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107th Congress                                            Rept. 107-609
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================
 
                     HOMELAND SECURITY ACT OF 2002

                                _______
                                

 July 24, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Armey, from the Select Committee on Homeland Security, submitted 
                             the following

                              R E P O R T

                             together with

                     MINORITY AND DISSENTING VIEWS

                        [To accompany H.R. 5005]

      [Including cost estimate of the Congressional Budget Office]

  The Select Committee on Homeland Security, to whom was 
referred the bill (H.R. 5005) to establish the Department of 
Homeland Security, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    63
Background and Need for Legislation..............................    63
Hearings.........................................................    67
Committee Consideration..........................................    68
Committee Votes..................................................    68
Committee Oversight Findings.....................................    75
Performance Goals and Objectives.................................    75
New Budget Authority, Entitlement Authority, and Tax Expenditures    75
Committee Cost Estimate..........................................    75
Congressional Budget Office Cost Estimate........................    76
Federal Mandates Statement.......................................    86
Constitutional Authority Statement...............................    86
Applicability to Legislative Branch..............................    86
Section-by-Section Analysis......................................    86
Minority and Dissenting Views....................................   217

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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.
Sec. 104. National Council of First Responders.

      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

Subtitle A--Under Secretary for Information Analysis and Infrastructure 
                               Protection

Sec. 201. Under Secretary for Information Analysis and Infrastructure 
Protection.
Sec. 202. Functions transferred.
Sec. 203. Access to information.
Sec. 204. Procedures for sharing information.
Sec. 205. Privacy officer.
Sec. 206. Federal cybersecurity program.

                Subtitle B--Intelligence Analysis Center

Sec. 211. Intelligence Analysis Center
Sec. 212. Mission of the Intelligence Analysis Center.

                   TITLE III--SCIENCE AND TECHNOLOGY

Sec. 301. Under Secretary for Science and Technology.
Sec. 302. Functions transferred.
Sec. 303. Conduct of certain public health-related activities.
Sec. 304. Federally funded research and development center.
Sec. 305. Miscellaneous provisions.
Sec. 306. Homeland Security Science and Technology Coordination 
Council.
Sec. 307. Conduct of research, development, demonstration, testing and 
evaluation.
Sec. 308. Transfer of Plum Island Animal Disease Center, Department of 
Agriculture.

              TITLE IV--BORDER AND TRANSPORTATION SECURITY

                     Subtitle A--General Provisions

Sec. 401. Under Secretary for Border and Transportation Security.
Sec. 402. Functions transferred.
Sec. 403. Visa issuance.
Sec. 404. Transfer of certain agricultural inspection functions of the 
Department of Agriculture.
Sec. 405. Functions of Administrator of General Services.
Sec. 406. Functions of Transportation Security Administration.
Sec. 407. Preservation of Transportation Security Administration as a 
distinct entity.
Sec. 408. Annual assessment of terrorist-related threats to public 
transportation.
Sec. 409. Explosive detection systems.
Sec. 410. Transportation security.

           Subtitle B--Immigration and Nationality Functions

                   Chapter 1--Immigration Enforcement

Sec. 411. Transfer of functions to under Secretary for Border and 
Transportation Security.
Sec. 412. Establishment of Bureau of Border Security.
Sec. 413. Professional responsibility and quality review.
Sec. 414. Employee discipline.
Sec. 415. Report on improving enforcement functions.

            Chapter 2--Citizenship And Immigration Services

                   SUBCHAPTER A--TRANSFERS OF FUNCTIONS

Sec. 421. Establishment of Bureau of Citizenship and Immigration 
Services.
Sec. 422. Citizenship and Immigration Services Ombudsman.
Sec. 423. Professional responsibility and quality review.
Sec. 424. Employee discipline.
Sec. 425. Office of Immigration Statistics within Bureau of Justice 
Statistics.
Sec. 426. Preservation of Attorney General's authority.
Sec. 427. Effective date.
Sec. 428. Transition.

                      SUBCHAPTER B--OTHER PROVISIONS

Sec. 431. Funding for citizenship and immigration services.
Sec. 432. Backlog elimination.
Sec. 433. Report on improving immigration services.
Sec. 434. Report on responding to fluctuating needs.
Sec. 435. Application of Internet-based technologies.
Sec. 436. Children's affairs.

                     Chapter 3--General Provisions

Sec. 441. Abolishment of INS.
Sec. 442. Voluntary separation incentive payments.
Sec. 443. Authority to conduct a demonstration project relating to 
disciplinary action.
Sec. 444. Sense of Congress.
Sec. 445. Reports and implementation plans.
Sec. 446. Immigration functions.

               Subtitle C--United States Customs Service

Sec. 451. Establishment; Commissioner of Customs.
Sec. 452. Retention of customs revenue functions by Secretary of the 
Treasury.
Sec. 453. Establishment and implementation of cost accounting system; 
reports.
Sec. 454. Preservation of Customs funds.
Sec. 455. Separate budget request for Customs.
Sec. 456. Payment of duties and fees.
Sec. 457. Definition.
Sec. 458. GAO report to Congress.
Sec. 459. Allocation of resources by the Secretary.
Sec. 460. Reports to Congress.
Sec. 461. Customs user fees.

              TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

Sec. 501. Under Secretary for Emergency Preparedness and Response.
Sec. 502. Functions transferred.
Sec. 503. Nuclear incident response.
Sec. 504. Definition.
Sec. 505. Conduct of certain public-health related activities.

                          TITLE VI--MANAGEMENT

Sec. 601. Under Secretary for Management.
Sec. 602. Chief Financial Officer.
Sec. 603. Chief Information Officer.
Sec. 604. Establishment of Office for Civil Rights and Civil Liberties.

                        TITLE VII--MISCELLANEOUS

                     Subtitle A--Inspector General

Sec. 701. Authority of the Secretary.

                Subtitle B--United States Secret Service

Sec. 711. Functions transferred.

            Subtitle C--Critical Infrastructure Information

Sec. 721. Short title.
Sec. 722. Definitions.
Sec. 723. Designation of critical infrastructure protection program.
Sec. 724. Protection of voluntarily shared critical infrastructure 
information.
Sec. 725. No private right of action.

                        Subtitle D--Acquisitions

Sec. 731. Research and development projects.
Sec. 732. Personal services.
Sec. 733. Special streamlined acquisition authority.
Sec. 734. Procurements from small businesses.

                          Subtitle E--Property

Sec. 741. Department headquarters.

Subtitle F--Support Anti-Terrorism by Fostering Effective Technologies 
                      Act of 2002 (the SAFETY Act)

Sec. 751. Short title.
Sec. 752. Administration.
Sec. 753. Litigation management.
Sec. 754. Risk management.
Sec. 755. Definitions.

                      Subtitle G--Other Provisions

Sec. 761. Establishment of human resources management system.
Sec. 762. Advisory committees.
Sec. 763. Reorganization; transfer of appropriations.
Sec. 764. Miscellaneous authorities.
Sec. 765. Military activities.
Sec. 766. Regulatory authority.
Sec. 767. Provisions regarding transfers from Department of Energy.
Sec. 768. Counternarcotics officer.
Sec. 769. Office of International Affairs.
Sec. 770. Prohibition of the terrorism information and prevention 
system.
Sec. 771. Review of pay and benefit plans.
Sec. 772. Role of the District of Columbia.
Sec. 773. Transfer of the Federal Law Enforcement Training Center.

                         TITLE VIII--TRANSITION

                    Subtitle A--Reorganization Plan

Sec. 801. Definitions.
Sec. 802. Reorganization plan.

                  Subtitle B--Transitional Provisions

Sec. 811. Transitional authorities.
Sec. 812. Savings provisions.
Sec. 813. Terminations.
Sec. 814. Incidental transfers.
Sec. 815. National identification system not authorized.
Sec. 816. Continuity of Inspector General oversight.
Sec. 817. Reference.

             TITLE IX--CONFORMING AND TECHNICAL AMENDMENTS

Sec. 901. Inspector General Act of 1978.
Sec. 902. Executive Schedule.
Sec. 903. United States Secret Service.
Sec. 904. Coast Guard.
Sec. 905. Strategic National Stockpile and smallpox vaccine 
development.
Sec. 906. Biological agent registration; Public Health Service Act.
Sec. 907. Transfer of certain security and law enforcement functions 
and authorities.
Sec. 908. Transportation security regulations.
Sec. 909. Railroad security laws.
Sec. 910. Office of Science and Technology Policy.
Sec. 911. National Oceanographic Partnership Program.
Sec. 912. Chief Financial Officer.
Sec. 913. Chief Information Officer.

              TITLE X--NATIONAL HOMELAND SECURITY COUNCIL

Sec. 1001. National Homeland Security Council.
Sec. 1002. Function.
Sec. 1003. Membership.
Sec. 1004. Other functions and activities.
Sec. 1005. Homeland security budget.
Sec. 1006. Staff composition.
Sec. 1007. Relation to the National Security Council.

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 Alaska Native village or organization; 
                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 Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any possession of the United 
        States.
          (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) 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.

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 thirty days after the date of enactment 
or, if enacted within thirty days before January 1, 2003, on January 1, 
2003.

                TITLE I--DEPARTMENT OF HOMELAND SECURITY

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; and
                  (F) ensure that the overall economic security of the 
                United States is not diminished by efforts, activities, 
                and programs aimed at securing the homeland.
          (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) There is a Secretary of Homeland Security, 
appointed by the President, by and with the advice and consent of the 
Senate.
  (2) The Secretary is the head of the Department and shall have 
direction, authority, and control over it.
  (3) 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.--The Secretary shall 
coordinate (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) An Under Secretary for Management.
          (7) Not more than four Assistant Secretaries.
          (8) A Chief Financial Officer.
  (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 General Counsel, who shall be the chief legal officer 
        of the Department.
          (2) Not more than eight Assistant Secretaries.
          (3) A Director of the Secret Service.
          (4) A Chief Information Officer.
  (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.

SEC. 104. NATIONAL COUNCIL OF FIRST RESPONDERS.

  (a) Findings.--The Congress finds the following:
          (1) First responders are key to protecting the health and 
        safety of our citizens against disasters.
          (2) First responders are the Nation's ready reaction force of 
        dedicated and brave people who save lives and property when 
        catastrophe strikes.
          (3) First responders have the knowledge, training, and 
        experience to save lives, often under the most difficult 
        conditions imaginable.
          (4) First responders play an important role in helping to 
        develop and implement advances in life saving technology.
          (5) First responders are uniquely qualified to advise the 
        Department of Homeland Security on the role of first responders 
        in defending our Nation against terrorism.
  (b) Establishment and Administration.--
          (1) There is established within the Department of Homeland 
        Security a National Council of First Responders (in this 
        section referred to as the ``Council'').
          (2) The President shall appoint the members of the Council. 
        The Council shall consist of not less than 100 members, no more 
        than 10 of whom may be residents of the same State. Members of 
        the Council shall be selected from among the ranks of police, 
        firefighters, emergency medical technicians, rescue workers, 
        and hospital personnel who are employed in communities, tribal 
        governments, and political subdivisions of various regions and 
        population sizes.
          (3) The Director of Homeland Security shall appoint a 
        Chairman of the Council.
          (4) Members shall be appointed to the Council for a term of 3 
        years.
          (5) Membership shall be staggered to provide continuity.
          (6) The Council shall meet no fewer than 2 times each year.
          (7) Members of the Council shall receive no compensation for 
        service on the Council.
          (8) The Secretary shall detail a single employee from the 
        Department of Homeland Security to the Council for the purposes 
        of:
                  (A) Choosing meeting dates and locations.
                  (B) Coordinating travel.
                  (C) Other administrative functions as needed.
  (c) Duties.--The Council shall have the following duties:
          (1) Develop a plan to disseminate information on first 
        response best practices.
          (2) Identify and educate the Secretary on the latest 
        technological advances in the field of first response.
          (3) Identify probable emerging threats to first responders.
          (4) Identify needed improvements to first response techniques 
        and training.
          (5) Identify efficient means of communication and 
        coordination between first responders and local, State, and 
        Federal officials.
          (6) Identify areas in which the Department can assist first 
        responders.
          (7) Evaluate the adequacy and timeliness of resources being 
        made available to local first responders.
  (d) Reporting Requirement.--The Council shall report to the Congress 
by October 1 of each year on how first responders can continue to be 
most effectively used to meet the ever-changing challenges of providing 
homeland security for the United States.

      TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

Subtitle A--Under Secretary for Information Analysis and Infrastructure 
                               Protection

SEC. 201. UNDER SECRETARY FOR INFORMATION ANALYSIS AND INFRASTRUCTURE 
                    PROTECTION.

  The Secretary, acting through the Under Secretary for Information 
Analysis and Infrastructure Protection, shall be responsible for the 
following:
          (1) Conducting analysis of information, including foreign 
        intelligence and open source information, lawfully collected by 
        Federal, State and local law enforcement agencies and by 
        elements of the intelligence community with respect to threats 
        of terrorist acts against the United States.
          (2) Integrating information, intelligence, and intelligence 
        analyses to produce and disseminate infrastructure 
        vulnerability assessments with respect to such threats.
          (3) Identifying priorities for protective and support 
        measures by the Department, by other executive agencies, by 
        State and local governments, by the private sector, and by 
        other entities.
          (4) Reviewing, analyzing, and recommending improvements in 
        law, policy, and procedure for the sharing of intelligence and 
        other information with respect to threats against the United 
        States within the Federal Government and between the Federal 
        Government and State and local governments.
          (5) Under the direction of the Secretary, developing a 
        comprehensive national plan to provide for the security of key 
        resources and critical infrastructures.
          (6) Coordinating with other executive agencies, State and 
        local government personnel, agencies, and authorities, and the 
        private sector, to provide advice on implementation of such 
        comprehensive national plan.
          (7) Supporting the intelligence and information requirements 
        of the Department.
          (8) Administering the Homeland Security Advisory System, 
        exercising primary responsibility for public advisories 
        relating to terrorist threats, and (in coordination with other 
        executive agencies) providing specific warning information to 
        State and local government personnel, agencies, and 
        authorities, the private sector, other entities, and the 
        public, as well as advice about appropriate protective actions 
        and countermeasures.

SEC. 202. FUNCTIONS TRANSFERRED.

  In accordance with title VIII, there shall be transferred to the 
Secretary the functions, personnel, assets, and obligations 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.
          (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 Energy Security and Assurance Program of the 
        Department of Energy, including the National Infrastructure 
        Simulation and Analysis Center and 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.

SEC. 203. ACCESS TO INFORMATION.

  The Secretary shall have access to all reports, assessments, and 
analytical information relating to threats of terrorism in the United 
States and to other areas of responsibility described in section 
101(b), 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 executive agency, except as otherwise directed by the 
President. The Secretary shall also have access to other information 
relating to the foregoing matters that may be collected, possessed, or 
prepared by an executive agency, as the President may further provide. 
With respect to the material to which the Secretary has access under 
this section--
          (1) the Secretary may obtain such material by request, and 
        may enter into cooperative arrangements with other executive 
        agencies to share such material on a regular or routine basis, 
        including requests or arrangements involving broad categories 
        of material;
          (2) regardless of whether the Secretary has made any request 
        or entered into any cooperative arrangement pursuant to 
        paragraph (1), all executive agencies promptly shall provide to 
        the Secretary--
                  (A) all reports, assessments, and analytical 
                information relating to threats of terrorism in the 
                United States and to other areas of responsibility 
                described in section 101(b);
                  (B) all information concerning infrastructure or 
                other vulnerabilities of the United States to 
                terrorism, whether or not such information has been 
                analyzed;
                  (C) all information relating to significant and 
                credible threats of terrorism in the United States, 
                whether or not such information has been analyzed, if 
                the President has provided that the Secretary shall 
                have access to such information; and
                  (D) such other material as the President may further 
                provide;
          (3) the Secretary shall have full access and input with 
        respect to information from any national collaborative 
        information analysis capability (as referred to in section 924 
        of the National Defense Authorization Act for Fiscal Year 2002 
        (Public Law 107-107; 115 Stat. 1199)) established jointly by 
        the Secretary of Defense and the Director of Central 
        Intelligence; and
          (4) the Secretary shall ensure that any material received 
        pursuant to this section is protected from unauthorized 
        disclosure and handled and used only for the performance of 
        official duties, and that any intelligence information shared 
        under this section shall be transmitted, retained, and 
        disseminated consistent with the authority of the Director of 
        Central Intelligence to protect intelligence sources and 
        methods under the National Security Act and related procedures 
        or, as appropriate, similar authorities of the Attorney General 
        concerning sensitive law enforcement information.

SEC. 204. 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. 205. 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 information 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 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. 206. FEDERAL CYBERSECURITY PROGRAM.

  (a) In General.--The Secretary, acting through the Under Secretary 
for Information Analysis and Infrastructure Protection, shall establish 
and manage a program to improve the security of Federal critical 
information systems, including carrying out responsibilities under 
paragraphs (1) and (2) of section 201 that relate to such systems.
  (b) Duties.--The duties of the Secretary under subsection (a) are--
          (1) to evaluate the increased use by civilian executive 
        agencies of techniques and tools to enhance the security of 
        Federal critical information systems, including, as 
        appropriate, consideration of cryptography;
          (2) to provide assistance to civilian executive agencies in 
        protecting the security of Federal critical information 
        systems, including identification of significant risks to such 
        systems; and
          (3) to coordinate research and development for critical 
        information systems relating to supervisory control and data 
        acquisition systems, including, as appropriate, the 
        establishment of a test bed.
  (c) Federal Information System Security Team.--
          (1) In general.--In carrying out subsection (b)(2), the 
        Secretary shall establish, manage, and support a Federal 
        information system security team whose purpose is to provide 
        technical expertise to civilian executive agencies to assist 
        such agencies in securing Federal critical information systems 
        by conducting information security audits of such systems, 
        including conducting tests of the effectiveness of information 
        security control techniques and performing logical access 
        control tests of interconnected computer systems and networks, 
        and related vulnerability assessment techniques.
          (2) Team members.--The Secretary shall ensure that the team 
        under paragraph (1) includes technical experts and auditors, 
        computer scientists, and computer forensics analysts whose 
        technical competence enables the team to conduct audits under 
        such paragraph.
          (3) Agency agreements regarding audits.--Each civilian 
        executive agency may enter into an agreement with the team 
        under paragraph (1) for the conduct of audits under such 
        paragraph of the Federal critical information systems of the 
        agency. Such agreement shall establish the terms of the audit 
        and shall include provisions to minimize the extent to which 
        the audit disrupts the operations of the agency.
          (4) Reports.--Promptly after completing an audit under 
        paragraph (1) of a civilian executive agency, the team under 
        such paragraph shall prepare a report summarizing the findings 
        of the audit and making recommendations for corrective action. 
        Such report shall be submitted to the Secretary, the head of 
        such agency, and the Inspector General of the agency (if any), 
        and upon request of any congressional committee with 
        jurisdiction over such agency, to such committee.
  (d) Definition.--For purposes of this section, the term ``Federal 
critical information system'' means an ``information system'' as 
defined in section 3502 of title 44, United States Code, that--
          (1) is, or is a component of, a key resource or critical 
        infrastructure;
          (2) is used or operated by a civilian executive agency or by 
        a contractor of such an agency; and
          (3) does not include any national security system as defined 
        in section 5142 of the Clinger-Cohen Act of 1996.

