design, and construction of a new headquarters building for the Bureau of Alcohol, Tobacco and Firearms, is transferred, and deemed to apply, to the Bureau of Alcohol, Tobacco, Firearms, and Explosives established in the Department of Justice under subsection (a).

    (d) TAX AND TRADE BUREAU.--

    (1) ESTABLISHMENT.--There is established within the Department of the Treasury the Tax and Trade Bureau.

    (2) ADMINISTRATOR.--The Tax and Trade Bureau shall be headed by an Administrator, who shall perform such duties as assigned by the Under Secretary for Enforcement of the Department of the Treasury. The Administrator shall occupy a career-reserved position within the Senior Executive Service.

    (3) RESPONSIBILITIES.--The authorities, functions, personnel, and assets of the Bureau of Alcohol, Tobacco and Firearms that are not transferred to the Department of Justice under this section shall be retained and administered by the Tax and Trade Bureau.

   SEC. 1112. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) The Inspector General Act of 1978 (5 U.S.C. App.) is amended--

    (1) in section 8D(b)(1) by striking ``Bureau of Alcohol, Tobacco and Firearms'' and inserting ``Tax and Trade Bureau''; and

    (2) in section 9(a)(1)(L)(i), by striking ``Bureau of Alcohol, Tobacco, and Firearms'' and inserting ``Tax and Trade Bureau''.

    (b) Section 1109(c)(2)(A)(i) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (7 U.S.C. 1445-3(c)(2)(A)(i)) is amended by striking ``(on ATF Form 3068) by manufacturers of tobacco products to the Bureau of Alcohol, Tobacco and Firearms'' and inserting ``by manufacturers of tobacco products to the Tax and Trade Bureau''.

    (c) Section 2(4)(J) of the Enhanced Border Security and Visa Entry Reform Act of 2002 (Public Law 107-173; 8 U.S.C.A. 1701(4)(J)) is amended by striking ``Bureau of Alcohol, Tobacco, and Firearms'' and inserting ``Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice''.

    (d) Section 3(1)(E) of the Firefighters' Safety Study Act (15 U.S.C. 2223b(1)(E)) is amended by striking ``the Bureau of Alcohol, Tobacco, and Firearms,'' and inserting ``the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice,''.

    (e) Chapter 40 of title 18, United States Code, is amended--

    (1) by striking section 841(k) and inserting the following:

    ``(k) `Attorney General' means the Attorney General of the United States.'';

    (2) in section 846(a), by striking ``the Attorney General and the Federal Bureau of Investigation, together with the Secretary'' and inserting ``the Federal Bureau of Investigation, together with the Bureau of Alcohol, Tobacco, Firearms, and Explosives''; and

    (3) by striking ``Secretary'' each place it appears and inserting ``Attorney General''.

    (f) Chapter 44 of title 18, United States Code, is amended--

    (1) in section 921(a)(4)(B), by striking ``Secretary'' and inserting ``Attorney General'';

    (2) in section 921(a)(4), by striking ``Secretary of the Treasury'' and inserting ``Attorney General'';

    (3) in section 921(a), by striking paragraph (18) and inserting the following:

    ``(18) The term `Attorney General' means the Attorney General of the United States'';

    (4) in section 922(p)(5)(A), by striking ``after consultation with the Secretary'' and inserting ``after consultation with the Attorney General'';

    (5) in section 923(l), by striking ``Secretary of the Treasury'' and inserting ``Attorney General''; and

    (6) by striking ``Secretary'' each place it appears, except before ``of the Army'' in section 921(a)(4) and before ``of Defense'' in section 922(p)(5)(A), and inserting the term ``Attorney General''.

    (g) Section 1261(a) of title 18, United States Code, is amended to read as follows:

    ``(a) The Attorney General--

    ``(1) shall enforce the provisions of this chapter; and

    ``(2) has the authority to issue regulations to carry out the provisions of this chapter.''.

    (h) Section 1952(c) of title 18, United States Code, is amended by striking ``Secretary of the Treasury'' and inserting ``Attorney General''.

    (i) Chapter 114 of title 18, United States Code, is amended--

    (1) by striking section 2341(5), and inserting the following:

    ``(5) the term `Attorney General' means the Attorney General of the United States''; and

    (2) by striking ``Secretary'' each place it appears and inserting ``Attorney General''.

    (j) Section 6103(i)(8)(A)(i) of the Internal Revenue Code of 1986 (relating to confidentiality and disclosure of returns and return information) is amended by striking ``or the Bureau of Alcohol, Tobacco and Firearms'' and inserting ``, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice, or the Tax and Trade Bureau, Department of the Treasury,''.

    (k) Section 7801(a) of the Internal Revenue Code of 1986 (relating to the authority of the Department of the Treasury) is amended--

    (1) by striking ``SECRETARY.--Except'' and inserting ``SECRETARY.--

    ``(1) IN GENERAL.--Except''; and

    (2) by adding at the end the following:

    ``(2) ADMINISTRATION AND ENFORCEMENT OF CERTAIN PROVISIONS BY ATTORNEY GENERAL.--

    ``(A) IN GENERAL.--The administration and enforcement of the following provisions of this title shall be performed by or under the supervision of the Attorney General; and the term `Secretary' or `Secretary of the Treasury' shall, when applied to those provisions, mean the Attorney General; and the term `internal revenue officer' shall, when applied to those provisions, mean any officer of the Bureau of Alcohol, Tobacco, Firearms, and Explosives so designated by the Attorney General:

    ``(i) Chapter 53.

    ``(ii) Chapters 61 through 80, to the extent such chapters relate to the enforcement and administration of the provisions referred to in clause (i).

    ``(B) USE OF EXISTING RULINGS AND INTERPRETATIONS.--Nothing in this Act alters or repeals the rulings and interpretations of the Bureau of Alcohol, Tobacco, and Firearms in effect on the effective date of the Homeland Security Act of 2002, which concern the provisions of this title referred to in subparagraph (A). The Attorney General shall consult with the Secretary to achieve uniformity and consistency in administering provisions under chapter 53 of title 26, United States Code.''.

    (l) Section 2006(2) of title 28, United States Code, is amended by inserting ``, the Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice,'' after ``the Secretary of the Treasury''.

    (m) Section 713 of title 31, United States Code, is amended--

    (1) by striking the section heading and inserting the following:``§713. Audit of Internal Revenue Service, Tax and Trade Bureau, and Bureau of Alcohol, Tobacco, Firearms, and Explosives'';

    (2) in subsection (a), by striking ``Bureau of Alcohol, Tobacco, and Firearms,'' and inserting ``Tax and Trade Bureau, Department of the Treasury, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice''; and

    (3) in subsection (b)

    (A) in paragraph (1)(B), by striking ``or the Bureau'' and inserting ``or either Bureau'';

    (B) in paragraph (2)--

    (i) by striking ``or the Bureau'' and inserting ``or either Bureau''; and

    (ii) by striking ``and the Director of the Bureau'' and inserting ``the Tax and Trade Bureau, Department of the Treasury, and the Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice''; and

    (C) in paragraph (3), by striking ``or the Bureau'' and inserting ``or either Bureau''.

    (n) Section 9703 of title 31, United States Code, is amended--

    (1) in subsection (a)(2)(B)--

    (A) in clause (iii)(III), by inserting ``and'' after the semicolon;

    (B) in clause (iv), by striking ``; and'' and inserting a period; and

    (C) by striking clause (v);

    (2) by striking subsection (o);

    (3) by redesignating existing subsection (p) as subsection (o); and

    (4) in subsection (o)(1), as redesignated by paragraph (3), by striking ``Bureau of Alcohol, Tobacco and Firearms'' and inserting ``Tax and Trade Bureau''.

    (o) Section 609N(2)(L) of the Justice Assistance Act of 1984 (42 U.S.C. 10502(2)(L)) is amended by striking ``Bureau of Alcohol, Tobacco, and Firearms'' and inserting ``Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice''.

    (p) Section 32401(a) of the Violent Crime Control and Law Enforcement Act of 1994 (42 U.S.C. 13921(a)) is amended--

    (1) by striking ``Secretary of the Treasury'' each place it appears and inserting ``Attorney General''; and

    (2) in subparagraph (3)(B), by striking ``Bureau of Alcohol, Tobacco and Firearms'' and inserting ``Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice''.

    (q) Section 80303 of title 49, United States Code, is amended--

    (1) by inserting ``or, when the violation of this chapter involves contraband described in paragraph (2) or (5) of section 80302(a), the Attorney General'' after ``section 80304 of this title.''; and

    (2) by inserting ``, the Attorney General,'' after ``by the Secretary''.

    (r) Section 80304 of title 49, United States Code, is amended--

    (1) in subsection (a), by striking ``(b) and (c)'' and inserting ``(b), (c), and (d)'';

    (2) by redesignating subsection (d) as subsection (e); and

    (3) by inserting after subsection (c), the following:

    ``(d) ATTORNEY GENERAL.--The Attorney General, or officers, employees, or agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice designated by the Attorney General, shall carry out the laws referred to in section 80306(b) of this title to the extent that the violation of this chapter involves contraband described in section 80302 (a)(2) or (a)(5).''.

    (s) Section 103 of the Gun Control Act of 1968 (Public Law 90-618; 82 Stat. 1226) is amended by striking ``Secretary of the Treasury'' and inserting ``Attorney General''.

   SEC. 1113. POWERS OF AGENTS OF THE BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES.

    Chapter 203 of title 18, United States Code, is amended by adding the following:``§3051. Powers of Special Agents of Bureau of Alcohol, Tobacco, Firearms, and Explosives.

    ``(a) Special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as

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    ``(b) Any special agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives may, in respect to the performance of his or her duties, make seizures of property subject to forfeiture to the United States.

    ``(c)(1) Except as provided in paragraphs (2) and (3), and except to the extent that such provisions conflict with the provisions of section 983 of title 18, United States Code, insofar as section 983 applies, the provisions of the Customs laws relating to--

    ``(A) the seizure, summary and judicial forfeiture, and condemnation of property;

    ``(B) the disposition of such property;

    ``(C) the remission or mitigation of such forfeiture; and

    ``(D) the compromise of claims,

   shall apply to seizures and forfeitures incurred, or alleged to have been incurred, under any applicable provision of law enforced or administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

    ``(2) For purposes of paragraph (1), duties that are imposed upon a customs officer or any other person with respect to the seizure and forfeiture of property under the customs laws of the United States shall be performed with respect to seizures and forfeitures of property under this section by such officers, agents, or any other person as may be authorized or designated for that purpose by the Attorney General.

    ``(3) Notwithstanding any other provision of law, the disposition of firearms forfeited by reason of a violation of any law of the United States shall be governed by the provisions of section 5872(b) of the Internal Revenue Code of 1986.''.

   SEC. 1114. EXPLOSIVES TRAINING AND RESEARCH FACILITY.

    (a) ESTABLISHMENT.--There is established within the Bureau an Explosives Training and Research Facility at Fort AP Hill, Fredericksburg, Virginia.

    (b) PURPOSE.--The facility established under subsection (a) shall be utilized to train Federal, State, and local law enforcement officers to--

    (1) investigate bombings and explosions;

    (2) properly handle, utilize, and dispose of explosive materials and devices;

    (3) train canines on explosive detection; and

    (4) conduct research on explosives.

    (c) AUTHORIZATION OF APPROPRIATIONS.--

    (1) IN GENERAL.--There are authorized to be appropriated such sums as may be necessary to establish and maintain the facility established under subsection (a).

    (2) AVAILABILITY OF FUNDS.--Any amounts appropriated pursuant to paragraph (1) shall remain available until expended.

   SEC. 1115. PERSONNEL MANAGEMENT DEMONSTRATION PROJECT.

    Notwithstanding any other provision of law, the Personnel Management Demonstration Project established under section 102 of title I of Division C of the Omnibus Consolidated and Emergency Supplemental Appropriations Act for Fiscal Year 1999 (Pub. L. 105-277; 122 Stat. 2681-585) shall be transferred to the Attorney General of the United States for continued use by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice, and the Secretary of the Treasury for continued use by the Tax and Trade Bureau.

   SEC. 1121. SHORT TITLE.

    This subtitle may be referred to as the ``Safe Explosives Act''.

   SEC. 1122. PERMITS FOR PURCHASERS OF EXPLOSIVES.

    (a) DEFINITIONS.--Section 841 of title 18, United States Code, is amended--

    (1) by striking subsection (j) and inserting the following:

    ``(j) `Permittee' means any user of explosives for a lawful purpose, who has obtained either a user permit or a limited permit under the provisions of this chapter.''; and

    (2) by adding at the end the following:

    ``(r) `Alien' means any person who is not a citizen or national of the United States.

    ``(s) `Responsible person' means an individual who has the power to direct the management and policies of the applicant pertaining to explosive materials.''.

    (b) PERMITS FOR PURCHASE OF EXPLOSIVES.--Section 842 of title 18, United States Code, is amended--

    (1) in subsection (a)(2), by striking ``and'' at the end;

    (2) by striking subsection (a)(3) and inserting the following:

    ``(3) other than a licensee or permittee knowingly--

    ``(A) to transport, ship, cause to be transported, or receive any explosive materials; or

    ``(B) to distribute explosive materials to any person other than a licensee or permittee; or

    ``(4) who is a holder of a limited permit--

    ``(A) to transport, ship, cause to be transported, or receive in interstate or foreign commerce any explosive materials; or

    ``(B) to receive explosive materials from a licensee or permittee, whose premises are located outside the State of residence of the limited permit holder, or on more than 6 separate occasions, during the period of the permit, to receive explosive materials from 1 or more licensees or permittees whose premises are located within the State of residence of the limited permit holder.''; and

    (3) by striking subsection (b) and inserting the following:

    ``(b) It shall be unlawful for any licensee or permittee to knowingly distribute any explosive materials to any person other than--

    ``(1) a licensee;

    ``(2) a holder of a user permit; or

    ``(3) a holder of a limited permit who is a resident of the State where distribution is made and in which the premises of the transferor are located.''.

    (c) LICENSES AND USER PERMITS.--Section 843(a) of title 18, United States Code, is amended--

    (1) in the first sentence--

    (A) by inserting ``or limited permit'' after ``user permit''; and

    (B) by inserting before the period at the end the following: ``, including the names of and appropriate identifying information regarding all employees who will be authorized by the applicant to possess explosive materials, as well as fingerprints and a photograph of each responsible person'';

    (2) in the second sentence, by striking ``$200 for each'' and inserting ``$50 for a limited permit and $200 for any other''; and

    (3) by striking the third sentence and inserting ``Each license or user permit shall be valid for not longer than 3 years from the date of issuance and each limited permit shall be valid for not longer than 1 year from the date of issuance. Each license or permit shall be renewable upon the same conditions and subject to the same restrictions as the original license or permit, and upon payment of a renewal fee not to exceed one-half of the original fee.''.

    (d) CRITERIA FOR APPROVING LICENSES AND PERMITS.--Section 843(b) of title 18, United States Code, is amended--

    (1) by striking paragraph (1) and inserting the following:

    ``(1) the applicant (or, if the applicant is a corporation, partnership, or association, each responsible person with respect to the applicant) is not a person described in section 842(i);'';

    (2) in paragraph (4)--

    (A) by inserting ``(A) the Secretary verifies by inspection or, if the application is for an original limited permit or the first or second renewal of such a permit, by such other means as the Secretary determines appropriate, that'' before ``the applicant''; and

    (B) by adding at the end the following:

    ``(B) subparagraph (A) shall not apply to an applicant for the renewal of a limited permit if the Secretary has verified, by inspection within the preceding 3 years, the matters described in subparagraph (A) with respect to the applicant; and'';

    (3) in paragraph (5), by striking the period at the end and inserting a semicolon; and

    (4) by adding at the end the following:

    ``(6) none of the employees of the applicant who will be authorized by the applicant to possess explosive materials is any person described in section 842(i); and

    ``(7) in the case of a limited permit, the applicant has certified in writing that the applicant will not receive explosive materials on more than 6 separate occasions during the 12-month period for which the limited permit is valid.''.

    (e) APPLICATION APPROVAL.--Section 843(c) of title 18, United States Code, is amended by striking ``forty-five days'' and inserting ``90 days for licenses and permits,''.

    (f) INSPECTION AUTHORITY.--Section 843(f) of title 18, United States Code, is amended--

    (1) in the first sentence--

    (A) by striking ``permittees'' and inserting ``holders of user permits''; and

    (B) by inserting ``licensees and permittees'' before ``shall submit'';

    (2) in the second sentence, by striking ``permittee'' the first time it appears and inserting ``holder of a user permit''; and

    (3) by adding at the end the following: ``The Secretary may inspect the places of storage for explosive materials of an applicant for a limited permit or, at the time of renewal of such permit, a holder of a limited permit, only as provided in subsection (b)(4).

    (g) POSTING OF PERMITS.--Section 843(g) of title 18, United States Code, is amended by inserting ``user'' before ``permits''.

    (h) BACKGROUND CHECKS; CLEARANCES.--Section 843 of title 18, United States Code, is amended by adding at the end the following:

    ``(h)(1) If the Secretary receives, from an employer, the name and other identifying information of a responsible person or an employee who will be authorized by the employer to possess explosive materials in the course of employment with the employer, the Secretary shall determine whether the responsible person or employee is one of the persons described in any paragraph of section 842(i). In making the determination, the Secretary may take into account a letter or document issued under paragraph (2).

    ``(2)(A) If the Secretary determines that the responsible person or the employee is not one of the persons described in any paragraph of section 842(i), the Secretary shall notify the employer in writing or electronically of the determination and issue, to the responsible person or employee, a letter of clearance, which confirms the determination.

    ``(B) If the Secretary determines that the responsible person or employee is one of the persons described in any paragraph of section 842(i), the Secretary shall notify the employer in writing or electronically of the determination and issue to the responsible person or the employee, as the case may be, a document that--

    ``(i) confirms the determination;

    ``(ii) explains the grounds for the determination;

    ``(iii) provides information on how the disability may be relieved; and

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    ``(iv) explains how the determination may be appealed.''.

    (i) EFFECTIVE DATE.--

    (1) IN GENERAL.--The amendments made by this section shall take effect 180 days after the date of enactment of this Act.

    (2) EXCEPTION.--Notwithstanding any provision of this Act, a license or permit issued under section 843 of title 18, United States Code, before the date of enactment of this Act, shall remain valid until that license or permit is revoked under section 843(d) or expires, or until a timely application for renewal is acted upon.

   SEC. 1123. PERSONS PROHIBITED FROM RECEIVING OR POSSESSING EXPLOSIVE MATERIALS.

    (a) DISTRIBUTION OF EXPLOSIVES.--Section 842(d) of title 18, United States Code, is amended--

    (1) in paragraph (5), by striking ``or'' at the end;

    (2) in paragraph (6), by striking the period at the end and inserting ``or who has been committed to a mental institution;''; and

    (3) by adding at the end the following:

    ``(7) is an alien, other than an alien who--

    ``(A) is lawfully admitted for permanent residence (as defined in section 101 (a)(20) of the Immigration and Nationality Act); or

    ``(B) is in lawful nonimmigrant status, is a refugee admitted under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or is in asylum status under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158), and--

    ``(i) is a foreign law enforcement officer of a friendly foreign government, as determined by the Secretary in consultation with the Secretary of State, entering the United States on official law enforcement business, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of this official law enforcement business;

    ``(ii) is a person having the power to direct or cause the direction of the management and policies of a corporation, partnership, or association licensed pursuant to section 843(a), and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of such power;

    ``(iii) is a member of a North Atlantic Treaty Organization (NATO) or other friendly foreign military force, as determined by the Secretary in consultation with the Secretary of Defense, (whether or not admitted in a nonimmigrant status) who is present in the United States under military orders for training or other military purpose authorized by the United States, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of the military purpose; or

    ``(iv) is lawfully present in the United States in cooperation with the Director of Central Intelligence, and the shipment, transportation, receipt, or possession of the explosive materials is in furtherance of such cooperation;

    ``(8) has been discharged from the armed forces under dishonorable conditions;

    ``(9) having been a citizen of the United States, has renounced the citizenship of that person.''.

    (b) POSSESSION OF EXPLOSIVE MATERIALS.--Section 842(i) of title 18, United States Code, is amended--

    (1) in paragraph (3), by striking ``or'' at the end; and

    (2) by inserting after paragraph (4) the following:

    ``(5) who is an alien, other than an alien who--

    ``(A) is lawfully admitted for permanent residence (as that term is defined in section 101(a)(20) of the Immigration and Nationality Act); or

    ``(B) is in lawful nonimmigrant status, is a refugee admitted under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157), or is in asylum status under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158), and--

    ``(i) is a foreign law enforcement officer of a friendly foreign government, as determined by the Secretary in consultation with the Secretary of State, entering the United States on official law enforcement business, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of this official law enforcement business;

    ``(ii) is a person having the power to direct or cause the direction of the management and policies of a corporation, partnership, or association licensed pursuant to section 843(a), and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of such power;

    ``(iii) is a member of a North Atlantic Treaty Organization (NATO) or other friendly foreign military force, as determined by the Secretary in consultation with the Secretary of Defense, (whether or not admitted in a nonimmigrant status) who is present in the United States under military orders for training or other military purpose authorized by the United States, and the shipping, transporting, possession, or receipt of explosive materials is in furtherance of the military purpose; or

    ``(iv) is lawfully present in the United States in cooperation with the Director of Central Intelligence, and the shipment, transportation, receipt, or possession of the explosive materials is in furtherance of such cooperation;

    ``(6) who has been discharged from the armed forces under dishonorable conditions;

    ``(7) who, having been a citizen of the United States, has renounced the citizenship of that person''; and

    (3) by inserting ``or affecting'' before ``interstate'' each place that term appears.

   SEC. 1124. REQUIREMENT TO PROVIDE SAMPLES OF EXPLOSIVE MATERIALS AND AMMONIUM NITRATE.

    Section 843 of title 18, United States Code, as amended by this Act, is amended by adding at the end the following:

    ``(i) FURNISHING OF SAMPLES.--

    ``(1) IN GENERAL.--Licensed manufacturers and licensed importers and persons who manufacture or import explosive materials or ammonium nitrate shall, when required by letter issued by the Secretary, furnish--

    ``(A) samples of such explosive materials or ammonium nitrate;

    ``(B) information on chemical composition of those products; and

    ``(C) any other information that the Secretary determines is relevant to the identification of the explosive materials or to identification of the ammonium nitrate.

    ``(2) REIMBURSEMENT.--The Secretary shall, by regulation, authorize reimbursement of the fair market value of samples furnished pursuant to this subsection, as well as the reasonable costs of shipment.''.

   SEC. 1125. DESTRUCTION OF PROPERTY OF INSTITUTIONS RECEIVING FEDERAL FINANCIAL ASSISTANCE.

    Section 844(f)(1) of title 18, United States Code, is amended by inserting before the word ``shall'' the following: ``or any institution or organization receiving Federal financial assistance,''.

   SEC. 1126. RELIEF FROM DISABILITIES.

    Section 845(b) of title 18, United States Code, is amended to read as follows:

    ``(b)(1) A person who is prohibited from shipping, transporting, receiving, or possessing any explosive under section 842(i) may apply to the Secretary for relief from such prohibition.

    ``(2) The Secretary may grant the relief requested under paragraph (1) if the Secretary determines that the circumstances regarding the applicability of section 842(i), and the applicant's record and reputation, are such that the applicant will not be likely to act in a manner dangerous to public safety and that the granting of such relief is not contrary to the public interest.

    ``(3) A licensee or permittee who applies for relief, under this subsection, from the disabilities incurred under this chapter as a result of an indictment for or conviction of a crime punishable by imprisonment for a term exceeding 1 year shall not be barred by such disability from further operations under the license or permit pending final action on an application for relief filed pursuant to this section.''.

   SEC. 1127. THEFT REPORTING REQUIREMENT.

    Section 844 of title 18, United States Code, is amended by adding at the end the following:

    ``(p) THEFT REPORTING REQUIREMENT.--

    ``(1) IN GENERAL.--A holder of a license or permit who knows that explosive materials have been stolen from that licensee or permittee, shall report the theft to the Secretary not later than 24 hours after the discovery of the theft.

    ``(2) PENALTY.--A holder of a license or permit who does not report a theft in accordance with paragraph (1), shall be fined not more than $10,000, imprisoned not more than 5 years, or both.''.

   SEC. 1128. AUTHORIZATION OF APPROPRIATIONS.

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

   SEC. 1201. AIR CARRIER LIABILITY FOR THIRD PARTY CLAIMS ARISING OUT OF ACTS OF TERRORISM.

    Section 44303 of title 49, United States Code, is amended--

    (1) by inserting ``(a) IN GENERAL.--'' before ``The Secretary of Transportation'';

    (2) by moving the text of paragraph (2) of section 201(b) of the Air Transportation Safety and System Stabilization Act (115 Stat. 235) to the end and redesignating such paragraph as subsection (b);

    (3) in subsection (b) (as so redesignated)--

    (A) by striking the subsection heading and inserting ``AIR CARRIER LIABILITY FOR THIRD PARTY CLAIMS ARISING OUT OF ACTS OF TERRORISM.--'';

    (B) in the first sentence by striking ``the 180-day period following the date of enactment of this Act, the Secretary of Transportation'' and inserting ``the period beginning on September 22, 2001, and ending on December 31, 2003, the Secretary''; and

    (C) in the last sentence by striking ``this paragraph'' and inserting ``this subsection''.

   SEC. 1202. EXTENSION OF INSURANCE POLICIES.

    Section 44302 of title 49, United States Code, is amended by adding at the end the following:

    ``(f) EXTENSION OF POLICIES.--

    ``(1) IN GENERAL.--The Secretary shall extend through August 31, 2003, and may extend through December 31, 2003, the termination date of any insurance policy that the Department of Transportation issued to an air carrier under subsection (a) and that is in effect on the date of enactment of this subsection on no less favorable terms to the air carrier than existed on June 19, 2002; except that the Secretary shall amend the insurance policy, subject to such terms and conditions as the Secretary may prescribe, to add coverage for losses or injuries to aircraft hulls, passengers, and crew at the limits carried by air carriers for such losses and injuries as of such date of enactment and at an additional premium comparable to the premium charged for third-party casualty coverage under such policy.

    ``(2) SPECIAL RULES.--Notwithstanding paragraph (1)--

    ``(A) in no event shall the total premium paid by the air carrier for the policy, as amended, be more than twice the premium that the air carrier was paying to the Department of Transportation for its third party policy as of June 19, 2002; and

    ``(B) the coverage in such policy shall begin with the first dollar of any covered loss that is incurred.''.