                Subtitle B--Intelligence Analysis Center

SEC. 211. INTELLIGENCE ANALYSIS CENTER.

  (a) Establishment; NFIP Agency.--(1) There is established within the 
Department the Intelligence Analysis Center. The Under Secretary for 
Information Analysis and Infrastructure Protection shall be the head of 
the Intelligence Analysis Center.
  (2) The Intelligence Analysis Center is a program of the intelligence 
community for purposes of the National Foreign Intelligence Program (as 
defined in section 3(6) of the National Security Act of 1947 (50 U.S.C. 
401a(6))).
  (b) Functions.--The Under Secretary for Information Analysis and 
Infrastructure Protection, through the Intelligence Analysis Center, 
shall carry out the duties specified in paragraphs (1), (2), (3), (6), 
and (7) of section 201(b).
  (c) Detail of Certain Personnel.--
          (1) In general.--The Secretary and the Director of Central 
        Intelligence, the Secretary of Defense, the Attorney General, 
        the Secretary of State, or the head of another agency or 
        department as the case may be, shall enter into cooperative 
        arrangements to provide for an appropriate number of 
        individuals to be detailed to the Under Secretary to perform 
        analytical functions and duties with respect to the mission of 
        the Department from the following agencies:
                  (A) The Central Intelligence Agency.
                  (B) The Federal Bureau of Investigation.
                  (C) The National Security Agency.
                  (D) The National Imagery and Mapping Agency.
                  (E) The Department of State.
                  (F) The Defense Intelligence Agency.
                  (G) Any other agency or department that the President 
                determines appropriate.
          (2) Terms of detail.--Any officer or employee of the United 
        States or a member of the Armed Forces who is detailed to the 
        Under Secretary under paragraph (1) shall be detailed on a 
        reimbursable basis for a period of less than two years for the 
        performance of temporary functions as required by the Under 
        Secretary.
  (d) Inclusion of Office of Intelligence as an Element of the 
Intelligence Community.--Section 3(4) of the National Security Act of 
1947 (50 U.S.C. 401a(4)) 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 Intelligence Analysis Center of the 
                Department of Homeland Security; and''.

SEC. 212. MISSION OF THE INTELLIGENCE ANALYSIS CENTER.

  (a) In General.--The mission of the Intelligence Analysis Center is 
as follows:
          (1) Analysis and production.--
                  (A) Correlating and evaluating information and 
                intelligence related to the mission of the Department 
                collected from all sources available.
                  (B) Producing all-source collaborative intelligence 
                analysis, warnings, tactical assessments, and strategic 
                assessments of the terrorist threat and infrastructure 
                vulnerabilities of the United States.
                  (C) Providing appropriate dissemination of such 
                assessments.
                  (D) Improving the lines of communication with respect 
                to homeland security between the Federal Government and 
                State and local public safety agencies and the private 
                sector through the timely dissemination of information 
                pertaining to threats of acts of terrorism against the 
                United States.
          (2) Coordination of information.--Coordinating with elements 
        of the intelligence community and with Federal, State, and 
        local law enforcement agencies, and the private sector as 
        appropriate.
          (3) Additional Duties.--Performing such other functions as 
        the Secretary may direct.
  (b) Strategic and Tactical Missions of the Intelligence Analysis 
Center.--The Under Secretary shall conduct strategic and tactical 
assessments and warnings through the Intelligence Analysis Center, 
including research, analysis, and the production of assessments on the 
following as they relate to the mission of the Department:
          (1) Domestic terrorism.
          (2) International terrorism.
          (3) Counterintelligence.
          (4) Transnational crime.
          (5) Proliferation of weapons of mass destruction.
          (6) Illicit financing of terrorist activities.
          (7) Cybersecurity and cybercrime.
          (8) Key resources and critical infrastructures.
  (c) Staffing of the Intelligence Analysis Center.--
          (1) Functions transferred.--In accordance with title VIII, 
        for purposes of carrying out this title, there is transferred 
        to the Under Secretary the functions, personnel, assets, and 
        liabilities of the following entities:
                  (A) The National Infrastructure Protection Center of 
                the Federal Bureau of Investigation (other than the 
                Computer Investigations and Operations Section).
                  (B) The Critical Infrastructure Assurance Office of 
                the Department of Commerce.
                  (C) The Federal Computer Incident Response Center of 
                the General Services Administration.
                  (D) The National Infrastructure Simulation and 
                Analysis Center of the Department of Energy.
                  (E) The National Communications System of the 
                Department of Defense.
                  (F) The intelligence element of the Coast Guard.
                  (G) The intelligence element of the United States 
                Customs Service.
                  (H) The intelligence element of the Immigration and 
                Naturalization Service.
                  (I) The intelligence element of the Transportation 
                Security Administration.
                  (J) The intelligence element of the Federal 
                Protective Service.
          (2) Structure.--It is the sense of Congress that the Under 
        Secretary should model the Intelligence Analysis Center on the 
        technical, analytic approach of the Information Dominance 
        Center of the Department of the Army to the maximum extent 
        feasible and appropriate.

                   TITLE III--SCIENCE AND TECHNOLOGY

SEC. 301. UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY.

  The Secretary, acting through the Under Secretary for Science and 
Technology, shall have responsibility for--
          (1) 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;
          (2) 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;
          (3) 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; provided that such 
        responsibility does not extend to human health-related research 
        and development activities;
          (4) coordinating and integrating all research, development, 
        demonstration, testing, and evaluation activities of the 
        Department;
          (5) 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;
          (6) establishing Federal priorities for research, 
        development, demonstration, testing, and, as appropriate, 
        procurement and transitional operation of technology and 
        systems--
                  (A) for preventing the importation of chemical, 
                biological, radiological, and nuclear weapons and 
                related materials;
                  (B) for detecting, preventing, and protecting against 
                terrorist attacks that involve such weapons or related 
                materials; and
                  (C) for interoperability of communications systems 
                for emergency response providers;
          (7) ensuring that the research, development, demonstration, 
        testing, and evaluation activities of the Department are 
        aligned with the Department's procurement needs;
          (8) facilitating the deployment of technology that will serve 
        to enhance homeland security, including through the 
        establishment of a centralized Federal repository for 
        information relating to technologies described in subparagraphs 
        (A), (B), and (C) of paragraph (6) for dissemination to 
        Federal, State, and local government and private sector 
        entities, and for information for persons seeking guidance on 
        how to pursue proposals to develop or deploy technologies that 
        would contribute to homeland security;
          (9) providing 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 subparagraphs (A), (B), 
        and (C) of paragraph (6); and
          (10) 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. 302. FUNCTIONS TRANSFERRED.

  In accordance with title VIII, there shall be transferred to the 
Secretary the functions, personnel, assets, and obligations of the 
following:
          (1) The program under section 351A of the Public Health 
        Service Act, and functions thereof, including the functions of 
        the Secretary of Health and Human Services relating thereto, 
        subject to the amendments made by section 906(a)(3), except 
        that such transfer shall not occur unless the program under 
        section 212 of the Agricultural Bioterrorism Protection Act of 
        2002 (subtitle B of title II of Public Law 107-188), and 
        functions thereof, including the functions of the Secretary of 
        Agriculture relating thereto, is transferred to the Department.
          (2) 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), as 
        follows:
                  (A) The programs and activities relating to chemical 
                and biological national security, and supporting 
                programs and activities directly related to homeland 
                security, of the non-proliferation and verification 
                research and development program.
                  (B) The programs and activities relating to nuclear 
                smuggling, and other programs and activities directly 
                related to homeland security, within the proliferation 
                detection program of the non-proliferation and 
                verification research and development program.
                  (C) Those aspects of the nuclear assessment program 
                of the international materials protection and 
                cooperation program that are directly related to 
                homeland security.
                  (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 and that are directly 
                related to homeland security.
                  (E) The Environmental Measurements Laboratory.
                  (F) The advanced scientific computing research 
                program and activities at Lawrence Livermore National 
                Laboratory.
          (3) The homeland security projects within the Chemical 
        Biological Defense Program of the Department of Defense known 
        as the Biological Defense Homeland Security Support Program and 
        the Biological Counter-Terrorism Research Program.

SEC. 303. CONDUCT OF CERTAIN PUBLIC HEALTH-RELATED ACTIVITIES.

  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 
301(1).

SEC. 304. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER.

  The Secretary, acting through the Under Secretary for Science and 
Technology, shall have the authority to establish or contract with one 
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 307.

SEC. 305. MISCELLANEOUS PROVISIONS.

  (a) Classification.--To the greatest extent practicable, research 
conducted or supported by the Department shall be unclassified.
  (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 302(2)(D) of this 
Act, the President shall notify the Congress 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. 306. HOMELAND SECURITY SCIENCE AND TECHNOLOGY COORDINATION 
                    COUNCIL.

  (a) Establishment and Composition.--There is established within the 
Department a Homeland Security Science and Technology Coordination 
Council (in this section referred to as the ``Coordination Council''). 
The Coordination Council shall be composed of all the Under Secretaries 
of the Department and any other Department officials designated by the 
Secretary, and shall be chaired by the Under Secretary for Science and 
Technology. The Coordination Council shall meet at the call of the 
chair.
  (b) Responsibilities.--The Coordination Council shall--
          (1) establish priorities for research, development, 
        demonstration, testing, and evaluation activities conducted or 
        supported by the Department;
          (2) ensure that the priorities established under paragraph 
        (1) reflect the acquisition needs of the Department; and
          (3) assist the Under Secretary for Science and Technology in 
        carrying out his responsibilities under section 301(4).

SEC. 307. 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 301(3) through both extramural and intramural programs.
  (b) Extramural Programs.--(1) 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; and
          (B) distribute funds through grants, cooperative agreements, 
        and contracts through competitions that are as open as 
        possible.
  (2)(A) 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) 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) 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) There are authorized to be appropriated such sums as may be 
necessary to carry out this paragraph.
  (c) Intramural Programs.--(1) In carrying out the duties under 
section 301, 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) The Secretary, acting through the Under Secretary for Science and 
Technology, may establish a headquarters laboratory for the Department 
at any national laboratory and may establish additional laboratory 
units at other national laboratories.
  (3) 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 national laboratories against 
        the criteria.
          (D) Select a national laboratory 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) 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. 308. TRANSFER OF PLUM ISLAND ANIMAL DISEASE CENTER, DEPARTMENT OF 
                    AGRICULTURE.

  (a) Transfer Required.--In accordance with title VIII, 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.--Upon the transfer of 
the Plum Island Animal Disease Center, the Secretary of Homeland 
Security and the Secretary of Agriculture shall enter into an agreement 
to ensure Department of Agriculture access to the center for research, 
diagnostic, and other activities of the Department of Agriculture.
  (c) Notification.--At least 180 days before any change in the 
biosafety level at the facility described in subsection (a), the 
President shall notify the Congress of the change and describe the 
reasons therefor. No such change may be made until at least 180 days 
after the completion of the transition period defined in section 
801(2).

              TITLE IV--BORDER AND TRANSPORTATION SECURITY

                     Subtitle A--General Provisions

SEC. 401. UNDER SECRETARY FOR BORDER AND TRANSPORTATION SECURITY.

  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 governmental activities 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 411 takes effect.
          (4) Establishing and administering rules, in accordance with 
        section 403, 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) Except as provided in subtitle C, administering the 
        customs laws of the United States.
          (6) Conducting the inspection and related administrative 
        functions of the Department of Agriculture transferred to the 
        Secretary of Homeland Security under section 404.
          (7) In carrying out the foregoing responsibilities, ensuring 
        the speedy, orderly, and efficient flow of lawful traffic and 
        commerce.

SEC. 402. FUNCTIONS TRANSFERRED.

  In accordance with title VIII, there shall be transferred to the 
Secretary the functions, personnel, assets, and obligations of the 
following:
          (1) The United States Customs Service, except as provided in 
        subtitle C.
          (2) The Coast Guard of the Department of Transportation, 
        which shall be maintained as a distinct entity within the 
        Department, including the functions of the Secretary of 
        Transportation relating thereto.
          (3) 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.
          (4) The Federal Protective Service of the General Services 
        Administration, including the functions of the Administrator of 
        General Services relating thereto.
          (5) The Office of National Preparedness of the Federal 
        Emergency Management Agency, including the functions of the 
        Director of the Federal Emergency Management Agency relating 
        thereto.
          (6) The Office for Domestic Preparedness of the Office of 
        Justice Programs of the Department of Justice, including the 
        functions of the Attorney General relating thereto.
          (7) The National Domestic Preparedness Office of the Federal 
        Bureau of Investigation, including the functions of the 
        Attorney General relating thereto.
          (8) The Domestic Emergency Support Teams of the Department of 
        Justice, including the functions of the Attorney General 
        relating thereto.

SEC. 403. VISA ISSUANCE.

  (a) 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 (b) 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).
  (b) Authority of the Secretary of State.--
          (1) In general.--Notwithstanding subsection (a), 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 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)(vi)(II) of the Immigration 
                and Nationality Act.
                  (D) Section 212(a)(3)(C) of the Immigration and 
                Nationality Act (8 U.S.C. 1182(a)(3)(C)).
                  (E) Section 212(a)(10)(C) of the Immigration and 
                Nationality Act (8 U.S.C. 1182(a)(10)(C)).
                  (F) Section 219(a) of the Immigration and Nationality 
                Act (8 U.S.C. 1189(a)).
                  (G) Section 237(a)(4)(C) of the Immigration and 
                Nationality Act (8 U.S.C. 1227(a)(4)(C)).
                  (H) Section 401 of the Cuban Liberty and Democratic 
                Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6034; 
                Public Law 104-114).
                  (I) 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).
                  (J) 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.
                  (K) Section 568 of the Foreign Operations, Export 
                Financing, and Related Programs Appropriations Act, 
                2002 (Public Law 107-115).
          (3) 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)).
  (c) Assignment of Homeland Security Employees to Diplomatic and 
Consular Posts.--
          (1) In general.--The Secretary is authorized to assign 
        employees of the Department of Homeland Security to any 
        diplomatic and consular posts abroad to perform the following 
        functions:
                  (A) Provide expert advice and training to consular 
                officers regarding specific security threats relating 
                to individual visa applications or classes of 
                applications.
                  (B) Review any or all such applications prior to 
                their adjudication, either on the initiative of the 
                employee of the Department of Homeland Security or upon 
                request by a consular officer or other person charged 
                with adjudicating such applications.
                  (C) Conduct investigations with respect to matters 
                under the jurisdiction of the Secretary.
          (2) Permanent assignment; participation in terrorist lookout 
        committee.--When appropriate, employees of the Department of 
        Homeland Security assigned to perform functions described in 
        paragraph (1) 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).
          (3) Training and hiring.--
                  (A) The Secretary shall ensure that any employees of 
                the Department of Homeland Security assigned to perform 
                functions described in paragraph (1) shall be provided 
                all necessary training to enable them to carry out such 
                functions, including training in foreign languages, 
                interview techniques, fraud detection techniques, and 
                other skills required by such employees, in conditions 
                in the particular country where each employee is 
                assigned, and in other appropriate areas of study.
                  (B) The Secretary shall promulgate regulations within 
                60 days of the enactment of this Act establishing 
                foreign language proficiency requirements for employees 
                of the Department performing the functions described in 
                paragraph (1) and providing that preference shall be 
                given to individuals who meet such requirements in 
                hiring employees for the performance of such functions.
                  (C) The Secretary is authorized to use the National 
                Foreign Affairs Training Center, on a reimbursable 
                basis, to obtain the training described in subparagraph 
                (A).
  (d) 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.
  (e) 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.
          (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.
  (f) 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 the Congress a report on how the provisions of 
this section will affect procedures for the issuance of student visas.
  (g) 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, interview waiver, or other non-interview visa 
issuance programs in Saudi Arabia shall be terminated. On-site 
personnel of the Department of Homeland Security shall review all visa 
applications prior to adjudication. All visa applicants in Saudi Arabia 
shall be interviewed unless on-site personnel of the Department of 
Homeland Security determine, in writing and pursuant to written 
guidelines issued by the Secretary of Homeland Security, that the alien 
is unlikely to present a risk to homeland security. The Secretary of 
Homeland Security shall promulgate such guidelines not later than 30 
days after the date of the enactment of this Act.