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   SEC. 1203. CORRECTION OF REFERENCE.

    Effective November 19, 2001, section 147 of the Aviation and Transportation Security Act (Public Law 107-71) is amended by striking ``(b)'' and inserting ``(c)''.

   SEC. 1204. REPORT.

    Not later than 90 days after the date of enactment of this Act, the Secretary shall transmit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that--

    (A) evaluates the availability and cost of commercial war risk insurance for air carriers and other aviation entities for passengers and third parties;

    (B) analyzes the economic effect upon air carriers and other aviation entities of available commercial war risk insurance; and

    (C) describes the manner in which the Department could provide an alternative means of providing aviation war risk reinsurance covering passengers, crew, and third parties through use of a risk-retention group or by other means.

   SEC. 1301. SHORT TITLE.

    This title may be cited as the ``Chief Human Capital Officers Act of 2002''.

   SEC. 1302. AGENCY CHIEF HUMAN CAPITAL OFFICERS.

    (a) IN GENERAL.--Part II of title 5, United States Code, is amended by inserting after chapter 13 the following:

   ``Sec.

   ``1401. Establishment of agency Chief Human Capital Officers.

   ``1402. Authority and functions of agency Chief Human Capital Officers.``§1401. Establishment of agency Chief Human Capital Officers

    ``The head of each agency referred to under paragraphs (1) and (2) of section 901(b) of title 31 shall appoint or designate a Chief Human Capital Officer, who shall--

    ``(1) advise and assist the head of the agency and other agency officials in carrying out the agency's responsibilities for selecting, developing, training, and managing a high-quality, productive workforce in accordance with merit system principles;

    ``(2) implement the rules and regulations of the President and the Office of Personnel Management and the laws governing the civil service within the agency; and

    ``(3) carry out such functions as the primary duty of the Chief Human Capital Officer.``§1402. Authority and functions of agency Chief Human Capital Officers

    ``(a) The functions of each Chief Human Capital Officer shall include--

    ``(1) setting the workforce development strategy of the agency;

    ``(2) assessing workforce characteristics and future needs based on the agency's mission and strategic plan;

    ``(3) aligning the agency's human resources policies and programs with organization mission, strategic goals, and performance outcomes;

    ``(4) developing and advocating a culture of continuous learning to attract and retain employees with superior abilities;

    ``(5) identifying best practices and benchmarking studies, and

    ``(6) applying methods for measuring intellectual capital and identifying links of that capital to organizational performance and growth.

    ``(b) In addition to the authority otherwise provided by this section, each agency Chief Human Capital Officer--

    ``(1) shall have access to all records, reports, audits, reviews, documents, papers, recommendations, or other material that--

    ``(A) are the property of the agency or are available to the agency; and

    ``(B) relate to programs and operations with respect to which that agency Chief Human Capital Officer has responsibilities under this chapter; and

    ``(2) may request such information or assistance as may be necessary for carrying out the duties and responsibilities provided by this chapter from any Federal, State, or local governmental entity.''.

    (b) TECHNICAL AND CONFORMING AMENDMENT.--The table of chapters for chapters for part II of title 5, United States Code, is amended by inserting after the item relating to chapter 13 the following:

   ``14. Agency Chief Human Capital Officers

   1401''.

   SEC. 1303. CHIEF HUMAN CAPITAL OFFICERS COUNCIL.

    (a) ESTABLISHMENT.--There is established a Chief Human Capital Officers Council, consisting of--

    (1) the Director of the Office of Personnel Management, who shall act as chairperson of the Council;

    (2) the Deputy Director for Management of the Office of Management and Budget, who shall act as vice chairperson of the Council; and

    (3) the Chief Human Capital Officers of Executive departments and any other members who are designated by the Director of the Office of Personnel Management.

    (b) FUNCTIONS.--The Chief Human Capital Officers Council shall meet periodically to advise and coordinate the activities of the agencies of its members on such matters as modernization of human resources systems, improved quality of human resources information, and legislation affecting human resources operations and organizations.

    (c) EMPLOYEE LABOR ORGANIZATIONS AT MEETINGS.--The Chief Human Capital Officers Council shall ensure that representatives of Federal employee labor organizations are present at a minimum of 1 meeting of the Council each year. Such representatives shall not be members of the Council.

    (d) ANNUAL REPORT.--Each year the Chief Human Capital Officers Council shall submit a report to Congress on the activities of the Council.

   SEC. 1304. STRATEGIC HUMAN CAPITAL MANAGEMENT.

    Section 1103 of title 5, United States Code, is amended by adding at the end the following:

    ``(c)(1) The Office of Personnel Management shall design a set of systems, including appropriate metrics, for assessing the management of human capital by Federal agencies.

    ``(2) The systems referred to under paragraph (1) shall be defined in regulations of the Office of Personnel Management and include standards for--

    ``(A)(i) aligning human capital strategies of agencies with the missions, goals, and organizational objectives of those agencies; and

    ``(ii) integrating those strategies into the budget and strategic plans of those agencies;

    ``(B) closing skill gaps in mission critical occupations;

    ``(C) ensuring continuity of effective leadership through implementation of recruitment, development, and succession plans;

    ``(D) sustaining a culture that cultivates and develops a high performing workforce;

    ``(E) developing and implementing a knowledge management strategy supported by appropriate investment in training and technology; and

    ``(F) holding managers and human resources officers accountable for efficient and effective human resources management in support of agency missions in accordance with merit system principles.''.

   SEC. 1305. EFFECTIVE DATE.

    This subtitle shall take effect 180 days after the date of enactment of this Act.

   SEC. 1311. INCLUSION OF AGENCY HUMAN CAPITAL STRATEGIC PLANNING IN PERFORMANCE PLANS AND PROGRAMS PERFORMANCE REPORTS.

    (a) PERFORMANCE PLANS.--Section 1115 of title 31, United States Code, is amended--

    (1) in subsection (a), by striking paragraph (3) and inserting the following:

    ``(3) provide a description of how the performance goals and objectives are to be achieved, including the operation processes, training, skills and technology, and the human, capital, information, and other resources and strategies required to meet those performance goals and objectives.'';

    (2) by redesignating subsection (f) as subsection (g); and

    (3) by inserting after subsection (e) the following:

    ``(f) With respect to each agency with a Chief Human Capital Officer, the Chief Human Capital Officer shall prepare that portion of the annual performance plan described under subsection (a)(3).''.

    (b) PROGRAM PERFORMANCE REPORTS.--Section 1116(d) of title 31, United States Code, is amended--

    (1) in paragraph (4), by striking ``and'' after the semicolon;

    (2) by redesignating paragraph (5) as paragraph (6); and

    (3) by inserting after paragraph (4) the following:

    ``(5) include a review of the performance goals and evaluation of the performance plan relative to the agency's strategic human capital management; and''.

   SEC. 1312. REFORM OF THE COMPETITIVE SERVICE HIRING PROCESS.

    (a) IN GENERAL.--Chapter 33 of title 5, United States Code, is amended--

    (1) in section 3304(a)--

    (A) in paragraph (1), by striking ``and'' after the semicolon;

    (B) in paragraph (2), by striking the period and inserting ``; and''; and

    (C) by adding at the end of the following:

    ``(3) authority for agencies to appoint, without regard to the provision of sections 3309 through 3318, candidates directly to positions for which--

    ``(A) public notice has been given; and

    ``(B) the Office of Personnel Management has determined that there exists a severe shortage of candidates or there is a critical hiring need.

   The Office shall prescribe, by regulation, criteria for identifying such positions and may delegate authority to make determinations under such criteria.''; and

    (2) by inserting after section 3318 the following:``§3319. Alternative ranking and selection procedures

    ``(a) The Office, in exercising its authority under section 3304, or an agency to which the Office has delegated examining authority under section 1104(a)(2), may establish category rating systems for evaluating applicants for positions in the competitive service, under 2 or more quality categories based on merit consistent with regulations prescribed by the Office of Personnel Management, rather than assigned individual numerical ratings.

    ``(b) Within each quality category established under subsection (a), preference-eligibles shall be listed ahead of individuals who are not preference eligibles. For other than scientific and professional positions at GS-9 of the General Schedule (equivalent or higher), qualified preference-eligibles who have a compensable service-connected disability of 10 percent or more shall be listed in the highest quality category.

    ``(c)(1) An appointing official may select any applicant in the highest quality category or, if fewer than 3 candidates have been assigned to

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    ``(2) Notwithstanding paragraph (1), the appointing official may not pass over a preference-eligible in the same category from which selection is made, unless the requirements of section 3317(b) or 3318(b), as applicable, are satisfied.

    ``(d) Each agency that establishes a category rating system under this section shall submit in each of the 3 years following that establishment, a report to Congress on that system including information on--

    ``(1) the number of employees hired under that system;

    ``(2) the impact that system has had on the hiring of veterans and minorities, including those who are American Indian or Alaska Natives, Asian, Black or African American, and native Hawaiian or other Pacific Islanders; and

    ``(3) the way in which managers were trained in the administration of that system.

    ``(e) The Office of Personnel Management may prescribe such regulations as it considers necessary to carry out the provisions of this section.''.

    (b) TECHNICAL AND CONFORMING AMENDMENT.--The table of sections for chapter 33 of title 5, United States Code, is amended by striking the item relating to section 3319 and inserting the following:

   ``3319. Alternative ranking and selection procedures.''.

   SEC. 1313. PERMANENT EXTENSION, REVISION, AND EXPANSION OF AUTHORITIES FOR USE OF VOLUNTARY SEPARATION INCENTIVE PAY AND VOLUNTARY EARLY RETIREMENT.

    (a) VOLUNTARY SEPARATION INCENTIVE PAYMENTS.--

    (1) IN GENERAL.--

    (A) AMENDMENT TO TITLE 5, UNITED STATES CODE.--Chapter 35 of title 5, United States Code, is amended by inserting after subchapter I the following:

   ``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS ``§3521. Definitions

    ``In this subchapter, the term--

    ``(1) `agency' means an Executive agency as defined under section 105; and

    ``(2) `employee'--

    ``(A) means an employee as defined under section 2105 employed by an agency and an individual employed by a county committee established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5)) who--

    ``(i) is serving under an appointment without time limitation; and

    ``(ii) has been currently employed for a continuous period of at least 3 years; and

    ``(B) shall not include--

    ``(i) a reemployed annuitant under subchapter III of chapter 83 or 84 or another retirement system for employees of the Government;

    ``(ii) an employee having a disability on the basis of which such employee is or would be eligible for disability retirement under subchapter III of chapter 83 or 84 or another retirement system for employees of the Government.

    ``(iii) an employee who is in receipt of a decision notice of involuntary separation for misconduct or unacceptable performance;

    ``(iv) an employee who has previously received any voluntary separation incentive payment from the Federal Government under this subchapter or any other authority;

    ``(v) an employee covered by statutory reemployment rights who is on transfer employment with another organization; or

    ``(vi) any employee who--

    ``(I) during the 36-month period preceding the date of separation of that employee, performed service for which a student loan repayment benefit was or is to be paid under section 5379;

    ``(II) during the 24-month period preceding the date of separation of that employee, performed service for which a recruitment or relocation bonus was or is to be paid under section 5753; or

    ``(III) during the 12-month period preceding the date of separation of that employee, performed service for which a retention bonus was or is to be paid under section 5754.``§3522. Agency plans; approval

    ``(a) Before obligating any resources for voluntary separation incentive payments, the head of each agency shall submit to the Office of Personnel Management a plan outlining the intended use of such incentive payments and a proposed organizational chart for the agency once such incentive payments have been completed.

    ``(b) The plan of an agency under subsection (a) shall include--

    ``(1) the specific positions and functions to be reduced or eliminated;

    ``(2) a description of which categories of employees will be offered incentives;

    ``(3) the time period during which incentives may be paid;

    ``(4) the number and amounts of voluntary separation incentive payments to be offered; and

    ``(5) a description of how the agency will operate without the eliminated positions and functions.

    ``(c) The Director of the Office of Personnel Management shall review each agency's plan an may make any appropriate modifications in the plan, in consultation with the Director of the Office of Management and Budget. A plan under this section may not be implemented without the approval of the Directive of the Office of Personnel Management.``§3523. Authority to provide voluntary separation incentive payments

    ``(a) A voluntary separation incentive payment under this subchapter may be paid to an employee only as provided in the plan of an agency established under section 3522.

    ``(b) A voluntary incentive payment--

    ``(1) shall be offered to agency employees on the basis of--

    ``(A) 1 or more organizational units;

    ``(B) 1 or more occupational series or levels;

    ``(C) 1 or more geographical locations;

    ``(D) skills, knowledge, or other factors related to a position;

    ``(E) specific periods of time during which eligible employees may elect a voluntary incentive payment; or

    ``(F) any appropriate combination of such factors;

    ``(2) shall be paid in a lump sum after the employee's separation;

    ``(3) shall be equal to the lesser of--

    ``(A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) if the employee were entitled to payment under such section (without adjustment for any previous payment made); or

    ``(B) an amount determined by the agency head, not to exceed $25,000;

    ``(4) may be made only in the case of an employee who voluntarily separates (whether by retirement or resignation) under this subchapter;

    ``(5) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit;

    ``(6) shall not be taken into account in determining the amount of any severance pay to which the employee may be entitled under section 5595, based on another other separation; and

    ``(7) shall be paid from appropriations or funds available for the payment of the basic pay of the employee.``§3524. Effect of subsequent employment with the Government

    ``(a) The term `employment'--

    ``(1) in subsection (b) includes employment under a personal services contract (or other direct contract) with the United States Government (other than an entity in the legislative branch); and

    ``(2) in subsection (c) does not include employment under such a contract.