SEC. 404. 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 of Homeland Security 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 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 of Homeland Security 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 of Homeland Security 
        whenever the Secretary of Agriculture prescribes regulations, 
        policies, or procedures for administering the laws specified in 
        subsection (b) at the locations referred to in subsection (a).
          (3) Effective administration.--The Secretary of Homeland 
        Security, 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).
  (e) Transfer Agreement.--
          (1) Agreement required; revision.--Before the end of the 
        transition period, as defined in section 801(2), the Secretary 
        of Agriculture and the Secretary of Homeland Security shall 
        enter into an agreement to effectuate the transfer of functions 
        required by subsection (a). The Secretary of Agriculture and 
        the Secretary of Homeland Security 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 of 
                Homeland Security to carry out the functions 
                transferred pursuant to subsection (a).
                  (B) The transfer of funds to the Secretary of 
                Homeland Security under subsection (f).
          (3) Cooperation and reciprocity.--The Secretary of 
        Agriculture and the Secretary of Homeland Security may include 
        as part of the agreement the following:
                  (A) Authority for the Secretary of Homeland Security 
                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 of Homeland Security 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 of Homeland Security funds for activities 
        carried out by the Secretary of Homeland Security for which 
        such fees were collected.
          (2) Limitation.--The proportion of fees collected pursuant to 
        such sections that are transferred to the Secretary of Homeland 
        Security under this subsection may not exceed the proportion of 
        the costs incurred by the Secretary of Homeland Security to all 
        costs incurred to carry out activities funded by such fees.
  (g) Transfer of Department of Agriculture Employees.--During the 
transition period, the Secretary of Agriculture shall transfer to the 
Secretary of Homeland Security 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. 405. 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 
402(4), the Administrator shall retain all powers, functions, and 
authorities vested in the Administrator under the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) 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 210(f) of the 
                Federal Property and Administrative Services Act of 
                1949 (40 U.S.C. 490(f)).
          (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. 406. 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.
  (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. 407. 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 two years after the 
date of enactment of this Act.

SEC. 408. ANNUAL ASSESSMENT OF TERRORIST-RELATED THREATS TO PUBLIC 
                    TRANSPORTATION.

  On an annual basis, the Secretary, in consultation with the heads of 
other appropriate Federal departments and agencies, shall conduct an 
assessment of terrorist-related threats to all forms of public 
transportation, including public gathering areas related to public 
transportation.

SEC. 409. EXPLOSIVE DETECTION SYSTEMS.

  (a) Installation of Systems.--Section 44901(d) of title 49, United 
States Code, is amended by adding at the end the following:
          ``(2) Modification of airport terminal buildings to 
        accommodate explosive detection systems.--
                  ``(A) Notification of airports.--Not later than 
                October 1, 2002, the Under Secretary shall notify the 
                owner or operator of each United States airport 
                described in section 44903(c) of the number and type of 
                explosive detection systems that will be required to be 
                deployed at the airport in order to screen all checked 
                baggage by explosive detection systems without imposing 
                unreasonable delays on the passengers using the 
                airport.
                  ``(B) Assessments of airport terminal buildings.--If 
                the owner or operator of a United States airport 
                described in section 44903(c) determines that the 
                airport will not be able to make the modifications to 
                the airport's terminal buildings that are necessary to 
                accommodate the explosive detection systems required 
                under subparagraph (A) in a cost-effective manner on or 
                before December 31, 2002, the owner or operator shall 
                provide notice of that determination to the Under 
                Secretary not later than November 1, 2002.
                  ``(C) Plans for making modifications to airport 
                terminal buildings.--
                          ``(i) In general.--If the owner or operator 
                        of an airport provides notice to the Under 
                        Secretary under subparagraph (B), the Under 
                        Secretary, in consultation with the owner or 
                        operator, shall develop, not later than 
                        December 1, 2002, a plan for making necessary 
                        modifications to the airport's terminal 
                        buildings so as to deploy and fully utilize 
                        explosive detection systems to screen all 
                        checked baggage.
                          ``(ii) Deadline.--A plan developed under this 
                        subparagraph shall include a date for executing 
                        the plan. All such plans shall be executed as 
                        expeditiously as practicable but not later than 
                        December 31, 2003.
                          ``(iii) Transmission of plans to congress.--
                        On the date of completion of a plan under this 
                        subparagraph, the Under Secretary shall 
                        transmit a copy of the plan to Congress. For 
                        security purposes, information contained in the 
                        plan shall not be disclosed to the public.
                  ``(D) Requirements for plans.--A plan developed and 
                published under subparagraph (C), shall provide for, to 
                the maximum extent practicable--
                          ``(i) the deployment of explosive detection 
                        systems in the baggage sorting area or other 
                        non-public area rather than the lobby of an 
                        airport terminal building; and
                          ``(ii) the deployment of state of the art 
                        explosive detection systems that have high 
                        throughput, low false alarm rates, and high 
                        reliability without reducing detection rates.
                  ``(E) Use of screening methods other than eds.--
                Notwithstanding the deadline in paragraph (1)(A), after 
                December 31, 2002, if explosive detection systems are 
                not screening all checked baggage at a United States 
                airport described in section 44903(c), such baggage 
                shall be screened by the methods described in 
                subsection (e) until such time as all checked baggage 
                is screened by explosive detection systems at the 
                airport.
          ``(3) Purchase of explosive detection systems.--Any explosive 
        detection system required to be purchased under paragraph 
        (2)(A) shall be purchased by the Under Secretary.
          ``(4) Explosive detection system defined.--In this 
        subsection, the term `explosive detection system' means a 
        device, or combination of devices, that can detect different 
        types of explosives.''.
  (b) Correction of Reference.--Section 44901(e) of title 49, United 
States Code, is amended by striking ``(b)(1)(A)'' and inserting 
``(d)(1)(A)''.

SEC. 410. 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 49, United States Code, is amended by adding at 
the end the following:
  ``(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) (relating to security equipment) or section 
47102(3)(B)(x) (relating to installation of bulk explosive detection 
systems).''.

           Subtitle B--Immigration and Nationality Functions

                   CHAPTER 1--IMMIGRATION ENFORCEMENT

SEC. 411. TRANSFER OF FUNCTIONS TO UNDER SECRETARY FOR BORDER AND 
                    TRANSPORTATION SECURITY.

  In accordance with title VIII, 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. 412. ESTABLISHMENT OF BUREAU OF BORDER SECURITY.

  (a) Establishment of Bureau.--
          (1) In general.--There is established 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 10 years professional 
                experience in law enforcement, at least 5 of which 
                shall have been years of service in a managerial 
                capacity.
          (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 
                        411 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 of the Department of Justice established under 
                chapter 2, 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 411 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, as a 
                condition on further promotion--
                          (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 
                411 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) establishing national immigration enforcement 
                policies and priorities;
                  (B) performing policy research and analysis on 
                immigration enforcement issues; and
                  (C) coordinating immigration policy issues with the 
                Chief of Policy and Strategy for the Bureau of 
                Citizenship and Immigration Services of the Department 
                of Justice (established under chapter 2), and the 
                Assistant Attorney General for Citizenship and 
                Immigration Services, as appropriate.
  (c) Citizenship and Immigration Services Liaison.--
          (1) In general.--There shall be a position of Citizenship and 
        Immigration Services Liaison for the Bureau of Border Security.
          (2) Functions.--The Citizenship and Immigration Services 
        Liaison shall be responsible for the appropriate allocation and 
        coordination of resources involved in supporting shared support 
        functions for the Bureau of Citizenship and Immigration 
        Services of the Department of Justice (established under 
        chapter 2) and the Bureau of Border Security, including--
                  (A) information resources management, including 
                computer databases and information technology;
                  (B) records and file management; and
                  (C) forms management.

SEC. 413. 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. 414. 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. 415. REPORT ON IMPROVING ENFORCEMENT FUNCTIONS.

  (a) In General.--The Secretary, not later than 1 year after being 
sworn into office, shall submit to the Committees on Appropriations and 
the Judiciary of the United States House of Representatives and of the 
Senate a report with a plan detailing how the Bureau of Border 
Security, after the transfer of functions specified under section 411 
takes effect, will enforce comprehensively, effectively, and fairly all 
the enforcement provisions of the Immigration and Nationality Act (8 
U.S.C. 1101 et seq.) relating to such functions.
  (b) Consultation.--In carrying out subsection (a), the Secretary of 
Homeland Security shall consult with the Attorney General, the 
Secretary of State, the Assistant Attorney General for Citizenship and 
Immigration Services, 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.

            CHAPTER 2--CITIZENSHIP AND IMMIGRATION SERVICES

                  Subchapter A--Transfers of Functions

SEC. 421. ESTABLISHMENT OF BUREAU OF CITIZENSHIP AND IMMIGRATION 
                    SERVICES.

  (a) Establishment of Bureau.--
          (1) In general.--There is established in the Department of 
        Justice a bureau to be known as the ``Bureau of Citizenship and 
        Immigration Services''.
          (2) Assistant attorney general.--The head of the Bureau of 
        Citizenship and Immigration Services shall be the Assistant 
        Attorney General for Citizenship and Immigration Services, 
        who--
                  (A) shall report directly to the Deputy Attorney 
                General; and
                  (B) shall have a minimum of 10 years professional 
                experience in the rendering of adjudications on the 
                provision of government benefits or services, at least 
                5 of which shall have been years of service in a 
                managerial capacity or in a position affording 
                comparable management experience.
          (3) Functions.--The Assistant Attorney General for 
        Citizenship and Immigration Services--
                  (A) shall establish the policies for performing such 
                functions as are transferred to the Assistant Attorney 
                General by this section or this Act or otherwise vested 
                in the Assistant Attorney General by law;
                  (B) shall oversee the administration of such 
                policies;
                  (C) shall advise the Deputy Attorney General 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 of 
                Homeland Security, including potentially conflicting 
                policies or operations;
                  (D) shall meet regularly with the Ombudsman described 
                in section 422 to correct serious service problems 
                identified by the Ombudsman; and
                  (E) shall establish procedures requiring a formal 
                response to any recommendations submitted in the 
                Ombudsman's annual report to the Congress within 3 
                months after its submission to the Congress.
          (4) Managerial rotation program.--
                  (A) In general.--Not later than 1 year after the 
                effective date specified in section 427, the Assistant 
                Attorney General for 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, as a condition on further promotion--
                          (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 427, the Attorney 
                General shall submit a report to the Congress on the 
                implementation of such program.
          (5) Pilot initiatives for backlog elimination.--The Assistant 
        Attorney General for 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.--There are transferred 
from the Commissioner of Immigration and Naturalization to the 
Assistant Attorney General for 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 427:
          (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 427.
  (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) establishing national immigration services 
                policies and priorities;
                  (B) performing policy research and analysis on 
                immigration services issues; and
                  (C) coordinating immigration policy issues with the 
                Chief of Policy and Strategy for the Bureau of Border 
                Security of the Department of Homeland Security.
  (d) General Counsel.--
          (1) In general.--There shall be a position of General Counsel 
        for the Bureau of Citizenship and Immigration Services.
          (2) Functions.--The General Counsel shall serve as the 
        principal legal advisor to the Assistant Attorney General for 
        Citizenship and Immigration Services. The General Counsel shall 
        be responsible for--
                  (A) providing specialized legal advice, opinions, 
                determinations, regulations, and any other assistance 
                to the Assistant Attorney General for 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 and in other legal or administrative proceedings 
                involving immigration services issues.
  (e) Chief Budget Officer.--
          (1) In general.--There shall be a position of Chief Budget 
        Officer for the Bureau of Citizenship and Immigration Services.
          (2) Functions.--
                  (A) In general.--The Chief 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.
          (3) Authority and functions of agency chief financial 
        officers.--The Chief Budget Officer for the Bureau of 
        Citizenship and Immigration Services shall have the authorities 
        and functions described in section 902 of title 31, United 
        States Code, in relation to financial activities of such 
        bureau.
  (f) Chief of Congressional, Intergovernmental, and Public Affairs.--
          (1) In general.--There shall be a position of Chief of 
        Congressional, Intergovernmental, and Public Affairs for the 
        Bureau of Citizenship and Immigration Services.
          (2) Functions.--The Chief of Congressional, 
        Intergovernmental, and Public Affairs shall be responsible 
        for--
                  (A) providing information relating to immigration 
                services to the Congress, including information on 
                specific cases relating to immigration services issues;
                  (B) serving as a liaison with other Federal agencies 
                on immigration services issues; and
                  (C) responding to inquiries from the media and the 
                general public on immigration services issues.
  (g) Border Security Liaison.--
          (1) In general.--There shall be a position of Border Security 
        Liaison for the Bureau of Citizenship and Immigration Services.
          (2) Functions.--The Border Security Liaison shall be 
        responsible for the appropriate allocation and coordination of 
        resources involved in supporting shared support functions for 
        the Bureau of Border Security of the Department of Homeland 
        Security and the Bureau of Citizenship and Immigration 
        Services, including--
                  (A) information resources management, including 
                computer databases and information technology;
                  (B) records and file management; and
                  (C) forms management.
  (h) 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. 422. CITIZENSHIP AND IMMIGRATION SERVICES OMBUDSMAN.

  (a) In General.--Within the Department of Justice, 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 Attorney General. 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;
          (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); and
          (4) to identify potential legislative changes that may be 
        appropriate to mitigate such problems.
  (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 United States 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 initiatives the Office of the 
                Ombudsman has taken 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 and legislative 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 review 
        or comment from the Attorney General, Deputy Attorney General, 
        Assistant Attorney General for Citizenship and Immigration 
        Services, or any other officer or employee of the Department of 
        Justice 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 criteria for referral of inquiries to 
        local offices of the Ombudsman;
          (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 Assistant Attorney General 
        for 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 Assistant Attorney General for Citizenship and 
Immigration Services shall establish procedures requiring a formal 
response to all recommendations submitted to such Assistant Attorney 
General 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 of Justice and 
                report directly to the 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. 423. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

  (a) In General.--The Assistant Attorney General for 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 Department of Justice Office of 
        the Inspector General;
          (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. 424. EMPLOYEE DISCIPLINE.

  The Assistant Attorney General for 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 the Congress or agency 
leadership on any matter.

SEC. 425. OFFICE OF IMMIGRATION STATISTICS WITHIN BUREAU OF JUSTICE 
                    STATISTICS.

  (a) In General.--Part C of title I of the Omnibus Crime Control and 
Safe Streets Act of 1968 (42 U.S.C. 3731 et seq.) is amended by adding 
at the end the following:
                   ``office of immigration statistics
  ``Sec. 305. (a) There is established within the Bureau of Justice 
Statistics of the Department of Justice an Office of Immigration 
Statistics (in this section referred to as the `Office'), which shall 
be headed by a Director who shall be appointed by the Attorney General 
and who shall report to the Director of Justice Statistics.
  ``(b) The Director of the Office shall be responsible for the 
following:
          ``(1) Maintenance of all immigration statistical information 
        of the Bureau of Citizenship and Immigration Services and the 
        Executive Office for Immigration Review. 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 on the day prior to the effective date specified in 
        section 427 of the Homeland Security Act of 2002), 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 offices and bureaus, and 
        the reasons for such denials, disaggregated by category of 
        denial and application or petition type.
          ``(2) Establishment of standards of reliability and validity 
        for immigration statistics collected by the Bureau of 
        Citizenship and Immigration Services and the Executive Office 
        for Immigration Review.
  ``(c) The Bureau of Citizenship and Immigration Services and the 
Executive Office for Immigration Review shall provide statistical 
information to the Office of Immigration Statistics from the 
operational data systems controlled by the Bureau of Citizenship and 
Immigration Services and the Executive Office for Immigration Review, 
respectively, for the purpose of meeting the responsibilities of the 
Director.''.
  (b) Transfer of Functions.--There are transferred to the Office of 
Immigration Statistics established under section 305 of the Omnibus 
Crime Control and Safe Streets Act of 1968, as added by subsection (a), 
the 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:
          (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.
  (c) Conforming Amendments.--Section 302(c) of the Omnibus Crime 
Control and Safe Streets Act of 1968 (42 U.S.C. 3732(c)) is amended--
          (1) by striking ``and'' at the end of paragraph (22);
          (2) by striking the period at the end of paragraph (23) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(24) collect, maintain, compile, analyze, publish, and 
        disseminate information and statistics involving the functions 
        of the Bureau of Citizenship and Immigration Services and the 
        Executive Office for Immigration Review.''.

SEC. 426. PRESERVATION OF ATTORNEY GENERAL'S AUTHORITY.

  (a) In General.--Any function for which this subchapter vests 
responsibility in an official other than the Attorney General, or which 
is transferred by this subchapter to such an official, may, 
notwithstanding any provision of this subchapter, be performed by the 
Attorney General, or the Attorney General's delegate, in lieu of such 
official.
  (b) References.--In a case in which the Attorney General performs a 
function described in subsection (a), any reference in any other 
Federal law, Executive order, rule, regulation, document, or delegation 
of authority to the official otherwise responsible for the function is 
deemed to refer to the Attorney General.

SEC. 427. EFFECTIVE DATE.

  Notwithstanding section 4, this subchapter, and the amendments made 
by this subchapter, shall take effect on the date on which the transfer 
of functions specified under section 411 takes effect.

SEC. 428. TRANSITION.

  (a) References.--With respect to any function transferred by this 
subchapter to, and exercised on or after the effective date specified 
in section 427 by, the Assistant Attorney General for 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 
        Assistant Attorney General for 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 subchapter 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 427.
          (2) Savings provisions.--Subsections (a), (b), and (c) of 
        section 812 shall apply to a transfer of functions under this 
        subchapter 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 subchapter 
        (and functions that the Attorney General 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 subchapter, 
        subject to section 202 of the Budget and Accounting Procedures 
        Act of 1950, shall be transferred to the Assistant Attorney 
        General for Citizenship and Immigration Services for allocation 
        to the appropriate component of the Department of Justice. 
        Unexpended funds transferred pursuant to this paragraph shall 
        be used only for the purposes for which the funds were 
        originally authorized and appropriated. The Attorney General 
        shall have the right to adjust or realign transfers of funds 
        and personnel effected pursuant to this subchapter for a period 
        of 2 years after the effective date specified in section 427.
          (4) Authorities of attorney general.--The Attorney General 
        (or a delegate of the Attorney General), at such time or times 
        as the Attorney General (or the delegate) shall provide, may 
        make such determinations as may be necessary with regard to the 
        functions transferred by this subchapter, and may make such 
        additional incidental dispositions of personnel, assets, 
        liabilities, grants, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds held, used, arising from, 
        available to, or to be made available in connection with such 
        functions, as may be necessary to carry out the provisions of 
        this subchapter. The Attorney General shall provide for such 
        further measures and dispositions as may be necessary to 
        effectuate the purposes of this subchapter.

                     Subchapter B--Other Provisions

SEC. 431. FUNDING FOR CITIZENSHIP AND IMMIGRATION SERVICES.

  (a) Establishment of Fees for Adjudication and Naturalization 
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.''.
  (b) Authorization of Appropriations for Refugee and Asylum 
Adjudications.--There are authorized to be appropriated such sums as 
may be necessary to carry out the provisions of sections 207 through 
209 of the Immigration and Nationality Act (8 U.S.C. 1157-1159). All 
funds appropriated under this subsection shall be deposited into the 
Immigration Examinations Fee Account established under section 286(m) 
of the Immigration and Nationality Act (8 U.S.C. 1356(m)) and shall 
remain available until expended.

SEC. 432. 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. 433. REPORT ON IMPROVING IMMIGRATION SERVICES.

  (a) In General.--The Attorney General, not later than 1 year after 
the effective date of this Act, shall submit to the Committees on the 
Judiciary and Appropriations of the United States 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 subchapter 1 takes effect, will complete 
efficiently, fairly, and within a reasonable time, the adjudications 
described in paragraphs (1) through (5) of section 421(b).
  (b) Contents.--For each type of adjudication to be undertaken by the 
Assistant Attorney General for 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 Attorney General considers advisable.
  (c) Consultation.--In carrying out subsection (a), the Attorney 
General shall consult with the Secretary of State, the Secretary of 
Labor, the Assistant Secretary of the Bureau of Border Security of the 
Department of Homeland Security, 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 421(b) and related processes.

SEC. 434. 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 the 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 subchapter 1 takes effect, the Bureau of Citizenship and Immigration 
Services, 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. 435. APPLICATION OF INTERNET-BASED TECHNOLOGIES.

  (a) Establishment of Tracking System.--The Attorney General, 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 
Attorney General 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 Attorney General, 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 
        United States House of Representatives and the Senate not later 
        than 1 year after the effective date of this Act.
  (c) Technology Advisory Committee.--
          (1) Establishment.--The Attorney General 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 Attorney 
        General 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 United 
        States 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. 436. 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 the 
                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 of the Department 
                of Justice, and the Assistant Secretary of the Bureau 
                of Border Security of the Department of Homeland 
                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 411 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 812 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.

                     CHAPTER 3--GENERAL PROVISIONS

SEC. 441. ABOLISHMENT OF INS.

  The Immigration and Naturalization Service of the Department of 
Justice is abolished.

SEC. 442. 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 Justice; and
          (3) the term ``transfer date'' means the date on which the 
        transfer of functions specified under section 411 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;
          (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 Attorney General (for transfer to the 
appropriate component of the Department of Justice, if necessary) 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. 443. 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) thereof).
  (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 442(a)(2).

SEC. 444. SENSE OF CONGRESS.

  It is the sense of the Congress that--
          (1) the missions of the Bureau of Border Security of the 
        Department of Homeland Security and the Bureau of Citizenship 
        and Immigration Services of the Department of Justice 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. 445. REPORTS AND IMPLEMENTATION PLANS.

  (a) Division of Funds.--The Attorney General and the Secretary, not 
later than 120 days after the effective date of this Act, shall each 
submit to the Committees on Appropriations and the Judiciary of the 
United States 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.
  (b) Division of Personnel.--The Attorney General and the Secretary, 
not later than 120 days after the effective date of this Act, shall 
each submit to the Committees on Appropriations and the Judiciary of 
the United States 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 Attorney General and 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 each submit to the Committees on Appropriations and 
        the Judiciary of the United States 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 411 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 
        United States House of Representatives and the Senate a report 
        containing the following:
                  (A) A determination of whether the transfers of 
                functions made by chapters 1 and 2 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 chapters 1 
                and 2 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 
        411 takes effect, the Comptroller General of the United States 
        shall submit to the Committees on Appropriations and on the 
        Judiciary of the United States 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. 446. IMMIGRATION FUNCTIONS.

  (a) Annual Report.--
          (1) In general.--One year after the date of the enactment of 
        this Act, and each year thereafter, the Attorney General shall 
        submit a report to the President, to the Committees on the 
        Judiciary and Government Reform of the United States 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 of Justice (whether 
                conveyed in person, by telephone, or by means of the 
                Internet) were answered effectively and efficiently.
  (b) Sense of the Congress Regarding Immigration Services.--It is the 
sense of the 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 Attorney General should undertake efforts to 
        guarantee that concerns regarding the quality and efficiency of 
        immigration services are addressed after such effective date.

               Subtitle C--United States Customs Service

SEC. 451. 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 set forth in section 457(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. 452. RETENTION OF CUSTOMS REVENUE FUNCTIONS BY SECRETARY OF THE 
                    TREASURY.

  (a) Retention by Secretary of the Treasury.--
          (1) Retention of authority.--Notwithstanding sections 401(5), 
        402(1), and 808(e)(2), authority 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 other provision of law 
        vesting customs revenue functions in the Secretary of the 
        Treasury.
  (b) Maintenance of Customs Revenue Functions.--
          (1) Maintenance of functions.--Notwithstanding any other 
        provision of this Act, the Secretary may not consolidate, 
        alter, discontinue, or diminish those functions described in 
        paragraph (2) performed by the United States Customs Service 
        (as established under section 451) on or after the effective 
        date of this Act, reduce the staffing level, or the 
        compensation or benefits under title 5, United States Code, of 
        personnel attributable to such functions, 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. 453. ESTABLISHMENT AND IMPLEMENTATION OF COST ACCOUNTING SYSTEM; 
                    REPORTS.

  (a) Establishment and Implementation.--
          (1) In general.--Not later than September 30, 2003, the 
        Commissioner of Customs shall, in accordance with the audit of 
        the Customs Service's fiscal years 2000 and 1999 financial 
        statements (as contained in the report of the Office of the 
        Inspector General of the Department of the Treasury issued on 
        February 23, 2001), establish and implement a cost accounting 
        system for expenses incurred in the operation of the Customs 
        Service.
          (2) Additional requirement.--The cost accounting system 
        described in paragraph (1) shall provide for an identification 
        of expenses based on the type of operation, the port at which 
        the operation took place, the amount of time spent on the 
        operation by personnel of the Customs Service, and an 
        identification of expenses based on any other appropriate 
        classification necessary to provide for an accurate and 
        complete accounting of the expenses.
          (3) Use of merchandise processing fees.--The cost accounting 
        system described in paragraph (1) shall provide for an 
        identification of all amounts expended pursuant to section 
        13031(f)(2) of the Consolidated Omnibus Budget Reconciliation 
        Act of 1985.
  (b) Reports.--Beginning on the date of the enactment of this Act and 
ending on the date on which the cost accounting system described in 
subsection (a) is fully implemented, the Commissioner of Customs shall 
prepare and submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate on a 
quarterly basis a report on the progress of implementing the cost 
accounting system pursuant to subsection (a).

SEC. 454. 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. 455. SEPARATE BUDGET REQUEST FOR CUSTOMS.

  The President shall include in each budget transmitted to the 
Congress under section 1105 of title 31, United States Code, a separate 
budget request for the United States Customs Service.

SEC. 456. PAYMENT OF DUTIES AND FEES.

  Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505(a)) is 
amended--
          (1) in the first sentence--
                  (A) by striking ``Unless merchandise'' and inserting 
                ``Unless the entry of merchandise is covered by an 
                import activity summary statement, or the 
                merchandise''; and
                  (B) by inserting after ``by regulation'' the 
                following: ``(but not to exceed 10 working days after 
                entry or release, whichever occurs first)''; and
          (2) by striking the second and third sentences and inserting 
        the following: ``If an import activity summary statement is 
        filed, the importer of record shall deposit estimated duties 
        and fees for entries of merchandise covered by the import 
        activity summary statement no later than the 15th day of the 
        month following the month in which the merchandise is entered 
        or released, whichever occurs first.''.

SEC. 457. 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. 458. 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 the Congress a 
report that sets forth all trade functions performed by the executive 
branch, specifying each agency that performs each such function.

SEC. 459. 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 180 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 (8) of section 457.

SEC. 460. REPORTS TO CONGRESS.

  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.

SEC. 461. CUSTOMS USER FEES.

  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.''.

              TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

SEC. 501. UNDER SECRETARY FOR EMERGENCY PREPAREDNESS AND RESPONSE.

  The Secretary, acting through the Under Secretary for Emergency 
Preparedness and Response, shall be responsible for the following:
          (1) Helping to ensure the preparedness of emergency response 
        providers for 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, interventions to treat the psychological 
        consequences of terrorist attacks or major disasters and 
        provision for training for mental health workers to allow them 
        to respond effectively to such attacks or 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.
          (7) Developing comprehensive programs for developing 
        interoperative communications technology, and helping to ensure 
        that emergency response providers acquire such technology.

SEC. 502. FUNCTIONS TRANSFERRED.

  In accordance with title VIII, there shall be transferred to the 
Secretary the functions, personnel, assets, and obligations of the 
following:
          (1) Except as provided in section 402, the Federal Emergency 
        Management Agency, including the functions of the Director of 
        the Federal Emergency Management Agency relating thereto, and 
        the Integrated Hazard Information System of the Department of 
        Defense.
          (2) 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.
          (3) 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. 503. NUCLEAR INCIDENT RESPONSE.

  (a) Nuclear Incident Response Team.--At the direction of the 
Secretary (in connection with an actual or threatened terrorist attack, 
major disaster, or other emergency within 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) Construction.--Nothing in this title shall be understood 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.
  (c) Indemnification of Contractors During Transition Period.--(1) To 
the extent the Department of Energy has a duty under a covered contract 
to indemnify an element of the Nuclear Incident Response Team, the 
Department and the Department of Energy shall each have that duty, 
whether or not the Nuclear Incident Response Team is operating as an 
organizational element of the Department.
  (2) Paragraph (1) applies only to a contract in effect on the date of 
the enactment of this Act, and not to any extension or renewal of such 
contract carried out after the date of the enactment of this Act.

SEC. 504. DEFINITION.

  For purposes of 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/Training Site (REAC/TS), radiological assistance 
        functions, and related functions; and
          (2) those entities of the Environmental Protection Agency 
        that perform radiological emergency response and support 
        functions.

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 of Homeland Security.
  (b) Evaluation of Progress.--In carrying out subsection (a), the 
Secretary of Health and Human Services shall collaborate with the 
Secretary of Homeland Security in developing specific benchmarks and 
outcome measurements for evaluating progress toward achieving the 
priorities and goals described in such subsection.

                          TITLE VI--MANAGEMENT

SEC. 601. 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 Enforcement.--
          (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. 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 411 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 the 
                Bureau of Border Security.
          (2) Transfer of functions.--In accordance with title VIII, 
        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.

SEC. 602. CHIEF FINANCIAL OFFICER.

  Notwithstanding section 902(a)(1) of title 31, United States Code, 
the Chief Financial Officer shall report to the Secretary, or to 
another official of the Department, as the Secretary may direct.

SEC. 603. CHIEF INFORMATION OFFICER.

  Notwithstanding section 3506(a)(2) of title 44, United States Code, 
the Chief Information Officer shall report to the Secretary, or to 
another official of the Department, as the Secretary may direct.

SEC. 604. ESTABLISHMENT OF OFFICE FOR CIVIL RIGHTS AND CIVIL LIBERTIES.

  The Secretary shall establish in the Department an Office for Civil 
Rights and Civil Liberties, the head of which shall be the Director for 
Civil Rights and Civil Liberties. The Director 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;
          (2) make public through the Internet, radio, television, or 
        newspaper advertisements information on the responsibilities 
        and functions of, and how to contact, the Office; and
          (3) submit to the President of the Senate, the Speaker of the 
        House of Representatives, and the appropriate committees and 
        subcommittees of the Congress on a semiannual 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 in paragraph (1) and any 
        actions taken by the Department in response to such 
        allegations.

                        TITLE VII--MISCELLANEOUS

                     Subtitle A--Inspector General

SEC. 701. 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 (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 the 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.''.

                Subtitle B--United States Secret Service

SEC. 711. FUNCTIONS TRANSFERRED.

  In accordance with title VIII, 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.

            Subtitle C--Critical Infrastructure Information

SEC. 721. SHORT TITLE.

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

SEC. 722. 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. 723. 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. 724. 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, 
        if 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);
                  (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 
that one 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 subsection 
(e), 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. 725. 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.

                        Subtitle D--Acquisitions

SEC. 731. RESEARCH AND DEVELOPMENT PROJECTS.

  (a) Authority.--During the five-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)(A) In carrying out basic, applied, and advanced research 
        and development projects for response to existing or emerging 
        terrorist threats, 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) of such 
        section), after making a determination that--
                  (i) the use of a contract, grant, or cooperative 
                agreement for such projects is not feasible or 
                appropriate; and
                  (ii) use of other authority to waive Federal 
                procurement laws or regulations would not be feasible 
                or appropriate to accomplish such projects.
          (B) The annual report required under subsection (h) of such 
        section 2371, 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)(A) Under the authority of paragraph (1) and subject to 
        the limitations of such paragraph, the Secretary may 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; 10 U.S.C. 2371 note).
          (B) In applying the authorities of such section 845--
                  (i) subsection (c) thereof shall apply with respect 
                to prototype projects under this paragraph, except that 
                in applying such subsection any reference in such 
                subsection to the Comptroller General shall be deemed 
                to refer to the Comptroller General and the Inspector 
                General of the Department; and
                  (ii) the Secretary shall perform the functions of the 
                Secretary of Defense under subsection (d) thereof.
  (b) Report.--Not later than one year 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) 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. 732. PERSONAL SERVICES.

  The Secretary--
          (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. 733. SPECIAL STREAMLINED ACQUISITION AUTHORITY.

  (a) Authority.--(1) 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) 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) Not later than the date that is seven 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) 
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 $5,000.
  (2) 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) 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) 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 
$175,000.
  (2) Section 18(c)(1) of the Office of Federal Procurement Policy Act 
is amended--
          (A) by striking ``or'' at the end of suparagraph (F);
          (B) by striking the period at the end of subparagraph (G) and 
        inserting ``; or''; and
          (C) by adding at the end the following new subparagraph:
          ``(H) the procurement is by the Secretary of Homeland 
        Security pursuant to the special procedures provided in section 
        733(c) of the Homeland Security Act of 2002.''.
  (d) Application of Certain Commercial Items Authorities.--(1) 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) 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) 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. 734. PROCUREMENTS FROM SMALL BUSINESSES.

  There is established in the Department an office to be known as the 
``Office of Small and Disadvantaged Business Utilization''. The 
management of such office shall be vested in the manner described in 
section 15(k) of the Small Business Act (15 U.S.C. 644(k)) and shall 
carry out the functions described in such section.

                          Subtitle E--Property

SEC. 741. DEPARTMENT HEADQUARTERS.

  (a) In General.--Subject to the requirements of the Public Buildings 
Act of 1959 (40 U.S.C. 601 et seq.), the Administrator of General 
Services shall construct a public building to serve as the headquarters 
for the Department.
  (b) Location and Construction Standards.--The headquarters facility 
shall be constructed to such standards and specifications and at such a 
location as the Administrator of General Services decides. In selecting 
a site for the headquarters facility, the Administrator shall give 
preference to parcels of land that are federally owned.
  (c) Use of Headquarters Facility.--The Administrator of General 
Services shall make the headquarter facility, as well as other 
Government-owned or leased facilities, available to the Secretary 
pursuant to the Administrator's authorities under section 210 of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490 
et seq.) and there is authorized to be appropriated to the Secretary 
such amounts as may be necessary to pay the annual charges for General 
Services Administration furnished space and services.

Subtitle F--Support Anti-terrorism by Fostering Effective Technologies 
                      Act of 2002 (the SAFETY Act)

SEC. 751. SHORT TITLE.

  This subtitle may be cited as the ``Support Anti-terrorism by 
Fostering Effective Technologies Act of 2002'' or the ``SAFETY Act''.

SEC. 752. 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 and extensive United States government use and 
        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.
  (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. 753. LITIGATION MANAGEMENT.

  (a) Federal Cause of Action.--(1) 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 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.
  (2) 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 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) 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)(A) 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) 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) Should a product liability 
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 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) 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 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) For those products reviewed and approved by the Secretary, the 
Secretary will issue a certificate of conformance to the Seller and 
place the product 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. 754. RISK MANAGEMENT.

  (a) In General.--(1) Any person or entity that sells or otherwise 
provides a qualified anti-terrorism technology to non-federal 
government customers (``Seller'') shall obtain liability insurance of 
such types and in such amounts as shall be required in accordance with 
this section to satisfy otherwise compensable third-party claims 
arising out of, relating to, or resulting from an act of terrorism when 
qualified anti-terrorism technologies have been deployed in defense 
against such act.
  (2) For the total claims related to one 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) 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 an act of terrorism:
          (A) contractors, subcontractors, suppliers, vendors and 
        customers of the Seller.
          (B) contractors, subcontractors, suppliers, and vendors of 
        the customer.
  (4) 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 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 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. 755. 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, device, or technology designed, developed, 
        or modified for the specific purpose of preventing, detecting, 
        identifying, or deterring acts of terrorism and 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.

                      Subtitle G--Other Provisions

SEC. 761. ESTABLISHMENT OF HUMAN RESOURCES MANAGEMENT SYSTEM.

  (a) Authority.--
          (1) In general.--Subpart I of part III of title 5, United 
        States Code, is amended by adding at the end the following:

             ``CHAPTER 97--DEPARTMENT OF HOMELAND SECURITY

``Sec.
``9701. Establishment of human resources management system.

``Sec. 9701. Establishment of human resources management system

  ``(a) In General.--Notwithstanding any other provision of this title, 
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 non-
                merit 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); or
                  ``(ii) any provision of law implementing any 
                provision of law referred to in section 2302(b)(1) 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 title (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 or under subsection (a) for employees 
        engaged in intelligence, counterintelligence, investigative, or 
        security work which directly affects national security; 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 
title, 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) Sunset Provision.--Effective 5 years after the date of the 
enactment of this section, 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.''.
          (2) Clerical amendment.--The table of chapters for part III 
        of title 5, United States Code, is amended by adding at the end 
        the following:

``97. Department of Homeland Security.......................    9701''.