    ``(b) An individual who has received a voluntary separation incentive payment under this subchapter and accepts any employment for compensation with the Government of the United States with 5 years after the date of the separation on which the payment is based shall be required to pay, before the individual's first day of employment, the entire amount of the incentive payment to the agency that paid the incentive payment.

    ``(c)(1) If the employment under this section is with an agency, other than the General Accounting Office, the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, may waive the repayment if--

    ``(A) the individual involved possesses unique abilities and is the only qualified applicant available for the position; or

    ``(B) in case of an emergency involving a direct threat to life or property, the individual--

    ``(i) has skills directly related to resolving the emergency; and

    ``(ii) will serve on a temporary basis only so long as that individual's services are made necessary by the emergency.

    ``(2) If the employment under this section is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.

    ``(3) If the employment under this section is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position.``§3525. Regulations

    ``The Office of Personnel Management may prescribe regulations to carry out this subchapter.''.

    (B) TECHNICAL AND CONFORMING AMENDMENTS.--Chapter 35 of title 5, United States Code, is amended--

    (i) by striking the chapter heading and inserting the following:

   and

    (ii) in the table of sections by inserting after the item relating to section 3504 the following:

   ``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS

   ``3521. Definitions.

   ``3522. Agency plans; approval.

   ``3523. Authority to provide voluntary separation incentive payments.

   ``3524. Effect of subsequent employment with the Government.

   ``3525. Regulations.''.

    (2) ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS.--The Director of the Administrative Office of the United States Courts may, by regulation, establish a program substantially similar to the program established under paragraph (1) for individuals serving in the judicial branch.

    (3) CONTINUATION OF OTHER AUTHORITY.--Any agency exercising any voluntary separation incentive authority in effect on the effective date of this subsection may continue to offer voluntary separation incentives consistent with that authority until that authority expires.

    (4) EFFECTIVE DATE.--This subsection shall take effect 60 days after the date of enactment of this Act.

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    (b) FEDERAL EMPLOYEE VOLUNTARY EARLY RETIREMENT.--

    (1) CIVIL SERVICE RETIREMENT SYSTEM.--Section 8336(d)(2) of title 5, United States Code, is amended to read as follows:

    ``(2)(A) has been employed continuously, by the agency in which the employee is serving, for at least the 31-day period ending on the date on which such agency requests the determination referred to in subparagraph (D);

    ``(B) is serving under an appointment that is not time limited;

    ``(C) has not been duly notified that such employee is to be involuntarily separated for misconduct or unacceptable performance;

    ``(D) is separated from the service voluntarily during a period in which, as determined by the office of Personnel Management (upon request of the agency) under regulations prescribed by the Office--

    ``(i) such agency (or, if applicable, the component in which the employee is serving) is undergoing substantial delayering, substantial reorganization, substantial reductions in force, substantial transfer of function, or other substantial workforce restructuring (or shaping);

    ``(ii) a significant percentage of employees servicing in such agency (or component) are likely to be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of chapter 53, or comparable provisions); or

    ``(iii) identified as being in positions which are becoming surplus or excess to the agency's future ability to carry out its mission effectively; and

    ``(E) as determined by the agency under regulations prescribed by the Office, is within the scope of the offer of voluntary early retirement, which may be made on the basis of--

    ``(i) 1 or more organizational units;

    ``(ii) 1 or more occupational series or levels;

    ``(iii) 1 or more geographical locations;

    ``(iv) specific periods;

    ``(v) skills, knowledge, or other factors related to a position; or

    ``(vi) any appropriate combination of such factors;''.

    (2) FEDERAL EMPLOYEES' RETIREMENT SYSTEM.--Section 8414(b)(1) of title 5, United States Code, is amended by striking subparagraph (B) and inserting the following:

    ``(B)(i) has been employed continuously, by the agency in which the employee is serving, for at least the 31-day period ending on the date on which such agency requests the determination referred to in clause (iv);

    ``(ii) is serving under an appointment that is not time limited;

    ``(iii) has not been duly notified that such employee is to be involuntarily separated for misconduct or unacceptable performance;

    ``(iv) is separate from the service voluntarily during a period in which, as determined by the Office of Personnel Management (upon request of the agency) under regulations prescribed by the Office--

    ``(I) such agency (or, if applicable, the component in which the employee is serving) is undergoing substantial delayering, substantial reorganization, substantial reductions in force, substantial transfer of function, or other substantial workforce restructuring (or shaping);

    ``(II) a significant percentage of employees serving in such agency (or component) are likely to be separated or subject to an immediate reduction in the rate of basic pay (without regard to subchapter VI of chapter 53, or comparable provisions); or

    ``(III) identified as being in positions which are becoming surplus or excess to the agency's future ability to carry out its mission effectively; and

    ``(v) as determined by the agency under regulations prescribed by the Office, is within the scope of the offer of voluntary early retirement, which may be made on the basis of--

    ``(I) 1 or more organizational units;

    ``(II) 1 or more occupational series or levels;

    ``(III) 1 or more geographical locations;

    ``(IV) specific periods;

    ``(V) skills, knowledge, or other factors related to a position; or

    ``(VI) any appropriate combination of such factors.''.

    (3) GENERAL ACCOUNTING OFFICE AUTHORITY.--The amendments made by this subsection shall not be construed to affect the authority under section 1 of Public Law 106-303 (5 U.S.C. 8336 note; 114 State. 1063).

    (4) TECHNICAL AND CONFORMING AMENDMENTS.--Section 7001 of the 1998 Supplemental Appropriations and Rescissions Act (Public Law 105-174; 112 Stat. 91) is repealed.

    (5) REGULATIONS.--The Office of Personnel Management may prescribe regulations to carry out this subsection.

    (c) SENSE OF CONGRESS.--It is the sense of Congress that the implementation of this section is intended to reshape the Federal workforce and not downsize the Federal workforce.

   SEC. 1314. STUDENT VOLUNTEER TRANSIT SUBSIDY.

    (a) IN GENERAL.--Section 7905(a)(1) of title 5, United States Code, is amended by striking ``and a member of a uniformed service'' and inserting ``, a member of a uniformed service, and a student who provides voluntary services under section 3111''.

    (b) TECHNICAL AND CONFORMING AMENDMENT.--Section 3111(c)(1) of title 5, United States Code, is amended by striking ``chapter 81 of this title'' and inserting ``section 7905 (relating to commuting by means other than single-occupancy motor vehicles), chapter 81''.

   SEC. 1321. REPEAL OF RECERTIFICATION REQUIREMENTS OF SENIOR EXECUTIVES.

    (a) IN GENERAL.--Title 5, United States Code, is amended--

    (1) in chapter 33--

    (A) in section 3393(g) by striking ``3393a'';

    (B) by repealing section 3393a; and

    (C) in the table of sections by striking the item relating to section 3393a;

    (2) in chapter 35--

    (A) in section 3592(a)--

    (i) in paragraph (1), by inserting ``or'' at the end;

    (ii) in paragraph (2), by striking ``or'' at the end;

    (iii) by striking paragraph (3); and

    (iv) by striking the last sentence;

    (B) in section 3593(a), by striking paragraph (2) and inserting the following:

    ``(2) the appointee left the Senior Executive Service for reasons other than misconduct, neglect of duty, malfeasance, or less than fully successful executive performance as determined under subchapter II of chapter 43.''; and

    (C) in section 3594(b)--

    (i) in paragraph (1), by inserting ``or'' at the end;

    (ii) in paragraph (2), by striking ``or'' at the end; and

    (iii) by striking paragraph (3);

    (3) in section 7701(c)(1)(A), by striking ``or removal from the Senior Executive Service for failure to be recertified under section 3393a'';

    (4) in chapter 83--

    (A) in section 8336(h)(1), by striking ``for failure to be recertified as a senior executive under section 3393a or''; and

    (B) in section 8339(h), in the first sentence, by striking ``, except that such reduction shall not apply in the case of an employee retiring under section 8336(h) for failure to be recertified as a senior executive''; and

    (5) in chapter 84--

    (A) in section 8414(a)(1), by striking ``for failure to be recertified as a senior executive under section 3393a or''; and

    (B) in section 8421(a)(2), by striking ``, except that an individual entitled to an annuity under section 8414(a) for failure to be recertified as a senior executive shall be entitled to an annuity supplement without regard to such applicable retirement age''.

    (b) SAVINGS PROVISION.--Notwithstanding the amendments made by subsection (a)(2)(A), an appeal under the final sentence of section 3592(a) of title 5, United States Code, that is pending on the day before the effective date of this section--

    (1) shall not abate by reason of the enactment of the amendments made by subsection (a)(2)(A); and

    (2) shall continue as if such amendments had not been enacted.

    (c) APPLICATION.--The amendment made by subsection (a)(2)(B) shall not apply with respect to an individual who, before the effective date of this section, leaves the Senior Executive Service for failure to be recertified as a senior executive under section 3393a of title 5, United States Code.

   SEC. 1322. ADJUSTMENT OF LIMITATION ON TOTAL ANNUAL COMPENSATION.

    (a) IN GENERAL.--Section 5307 of title 5, United States Code, is amended by adding at the end the following:

    ``(d)(1) Notwithstanding any other provision of this section, subsection (a)(1) shall be applied by substituting `the total annual compensation payable to the Vice President under section 104 of title 3' for `the annual rate of basic pay payable for level I of the Executive Schedule' in the case of any employee who--

    ``(A) is paid under section 5376 or 5383 of this title or section 332(f), 603, or 604 of title 28; and

    ``(B) holds a position in or under an agency which is described in paragraph (2).

    ``(2) An agency described in this paragraph is any agency which, for purposes of the calendar year involved, has been certified under this subsection as having a performance appraisal system which (as designed and applied) makes meaningful distinctions based on relative performance.

    ``(3)(A) The Office of Personnel Management and the Office of Management and Budget jointly shall promulgate such regulations as may be necessary to carry out this subsection, including the criteria and procedures in accordance with which any determinations under this subsection shall be made.

    ``(B) An agency's certification under this subsection shall be for a period of 2 calendar years, except that such certification may be terminated at any time, for purposes of either or both of those years, upon a finding that the actions of such agency have not remained in conformance with applicable requirements.

    ``(C) Any certification or decertification under this subsection shall be made by the Office of Personnel Management, with the concurrence of the Office of Management and Budget.

    ``(4) Notwithstanding any provision of paragraph (3), any regulations, certifications, or other measures necessary to carry out this subsection with respect to employees within the judicial branch shall be the responsibility of the Director of the Administrative Office of the United States Courts. However, the regulations under this paragraph shall be consistent with those promulgated under paragraph (3).''.

    (b) CONFORMING AMENDMENTS.--(1) Section 5307(a) of title 5, United States Code, is amended by inserting ``or as otherwise provided under subsection (d),'' after ``under law,''.

    (2) Section 5307(c) of such title is amended by striking ``this section,'' and inserting ``this section (subject to subsection (d)),''.

   SEC. 1331. ACADEMIC TRAINING.

    (a) ACADEMIC DEGREE TRAINING.--Section 4107 of title 5, United States Code, is amended to read as follows:``§ 4107. Academic degree training

    ``(a) Subject to subsection (b), an agency may select and assign an employee to academic degree training and may pay or reimburse the

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    ``(1) contributes significantly to--

    ``(A) meeting an identified agency training need;

    ``(B) resolving an identified agency staffing problem; or

    ``(C) accomplishing goals in the strategic plan of the agency;

    ``(2) is part of a planned, systemic, and coordinated agency employee development program linked to accomplishing the strategic goals of the agency; and

    ``(3) is accredited and is provided by a college or university that is accredited by a nationally recognized body.

    ``(b) In exercising authority under subsection (a), an agency shall--

    ``(1) consistent with the merit system principles set forth in paragraphs (2) and (7) of section 2301(b), take into consideration the need to--

    ``(A) maintain a balanced workforce in which women, members of racial and ethnic minority groups, and persons with disabilities are appropriately represented in Government service; and

    ``(B) provide employees effective education and training to improve organizational and individual performance;

    ``(2) assure that the training is not for the sole purpose of providing an employee an opportunity to obtain an academic degree or qualify for appointment to a particular position for which the academic degree is a basic requirement;

    ``(3) assure that no authority under this subsection is exercised on behalf of any employee occupying or seeking to qualify for--

    ``(A) a noncareer appointment in the senior Executive Service; or

    ``(B) appointment to any position that is excepted from the competitive service because of its confidential policy-determining, policy-making or policy-advocating character; and

    ``(4) to the greatest extent practicable, facilitate the use of online degree training.''.

    (b) TECHNICAL AND CONFORMING AMENDMENT.--The table of sections for chapter 41 of title 5, United States Code, is amended by striking the item relating to section 4107 and inserting the following:

   ``4107. Academic degree training.''.

   SEC. 1332. MODIFICATIONS TO NATIONAL SECURITY EDUCATION PROGRAM.

    (a) FINDINGS AND POLICIES.--

    (1) FINDINGS.--Congress finds that--

    (A) the United States Government actively encourages and financially supports the training, education, and development of many United States citizens;

    (B) as a condition of some of those supports, many of those citizens have an obligation to seek either compensated or uncompensated employment in the Federal sector; and

    (C) it is in the United States national interest to maximize the return to the Nation of funds invested in the development of such citizens by seeking to employ them in the Federal sector.

    (2) POLICY.--It shall be the policy of the United States Government to--

    (A) establish procedures for ensuring that United States citizens who have incurred service obligations as the result of receiving financial support for education and training from the United States Government and have applied for Federal positions are considered in all recruitment and hiring initiatives of Federal departments, bureaus, agencies, and offices; and

    (B) advertise and open all Federal positions to United States citizens who have incurred service obligations with the United States Government as the result of receiving financial support for education and training from the United States Government.

    (b) FULFILLMENT OF SERVICE REQUIREMENT IF NATIONAL SECURITY POSITIONS ARE UNAVAILABLE.--Section 802(b)(2) of the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1902) is amended--

    (1) in subparagraph (A), by striking clause (ii) and inserting the following:

    ``(ii) if the recipient demonstrates to the Secretary (in accordance with such regulations) that no national security position in an agency or office of the Federal Government having national security responsibilities is available, work in other offices or agencies of the Federal Government or in the field of higher education in a discipline relating to the foreign country, foreign language, area study, or international field of study for which the scholarship was awarded, for a period specified by the Secretary, which period shall be determined in accordance with clause (i); or''; and

    (2) in subparagraph (B), by striking clause (ii) and inserting the following:

    ``(ii) if the recipient demonstrates to the Secretary (in accordance with such regulations) that no national security position is available upon the completion of the degree, work in other offices or agencies of the Federal Government or in the field of higher education in a discipline relating to foreign country, foreign language, area study, or international field of study for which the fellowship was awarded, for a period specified by the Secretary, which period shall be determined in accordance with clause (i); and''.

   SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Arming Pilots Against Terrorism Act''.

   SEC. 1402. FEDERAL FLIGHT DECK OFFICER PROGRAM.

    (a) IN GENERAL.--Subchapter I of chapter 449 of title 49, United States Code, is amended by adding at the end the following:``§44921. Federal flight deck officer program

    ``(a) ESTABLISHMENT.--The Under Secretary of Transportation for Security shall establish a program to deputize volunteer pilots of air carriers providing passenger air transportation or intrastate passenger air transportation as Federal law enforcement officers to defend the flight decks of aircraft of such air carriers against acts of criminal violence or air piracy. Such officers shall be known as `Federal flight deck officers'.

    ``(b) PROCEDURAL REQUIREMENTS.--

    ``(1) IN GENERAL.--Not later than 3 months after the date of enactment of this section, the Under Secretary shall establish procedural requirements to carry out the program under this section.

    ``(2) COMMENCEMENT OF PROGRAM.--Beginning 3 months after the date of enactment of this section, the Under Secretary shall begin the process of training and deputizing pilots who are qualified to be Federal flight deck officers as Federal flight deck officers under the program.

    ``(3) ISSUES TO BE ADDRESSED.--The procedural requirements established under paragraph (1) shall address the following issues:

    ``(A) The type of firearm to be used by a Federal flight deck officer.

    ``(B) The type of ammunition to be used by a Federal flight deck officer.

    ``(C) The standards and training needed to qualify and requalify as a Federal flight deck officer.

    ``(D) The placement of the firearm of a Federal flight deck officer on board the aircraft to ensure both its security and its ease of retrieval in an emergency.

    ``(E) An analysis of the risk of catastrophic failure of an aircraft as a result of the discharge (including an accidental discharge) of a firearm to be used in the program into the avionics, electrical systems, or other sensitive areas of the aircraft.

    ``(F) The division of responsibility between pilots in the event of an act of criminal violence or air piracy if only 1 pilot is a Federal flight deck officer and if both pilots are Federal flight deck officers.

    ``(G) Procedures for ensuring that the firearm of a Federal flight deck officer does not leave the cockpit if there is a disturbance in the passenger cabin of the aircraft or if the pilot leaves the cockpit for personal reasons.

    ``(H) Interaction between a Federal flight deck officer and a Federal air marshal on board the aircraft.

    ``(I) The process for selection of pilots to participate in the program based on their fitness to participate in the program, including whether an additional background check should be required beyond that required by section 44936(a)(1).

    ``(J) Storage and transportation of firearms between flights, including international flights, to ensure the security of the firearms, focusing particularly on whether such security would be enhanced by requiring storage of the firearm at the airport when the pilot leaves the airport to remain overnight away from the pilot's base airport.

    ``(K) Methods for ensuring that security personnel will be able to identify whether a pilot is authorized to carry a firearm under the program.

    ``(L) Methods for ensuring that pilots (including Federal flight deck officers) will be able to identify whether a passenger is a law enforcement officer who is authorized to carry a firearm aboard the aircraft.

    ``(M) Any other issues that the Under Secretary considers necessary.

    ``(N) The Under Secretary's decisions regarding the methods for implementing each of the foregoing procedural requirements shall be subject to review only for abuse of discretion.

    ``(4) PREFERENCE.--In selecting pilots to participate in the program, the Under Secretary shall give preference to pilots who are former military or law enforcement personnel.

    ``(5) CLASSIFIED INFORMATION.--Notwithstanding section 552 of title 5 but subject to section 40119 of this title, information developed under paragraph (3)(E) shall not be disclosed.

    ``(6) NOTICE TO CONGRESS.--The Under Secretary shall provide notice to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate after completing the analysis required by paragraph (3)(E).

    ``(7) MINIMIZATION OF RISK.--If the Under Secretary determines as a result of the analysis under paragraph (3)(E) that there is a significant risk of the catastrophic failure of an aircraft as a result of the discharge of a firearm, the Under Secretary shall take such actions as may be necessary to minimize that risk.

    ``(c) TRAINING, SUPERVISION, AND EQUIPMENT.--

    ``(1) IN GENERAL.--The Under Secretary shall only be obligated to provide the training, supervision, and equipment necessary for a pilot to be a Federal flight deck officer under this section at no expense to the pilot or the air carrier employing the pilot.

    ``(2) TRAINING.--

    ``(A) IN GENERAL.--The Under Secretary shall base the requirements for the training of Federal flight deck officers under subsection (b) on the training standards applicable to Federal air marshals; except that the Under Secretary shall take into account the differing roles and responsibilities of Federal flight deck officers and Federal air marshals.

    ``(B) ELEMENTS.--The training of a Federal flight deck officer shall include, at a minimum, the following elements:

    ``(i) Training to ensure that the officer achieves the level of proficiency with a firearm required under subparagraph (C)(i).

    ``(ii) Training to ensure that the officer maintains exclusive control over the officer's firearm at all times, including training in defensive maneuvers.

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    ``(iii) Training to assist the officer in determining when it is appropriate to use the officer's firearm and when it is appropriate to use less than lethal force.

    ``(C) TRAINING IN USE OF FIREARMS.--

    ``(i) STANDARD.--In order to be deputized as a Federal flight deck officer, a pilot must achieve a level of proficiency with a firearm that is required by the Under Secretary. Such level shall be comparable to the level of proficiency required of Federal air marshals.

    ``(ii) CONDUCT OF TRAINING.--The training of a Federal flight deck officer in the use of a firearm may be conducted by the Under Secretary or by a firearms training facility approved by the Under Secretary.

    ``(iii) REQUALIFICATION.--The Under Secretary shall require a Federal flight deck officer to requalify to carry a firearm under the program. Such requalification shall occur at an interval required by the Under Secretary.

    ``(d) DEPUTIZATION.--

    ``(1) IN GENERAL.--The Under Secretary may deputize, as a Federal flight deck officer under this section, a pilot who submits to the Under Secretary a request to be such an officer and whom the Under Secretary determines is qualified to be such an officer.

    ``(2) QUALIFICATION.--A pilot is qualified to be a Federal flight deck officer under this section if--

    ``(A) the pilot is employed by an air carrier;

    ``(B) the Under Secretary determines (in the Under Secretary's discretion) that the pilot meets the standards established by the Under Secretary for being such an officer; and

    ``(C) the Under Secretary determines that the pilot has completed the training required by the Under Secretary.

    ``(3) DEPUTIZATION BY OTHER FEDERAL AGENCIES.--The Under Secretary may request another Federal agency to deputize, as Federal flight deck officers under this section, those pilots that the Under Secretary determines are qualified to be such officers.

    ``(4) REVOCATION.--The Under Secretary may, (in the Under Secretary's discretion) revoke the deputization of a pilot as a Federal flight deck officer if the Under Secretary finds that the pilot is no longer qualified to be such an officer.

    ``(e) COMPENSATION.--Pilots participating in the program under this section shall not be eligible for compensation from the Federal Government for services provided as a Federal flight deck officer. The Federal Government and air carriers shall not be obligated to compensate a pilot for participating in the program or for the pilot's training or qualification and requalification to carry firearms under the program.

    ``(f) AUTHORITY TO CARRY FIREARMS.--

    ``(1) IN GENERAL.--The Under Secretary shall authorize a Federal flight deck officer to carry a firearm while engaged in providing air transportation or intrastate air transportation. Notwithstanding subsection (c)(1), the officer may purchase a firearm and carry that firearm aboard an aircraft of which the officer is the pilot in accordance with this section if the firearm is of a type that may be used under the program.

    ``(2) PREEMPTION.--Notwithstanding any other provision of Federal or State law, a Federal flight deck officer, whenever necessary to participate in the program, may carry a firearm in any State and from 1 State to another State.

    ``(3) CARRYING FIREARMS OUTSIDE UNITED STATES.--In consultation with the Secretary of State, the Under Secretary may take such action as may be necessary to ensure that a Federal flight deck officer may carry a firearm in a foreign country whenever necessary to participate in the program.

    ``(g) AUTHORITY TO USE FORCE.--Notwithstanding section 44903(d), the Under Secretary shall prescribe the standards and circumstances under which a Federal flight deck officer may use, while the program under this section is in effect, force (including lethal force) against an individual in the defense of the flight deck of an aircraft in air transportation or intrastate air transportation.

    ``(h) LIMITATION ON LIABILITY.--

    ``(1) LIABILITY OF AIR CARRIERS.--An air carrier shall not be liable for damages in any action brought in a Federal or State court arising out of a Federal flight deck officer's use of or failure to use a firearm.

    ``(2) LIABILITY OF FEDERAL FLIGHT DECK OFFICERS.--A Federal flight deck officer shall not be liable for damages in any action brought in a Federal or State court arising out of the acts or omissions of the officer in defending the flight deck of an aircraft against acts of criminal violence or air piracy unless the officer is guilty of gross negligence or willful misconduct.

    ``(3) LIABILITY OF FEDERAL GOVERNMENT.--For purposes of an action against the United States with respect to an act or omission of a Federal flight deck officer in defending the flight deck of an aircraft, the officer shall be treated as an employee of the Federal Government under chapter 171 of title 28, relating to tort claims procedure.

    ``(i) PROCEDURES FOLLOWING ACCIDENTAL DISCHARGES.--If an accidental discharge of a firearm under the pilot program results in the injury or death of a passenger or crew member on an aircraft, the Under Secretary--

    ``(1) shall revoke the deputization of the Federal flight deck officer responsible for that firearm if the Under Secretary determines that the discharge was attributable to the negligence of the officer; and

    ``(2) if the Under Secretary determines that a shortcoming in standards, training, or procedures was responsible for the accidental discharge, the Under Secretary may temporarily suspend the program until the shortcoming is corrected.

    ``(j) LIMITATION ON AUTHORITY OF AIR CARRIERS.--No air carrier shall prohibit or threaten any retaliatory action against a pilot employed by the air carrier from becoming a Federal flight deck officer under this section. No air carrier shall--

    ``(1) prohibit a Federal flight deck officer from piloting an aircraft operated by the air carrier, or

    ``(2) terminate the employment of a Federal flight deck officer, solely on the basis of his or her volunteering for or participating in the program under this section.

    ``(k) APPLICABILITY.--

    ``(1) EXEMPTION.--This section shall not apply to air carriers operating under part 135 of title 14, Code of Federal Regulations, and to pilots employed by such carriers to the extent that such carriers and pilots are covered by section 135.119 of such title or any successor to such section.

    ``(2) PILOT DEFINED.--The term `pilot' means an individual who has final authority and responsibility for the operation and safety of the flight or, if more than 1 pilot is required for the operation of the aircraft or by the regulations under which the flight is being conducted, the individual designated as second in command.''.

    (b) CONFORMING AMENDMENTS.--

    (1) CHAPTER ANALYSIS.--The analysis for such chapter is amended by inserting after the item relating to section 44920 the following:

   ``44921. Federal flight deck officer program.''.

    (2) FLIGHT DECK SECURITY.--Section 128 of the Aviation and Transportation Security Act (Public Law 107-71) is repealed.

    (c) FEDERAL AIR MARSHAL PROGRAM.--

    (1) SENSE OF CONGRESS.--It is the sense of Congress that the Federal air marshal program is critical to aviation security.

    (2) LIMITATION ON STATUTORY CONSTRUCTION.--Nothing in this Act, including any amendment made by this Act, shall be construed as preventing the Under Secretary of Transportation for Security from implementing and training Federal air marshals.

   SEC. 1403. CREW TRAINING.