  (b) Effect on Personnel.--
          (1) Non-separation or non-reduction in grade or compensation 
        of full-time personnel and part-time personnel holding 
        permanent positions.--Except as otherwise provided in this Act, 
        the transfer pursuant to 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 one 
        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 previous 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. 762. ADVISORY COMMITTEES.

  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.

SEC. 763. REORGANIZATION; TRANSFER OF APPROPRIATIONS.

  (a) Reorganization.--
          (1) In general.--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--
                  (A) pursuant to section 802; or
                  (B) 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.
          (2) Limitations.--(A) Authority under paragraph (1)(A) does 
        not extend to the abolition of any agency, entity, 
        organizational unit, program, or function established or 
        required to be maintained by this Act.
          (B) Authority under paragraph (1)(B) does not extend to the 
        abolition of any agency, entity, organizational unit, program, 
        or function established or required to be maintained by 
        statute.
  (b) Transfer of Appropriations.--
          (1) In general.--Except as otherwise specifically provided by 
        law, not to exceed two percent of any appropriation available 
        to the Secretary in any fiscal year may be transferred between 
        such appropriations, except that not less than 15 days' notice 
        shall be given to the Committees on Appropriations of the 
        Senate and House of Representatives before any such transfer is 
        made.
          (2) Expiration of authority.--The authority under paragraph 
        (1) shall expire two years after the date of enactment of this 
        Act.

SEC. 764. MISCELLANEOUS AUTHORITIES.

  (a) Seal.--The Department shall have a seal, whose design is subject 
to the approval of the President.
  (b) Gifts, Devises, and Bequests.--With respect to the Department, 
the Secretary shall have the same authorities that the Attorney General 
has with respect to the Department of Justice under section 524(d) of 
title 28, United States Code.
  (c) 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.
  (d) 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. 765. 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. 766. REGULATORY AUTHORITY.

  Except as otherwise provided in this Act, 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 as exists on the date of enactment of this Act 
within any agency, program, or function transferred to the Department 
pursuant to this Act, or that on such date of enactment is exercised by 
another official of the executive branch with respect to such agency, 
program, or function. Any such transferred authority may not be 
exercised by an official from whom it is transferred upon transfer of 
such agency, program, or function to the Secretary or another Federal 
official pursuant to this Act. This Act may not be construed as 
altering or diminishing the regulatory authority of any other executive 
agency, except to the extent that this Act transfers such authority 
from the agency.

SEC. 767. PROVISIONS REGARDING TRANSFERS FROM DEPARTMENT OF ENERGY.

  (a) 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 contracts with the 
operator of a national laboratory of the Department of Energy, the 
Secretary of Homeland Security and the Secretary of Energy shall ensure 
that contracts for such programs and activities between the Department 
of Homeland Security and such operator are separate from the contracts 
of the Department of Energy with such operator.
  (b) Homeland Security Center.--(1) Notwithstanding section 307, the 
Secretary, acting through the Under Secretary for Science and 
Technology, shall establish at a national security laboratory of the 
National Nuclear Security Administration, a center to serve as the 
primary location for carrying out research, development, test, and 
evaluation activities of the Department related to the goals described 
in section 301(6)(A) and (B). The Secretary shall establish, in 
concurrence with the Secretary of Energy, such additional centers at 
one or more national laboratories of the Department of Energy as the 
Secretary considers appropriate to serve as secondary locations for 
carrying out such activities.
  (2) Each center established under paragraph (1) shall be composed of 
such facilities and assets as are required for the performance of such 
activities. The particular facilities and assets shall be designated 
and transferred by the Secretary of Energy with the concurrence of the 
Secretary.
  (c) Reimbursement of Costs.--In the case of an activity carried out 
by the operator of a national laboratory of the Department of Energy 
but under contract with the Department of Homeland Security, 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.
  (d) 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 mission of the Department described in section 101.
  (e) 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. 768. 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.

SEC. 769. 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 information exchange shall include the 
        following:
                  (A) Joint research and development on 
                countermeasures.
                  (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. 770. 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. 771. 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 the 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. 772. ROLE OF THE DISTRICT OF COLUMBIA.

  The Secretary (or the Secretary's designee) shall work in cooperation 
with the Mayor of the District of Columbia (or the Mayor's designee) 
for the purpose of integrating the District of Columbia 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.

SEC. 773. TRANSFER OF THE FEDERAL LAW ENFORCEMENT TRAINING CENTER.

  There shall be transferred to the Attorney General the functions, 
personnel, assets, and liabilities of the Federal Law Enforcement 
Training Center, including any functions of the Secretary of the 
Treasury relating thereto.

                         TITLE VIII--TRANSITION

                    Subtitle A--Reorganization Plan

SEC. 801. 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. 802. 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.

                  Subtitle B--Transitional Provisions

SEC. 811. 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) Transfer of Funds.--Until the transfer of an agency to the 
Department, the President is authorized to transfer to the Secretary to 
fund the purposes authorized in this Act--
          (1) for administrative expenses related to the establishment 
        of the Department of Homeland Security, not to exceed two 
        percent of the unobligated balance of any appropriation enacted 
        prior to October 1, 2002, available to such agency; and
          (2) for purposes for which the funds were appropriated, not 
        to exceed three percent of the unobligated balance of any 
        appropriation available to such agency;
except that not less than 15 days' notice shall be given to the 
Committees on Appropriations of the House of Representatives and the 
Senate before any such funds transfer is made.
  (d) 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.
  (e) 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.
Paragraph (1) shall not apply to appropriations transferred pursuant to 
section 763(b).
  (f) 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, Harbor 
        Maintenance Trust Fund, or Oil Spill Liability 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. 812. 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, and financial assistance, shall continue 
        notwithstanding the enactment of this Act or the transfer of 
        the agency to the Department, unless discontinued or modified 
        under the same terms and conditions and to the same extent that 
        such discontinuance could have occurred if such enactment or 
        transfer had not occurred; and
          (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.

SEC. 813. 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. 814. 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 obligations held, 
used, arising from, available, or to be made available, in connection 
with the functions transferred by this Act, as the Director may deem 
necessary to accomplish the purposes of this Act.

SEC. 815. NATIONAL IDENTIFICATION SYSTEM NOT AUTHORIZED.

  Nothing in this Act shall be construed to authorize the development 
of a national identification system or card.

SEC. 816. 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) of this Act.

SEC. 817. REFERENCE.

  With respect to any function transferred by or under this Act 
(including under a reorganization plan that becomes effective under 
section 802) 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.

             TITLE IX--CONFORMING AND TECHNICAL AMENDMENTS

SEC. 901. 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. 902. 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.'' as a new item 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.'', ``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 411 takes effect.

SEC. 903. 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. 904. 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, 946(c)(1), 973(d), 978(d), 983(b)(1), 985(a), 
1033(b)(1), 1033(d), 1034, 1037(c), 1044d(f), 1058(c), 1059(a), 
1059(k)(1), 1073(a), 1074(c)(1), 1089(g)(2), 1090, 1091(a), 1124, 1143, 
1143a(h), 1144, 1145(e), 1148, 1149, 1150(c), 1152(a), 1152(d)(1), 
1153, 1175, 1212(a), 1408(h)(2), 1408(h)(8), 1463(a)(2), 1482a(b), 
1510, 1552(a)(1), 1565(f), 1588(f)(4), 1589, 2002(a), 2302(1), 
2306b(b), 2323(j)(2), 2376(2), 2396(b)(1), 2410a(a), 2572(a), 2575(a), 
2578, 2601(b)(4), 2634(e), 2635(a), 2734(g), 2734a, 2775, 2830(b)(2), 
2835, 2836, 4745(a), 5013a(a), 7361(b), 10143(b)(2), 10146(a), 
10147(a), 10149(b), 10150, 10202(b), 10203(d), 10205(b), 10301(b), 
12103(b), 12103(d), 12304, 12311(c), 12522(c), 12527(a)(2), 12731(b), 
12731a(e), 16131(a), 16136(a), 16301(g), and 18501 by striking ``of 
Transportation'' each place it appears and inserting ``of Homeland 
Security''.
  (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) 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 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''.
  (e) 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.
  (f) Effective Date.--The amendments made by this section (other than 
subsection (e)) shall take effect on the date of transfer of the Coast 
Guard to the Department.

SEC. 905. 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. 906. BIOLOGICAL AGENT REGISTRATION; PUBLIC HEALTH SERVICE ACT.

  (a) Public Health Service Act.--Section 351A of the Public Health 
Service Act (42 U.S.C. 262a) is amended--
          (1) in subsection (a)(1)(A), by inserting ``(as defined in 
        subsection (l)(9))'' after ``Secretary'';
          (2) in subsection (h)(2)(A), by inserting ``Department of 
        Homeland Security, the'' before ``Department of Health and 
        Human Services''; and
          (3) in subsection (l), by inserting after paragraph (8) a new 
        paragraph as follows:
          ``(9) The term `Secretary' means the Secretary of Homeland 
        Security, in consultation with the Secretary of Health and 
        Human Services.''.
  (b) Public Health Security and Bioterrorism Preparedness and Response 
Act of 2002.--Section 201(b) of the Public Health Security and 
Bioterrorism Preparedness and Response Act of 2002 (Public Law 107-188; 
42 U.S.C. 262a note) is amended by striking ``Secretary of Health and 
Human Services'' and inserting ``Secretary of Homeland Security''.
  (c) Effective Date.--The amendments made by this section shall take 
effect on the date of transfer of the select agent registration 
enforcement programs and activities of the Department of Health and 
Human Services to the Department.

SEC. 907. TRANSFER OF CERTAIN SECURITY AND LAW ENFORCEMENT FUNCTIONS 
                    AND AUTHORITIES.

  (a) Amendment to Property Act.--Section 210(a)(2) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 490(a)(2)) 
is repealed.
  (b) Law Enforcement Authority.--The Act of June 1, 1948 (40 U.S.C. 
318-318d; chapter 359; 62 Stat. 281) is amended to read as follows:

``SECTION 1. SHORT TITLE.

  ``This Act may be cited as the `Protection of Public Property Act'.

``SEC. 2. LAW ENFORCEMENT AUTHORITY OF SECRETARY OF HOMELAND SECURITY 
                    FOR PROTECTION OF PUBLIC PROPERTY.

  ``(a) In General.--The Secretary of Homeland Security (in this Act 
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 
        officers and agents designated under this section for the 
        protection of the property and persons on the property.
          ``(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.''.

SEC. 908. 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 30 days'' after ``effective''; and
          (2) in section 114(l)(2)(B), by inserting ``ratified or'' 
        after ``unless''.

SEC. 909. RAILROAD SECURITY LAWS.

  Title 49, United States Code, is amended--
          (1) in section 20106 by inserting in the second sentence, ``, 
        including security,'' after ``railroad safety'' and ``or the 
        Secretary of Homeland Security'' after ``Secretary of 
        Transportation''; and
          (2) in section 20105--
                  (A) by inserting ``or the Secretary of Homeland 
                Security'' after ``Secretary of Transportation'' in 
                subsection (a);
                  (B) by inserting ``of Transportation or the Secretary 
                of Homeland Security'' after ``issued by the 
                Secretary'' in subsection (a);
                  (C) by inserting ``of Transportation or the Secretary 
                of Homeland Security, as appropriate,'' after ``to the 
                Secretary'' in subsection (a), and after ``Secretary'' 
                in subsection (b)(1)(A)(iii) and (B)(iv), the first 
                place it appears in subsections (b)(1)(B) and (B)(iii) 
                and (d), each place it appears in subsections (c)(1), 
                (c)(2), (e), and (f), and the first four times it 
                appears in subsection (b)(3);
                  (D) by inserting ``of Transportation or the Secretary 
                of Homeland Security, as appropriate'' after 
                ``Secretary'' in subsection (b)(1)(A)(ii), 
                (b)(1)(B)(ii), the second place it appears in 
                subsection (b)(1)(B)(iii), and the last place it 
                appears in subsection (b)(3);
                  (E) in subsection (d), by replacing ``Secretary's'' 
                with ``Secretary of Transportation's'' and adding 
                before the period at the end ``or the Secretary of 
                Homeland Security's duties under section 114''; and
                  (F) in subsection (f), by adding before the period at 
                the end ``or section 114''.

SEC. 910. 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. 911. 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. 912. CHIEF FINANCIAL OFFICER.

  Section 901(b)(1) of title 31, United States Code, is amended--
          (1) by redesignating subparagraphs (G) through (P) as 
        subparagraphs (H) through (Q), respectively; and
          (2) by inserting the following new subparagraph after 
        subparagraph (F):
          ``(G) The Department of Homeland Security.''.

SEC. 913. CHIEF INFORMATION OFFICER.

  (a) Clinger-Cohen Act.--(1) The provisions enacted in section 5125 of 
the Clinger-Cohen Act of 1996 (division E of Public Law 104-106; 110 
Stat. 684) shall apply with respect to the Chief Information Officer of 
the Department.
  (2) Section 5131(c) of the Clinger-Cohen Act of 1996 (40 U.S.C. 
1441(c)) is amended by inserting ``or appointed'' after ``a Chief 
Information Officer designated''.
  (b) Title 44.--Chapter 35 of title 44, United States Code, is 
amended--
          (1) in section 3506(a)(2)--
                  (A) in subparagraph (A) by striking ``subparagraph 
                (B)'' and inserting ``subparagraphs (B) and (C)''; and
                  (B) by adding at the end the following:
  ``(C) The Chief Information Officer of the Department of Homeland 
Security shall be an individual who is appointed by the President.'';
          (2) in each of subsections (a)(4) and (c)(1) of section 3506, 
        by inserting ``or appointed'' after ``the Chief Information 
        Officer designated''; and
          (3) in subsection (a)(3) of section 3506, by inserting ``or 
        appointed'' after ``The Chief Information Officer designated''.

              TITLE X--NATIONAL HOMELAND SECURITY COUNCIL

SEC. 1001. 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. 1002. FUNCTION.

  The function of the Council shall be to advise the President on 
homeland security matters.

SEC. 1003. 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 Health and Human Services.
          (6) The Director of Central Intelligence.
          (7) The Secretary of Defense.
          (8) The Secretary of the Treasury.
          (9) The Secretary of State.
          (10) The Secretary of Energy.
          (11) The Secretary of Agriculture.
          (12) Such other individuals as may be designated by the 
        President.

SEC. 1004. 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. 1005. HOMELAND SECURITY BUDGET.

  The Director of the Office of Management and Budget shall prepare for 
the President a Federal homeland security budget to be delivered to the 
Congress as part of the President's annual budget request.

SEC. 1006. 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. 1007. 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.

                          Purpose and Summary

    H.R. 5005, the Homeland Security Act of 2002, will create 
the Department of Homeland Security (DHS) to provide for the 
security of the American people, territory, and sovereignty 
within the United States. The Department of Homeland Security 
will help fulfill the Constitutional responsibility of the 
Federal government by providing for the common defense by 
uniting, under a single department those elements within the 
government whose primary responsibility is to secure the United 
States homeland. This department will have the mission of 
preventing terrorist attacks within the United States, reducing 
the United States' vulnerability to terrorism, minimizing the 
damages from attacks, and assisting in recovery from any 
attacks, should they occur.
    The Department's primary responsibilities will include: 
analyzing information and protecting infrastructure; developing 
countermeasures against chemical, biological, radiological, and 
nuclear attacks; securing U.S. borders and transportation 
systems; organizing emergency preparedness and response 
efforts; conducting homeland security related research, 
development, technology, and acquisition programs; coordinating 
counter-terrorism activities with other Federal agencies, State 
and local governments, and the private sector. The Department 
will bring together 22 existing Federal agencies or portions of 
agencies under a single clear chain of command. Each of these 
agencies will continue to be responsible for carrying out 
existing and homeland security functions.
    The Department of Homeland Security will have a clear and 
efficient organizational structure. Leading the Department will 
be a Secretary who is appointed by the President, with the 
advice and consent of the Senate. The Department will have one 
Deputy Secretary and a total of 5 Under Secretaries who report 
to the Secretary for each of the following functional areas: 
Information Analysis and Infrastructure Protection; Science and 
Technology; Border and Transportation Security; Emergency 
Preparedness and Response; and Management. Additionally, there 
will also be no more than 12 Assistant Secretaries. The 
Commandant of the Coast Guard and the Director of the Unites 
States Secret Service will also report directly to the 
Secretary. Finally, the Transportation Security Administration 
will be maintained as a separate entity within the Department 
for 2 years.