    (a) IN GENERAL.--Section 44918(e) of title 49, United States Code, is amended--

    (1) by striking ``The Administrator'' and inserting the following:

    ``(1) IN GENERAL.--The Under Secretary'';

    (2) by adding at the end the following:

    ``(2) ADDITIONAL REQUIREMENTS.--In updating the training guidance, the Under Secretary, in consultation with the Administrator, shall issue a rule to--

    ``(A) require both classroom and effective hands-on situational training in the following elements of self defense:

    ``(i) recognizing suspicious activities and determining the seriousness of an occurrence;

    ``(ii) deterring a passenger who might present a problem;

    ``(iii) crew communication and coordination;

    ``(iv) the proper commands to give to passengers and attackers;

    ``(v) methods to subdue and restrain an attacker;

    ``(vi) use of available items aboard the aircraft for self-defense;

    ``(vii) appropriate and effective responses to defend oneself, including the use of force against an attacker;

    ``(viii) use of protective devices assigned to crew members (to the extent such devices are approved by the Administrator or Under Secretary);

    ``(ix) the psychology of terrorists to cope with their behavior and passenger responses to that behavior;

    ``(x) how to respond to aircraft maneuvers that may be authorized to defend against an act of criminal violence or air piracy;

    ``(B) require training in the proper conduct of a cabin search, including the duty time required to conduct the search;

    ``(C) establish the required number of hours of training and the qualifications for the training instructors;

    ``(D) establish the intervals, number of hours, and elements of recurrent training;

    ``(E) ensure that air carriers provide the initial training required by this paragraph within 24 months of the date of enactment of this subparagraph; and

    ``(F) ensure that no person is required to participate in any hands-on training activity that that person believes will have an adverse impact on his or her health or safety.

    ``(3) RESPONSIBILITY OF UNDER SECRETARY.--(A) CONSULTATION.--In developing the rule under paragraph (2), the Under Secretary shall consult with law enforcement personnel and security experts who have expertise in self-defense training, terrorism experts, and representatives of air carriers, the provider of self-defense training for Federal air marshals, flight attendants, labor organizations representing flight attendants, and educational institutions offering law enforcement training programs.

    ``(B) DESIGNATION OF OFFICIAL.--The Under Secretary shall designate an official in the Transportation Security Administration to be responsible for overseeing the implementation of the training program under this subsection.

    ``(C) NECESSARY RESOURCES AND KNOWLEDGE.--The Under Secretary shall ensure that employees of the Administration responsible for monitoring the training program have the necessary resources and knowledge.''; and

    (3) by aligning the remainder of the text of paragraph (1) (as designated by paragraph (1) of this section) with paragraphs (2) and (3) (as added by paragraph (2) of this section).

    (b) ENHANCE SECURITY MEASURES.--Section 109(a) of the Aviation and Transportation Security Act (49 U.S.C. 114 note; 115 Stat. 613-614) is amended by adding at the end the following:

    ``(9) Require that air carriers provide flight attendants with a discreet, hands-free, wireless method of communicating with the pilots.''.

    (c) BENEFITS AND RISKS OF PROVIDING FLIGHT ATTENDANTS WITH NONLETHAL WEAPONS.--

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    (1) STUDY.--The Under Secretary of Transportation for Security shall conduct a study to evaluate the benefits and risks of providing flight attendants with nonlethal weapons to aide in combating air piracy and criminal violence on commercial airlines.

    (2) REPORT.--Not later than 6 months after the date of enactment of this Act, the Under Secretary shall transmit to Congress a report on the results of the study.

   SEC. 1404. COMMERCIAL AIRLINE SECURITY STUDY.

    (a) STUDY.--The Secretary of Transportation shall conduct a study of the following:

    (1) The number of armed Federal law enforcement officers (other than Federal air marshals), who travel on commercial airliners annually and the frequency of their travel.

    (2) The cost and resources necessary to provide such officers with supplemental training in aircraft anti-terrorism training that is comparable to the training that Federal air marshals are provided.

    (3) The cost of establishing a program at a Federal law enforcement training center for the purpose of providing new Federal law enforcement recruits with standardized training comparable to the training that Federal air marshals are provided.

    (4) The feasibility of implementing a certification program designed for the purpose of ensuring Federal law enforcement officers have completed the training described in paragraph (2) and track their travel over a 6-month period.

    (5) The feasibility of staggering the flights of such officers to ensure the maximum amount of flights have a certified trained Federal officer on board.

    (b) REPORT.--Not later than 6 months after the date of enactment of this Act, the Secretary shall transmit to Congress a report on the results of the study. The report may be submitted in classified and redacted form.

   SEC. 1405. AUTHORITY TO ARM FLIGHT DECK CREW WITH LESS-THAN-LETHAL WEAPONS.

    (a) IN GENERAL.--Section 44903(i) of title 49, United States Code (as redesignated by section 6 of this Act) is amended by adding at the end the following:

    ``(3) REQUEST OF AIR CARRIERS TO USE LESS-THAN-LETHAL WEAPONS.--If, after the date of enactment of this paragraph, the Under Secretary receives a request from an air carrier for authorization to allow pilots of the air carrier to carry less-than-lethal weapons, the Under Secretary shall respond to that request within 90 days.''.

    (b) CONFORMING AMENDMENTS.--Such section is further amended--

    (1) in paragraph (1) by striking ``Secretary'' the first and third places it appears and inserting ``Under Secretary''; and

    (2) in paragraph (2) by striking ``Secretary'' each place it appears and inserting ``Under Secretary''.

   SEC. 1406. TECHNICAL AMENDMENTS.

    Section 44903 of title 49, United States Code, is amended--

    (1) by redesignating subsection (i) (relating to short-term assessment and deployment of emerging security technologies and procedures) as subsection (j);

    (2) by redesignating the second subsection (h) (relating to authority to arm flight deck crew with less-than-lethal weapons) as subsection (i); and

    (3) by redesignating the third subsection (h) (relating to limitation on liability for acts to thwart criminal violence for aircraft piracy) as subsection (k).

   SEC. 1501. DEFINITIONS.

    For purposes of this title:

    (1) The term ``agency'' includes any entity, organizational unit, program, or function.

    (2) The term ``transition period'' means the 12-month period beginning on the effective date of this Act.

   SEC. 1502. REORGANIZATION PLAN.

    (a) SUBMISSION OF PLAN.--Not later than 60 days after the date of the enactment of this Act, the President shall transmit to the appropriate congressional committees a reorganization plan regarding the following:

    (1) The transfer of agencies, personnel, assets, and obligations to the Department pursuant to this Act.

    (2) Any consolidation, reorganization, or streamlining of agencies transferred to the Department pursuant to this Act.

    (b) PLAN ELEMENTS.--The plan transmitted under subsection (a) shall contain, consistent with this Act, such elements as the President deems appropriate, including the following:

    (1) Identification of any functions of agencies transferred to the Department pursuant to this Act that will not be transferred to the Department under the plan.

    (2) Specification of the steps to be taken by the Secretary to organize the Department, including the delegation or assignment of functions transferred to the Department among officers of the Department in order to permit the Department to carry out the functions transferred under the plan.

    (3) Specification of the funds available to each agency that will be transferred to the Department as a result of transfers under the plan.

    (4) Specification of the proposed allocations within the Department of unexpended funds transferred in connection with transfers under the plan.

    (5) Specification of any proposed disposition of property, facilities, contracts, records, and other assets and obligations of agencies transferred under the plan.

    (6) Specification of the proposed allocations within the Department of the functions of the agencies and subdivisions that are not related directly to securing the homeland.

    (c) MODIFICATION OF PLAN.--The President may, on the basis of consultations with the appropriate congressional committees, modify or revise any part of the plan until that part of the plan becomes effective in accordance with subsection (d).

    (d) EFFECTIVE DATE.--

    (1) IN GENERAL.--The reorganization plan described in this section, including any modifications or revisions of the plan under subsection (d), shall become effective for an agency on the earlier of--

    (A) the date specified in the plan (or the plan as modified pursuant to subsection (d)), except that such date may not be earlier than 90 days after the date the President has transmitted the reorganization plan to the appropriate congressional committees pursuant to subsection (a); or

    (B) the end of the transition period.

    (2) STATUTORY CONSTRUCTION.--Nothing in this subsection may be construed to require the transfer of functions, personnel, records, balances of appropriations, or other assets of an agency on a single date.

    (3) SUPERSEDES EXISTING LAW.--Paragraph (1) shall apply notwithstanding section 905(b) of title 5, United States Code.

   SEC. 1503. REVIEW OF CONGRESSIONAL COMMITTEE STRUCTURES.

    It is the sense of Congress that each House of Congress should review its committee structure in light of the reorganization of responsibilities within the executive branch by the establishment of the Department.

   SEC. 1511. TRANSITIONAL AUTHORITIES.

    (a) PROVISION OF ASSISTANCE BY OFFICIALS.--Until the transfer of an agency to the Department, any official having authority over or functions relating to the agency immediately before the effective date of this Act shall provide to the Secretary such assistance, including the use of personnel and assets, as the Secretary may request in preparing for the transfer and integration of the agency into the Department.

    (b) SERVICES AND PERSONNEL.--During the transition period, upon the request of the Secretary, the head of any executive agency may, on a reimbursable basis, provide services or detail personnel to assist with the transition.

    (c) ACTING OFFICIALS.--(1) During the transition period, pending the advice and consent of the Senate to the appointment of an officer required by this Act to be appointed by and with such advice and consent, the President may designate any officer whose appointment was required to be made by and with such advice and consent and who was such an officer immediately before the effective date of this Act (and who continues in office) or immediately before such designation, to act in such office until the same is filled as provided in this Act. While so acting, such officers shall receive compensation at the higher of--

    (A) the rates provided by this Act for the respective offices in which they act; or

    (B) the rates provided for the offices held at the time of designation.

    (2) Nothing in this Act shall be understood to require the advice and consent of the Senate to the appointment by the President to a position in the Department of any officer whose agency is transferred to the Department pursuant to this Act and whose duties following such transfer are germane to those performed before such transfer.

    (d) TRANSFER OF PERSONNEL, ASSETS, OBLIGATIONS, AND FUNCTIONS.--Upon the transfer of an agency to the Department--

    (1) the personnel, assets, and obligations held by or available in connection with the agency shall be transferred to the Secretary for appropriate allocation, subject to the approval of the Director of the Office of Management and Budget and in accordance with the provisions of section 1531(a)(2) of title 31, United States Code; and

    (2) the Secretary shall have all functions relating to the agency that any other official could by law exercise in relation to the agency immediately before such transfer, and shall have in addition all functions vested in the Secretary by this Act or other law.

    (e) PROHIBITION ON USE OF TRANSPORTATION TRUST FUNDS.--

    (1) IN GENERAL.--Notwithstanding any other provision of this Act, no funds derived from the Highway Trust Fund, Airport and Airway Trust Fund, Inland Waterway Trust Fund, or Harbor Maintenance Trust Fund, may be transferred to, made available to, or obligated by the Secretary or any other official in the Department.

    (2) LIMITATION.--This subsection shall not apply to security-related funds provided to the Federal Aviation Administration for fiscal years preceding fiscal year 2003 for (A) operations, (B) facilities and equipment, or (C) research, engineering, and development.

   SEC. 1512. SAVINGS PROVISIONS.

    (a) COMPLETED ADMINISTRATIVE ACTIONS.--(1) Completed administrative actions of an agency shall not be affected by the enactment of this Act or the transfer of such agency to the Department, but shall continue in effect according to their terms until amended, modified, superseded, terminated, set aside, or revoked in accordance with law by an officer of the United States or a court of competent jurisdiction, or by operation of law.

    (2) For purposes of paragraph (1), the term ``completed administrative action'' includes orders, determinations, rules, regulations, personnel actions, permits, agreements, grants, contracts, certificates, licenses, registrations, and privileges.

    (b) PENDING PROCEEDINGS.--Subject to the authority of the Secretary under this Act--

    (1) pending proceedings in an agency, including notices of proposed rulemaking, and applications for licenses, permits, certificates, grants,

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    (2) orders issued in such proceedings, and appeals therefrom, and payments made pursuant to such orders, shall issue in the same manner and on the same terms as if this Act had not been enacted or the agency had not been transferred, and any such orders shall continue in effect until amended, modified, superseded, terminated, set aside, or revoked by an officer of the United States or a court of competent jurisdiction, or by operation of law.

    (c) PENDING CIVIL ACTIONS.--Subject to the authority of the Secretary under this Act, pending civil actions shall continue notwithstanding the enactment of this Act or the transfer of an agency to the Department, and in such civil actions, proceedings shall be had, appeals taken, and judgments rendered and enforced in the same manner and with the same effect as if such enactment or transfer had not occurred.

    (d) REFERENCES.--References relating to an agency that is transferred to the Department in statutes, Executive orders, rules, regulations, directives, or delegations of authority that precede such transfer or the effective date of this Act shall be deemed to refer, as appropriate, to the Department, to its officers, employees, or agents, or to its corresponding organizational units or functions. Statutory reporting requirements that applied in relation to such an agency immediately before the effective date of this Act shall continue to apply following such transfer if they refer to the agency by name.

    (e) EMPLOYMENT PROVISIONS.--(1) Notwithstanding the generality of the foregoing (including subsections (a) and (d)), in and for the Department the Secretary may, in regulations prescribed jointly with the Director of the Office of Personnel Management, adopt the rules, procedures, terms, and conditions, established by statute, rule, or regulation before the effective date of this Act, relating to employment in any agency transferred to the Department pursuant to this Act; and

    (2) except as otherwise provided in this Act, or under authority granted by this Act, the transfer pursuant to this Act of personnel shall not alter the terms and conditions of employment, including compensation, of any employee so transferred.

    (f) STATUTORY REPORTING REQUIREMENTS.--Any statutory reporting requirement that applied to an agency, transferred to the Department under this Act, immediately before the effective date of this Act shall continue to apply following that transfer if the statutory requirement refers to the agency by name.

   SEC. 1513. TERMINATIONS.

    Except as otherwise provided in this Act, whenever all the functions vested by law in any agency have been transferred pursuant to this Act, each position and office the incumbent of which was authorized to receive compensation at the rates prescribed for an office or position at level II, III, IV, or V, of the Executive Schedule, shall terminate.

   SEC. 1514. NATIONAL IDENTIFICATION SYSTEM NOT AUTHORIZED.

    Nothing in this Act shall be construed to authorize the development of a national identification system or card.

   SEC. 1515. CONTINUITY OF INSPECTOR GENERAL OVERSIGHT.

    Notwithstanding the transfer of an agency to the Department pursuant to this Act, the Inspector General that exercised oversight of such agency prior to such transfer shall continue to exercise oversight of such agency during the period of time, if any, between the transfer of such agency to the Department pursuant to this Act and the appointment of the Inspector General of the Department of Homeland Security in accordance with section 103(b).

   SEC. 1516. INCIDENTAL TRANSFERS.

    The Director of the Office of Management and Budget, in consultation with the Secretary, is authorized and directed to make such additional incidental dispositions of personnel, assets, and liabilities held, used, arising from, available, or to be made available, in connection with the functions transferred by this Act, as the Director may determine necessary to accomplish the purposes of this Act.

   SEC. 1517. REFERENCE.

    With respect to any function transferred by or under this Act (including under a reorganization plan that becomes effective under section 1502) and exercised on or after the effective date of this Act, reference in any other Federal law to any department, commission, or agency or any officer or office the functions of which are so transferred shall be deemed to refer to the Secretary, other official, or component of the Department to which such function is so transferred.

   SEC. 1601. RETENTION OF SECURITY SENSITIVE INFORMATION AUTHORITY AT DEPARTMENT OF TRANSPORTATION.

    (a) Section 40119 of title 49, United States Code, is amended--

    (1) in subsection (a)--

    (A) by inserting ``and the Administrator of the Federal Aviation Administration each'' after ``for Security''; and

    (B) by striking ``criminal violence and aircraft piracy'' and inserting ``criminal violence, aircraft piracy, and terrorism and to ensure security''; and

    (2) in subsection (b)(1)--

    (A) by striking ``, the Under Secretary'' and inserting ``and the establishment of a Department of Homeland Security, the Secretary of Transportation'';

    (B) by striking ``carrying out'' and all that follows through ``if the Under Secretary'' and inserting ``ensuring security under this title if the Secretary of Transportation''; and

    (C) in subparagraph (C) by striking ``the safety of passengers in transportation'' and inserting ``transportation safety''.

    (b) Section 114 of title 49, United States Code, is amended by adding at the end the following:

    ``(s) NONDISCLOSURE OF SECURITY ACTIVITIES.--

    ``(1) IN GENERAL.--Notwithstanding section 552 of title 5, the Under Secretary shall prescribe regulations prohibiting the disclosure of information obtained or developed in carrying out security under authority of the Aviation and Transportation Security Act (Public Law 107-71) or under chapter 449 of this title if the Under Secretary decides that disclosing the information would--

    ``(A) be an unwarranted invasion of personal privacy;

    ``(B) reveal a trade secret or privileged or confidential commercial or financial information; or

    ``(C) be detrimental to the security of transportation.

    ``(2) AVAILABILITY OF INFORMATION TO CONGRESS.--Paragraph (1) does not authorize information to be withheld from a committee of Congress authorized to have the information.

    ``(3) LIMITATION ON TRANSFERABILITY OF DUTIES.--Except as otherwise provided by law, the Under Secretary may not transfer a duty or power under this subsection to another department, agency, or instrumentality of the United States.''.

   SEC. 1602. INCREASE IN CIVIL PENALTIES.

    Section 46301(a) of title 49, United States Code, is amended by adding at the end the following:

    ``(8) AVIATION SECURITY VIOLATIONS.--Notwithstanding paragraphs (1) and (2) of this subsection, the maximum civil penalty for violating chapter 449 or another requirement under this title administered by the Under Secretary of Transportation for Security shall be $10,000; except that the maximum civil penalty shall be $25,000 in the case of a person operating an aircraft for the transportation of passengers or property for compensation (except an individual serving as an airman).''.

   SEC. 1603. ALLOWING UNITED STATES CITIZENS AND UNITED STATES NATIONALS AS SCREENERS.

    Section 44935(e)(2)(A)(ii) of title 49, United States Code, is amended by striking ``citizen of the United States'' and inserting ``citizen of the United States or a national of the United States, as defined in section 1101(a)(22) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(22))''.

   SEC. 1701. INSPECTOR GENERAL ACT OF 1978.

    Section 11 of the Inspector General Act of 1978 (Public Law 95-452) is amended--

    (1) by inserting ``Homeland Security,'' after ``Transportation,'' each place it appears; and

    (2) by striking ``; and'' each place it appears in paragraph (1) and inserting ``;'';

   SEC. 1702. EXECUTIVE SCHEDULE.

    (a) IN GENERAL.--Title 5, United States Code, is amended--

    (1) in section 5312, by inserting ``Secretary of Homeland Security.'' as a new item after ``Affairs.'';

    (2) in section 5313, by inserting ``Deputy Secretary of Homeland Security.'' as a new item after ``Affairs.'';

    (3) in section 5314, by inserting ``Under Secretaries, Department of Homeland Security.'', ``Director of the Bureau of Citizenship and Immigration Services.'' as new items after ``Affairs.'' the third place it appears;

    (4) in section 5315, by inserting ``Assistant Secretaries, Department of Homeland Security.'', ``General Counsel, Department of Homeland Security.'', ``Officer for Civil Rights and Civil Liberties, Department of Homeland Security.'', ``Chief Financial Officer, Department of Homeland Security.'', ``Chief Information Officer, Department of Homeland Security.'', and ``Inspector General, Department of Homeland Security.'' as new items after ``Affairs.'' the first place it appears; and

    (5) in section 5315, by striking ``Commissioner of Immigration and Naturalization, Department of Justice.''.

    (b) SPECIAL EFFECTIVE DATE.--Notwithstanding section 4, the amendment made by subsection (a)(5) shall take effect on the date on which the transfer of functions specified under section 441 takes effect.

   SEC. 1703. UNITED STATES SECRET SERVICE.

    (a) IN GENERAL.--(1) The United States Code is amended in section 202 of title 3, and in section 3056 of title 18, by striking ``of the Treasury'', each place it appears and inserting ``of Homeland Security''.

    (2) Section 208 of title 3, United States Code, is amended by striking ``of Treasury'' each place it appears and inserting ``of Homeland Security''.

    (b) EFFECTIVE DATE.--The amendments made by this section shall take effect on the date of transfer of the United States Secret Service to the Department.

   SEC. 1704. COAST GUARD.

    (a) TITLE 14, U.S.C.--Title 14, United States Code, is amended in sections 1, 3, 53, 95, 145, 516, 666, 669, 673, 673a (as redesignated by subsection (e)(1)), 674, 687, and 688 by striking ``of Transportation'' each place it appears and inserting ``of Homeland Security''.

    (b) TITLE 10, U.S.C.--(1) Title 10, United States Code, is amended in sections 101(9), 130b(a), 130b(c)(4), 130c(h)(1), 379, 513(d), 575(b)(2), 580(e)(6), 580a(e), 651(a), 671(c)(2), 708(a), 716(a), 717, 806(d)(2), 815(e), 888,

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    (2) Section 801(1) of such title is amended by striking ``the General Counsel of the Department of Transportation'' and inserting ``an official designated to serve as Judge Advocate General of the Coast Guard by the Secretary of Homeland Security''.

    (3) Section 983(d)(2)(B) of such title is amended by striking ``Department of Transportation'' and inserting ``Department of Homeland Security''.

    (4) Section 2665(b) of such title is amended by striking ``Department of Transportation'' and inserting ``Department in which the Coast Guard is operating''.

    (5) Section 7045 of such title is amended--

    (A) in subsections (a)(1) and (b), by striking ``Secretaries of the Army, Air Force, and Transportation'' both places it appears and inserting ``Secretary of the Army, the Secretary of the Air Force, and the Secretary of Homeland Security''; and

    (B) in subsection (b), by striking ``Department of Transportation'' and inserting ``Department of Homeland Security''.

    (6) Section 7361(b) of such title is amended in the subsection heading by striking ``TRANSPORTATION'' and inserting ``HOMELAND SECURITY''.

    (7) Section 12522(c) of such title is amended in the subsection heading by striking ``TRANSPORTATION'' and inserting ``HOMELAND SECURITY''.

    (c) TITLE 37, U.S.C.--Title 37, United States Code, is amended in sections 101(5), 204(i)(4), 301a(a)(3), 306(d), 307(c), 308(a)(1), 308(d)(2), 308(f), 308b(e), 308c(c), 308d(a), 308e(f), 308g(g), 308h(f), 308i(e), 309(d), 316(d), 323(b), 323(g)(1), 325(i), 402(d), 402a(g)(1), 403(f)(3), 403(l)(1), 403b(i)(5), 406(b)(1), 417(a), 417(b), 418(a), 703, 1001(c), 1006(f), 1007(a), and 1011(d) by striking ``of Transportation'' each place it appears and inserting ``of Homeland Security''.

    (d) TITLE 38, U.S.C.--Title 38, United States Code, is amended in sections 101(25)(d), 1560(a), 3002(5), 3011(a)(1)(A)(ii)(I), 3011(a)(1)(A)(ii)(II), 3011(a)(1)(B)(ii)(III), 3011(a)(1)(C)(iii)(II)(cc), 3012(b)(1)(A)(v), 3012(b)(1)(B)(ii)(V), 3018(b)(3)(B)(iv), 3018A(a)(3), 3018B(a)(1)(C), 3018B(a)(2)(C), 3018C(a)(5), 3020(m), 3035(b)(2), 3035(c), 3035(d), 3035(e), 3680A(g), and 6105(c) by striking ``of Transportation'' each place it appears and inserting ``of Homeland Security''.

    (e) OTHER DEFENSE-RELATED LAWS.--(1) Section 363 of Public Law 104-193 (110 Stat. 2247) is amended--

    (A) in subsection (a)(1) (10 U.S.C. 113 note), by striking ``of Transportation'' and inserting ``of Homeland Security''; and

    (B) in subsection (b)(1) (10 U.S.C. 704 note), by striking ``of Transportation'' and inserting ``of Homeland Security''.

    (2) Section 721(1) of Public Law 104-201 (10 U.S.C. 1073 note) is amended by striking ``of Transportation'' and inserting ``of Homeland Security''.

    (3) Section 4463(a) of Public Law 102-484 (10 U.S.C. 1143a note) is amended by striking ``after consultation with the Secretary of Transportation''.

    (4) Section 4466(h) of Public Law 102-484 (10 U.S.C. 1143 note) is amended by striking ``of Transportation'' and inserting ``of Homeland Security''.

    (5) Section 542(d) of Public Law 103-337 (10 U.S.C. 1293 note) is amended by striking ``of Transportation'' and inserting ``of Homeland Security''.

    (6) Section 740 of Public Law 106-181 (10 U.S.C. 2576 note) is amended in subsections (b)(2), (c), and (d)(1) by striking ``of Transportation'' each place it appears and inserting ``of Homeland Security''.

    (7) Section 1407(b)(2) of the Defense Dependents' Education Act of 1978 (20 U.S.C. 926(b)) is amended by striking ``of Transportation'' both places it appears and inserting ``of Homeland Security''.

    (8) Section 2301(5)(D) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6671(5)(D)) is amended by striking ``of Transportation'' and inserting ``of Homeland Security''.

    (9) Section 2307(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6677(a)) is amended by striking ``of Transportation'' and inserting ``of Homeland Security''.

    (10) Section 1034(a) of Public Law 105-85 (21 U.S.C. 1505a(a)) is amended by striking ``of Transportation'' and inserting ``of Homeland Security''.

    (11) The Military Selective Service Act is amended--

    (A) in section 4(a) (50 U.S.C. App. 454(a)), by striking ``of Transportation'' in the fourth paragraph and inserting ``of Homeland Security'';

    (B) in section 4(b) (50 U.S.C. App. 454(b)), by striking ``of Transportation'' both places it appears and inserting ``of Homeland Security'';

    (C) in section 6(d)(1) (50 U.S.C. App. 456(d)(1)), by striking ``of Transportation'' both places it appears and inserting ``of Homeland Security'';

    (D) in section 9(c) (50 U.S.C. App. 459(c)), by striking ``Secretaries of Army, Navy, Air Force, or Transportation'' and inserting ``Secretary of a military department, and the Secretary of Homeland Security with respect to the Coast Guard,''; and

    (E) in section 15(e) (50 U.S.C. App. 465(e)), by striking ``of Transportation'' both places it appears and inserting ``of Homeland Security''.

    (f) TECHNICAL CORRECTION.--(1) Title 14, United States Code, is amended by redesignating section 673 (as added by section 309 of Public Law 104-324) as section 673a.

    (2) The table of sections at the beginning of chapter 17 of such title is amended by redesignating the item relating to such section as section 673a.