                  Background and Need for Legislation

    Through out its history, the United States has always 
emerged victorious after grave attacks against its people, 
land, and sovereignty. Today the challenges are no less severe 
nor the consequences less significant. Terrorists and other 
nations who wish to harm the United States have shown their 
intent and ability to destroy innocent people and property on a 
large scale. Their power has increased exponentially with the 
spread of technology, including the proliferation of weapons of 
mass destruction. As recent events have illustrated, the 
Nation's democratic tradition of free and open borders is at 
once its greatest strength and most easily exploitable 
liability.
    Over the past several years, numerous experts in the 
government and private sector have documented the rise of 
terrorism along with the need to realign the Federal government 
to properly address the new threat. If these recommendations 
were not enough, recent events have also demonstrated the 
compelling need to create a focused organization, articulate a 
clear mission, and provide for direct lines of authority, 
responsibility, and accountability to counteract the terrorist 
threat. The United States needs a homeland security 
establishment that can help prevent catastrophic attacks, 
mobilize national resources for an enduring conflict, and 
assist in recovery efforts all the while protecting this 
Nation's values and liberties.
    The United States began the 20th century with a Department 
of War and a Department of the Navy to protect the nation from 
foreign attack. In response to the challenges of militarism, 
Nazism, and communism, this organization evolved rapidly. By 
mid-century, the military services were unified under a 
Department of Defense. By the beginning of the 21st century, 
our military forces, operating under joint command, were able 
to defeat in weeks opponents who had turned back the Soviet 
Union at the height of its power.
    No comparable evolution took place in the area of homeland 
security, because for most of the century there was no 
comparable domestic threat. Politically motivated violence was 
relatively rare, and when it occurred the limited methods of 
attack available kept its effects local and small-scale. There 
has been no imperative requiring the dozens of agencies charged 
with various aspects of homeland protection to work together 
closely--until now.
    The Terrorist Threat. The events of September 11th marked 
the crescendo of an escalating series of terrorist attacks 
against U.S. interests, both domestically and abroad. In 1993, 
Islamic extremists exploded a truck bomb in the parking garage 
of the World Trade Center. In 1998, U.S. Embassies in Kenya and 
Tanzania were simultaneously attacked by car bombs. On October 
12, 2000, the USS Cole was bombed by elements of Osama bin 
Laden's al Qaeda terrorist organization in Yemen, resulting in 
the death of 17 crew members and injuring 39 others. But the 
deadliest terrorist attack against U.S. interests occurred on 
September 11th: four commercial airliners were hijacked, turned 
into makeshift missiles, and rammed into the World Trade Center 
and the Pentagon, resulting in the loss of over 3,000 lives.
    The terrorist threat is markedly different from those of 
the past. Following September 11th, the Nation is no longer 
dealing solely with hostile nation states that can be held at 
risk with conventional military power, but also with global 
terrorist organizations such as al Qaeda immune to traditional 
forms of deterrence. Law enforcement and anti-terrorism experts 
believe that numerous terrorist cells remain within the borders 
of the United States. For the foreseeable future, the United 
States will face the threat of domestic attack by enemies who 
will seek to strike in new and unexpected ways, perhaps with 
weapons vastly more deadly than those used on September 11th.
    Technologies of Destruction and Disruption. Terrorism armed 
with technology presents the potential for destabilization and 
destruction on a scale unmatched in previous eras. The 
diffusion of knowledge and technology in today's expanding 
global economy makes the task of acquiring weapons of mass 
destruction and weapons of mass disruption easier, while the 
volume and velocity of modern trade makes detecting and 
intercepting attacks more difficult.
    Technology offers terrorists increasingly powerful methods 
of physical destruction. Thousands have been killed when 
terrorists commandeered the transportation technologies of 
everyday life, turning trucks into bombs and airliners into 
guided missiles. The Japanese millennial cult Aum Shinrikyo 
attacked the Tokyo subway system with nerve gas, killing a 
dozen people and injuring 5,000. A tiny quantity of anthrax 
spores sent through the mail caused a number of deaths and shut 
down government buildings in Washington for months. An al Qaeda 
operative was recently arrested and charged with planning to 
build and deploy a ``dirty bomb'' intended to spread radiation 
over a wide area. Beyond these activities looms the threat of a 
nuclear device in terrorist hands.
    In testimony before the Senate Select Committee on 
Intelligence entitled, ``Worldwide Threat-Converging Dangers in 
a Post 9/11 World,'' the Director of Central Intelligence, The 
Honorable George J. Tenet, noted that weapons of mass 
destruction (WMD) including nuclear, chemical and biological 
weapons programs are becoming more advanced and effective as 
they mature. Countries of concern are also becoming more 
aggressive in pursuing them. Russia, China, North Korea, Iraq, 
Iran, India and Pakistan are known to have WMD programs. 
Several of these nations are also known to harbor and support 
terrorists. One of Tenet's highest concerns is terrorists' 
stated desire to use unconventional attacks against the United 
States. As early as 1998, Bin Laden publicly declared that 
acquiring unconventional weapons was ``a religious duty'' and 
may have been seeking to acquire or develop a nuclear device. 
According to Tenet, terrorist groups worldwide have ready 
access to information on chemical, biological, and even nuclear 
weapons via the Internet, and al Qaeda was working to acquire 
some of the most dangerous chemical agents and toxins. 
Documents recovered from Al Qaeda facilities in Afghanistan 
show that Bin Laden was pursuing a sophisticated biological 
weapons research program.
    The nuclear threat is not limited to terrorists alone. As 
outlined in a recent National Intelligence Estimate on the 
subject, most Intelligence Community agencies project that by 
2015 the United States most likely will face intercontinental 
ballistic missile threats from North Korea and Iran, and 
possibly from Iraq. Short- and medium-range ballistic missiles 
pose a significant threat now. These states, like terrorists, 
may not respond to traditional deterrence. Like terrorists, 
they pose a potential requirement for consequence management on 
a very large scale.
    In addition to physical destruction, terrorists may also 
seek to develop powerful forms of cyber attack against our 
critical infrastructures. The United States is highly dependent 
on networked information systems. These systems, almost 
entirely run by private-sector businesses, are critical to 
modern financial, banking, energy, telecommunications, medical 
and transportation networks. Civil government, military 
operations, and commerce now depend upon this infrastructure. 
As the United States becomes increasingly dependent on 
information technology it is also more vulnerable to cyber 
warfare attack by terrorists.
    While there has been no ``electronic Pearl Harbor,'' 
attacks of this nature will become an increasingly viable 
option for terrorists as they and other foreign adversaries 
become more familiar with these targets, and the technologies 
required to attack them. The Computer Emergency Response Team 
(CERT), a Federally funded research and development center 
operated by Carnegie Mellon University in Pittsburgh, 
Pennsylvania, reported about 25,000 cyber incidents from 1990 
to 1999. In 2000, CERT reported, the number of incidents had 
skyrocketed to 21,000.
    Open Borders. Terrorists seeking to bring destructive 
technologies into the United States have many potential entry 
points. The United States is a large nation, historically 
protected from adversaries by two large bodies of water and 
friendly neighbors to the north and south. It is a nation with 
relatively open borders that are open to trade and the free 
flow of people and ideas. Such openness also brings about 
vulnerabilities. Every day $8.8 billion of goods, 1.3 million 
people, 58,000 shipments, and 340,000 vehicles enter the United 
States. The Customs Service is only able to inspect 1 to 2 
percent of them.
    Once here, they have an excellent chance of remaining 
anonymous and using the freedom America affords to plan and 
execute their violent deeds. The Immigration and Naturalization 
Service (INS) was unable to track more than 3 million 
foreigners with expired visas and, according to press reports, 
had no record of six of the 19 hijackers who entered the United 
States legally (Washington Post, Page A16, October 7, 2001). A 
report by the Government Accounting Office (GAO) offered, ``In 
several border areas, INS has multiple anti-smuggling 
enforcement units--they overlap in jurisdictions, operate 
autonomously, establish their own priorities and report to 
different INS offices,'' (GAO Report, ``Alien smuggling: 
Management and Operational Improvements Needed to Address 
Growing Problem'' (GAO/GGD-00-103 p.3))
    The United States must use the advantages of today's 
technology, and American ingenuity to keep its borders open 
while preserving individual rights and liberties. Guaranteeing 
that homeland security is achieved within a framework of law 
that protects the civil liberties and privacy of the United 
States citizens is essential. Continued vigilance and 
Congressional and the public oversight will be necessary. The 
United States Government must improve national security without 
compromising established constitutional principles.
    The Need for Change. The series of terrible attacks that 
culminated in the tragic events of September 11, 2001, along 
with growing recognition that there may be even more 
devastating attacks on the homeland against Americans cities, 
homes, businesses and the electronic networks that link them 
all together, compels the Nation to think anew about the way it 
defends itself. The President, Congress, and the private sector 
all agree that the current structure of the Federal government 
is a liability in defending this country from the changing 
threats to national security.
    Over the past several years there have been numerous 
studies to assess the future security environment. Two common 
themes emerge in these reports: first, the United States and 
its citizens are increasing vulnerable to a broadening array of 
threats from a variety of actors around the world; second, the 
government is not properly organized to protect its citizens.
    The Commission on National Security/21st Century, better 
known as the Hart-Rudman Commission found, ``[i]n the face of 
this threat, our nation has no coherent or integrated 
governmental structures.'' A July 1999 report by the Commission 
to Assess the Organization of the Federal Government to Combat 
the Proliferation of Weapons of Mass Destruction concluded 
that:

        a cardinal truth of government is that policy without 
        proper organization is effectively no policy at all. If 
        the Federal Government's policy is to combat the threat 
        posed by the spread of weapons of mass destruction, 
        then the government must be organized to do so.

    In a speech to the Nation on June 6, 2002, the President 
described the requirement for a new cabinet-level department. 
He clearly pointed out the need for a single, unified 
structure, noting that today numerous Federal entities across 
the government are charged with responsibilities having to do 
with homeland security. He said, ``History teaches us that 
critical security challenges require clear lines of 
responsibility and the unified effort of the U.S. government.'' 
Those ``new challenges,'' he said, ``require new organizational 
structures.'' The President's proposal was sent to Congress on 
June 18, 2002 (H.Doc. 107-227). This proposal was subsequently 
introduced by request on June 24, 2002 as H.R. 5005.
    The changing nature of the threats facing the United States 
requires a new government structure to protect against 
invisible enemies that can strike with a wide variety of 
weapons. Today, no single government agency has homeland 
security as its primary mission. In fact, responsibilities for 
homeland security are dispersed among more than 100 different 
government organizations. The United States needs a homeland 
security establishment that can help prevent catastrophic 
attacks, mobilize national resources for an enduring conflict, 
and assist in recovery efforts. A single, unified homeland 
security structure will improve protection against today's 
threats and be flexible enough to help meet the unknown threats 
of the future all the while protecting the freedom and liberty 
upon which this nation was founded.

                                Hearings

    The Select Committee on Homeland Security held a hearing on 
July 11, 2002 entitled ``Transforming the Government to Protect 
America from Terrorism.'' The following witnesses testified: 
The Honorable Colin Powell, Secretary of State; The Honorable 
Donald Rumsfeld, Secretary of Defense; The Honorable Paul H. 
O'Neill, Secretary of the Treasury; and The Honorable John 
Ashcroft, Attorney General.
    The Select Committee on Homeland Security held a hearing on 
H.R. 5005, the Homeland Security Act of 2002 on July 15, 16 and 
17, 2002. The following witnesses testified: The Honorable Tom 
Ridge, Assistant to the President for Homeland Security; The 
Honorable Ann Veneman, Secretary of Agriculture; the Honorable 
Norman Mineta, Secretary of Transportation; the Honorable 
Spencer Abraham, Secretary of Energy; the Honorable Kay Cole 
James, Director, Office of Personnel Management; the Honorable 
Mac Thornberry, Representative from the 13th District of Texas; 
the Honorable Jim Gibbons, Representative from the 2nd District 
of Nevada; the Honorable Jane Harman, Representative from the 
36th District of California; the Honorable Ellen O. Tauscher, 
Representative from the 10th District of California; the 
Honorable F. James Sensenbrenner, Jr., Chairman, Committee on 
the Judiciary; the Honorable C.W. Bill Young, Chairman, 
Committee on Appropriations; the Honorable David R. Obey, 
Ranking Minority Member, Committee on Appropriations; the 
Honorable Ike Skelton, Ranking Minority Member, Committee on 
Armed Services, the Honorable W.J. (Billy) Tauzin, Chairman, 
Committee on Energy and Commerce; the Honorable John D. 
Dingell, Ranking Minority Member, Committee on Energy and 
Commerce; the Honorable Dan Burton, Chairman, Committee on 
Government Reform; the Honorable Henry A. Waxman, Ranking 
Minority Member, Committee on Government Reform; the Honorable 
Porter J. Goss, Chairman, Permanant Select Committee on 
Intelligence; the Honorable Nancy Pelosi, Ranking Minority 
Member, Permanent Select Committee on Intelligence; the 
Honorable Henry Hyde, Chairman, Committee on International 
Relations; the Honorable Tom Lantos, Ranking Minority Member, 
Committee on International Relations; the Honorable Sherwood L. 
Boehlert, Chairman, Committee on Science; the Honorable Ralph 
M. Hall, Ranking Minority Member, Committee on Science; the 
Honorable Don Young, Chairman, Committee on Transportation and 
Infrastructure; the Honorable James L. Oberstar, Ranking 
Minority Member, Committee on Transportation and 
Infrastructure; the Honorable William M. Thomas, Chairman, 
Committee on Ways and Means; and Mr. David A. Walker, 
Comptroller General of the United States, General Accounting 
Office.

                        Committee Consideration

    The Select Committee on Homeland Security met in open 
session on July 19, 2002 and ordered H.R. 5005 reported to the 
House with a favorable recommendation, with an amendment, by a 
record vote of 5 yeas and 4 nays.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Armey to report the bill to the House with a 
favorable recommendation was agreed to by a record vote of 5 
yeas and 4 nays (Record vote no. 19). The names of members 
voting for and against follow:
            --YEAS--                      --NAYS--
    Mr. Armey                           Ms. Pelosi
    Mr. DeLay                           Mr. Frost
    Mr. Watts of Oklahoma               Mr. Menendez
    Ms. Pryce of Ohio                   Ms. DeLauro
    Mr. Portman

    The following amendments were considered by record vote. 
The names of Members voting for and against follow.

          An amendment offered by Ms. Pelosi to the Amendment 
        in the Nature of a Substitute (#1B), adding at the end 
        of the bill a new section entitled ``Title XI--Office 
        of Homeland Security,'' was not agreed to by a record 
        vote of 4 yeas and 5 nays (Record vote no. 1).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Mr. DeLay to the Amendment in 
        the Nature of a Substituted (#1C), striking section 
        307(b)(2) and inserting a new paragraph (2) relating to 
        University-based centers for Homeland security, was 
        agreed to by a record vote of 5 yeas and 4 nays (Record 
        vote no. 2).
            --YEAS--                      --NAYS--
    Mr. Armey                           Ms. Pelosi
    Mr. DeLay                           Mr. Frost
    Mr. Watts of Oklahoma               Mr. Menendez
    Ms. Pryce of Ohio                   Ms. DeLauro
    Mr. Portman

          An amendment offered by Mr. Frost to the Amendment in 
        the Nature of a Substitute (#1D), inserting a new 
        section 305 entitled ``Homeland Security Institute'', 
        was not agreed to by a record vote of 4 yeas and 5 nays 
        (Record vote no. 3).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Mr. Menendez to the Amendment 
        in the Nature of a Substitute (#1F), addressing the 
        date of transfer of TSA Functions, was agreed to by a 
        record vote of 6 yeas and 3 nays (Record vote no. 4)
            --YEAS--                      --NAYS--
    Mr. Watts of Oklahoma               Mr. Armey
    Ms. Pryce of Ohio                   Mr. DeLay
    Ms. Pelosi                          Mr. Portman
    Mr. Frost
    Mr. Menendez
    Ms. DeLauro

          Upon the motion of Mr. Watts of Oklahoma, the vote on 
        amendment #1F was reconsidered and not agreed to by a 
        record vote of 4 yeas and 5 nays (Record vote no. 11).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Ms. DeLauro to the Amendment 
        in the Nature of a Substitute (#1H), prohibiting 
        contracting with corporate expatriates, was not agreed 
        to by a record vote of 4 yeas and 5 nays (Record vote 
        no. 5).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          A substitute amendment by Mr. Frost to the amendment 
        offered by Mr. Portman to the Amendment in the Nature 
        of a Substitute (#1I1), inserting a section entitled 
        ``Human Resources Management Systems'' was not agreed 
        to by a record vote of 4 yeas and 5 nays (Record vote 
        no. 6).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment by Mr. Frost to the amendment offered by 
        Mr. Portman to the Amendment in the Nature of a 
        Substitute (#1I2) (as modified by unanimous consent), 
        adding a new section to the amendment ``Labor-
        Management Relations'' was not agreed to by a record 
        vote of 4 yeas and 5 nays (Record vote no. 7).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Mr. Menendez to the Amendment 
        in the Nature of a Substitute (#1L); striking section 
        204 ``Procedures for sharing information'' and 
        inserting at the end of title II a new subtitle 
        entitled ``Subtitle C--Information Sharing''; was not 
        agreed to by a record vote of 4 yeas and 4 nays (Record 
        vote no. 8).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. Watts of Oklahoma
    Mr. Menendez                        Ms. Pryce of Ohio
    Ms. DeLauro                         Mr. Portman

          An amendment offered by Mr. Frost to the Amendment in 
        the Nature of a Substitute (#1M), striking subtitle G 
        of title VII relating to ``Support Anti-terrorism by 
        Fostering effective Technologies Act of 2002 (the 
        SAFETY Act)'', was not agreed to by a record vote of 4 
        yeas and 5 nays (Record vote no. 9).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Mr. Watts to the Amendment in 
        the Nature of a Substitute (#1N) (as modified by 
        unanimous consent), revising section 409 entitled 
        ``Explosive Detection Systems'' was agreed to by a 
        record vote of 6 yeas and 3 nays (Record vote no. 12.)
            --YEAS--                      --NAYS--
    Mr. Armey                           Ms. Pelosi
    Mr. DeLay                           Mr. Menendez
    Mr. Watts of Oklahoma               Ms. DeLauro
    Ms. Pryce of Ohio
    Mr. Portman
    Mr. Frost

          An amendment offered by Ms. DeLauro to the Amendment 
        in the Nature of a Substitute (#1O); striking title 
        VII, subtitle C--Critical Infrastructure Information; 
        was not agreed to by a record vote of 4 yeas and 5 nays 
        (Record vote no. 13).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Mr. Portman to the Amendment 
        in the Nature of a Substitute (#1T), inserting a new 
        title to establishing a Homeland Security Council, was 
        agreed to by a record vote of 7 yeas and 2 nays (Record 
        vote no. 14).
            --YEAS--                      --NAYS--
    Mr. Watts of Oklahoma               Mr. Armey
    Ms. Pryce of Ohio                   Mr. DeLay
    Mr. Portman
    Ms. Pelosi
    Mr. Frost
    Mr. Menendez
    Ms. DeLauro

          An amendment offered by Mr. Frost to the Amendment in 
        the Nature of a Substitute (#1U), striking provisions 
        addressing advisory committees, was not agreed to by a 
        record vote of 4 yeas and 5 nays (Record vote no. 15).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Ms. DeLauro to the Amendment 
        in the Nature of a Substitute (#1V), inserting a new 
        section entitled ``Review of Food Safety'', was not 
        agreed to by a record vote of 3 yeas and 5 nays (Record 
        vote no. 16).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Menendez                        Mr. DeLay
    Ms. DeLauro                         Mr. Watts of Oklahoma
                                        Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Ms. DeLauro to the Amendment 
        in the Nature of a Substitute (#1X), promoting the 
        Under Secretary for Management to Deputy Secretary, was 
        not agreed to by a record vote of 4 yeas and 5 nays 
        (Record vote no. 17).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

          An amendment offered by Mr. Menendez to the Amendment 
        in the Nature of a Substitute (#1Y), adding a new 
        section entitled ``Interagency Security Committee'', 
        was not agreed to by a record vote of 4 yeas and 5 nays 
        (Record vote no. 18).
            --YEAS--                      --NAYS--
    Ms. Pelosi                          Mr. Armey
    Mr. Frost                           Mr. DeLay
    Mr. Menendez                        Mr. Watts of Oklahoma
    Ms. DeLauro                         Ms. Pryce of Ohio
                                        Mr. Portman

    The following motion was considered by record vote. The 
names of Members voting for and against follow:

          A motion by Mr. Watts of Oklahoma to reconsider the 
        vote on the amendment by Mr. Menendez to the amendment 
        in the nature of a substitute (#1F) was agreed to by a 
        record vote of 5 yeas and 4 nays.
            --YEAS--                      --NAYS--
    Mr. Armey                           Ms. Pelosi
    Mr. DeLay                           Mr. Frost
    Mr. Watts of Oklahoma               Mr. Menendez
    Ms. Pryce of Ohio                   Ms. DeLauro
    Mr. Portman

    The Select Committee also considered the other following 
amendments:

          An Amendment in the Nature of a Substitute to H.R. 
        5005 offered by Mr. Armey (#1), providing a new base 
        text, was agreed to, as amended, by a voice vote.
          An en bloc amendment offered by Mr. Armey to the 
        amendment in the nature of a substitute (#1A), to make 
        technical and conforming changes, was agreed to by a 
        voice vote.
          An amendment offered by Mr. Watts to the Amendment in 
        the nature of a substitute offered by Mr. Armey (#1E), 
        inserting a new subsection entitled ``Special Assistant 
        to the Secretary'', was agreed to by a voice vote.
          An amendment offered by Ms. Pryce to the amendment in 
        the nature of a substitute (#1G), to include the 
        coordination and integration of both extramural and 
        intramural research and development programs among the 
        potential duties of Federally funded research and 
        development centers, was agreed to by a voice vote.
          An amendment offered by Mr. Portman to the amendment 
        in the nature of a substitute (#1I), inserting a new 
        section entitled ``Establishment of Human Resources 
        Management Systems'', was agreed to by a voice vote.
          An amendment offered by Ms. Pelosi to the Amendment 
        in the nature of a substitute (#1J), requiring the 
        Secretary to integrate the government of the District 
        of Columbia in the planning, coordination, and 
        execution of activities to prepare against the 
        consequences of terrorist attacks, was agreed to by a 
        voice vote.
          An amendment offered by Ms. Pelosi to the Amendment 
        in the nature of a substitute as modified by the en 
        bloc amendment by Mr. Armey (#1K), striking provisions 
        relating to the scoring of expenditures and alternative 
        financing methods, was agreed to by a voice vote.
          An amendment offered by Mr. DeLay to the amendment in 
        the nature of a substitute (#1P) striking the transfer 
        of the El Paso Intelligence Center of the Drug 
        Enforcement Administration, was agreed to by a voice 
        vote.
          An amendment offered by Ms. Pelosi to the amendment 
        in the nature of a substitute (#1Q), adding a rule of 
        construction with regard to regulatory authority not 
        transferred by the bill, was agreed to by a voice vote.
          An amendment offered by Mr. Portman to the amendment 
        in the nature of a substitute (#1R), inserting a new 
        section entitled ``Allocation of Resources by the 
        Secretary'', was agreed to by a voice vote.
          An amendment offered by Ms. Pelosi to the amendment 
        offered by Mr. Portman to the Amendment in the nature 
        of a substitute (#1R1), addressing customs user fees, 
        was withdrawn.
          An amendment offered by Mr. Menendez to the amendment 
        in the nature of a substitute (#1S), ensuring that 
        functions of agencies not directly related to the 
        Department are not diminished, was agreed to by a voice 
        vote.
          An amendment offered by Mr. Menendez to the amendment 
        in the nature of a substitute (#1W), adding a new 
        section entitled ``Establishment of Office for Civil 
        Rights and Civil Liberties''; was agreed to by a voice 
        vote.
          A substitute amendment offered by Mr. Armey to the 
        amendment offered by Mr. Menendez to the amendment in 
        the nature of a substitute (#1W1), requiring the 
        inspector general of the Department of Homeland 
        Security to designate an official to investigate 
        complaints regarding civil rights and civil liberties, 
        was withdrawn.
          An amendment offered by Ms. Pelosi to the amendment 
        in the nature of a substitute (#1Z), establishing a 
        clearinghouse for technologies, was withdrawn.
          An amendment offered by Ms. DeLauro to the Amendment 
        in the nature of a substitute (#1AA), requiring the 
        Department to classify research projects prior to 
        granting award for such project, was withdrawn.
          An amendment offered by Ms. DeLauro to the Amendment 
        in the nature of a substitute (#1BB), adding a new 
        section entitled ``Homeland Security Science and 
        Technology Advisory Committee'', was withdrawn.
          An amendment offered by Ms. DeLauro to the Amendment 
        in the nature of a substitute (#1CC), establishing 
        guidelines after a disaster relating to human health 
        research, was withdrawn.
          An amendment offered by Ms. DeLauro to the Amendment 
        in the nature of a substitute (#1DD), adding a new 
        subsection entitled ``Technology Clearinghouse'', was 
        withdrawn.
          An en bloc amendment offered by Ms. Pelosi to the 
        amendment in the nature of a substitute (#1EE), to (1) 
        ensure that the Department's Chief Financial Officer 
        and Chief Information Officer are subject to certain 
        other provisions of law, (2) add a new section entitled 
        ``Procurements from Small businesses'', (3) add a new 
        section entitled ``Immigration Functions'', (4) 
        establish that the Commandant of the Coast Guard must 
        report directly to the Secretary, (5) add a new section 
        entitled ``National Council of first responders'', (6) 
        add ``hospital emergency facilities'' to the list of 
        ``emergency response providers'', and (7) establish a 
        national policy to identify countermeasures to 
        chemical, biological, radiological, nuclear, or other 
        threats, was agreed to by a voice vote.
          An amendment offered by Ms. Pelosi to the amendment 
        in the nature of a substitute (#1FF), adding a new 
        section entitled ``Preservation of United States 
        Customs Service as Distinct Entity Within the 
        Department''; was withdrawn.
          An amendment offered by Ms. Pelosi to the amendment 
        in the nature of a substitute (#1GG), adding a new 
        section entitled ``Treatment of Minors in Custody''; 
        was withdrawn.
          An amendment offered by Ms. Pelosi to the amendment 
        in the nature of a substitute (#1HH), adding a new 
        title entitled ``Compensation for Minors with Parents 
        Killed in a Terrorist Attack''; was withdrawn.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held hearings and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:

          The Department of Homeland Security will adhere to 
        the following performance standards: (1) develop tools, 
        techniques, and policies to prevent terrorist attacks 
        within the United State; (2) reduce the vulnerability 
        of the Untied States to terrorism; (3) minimize the 
        damage and assist in the recovery from terrorist 
        attacks that do occur within the United States; (4) 
        conduct research, development, testing, evaluation, 
        that result in integration and deployment of homeland 
        security technologies and equipment within the Federal, 
        State, local governments and the private sector; (5) 
        develop and deploy tools and techniques to reduce the 
        vulnerabilities of critical infrastructures within the 
        United States; (6) develop and deploy tools that reduce 
        the risk of attack from nuclear chemical, biological, 
        and radiological warfare; (7) develop mechanisms, 
        processes and procedures to protect the privacy of 
        American citizens for those areas within the scope of 
        the Homeland Security mission; (8) reduce the backlog 
        for visa issuance and establishes procedures to reduce 
        fraud within the immigration enforcement system; (9) 
        Improve the safety and security at airports; (10) 
        Create an integrated planning, programming, budget and 
        accounting system that provides transparency into costs 
        and expenditures and allows leaders to make sound 
        managerial decisions for current and future programs; 
        (11) create a flexible and inviting environment to 
        recruit, manage, train and retain a world- class work 
        force; (12) Maintain technological superiority in key 
        homeland security capabilities; (13) Develop 
        infrastructure and operating procedures are efficient 
        and cost-effective.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of budget authority, entitlement authority, or 
tax expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 23, 2002.
Hon. Richard K. Armey,
Chairman, Select Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: As you requested, the Congressional 
Budget Office has prepared the enclosed cost estimate for H.R. 
5005, the Homeland Security Act of 2002. If you wish further 
details on this estimate, we will be pleased to provide them. 
The CBO staff contracts are Deborah Reis and Matthew Pickford 
and Matthew Schmit.
            Sincerely,
                                         Robert A. Sunshine
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 5005--Homeland Security Act of 2002

    Summary: H.R. 5005 would establish the Department of 
Homeland Security (DHS) to prevent terrorist attacks within the 
United States, reduce the United States' vulnerability to 
terrorism, minimize the damages from attacks that occur, and 
help to recover from any attacks. The new department would 
consist of 30 existing federal agencies or portions of 
agencies. Each of these agencies would continue to be 
responsible for carrying out its other, nonhomeland-security 
functions.
    CBO estimates that implementing H.R. 5005 would cost about 
$4.5 billion over the 2003-2007 period, assuming appropriation 
of the necessary amounts. This amount is in addition to 
projected net spending for ongoing activities of the 
transferred agencies--about $19 billion in 2002, growing to $27 
billion by 2007 under CBO's baseline assumptions.
    Enacting H.R. 5005 would increase direct spending from 
federal retirement funds by about $1 million in 2003 and by $5 
million over the 2003-2012 period. Therefore, pay-as-you-go 
procedures would apply. The bill also could affect governmental 
receipts from import duties and from employee contributions to 
federal retirement funds, but CBO estimates that the amounts 
would be less than $500,000 annually.
    H.R. 5005 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that 
the costs to comply with the mandates would not exceed the 
threshold established in that act ($58 million in 2002, 
adjusted annually for inflation). The bill contains no new 
private-sector mandates as defined in UMRA.
    Estimated cost to the Federal Government: H.R. 5005 would 
combine 30 existing agencies and programs to form the new 
department. The major components would include the following:
           The Federal Emergency Management Agency 
        (FEMA);
           The U.S. Secret Service;
           The U.S. Customs Service;
           The U.S. Coast Guard;
           The enforcement functions of the Immigration 
        and Naturalization Service (INS);
           The Transportation Security Administration 
        of the Department of Transportation;
           The Federal Protective Service (FPS) and the 
        Federal Computer Incident Response Center of the 
        General Services Administration (GSA);
           The National Infrastructure Protection 
        Center, the National Domestic Preparedness Office, the 
        Office for Domestic Preparedness, and the Domestic 
        Emergency Support Teams of the Department of justice 
        (DOJ);
           The Critical Infrastructure Assurance Office 
        of the Department of Commercey;
           The National Communications System of the 
        Department of Defense;
           The border offices of the Animal, Plant and 
        Health Inspection Service and the Plum Island Animal 
        Disease Center of the Department of Agriculture; and
           Various programs of the Department of Energy 
        and the Department of Health and Human Services.
    The following table summarizes the estimated net budgetary 
impact of reorganizing these agencies and programs, including 
the costs of building a new headquarters facility to house the 
DHS, administering them within a new cabinet-level department, 
and implementing certain new activities authorized by the bill.
    The first two lines of the table show funding for the 
agencies and programs to be transferred at the CBO baseline 
levels (that is, the 2002 appropriation adjusted for 
anticipated inflation in succeeding years). These figures do 
not include more than $7 billion that may be provided by the 
2002 Supplemental Appropriations Act for Further Recovery From 
and Response To Terrorist Attacks on the United States. That 
legislation is currently being considered by the Congress. 
Changes in direct spending shown in the table are from higher 
federal retirement costs that would occur over the 2003-20007 
period as a result of the voluntary separations payments 
authorized by section 442. The table also shows, as a 
memorandum item, the estimated direct spending of federal 
agencies transferred to the department. CBO estimates that the 
amount of direct spending for these agencies' existing programs 
would not be affected by enactment of the bill.
    The costs of this legislation fall within budget functions 
050 (national defense), 250 (general science, space, and 
technology), 350 (agriculture), 370 (commerce and housing 
credit), 400 (transportation), 450 (community and regional 
development), 550 (health), 750 (administration of justice), 
and 800 (general government).

                                Table 1.--Estimated Budgetary Impact of H.R. 5005
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2002      2003      2004      2005      2006      2007
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
Net spending by affected agencies under current law:
    Estimated authorization level \1\...............    23,283    23,958    24,584    25,220    25,870    26,546
    Estimated outlays...............................    18,590    20,630    21,922    23,581    24,866    25,948
Proposed changes:
    Reorganize agencies and administer new
     department:
        Estimated authorization level...............         0       150       250       255       260       265
        Estimated outlays...........................         0       120       230       254       259       264
    Design, construct, and operate new federal
     building:
        Estimated authorization level...............         0        75       425         0         0        80
        Estimated outlays...........................         0        50        68       106       138       220
    Intelligence analysis center:
        Estimated authorization level...............         0        30        10        10        10        10
        Estimated outlays...........................         0        20        20        10        10        10
    Research and development program:
        Estimated authorization level...............         0       300       306       312       318       325
        Estimated outlays...........................         0       180       289       309       316       322
    Other newly authorized activities:
        Estimated authorization level...............         0        28        29        29        29        29
        Estimated outlays...........................         0        28        29        29        29        29
    Additional human resources costs:
        Estimated authorization level...............         0        12        16         7         7         7
        Estimated outlays...........................         0        12        16         7         7         7
    Immigration-related costs for Department of
     Justice:
        Estimated authorization level...............         0       186       216       221       232       244
        Estimated outlays...........................         0       176       215       221       232       243
    Total changes:
        Estimated authorization level...............         0       781     1,252       834       856       960
        Estimated outlays...........................         0       586       867       936       991     1,095
Net spending under H.R. 5005:
    Estimated authorization level...................    23,283    24,739    25,836    26,054    26,726    27,506
    Estimated outlays...............................    18,590    21,216    22,788    24,517    25,857    27,043
                                           CHANGES IN DIRECT SPENDING
Additional Federal retirement payments:
    Estimated budget authority......................         0         1         3         1         0         0
    Estimated outlays...............................         0         1         3         1         0         0
                     Memorandum
Net direct spending by affected agencies under
 current law and under H.R. 5005 \2\
    Estimated budget authority......................       591       684     1,906     2,053     2,120     2,305
    Estimated outlays...............................       479       612     1,867     1,975     2,028    2,087
----------------------------------------------------------------------------------------------------------------
\1\ The 2002 level is the amount appropriated for that year for agencies that would be combined to form the
  Department of Homeland Security. The estimated authorization levels for 2003 through 2007 are CBO baseline
  estimates that adjust the amounts appropriated for 2002 for anticipated inflation. Those amounts are net of
  offsetting collections credited to appropriation accounts.
\2\ CBO estimates that the amount of direct spending by agencies that would be combined to form the new
  department would not be changed by enacting H.R. 5005. Authority to collect Customs user fees expires at the
  end 2003. CBO estimates that those fees will total $1.3 billion in 2003.