    (g) EFFECTIVE DATE.--The amendments made by this section (other than subsection (f)) shall take effect on the date of transfer of the Coast Guard to the Department.

   SEC. 1705. STRATEGIC NATIONAL STOCKPILE AND SMALLPOX VACCINE DEVELOPMENT.

    (a) IN GENERAL.--Section 121 of the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (Public Law 107-188; 42 U.S.C. 300hh-12) is amended--

    (1) in subsection (a)(1)--

    (A) by striking ``Secretary of Health and Human Services'' and inserting ``Secretary of Homeland Security'';

    (B) by inserting ``the Secretary of Health and Human Services and'' between ``in coordination with'' and ``the Secretary of Veterans Affairs''; and

    (C) by inserting ``of Health and Human Services'' after ``as are determined by the Secretary''; and

    (2) in subsections (a)(2) and (b), by inserting ``of Health and Human Services'' after ``Secretary'' each place it appears.

    (b) EFFECTIVE DATE.--The amendments made by this section shall take effect on the date of transfer of the Strategic National Stockpile of the Department of Health and Human Services to the Department.

   SEC. 1706. TRANSFER OF CERTAIN SECURITY AND LAW ENFORCEMENT FUNCTIONS AND AUTHORITIES.

    (a) AMENDMENT TO TITLE 40.--Section 581 of title 40, United States Code, is amended--

    (1) by striking subsection (a); and

    (2) in subsection (b)--

    (A) by inserting ``and'' after the semicolon at the end of paragraph (1);

    (B) by striking ``; and'' at the end of paragraph (2) and inserting a period; and

    (C) by striking paragraph (3).

    (b) LAW ENFORCEMENT AUTHORITY.--

    (1) IN GENERAL.--Section 1315 of title 40, United States Code, is amended to read as follows:``§1315. Law enforcement authority of Secretary of Homeland Security for protection of public property

    ``(a) IN GENERAL.--To the extent provided for by transfers made pursuant to the Homeland Security Act of 2002, the Secretary of Homeland Security (in this section referred to as the `Secretary') shall protect the buildings, grounds, and property that are owned, occupied, or secured by the Federal Government (including any agency, instrumentality, or wholly owned or mixed-ownership corporation thereof) and the persons on the property.

    ``(b) OFFICERS AND AGENTS.--

    ``(1) DESIGNATION.--The Secretary may designate employees of the Department of Homeland Security, including employees transferred to the Department from the Office of the Federal Protective Service of the General Services Administration pursuant to the Homeland Security Act of 2002, as officers and agents for duty in connection with the protection of property owned or occupied by the Federal Government and persons on the property, including duty in areas outside the property to the extent necessary to protect the property and persons on the property.

    ``(2) POWERS.--While engaged in the performance of official duties, an officer or agent designated under this subsection may--

    ``(A) enforce Federal laws and regulations for the protection of persons and property;

    ``(B) carry firearms;

    ``(C) make arrests without a warrant for any offense against the United States committed in the presence of the officer or agent or for any felony cognizable under the laws of the United States if the officer or agent has reasonable grounds to believe that the person to be arrested has committed or is committing a felony;

    ``(D) serve warrants and subpoenas issued under the authority of the United States; and

    ``(E) conduct investigations, on and off the property in question, of offenses that may have been committed against property owned or occupied by the Federal Government or persons on the property.

    ``(F) carry out such other activities for the promotion of homeland security as the Secretary may prescribe.

    ``(c) REGULATIONS.--

    ``(1) IN GENERAL.--The Secretary, in consultation with the Administrator of General Services, may prescribe regulations necessary for the protection and administration of property owned or occupied by the Federal Government and persons on the property. The regulations may include reasonable penalties, within the limits prescribed in paragraph (2), for violations of the regulations. The regulations shall be posted and remain posted in a conspicuous place on the property.

    ``(2) PENALTIES.--A person violating a regulation prescribed under this subsection shall be fined under title 18, United States Code, imprisoned for not more than 30 days, or both.

    ``(d) DETAILS.--

    ``(1) REQUESTS OF AGENCIES.--On the request of the head of a Federal agency having charge or control of property owned or occupied by the Federal Government, the Secretary may detail

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    ``(2) APPLICABILITY OF REGULATIONS.--The Secretary may--

    ``(A) extend to property referred to in paragraph (1) the applicability of regulations prescribed under this section and enforce the regulations as provided in this section; or

    ``(B) utilize the authority and regulations of the requesting agency if agreed to in writing by the agencies.

    ``(3) FACILITIES AND SERVICES OF OTHER AGENCIES.--When the Secretary determines it to be economical and in the public interest, the Secretary may utilize the facilities and services of Federal, State, and local law enforcement agencies, with the consent of the agencies.

    ``(e) AUTHORITY OUTSIDE FEDERAL PROPERTY.--For the protection of property owned or occupied by the Federal Government and persons on the property, the Secretary may enter into agreements with Federal agencies and with State and local governments to obtain authority for officers and agents designated under this section to enforce Federal laws and State and local laws concurrently with other Federal law enforcement officers and with State and local law enforcement officers.

    ``(f) SECRETARY AND ATTORNEY GENERAL APPROVAL.--The powers granted to officers and agents designated under this section shall be exercised in accordance with guidelines approved by the Secretary and the Attorney General.

    ``(g) LIMITATION ON STATUTORY CONSTRUCTION.--Nothing in this section shall be construed to--

    ``(1) preclude or limit the authority of any Federal law enforcement agency; or

    ``(2) restrict the authority of the Administrator of General Services to promulgate regulations affecting property under the Administrator's custody and control.''.

    (2) DELEGATION OF AUTHORITY.--The Secretary may delegate authority for the protection of specific buildings to another Federal agency where, in the Secretary's discretion, the Secretary determines it necessary for the protection of that building.

    (3) CLERICAL AMENDMENT.--The table of sections at the beginning of chapter 13 of title 40, United States Code, is amended by striking the item relating to section 1315 and inserting the following:

   ``1315. Law enforcement authority of Secretary of Homeland Security for protection of public property.''.

   SEC. 1707. TRANSPORTATION SECURITY REGULATIONS.

    Title 49, United States Code, is amended--

    (1) in section 114(l)(2)(B), by inserting ``for a period not to exceed 90 days'' after ``effective''; and

    (2) in section 114(l)(2)(B), by inserting ``ratified or'' after ``unless''.

   SEC. 1708. NATIONAL BIO-WEAPONS DEFENSE ANALYSIS CENTER.

    There is established in the Department of Defense a National Bio-Weapons Defense Analysis Center, whose mission is to develop countermeasures to potential attacks by terrorists using weapons of mass destruction.

   SEC. 1709. COLLABORATION WITH THE SECRETARY OF HOMELAND SECURITY.

    (a) DEPARTMENT OF HEALTH AND HUMAN SERVICES.--The second sentence of section 351A(e)(1) of the Public Health Service Act (42 U.S.C. 262A(e)(1)) is amended by striking ``consultation with'' and inserting ``collaboration with the Secretary of Homeland Security and''.

    (b) DEPARTMENT OF AGRICULTURE.--The second sentence of section 212(e)(1) of the Agricultural Bioterrorism Protection Act of 2002 (7 U.S.C. 8401) is amended by striking ``consultation with'' and inserting ``collaboration with the Secretary of Homeland Security and''.

   SEC. 1710. RAILROAD SAFETY TO INCLUDE RAILROAD SECURITY.

    (a) INVESTIGATION AND SURVEILLANCE ACTIVITIES.--Section 20105 of title 49, United States Code, is amended--

    (1) by striking ``Secretary of Transportation'' in the first sentence of subsection (a) and inserting ``Secretary concerned'';

    (2) by striking ``Secretary'' each place it appears (except the first sentence of subsection (a)) and inserting ``Secretary concerned'';

    (3) by striking ``Secretary's duties under chapters 203-213 of this title'' in subsection (d) and inserting ``duties under chapters 203-213 of this title (in the case of the Secretary of Transportation) and duties under section 114 of this title (in the case of the Secretary of Homeland Security)'';

    (4) by striking ``chapter.'' in subsection (f) and inserting ``chapter (in the case of the Secretary of Transportation) and duties under section 114 of this title (in the case of the Secretary of Homeland Security).''; and

    (5) by adding at the end the following new subsection:

    ``(g) DEFINITIONS.--In this section--

    ``(1) the term `safety' includes security; and

    ``(2) the term `Secretary concerned' means--

    ``(A) the Secretary of Transportation, with respect to railroad safety matters concerning such Secretary under laws administered by that Secretary; and

    ``(B) the Secretary of Homeland Security, with respect to railroad safety matters concerning such Secretary under laws administered by that Secretary.''.

    (b) REGULATIONS AND ORDERS.--Section 20103(a) of such title is amended by inserting after ``1970.'' the following: ``When prescribing a security regulation or issuing a security order that affects the safety of railroad operations, the Secretary of Homeland Security shall consult with the Secretary.''.

    (c) NATIONAL UNIFORMITY OF REGULATION.--Section 20106 of such title is amended--

    (1) by inserting ``and laws, regulations, and orders related to railroad security'' after ``safety'' in the first sentence;

    (2) by inserting ``or security'' after ``safety'' each place it appears after the first sentence; and

    (3) by striking ``Transportation'' in the second sentence and inserting ``Transportation (with respect to railroad safety matters), or the Secretary of Homeland Security (with respect to railroad security matters),''.

   SEC. 1711. HAZMAT SAFETY TO INCLUDE HAZMAT SECURITY.

    (a) GENERAL REGULATORY AUTHORITY.--Section 5103 of title 49, United States Code, is amended--

    (1) by striking ``transportation'' the first place it appears in subsection (b)(1) and inserting ``transportation, including security,'';

    (2) by striking ``aspects'' in subsection (b)(1)(B) and inserting ``aspects, including security,''; and

    (3) by adding at the end the following:

    ``(C) CONSULTATION.--When prescribing a security regulation or issuing a security order that affects the safety of the transportation of hazardous material, the Secretary of Homeland Security shall consult with the Secretary.''.

    (b) PREEMPTION.--Section 5125 of that title is amended--

    (1) by striking ``chapter or a regulation prescribed under this chapter'' in subsection (a)(1) and inserting ``chapter, a regulation prescribed under this chapter, or a hazardous materials transportation security regulation or directive issued by the Secretary of Homeland Security'';

    (2) by striking ``chapter or a regulation prescribed under this chapter.'' in subsection (a)(2) and inserting ``chapter, a regulation prescribed under this chapter, or a hazardous materials transportation security regulation or directive issued by the Secretary of Homeland Security.''; and

    (3) by striking ``chapter or a regulation prescribed under this chapter,'' in subsection (b)(1) and inserting ``chapter, a regulation prescribed under this chapter, or a hazardous materials transportation security regulation or directive issued by the Secretary of Homeland Security,''.

   SEC. 1712. OFFICE OF SCIENCE AND TECHNOLOGY POLICY.

    The National Science and Technology Policy, Organization, and Priorities Act of 1976 is amended--

    (1) in section 204(b)(1) (42 U.S.C. 6613(b)(1)), by inserting ``homeland security,'' after ``national security,''; and

    (2) in section 208(a)(1) (42 U.S.C. 6617(a)(1)), by inserting ``the Office of Homeland Security,'' after ``National Security Council,''.

   SEC. 1713. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

    Section 7902(b) of title 10, United States Code, is amended by adding at the end the following new paragraphs:

    ``(13) The Under Secretary for Science and Technology of the Department of Homeland Security.

    ``(14) Other Federal officials the Council considers appropriate.''.

   SEC. 1714. CLARIFICATION OF DEFINITION OF MANUFACTURER.

    Section 2133(3) of the Public Health Service Act (42 U.S.C. 300aa-33(3)) is amended--

    (1) in the first sentence, by striking ``under its label any vaccine set forth in the Vaccine Injury Table'' and inserting ``any vaccine set forth in the Vaccine Injury table, including any component or ingredient of any such vaccine''; and

    (2) in the second sentence, by inserting ``including any component or ingredient of any such vaccine'' before the period.

   SEC. 1715. CLARIFICATION OF DEFINITION OF VACCINE-RELATED INJURY OR DEATH.

    Section 2133(5) of the Public Health Service Act (42 U.S.C. 300aa-33(5)) is amended by adding at the end the following: ``For purposes of the preceding sentence, an adulterant or contaminant shall not include any component or ingredient listed in a vaccine's product license application or product label.''.

   SEC. 1716. CLARIFICATION OF DEFINITION OF VACCINE.

    Section 2133 of the Public Health Service Act (42 U.S.C. 300aa-33) is amended by adding at the end the following:

    ``(7) The term `vaccine' means any preparation or suspension, including but not limited to a preparation or suspension containing an attenuated or inactive microorganism or subunit thereof or toxin, developed or administered to produce or enhance the body's immune response to a disease or diseases and includes all components and ingredients listed in the vaccines's product license application and product label.''.

   SEC. 1717. EFFECTIVE DATE.

    The amendments made by sections 1714, 1715, and 1716 shall apply to all actions or proceedings pending on or after the date of enactment of this Act, unless a court of competent jurisdiction has entered judgment (regardless of whether the time for appeal has expired) in such action or proceeding disposing of the entire action or proceeding.

   Mr. SANTORUM. Mr. President, I move to reconsider the vote.

   Mr. HATCH. I move to lay that motion on the table.

   The motion to lay on the table was agreed to.

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