Basis of estimate

    CBO estimates that implementing H.R. 5005 would cost about 
$4.5 billion over the 2003-2007 period, assuming appropriation 
of the necessary funds. These costs are in addition to those 
that would be incurred by the Office of Homeland Security under 
current law. They include expenses to establish, house, and 
administer a new cabinet-level department and carry out within 
the department new activities and programs authorized by the 
bill. This estimate does not include additional funds to 
enhance the homeland security functions of the agencies that 
would be transferred to the new department except when 
specifically authorized by H.R. 5005. The bill also would 
increase the cost of certain immigration functions conducted by 
the Department of Justice.For this estimate, CBO assumes that 
H.R. 5005 will be enacted before January 1, 2003, and that the 
necessary funds will be appropriated for each fiscal year. The 
estimated costs of implementing the bill are based on information 
obtained from affected federal agencies and on the administrative 
expenses of other federal departments.
            Consolidate affected agencies and administer the new 
                    department
    CBO estimates that establishing, housing, and administering 
the new department would cost about $1.7 billion over the 2003-
2007 period.
    Initial Costs to Consolidate Agencies and Fulfill Reporting 
Responsibilities. CBO estimates that most of the estimated 2003 
authorization level would be spent on one-time costs to hire, 
house, and equip key personnel (on an interim basis) to manage 
the new 170,000-person department. Also included here are 
incidental consolidation costs such as moving expenses, as well 
as the costs of preparing various plans and reports required of 
the DHS or other federal agencies.
    In the next few years, the greatest costs of consolidation 
would be for providing and equipping interim office space for 
the department-level management structure specified in the bill 
and for a centralized administrative staff to support a new 
cabinet-level department. CBO estimates that initially GSA 
would need to renovate and furnish office space for about 300 
key positions. (After 2007, we expect that these positions 
would be relocated to the permanent DHS headquarters, as 
authorized by section 741.) Additional costs to purchase 
computers, network equipment, and supplies in the first years 
following creation of the new department also would be 
significant. Probably the largest of these costs would be the 
acquisition of basic computer systems for administrative 
functions, such as budget and finance, as well as for 
information management and communications.
    The balance of the estimated 2003 authorization level is 
for partial-year funding for salaries and other expenses of new 
department personnel. New positions, which CBO assumes would be 
filled over the first two years following enactment, would 
include appointees such as under secretaries and assistant 
secretaries, key managers such as a general counsel and an 
inspector general, and other departmental-level personnel to 
perform administrative functions such as policy development, 
legislative affairs, and budget and finance activities.
    Design, Construct, and Operate New Federal Building. 
Section 741 would direct GSA to construct a building to serve 
as the headquarters of the DHS, preferably on land already in 
federal ownership. This section also would authorize the 
appropriation of whatever amounts are necessary for the DHS to 
pay GSA for use of the new building and other facilities. Based 
on information provided by GSA about recent office building 
projects, CBO estimates that planning and design of the new 
headquarters would cost $75 million in fiscal year 2003, and 
that constructing the facility over the 2004-2007 period would 
cost $425 million. We estimate that furnishing, equipping, and 
operating the new space for part of the year would cost about 
$80 million in 2007.
    For this estimate, CBO assumes that the headquarters would 
be located on property already owned by the federal government 
in the Washington, D.C. area. If new land has to be acquired 
for a building site, costs would be higher. Moreover, this 
estimate is based on the assumption that GSA would construct a 
facility large enough to house most of the roughly 8,000 
Washington-area employees of the transferred agencies, although 
it is possible that some employees would not move to the new 
headquarters.
    Ongoing Administrative Costs. CBO estimates that it would 
cost about $250 million annually to administer the DHS, 
including centralized leadership, coordination, and support 
services for a cabinet-level department. The estimated annual 
cost represents about 1 percent of spending for the transferred 
entities. This estimate is based on the assumption that a share 
of each combined agency or office would be transferred to the 
DHS from the department where it is currently located, subject 
to the various limitations on such transfers specified by the 
bill. If sufficient resources are not transferred to the new 
department, added annual costs could be higher. Ongoing 
administrative costs include those typically incurred by any 
federal department--policy making, resource management, budget 
and finance functions, and legal and investigative services. 
For the DHS, they would also include costs to: (1) coordinate 
with other existing federal agencies, new entities that would 
be created by H.R. 5005 (such as the National Homeland Security 
Council), state and local authorities, and other organizations, 
(2) manage newly created entities such as the Bureau of 
Citizenship and Immigration Services (BCIS), and (3) oversee 
significant new research and development initiatives.
            New program authorization
    H.R. 5005 would authorize the DHS to initiate several new 
programs that are not currently conducted by any of the 
agencies that would be transferred to the new department. Based 
on information from the Administration and on the costs of 
other similar efforts, CBO estimates that beginning in 2003 
these new efforts would cost about $350 million a year, subject 
to appropriation of the necessary amounts.
    Intelligence Analysis Center. Section 211 would create 
within DHS an Intelligence Analysis Center to integrate 
intelligence collected by other agencies. Based on the costs of 
carrying out similar programs at the Federal Bureau of 
Investigations and the Department of the Army, CBO estimates 
that the new center would spend about $20 million for 
informationtechnology systems in 2003 and $10 million a year 
for personnel and other expenses to analyze intelligence information. 
This estimate is based on the assumption that the new center would 
incorporate existing intelligence activities of the Coast Guard, 
Customs Service, INS, and Federal Protective Service.
    Research and Development Program. Title III would authorize 
DHS to conduct research and development (R&D;) activities 
related to the department's mission, especially in support of 
its procurement needs. CBO estimates that the cost of the 
department's R&D; programs would range from $200 million to $400 
million annually, or an average of about $300 million a year. 
For this estimate, we assume that spending would be of a scale 
similar to that at other mission-oriented R&D; agencies, such as 
the Federal Aviation Administration, the Federal Highway 
Administration, the Forest Service, and the Department of 
Education. At this level, R&D; spending would be equivalent to 
between 1 percent and 2 percent of the total spending estimated 
for the department. Our estimate of $300 million includes about 
$50 million annually for the university research centers 
authorized by the bill.
    Other Newly Authorized Activities. H.R. 5005 would 
authorize several other smaller programs at DHS. CBO estimates 
that those new programs would cost about $30 million annually.
    H.R. 5005 would establish a security program including a 
Federal Information Security Team to improve the security of 
critical information systems. Based on the costs of similar 
programs such as the Technical Support Working Group, the 
Office of Science and Technology Policy, and the Special 
Advisor to the President for Cyber Space Security, CBO 
estimates that the program and team would cost about $15 
million annually.
    The bill would establish within DHS a National Council of 
First Responders. The council would be made up of 100 local 
emergency personnel who would be the first to respond to a 
terrorist attack. Based on similar nonpaid committees and 
councils, CBO estimates that the council would cost 
approximately $1 million annually.
    The legislation would establish a National Homeland 
Security Council within the Executive Office of the President. 
Based on the costs of the National Security Council, CBO 
estimates that operating the council would cost approximately 
$8 million annually.
    H.R. 5005 would establish a privacy officer within DHS 
whose primary responsibility would be to monitor the 
collection, use, and disclosure of personal information by the 
department. Based on the costs of other similar offices, such 
as congressional relations and public affairs, CBO estimates 
that establishing a privacy officer and staff would cost 
approximately $5 million annually.
    Additional Human Resources Costs. Several provisions of 
H.R. 5005 would affect salaries and benefits of federal 
personnel. CBO estimates that additional costs from 
appropriated funds would total $49 million over the 2003-2007 
period and that additional direct spending would total $5 
million over that period.
    Title IV would abolish the INS and require the Attorney 
General or the Secretary of Homeland Security to prepare a 
strategic restructuring plan showing how current INS employees 
would be terminated or moved to successor agencies--either the 
new Bureau of Border Security within DHS or the new Bureau of 
Citizenship and Immigration Services (BCIS) within DOJ. In 
order to encourage some INS workers to leave federal employment 
as part of this restructuring plan, section 442 would authorize 
the DOJ or DHS to offer voluntary separation incentives of up 
to $25,000 per eligible employee. Assuming that participation 
in the buyout program resembles that for similar recent 
initiatives, CBO estimates that the cost of buyout payments 
would be about $4 million in 2003 and a total of $13 million 
over the 2003-2007 period. The bill would also require the 
agencies to pay the Civil Service Retirement and Disability 
Fund (CSRDF) an amount equal to at least 45 percent of each 
employee's final pay. CBO estimates payments to the fund would 
be $5 million in 2003 and about $18 million over the 2003-2007 
period.
    Because the buyout program would cause some federal 
employees to retire sooner than they otherwise would have, 
implementing section 442 would increase mandatory retirement 
benefits paid from the CSRDF in the short run. CBO estimates 
that direct spending would increase by $1 million in 2003 and 
by $4 million over the 2003-2007 period. In later years, CSRDF 
outlays would be reduced by this provision because employees 
who retire early receive smaller annuity payments.
    Section 442 would also increase spending for health 
benefits of federal retirees because many employees who would 
accept the buyouts would continue to be eligible for coverage 
under the Federal Employee Health Benefits (FEHB) program. CBO 
estimates that these additional FEHB benefits would increase 
direct spending by less than $500,000 in 2003 and by $1 million 
during the 2003-2007 period.
    Section 761, which would create a new human resources 
management system for DHS, also could affect federal spending. 
Table 1 does not include any budgetary impact that might result 
from implementing the new pay and retirement provisions of this 
system, however, because CBO cannot predict whether (or to what 
extent) they would supplant--or improve upon--those currently 
governing the federal entities to be transferred to the new 
department.
    Title IX would allow DHS to reclassify positions of 
officers and agents of the FPS by making them law enforcement 
officers. Based on information from the General Services 
Administration, CBO estimates that implementing this provision 
would increase the averagecompensation costs by $3,800 a year 
for the approximately 290 current GSA employees who are eligible to 
become law enforcement officers. The total increase would be $10 
million over the 2003-2007 period.
    Under title 5 of the U.S. Code, contributions that agencies 
and workers make to the Civil Service Retirement and Disability 
Fund are higher for workers treated as law enforcement officers 
than they are for regular Civil Service employees. For the 
estimated 290 current GSA employees who would become law 
enforcement officers under the bill, retirement contributions 
by both the agency and the workers would be higher under H.R. 
5005 than they would be under current law. CBO estimates DHS 
contributions to the CSRDF for those employees would increase 
by $1 million in 2003 and by $8 million over the 2003-2007 
period.
            Costs to continue agency functions and enhance Homeland 
                    Security mission
    As shown in Table 2, CBO estimates that budget authority 
for the agencies that would form DHS totals close to $27 
billion in 2002 (including both mandatory and discretionary 
accounts). About $3 billion of that amount is offset through 
various fees and collections. Three agencies account for more 
than half of the 2002 funding--FEMA, the Coast Guard, and the 
enforcement functions transferred from the INS. Together with 
the Customs Service, they account for close to 80 percent of 
the 2002 funding.
    For 2003, funding for the new department would almost 
certainly be higher. CBO estimates that the President's 2003 
budget would provide about $29 billion in funding for functions 
and agencies that the bill would transfer to the Department of 
Homeland Security, which is about an 8 percent increase over 
2002 spending for these same functions. This figure includes 
both mandatory and discretionary budget authority. Receipts for 
those agencies also would grow to about $5 billion.
    CBO's estimate of the cost of establishing a Department of 
Homeland Security as specified in H.R. 5005 does not include 
additional funding for the affected agencies to enhance their 
homeland security functions, except for those added 
responsibilities specified in the bill. The CBO baseline 
funding level for those agencies in 2003 and beyond assumes 
adjustments to account for anticipated inflation but does not 
reflect the amount of additional spending that may be necessary 
to prevent terrorist attacks, reduce the nation's vulnerability 
to attacks, and recover from any attacks. CBO has not estimated 
how much those agencies might need to spend to enhance homeland 
security. Such additional spending may occur whether or not a 
new department is created.

  Table 2.--CBO Estimates of 2002 Enacted Spending and the President's 2003 Request for Agencies and Functions
                                              Affected by H.R. 5005
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                       Discretionary         Estimated        Estimated Fees and
                                                          Budget        Mandatory  Budget        Receipts \2\
                                                       Authority \1\        Authority
----------------------------------------------------------------------------------------------------------------
                                                Enacted for 2002
Federal Emergency Management Agency.................             7.7                0.0                  -0.1
Coast Guard (DOT)...................................             4.4                1.0                   0.0
Enforcement Activities of the Immigration and                    4.0                0.6                  -0.6
 Naturalization Service (DOJ).......................
HHS Chemical and Biological Research and Response...             1.3                0.0                   0.0
Customs Service (Treasury)..........................             3.1                0.6                  -1.2
Secret Service (Treasury)...........................             1.0                0.2                   0.0
Border Activities of the Animal and Plant Health                 0.1                0.2                   0.0
 Inspection Service (USDA)..........................
Federal Protective Services (GSA)...................             0.4                0.0                   0.0
Transportation Security Agency (DOT)................             1.3                0.0                  -1.3
Other affected agencies.............................             1.2                0.0                   0.0
                                                     -----------------------------------------------------------
      Total.........................................            24.5                2.5                  -3.2
                                                Proposed for 2003
Federal Emergency Management Agency.................             6.6                0.0                  -0.1
Coast Guard (DOT)...................................             5.0                1.0                   0.0
Enforcement Activities of the Immigration and                    4.0                0.6                  -0.6
 Naturalization Service (DOJ).......................
HHS Chemical and Biological Research and Response...             0.6                0.0                   0.0
Customs Service (Treasury)..........................             3.0                0.6                  -1.5
Secret Service (Treasury)...........................             1.0                0.2                   0.0
Border Activities of the Animal and Plant Health                 0.1                0.3                   0.0
 Inspection Service (USDA)..........................
Federal Protective Services (GSA)...................             0.4                0.0                   0.0
Transportation Security Agency (DOT)................             4.8                0.0                  -2.7
Other affected agencies.............................             1.1                0.0                   0.0
                                                     -----------------------------------------------------------
      Total.........................................            26.5                2.7                  -4.9
----------------------------------------------------------------------------------------------------------------
\1\ Does not include the Administration's proposal that federal agencies pay the full cost of benefits for their
  employees as such benefits accrue. Such payments would total about $1.4 billion in 2003
\2\ Includes offsetting collections credited to appropriation accounts as well as offsetting receipts; excludes
  fees classified as revenues.
Note.--Numbers may not add up to totals due to rounding.

            DOJ immigration-related activities
    H.R. 5005 would transfer most functions of the INS to the 
DHS, except for functions relating to the provision of 
immigration services. Title IV of the bill would establish 
within the DOJ the Bureau of Citizenship and Immigration 
Services (BCIS) to administer immigration services currently 
performed by the INS. The bill would create several offices 
within the new agency, authorize the appropriation of whatever 
sums are necessary to adjudicate refugee and asylum claims, and 
allow DHS to set rules for the State Department to follow in 
issuing visas.
    Assuming appropriation of the necessary amounts, CBO 
estimates that the costs for these activities would total $1.1 
billion over the 2003-2007 period, most of which would be for 
adjudicating refugee and asylum claims. These costs include:
     Refugee and Asylum Adjudication. Current law 
authorizes the INS to collect fees to cover the costs of 
adjudicating applications for immigration services, such as 
citizenship and employment eligibility. (Those collections and 
the spending of them are recorded in the budget as direct 
spending.) The agency is permitted to set fees at a level to 
recover all such costs, including the costs, of providing 
immigration services at no charge to certain individuals 
(including applicants for asylum and refugee status). 
Consequently, the INS charges fees that exceed the amount 
needed for cost recovery for some applicants in order to cover 
the costs of others. This practice would be prohibited by H.R. 
5005. CBO expects this change would lead to approximately equal 
reductions in collections and direct spending.
    To pay for the costs of processing asylum and refugee 
claims that would not be covered by fees, H.R. 5005 would 
authorize the appropriation of such sums as necessary. CBO 
estimates that implementing this provision would cost about 
$180 million in 2003 and $1 billion over the 2003-2007 period.
     Ombudsman Program. H.R. 5005 would require the 
BCIS to establish at least one local ombudsman office in each 
state to assist individuals and employers in resolving problems 
with the agency. We estimate that this service would cost about 
$25 million annually, beginning in fiscal year 2004.
     Office of Citizenship. This new office would 
promote educational programs for aliens interested in becoming 
naturalized citizens. CBO estimates that operating the office 
would cost about $1 million annually.
     Office of Children's Services and Office of 
Statistics. The bill would establish these two offices within 
the new BCIS. CBO estimates that additional costs to operate 
these offices would be less than $1 million annually because 
most of the functions that they would perform are already being 
carried out by the INS.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. Two 
provisions of H.R. 5005 would increase direct spending for 
payments made from federal retirement funds. CBO estimates that 
implementing the voluntary separations provisions of Title IV 
would increase direct spending from the CSRDF by $4 million 
over the 2003-2005 period. These additional retirements would 
increase mandatory spending for the FEHB program by $1 million 
in 2004 and by insignificant amounts in other years. We further 
estimate that implementing Title IX (which would allow DHS to 
reclassify certain FPS employees as federal tax enforcement 
officers) also would increase direct spending for payments from 
the CSRDF (because retirement benefits are more generous for 
such officers), buy any such increases would be less than 
$500,000 a year.
    Two provisions would affect government receipts. CBO 
estimates that reclassifying FPS employees as law enforcement 
officers would increase revenues from employee contributions to 
the CSRDF by less than $500,000 annually.
    H.R. 5005 would alter the method by which certain importers 
pay duties for goods. Those importers must provide import 
activity statements to the Secretary of the Treasury under 
current law. The bill would change the timing of duties paid on 
the goods reported on such statements. Based on information 
from the United States Customs Service, CBO expects that this 
provision would have negligible effect on revenues.
    These changes are summarized in Table 3 below.

                    TABLE 3.--ESTIMATED EFFECTS OF H.R. 5005 ON DIRECT SPENDING AND RECEIPTS
----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   2012
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0      1      3      1      0      0      0      0      0      0      0
Changes in receipts................      0      0      0      0      0      0      0      0      0      0      0
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 5005 
contains intergovernmental mandates as defined in UMRA because 
it would require owners and operators of U.S. airports to 
provide notice to the Under Secretary of Homeland Security, by 
December 31, 2002, if they are unable to accommodate systems 
that detect explosives. Under current law, explosive detection 
systems must be installed by December 31, 2002. In addition, 
the bill could preempt state jurisdiction over certain 
liability cases. Such a preemption would be considered in 
intergovernmental mandate. CBO estimates that the costs to 
comply with those mandates would not be significant and would 
not exceed the threshold established in the act ($58 million in 
2002, adjusted annually for inflation). The remaining 
provisions of the bill contain no mandates and would impose no 
costs on state, local, or tribal governments. The bill contains 
no new private-sector mandates as defined in UMRA.
    Previous CBO estimates: On July 9, 2002, CBO transmitted a 
cost estimate for H.R. 5005 as introduced on June 24, 2002. the 
Select Committee's version of the bill contains several 
different provisions that would affect the costs of 
establishing the DHS. Our cost estimates reflect those 
differences.
    On June 17, 2002, CBO transmitted a cost estimate for S. 
2452, the National Homeland Security and Combating Terrorism 
Act of 2002, as ordered reported by the Senate Committee on 
Governmental Affairs on May 22, 2002. While both S. 2452 and 
H.R. 5005 would authorize the establishment of a Department of 
Homeland Security, they would consolidate different agencies to 
form the new department and would authorize some different 
activities for the new department. CBO's cost estimates for the 
two bills reflect those differences.
    Estimate prepared by: Federal costs: Matthew Pickford, 
Deborah Reis, Mark Grabowicz, and Kathleen Gramp, Matthew 
Schmit and Ellen Hays; impact on state, local, and tribal 
governments: Elyse Goldman; impact on the private sector: Paige 
Piper/Bach.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
defense and general welfare of the United States), clause 3 
(relating to the power to regulate foreign and interstate 
commerce), and clause 4 (relating to the laws of 
naturalization).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short Title; Table of Contents

    This section establishes the short title of the bill, the 
``Homeland Security Act of 2002'' and provides a table of 
contents.

Section 2. Definitions

    This section defines terms used throughout the bill. The 
Select Committee notes that none of the definitions used in 
this bill are intended to apply beyond the provisions of this 
legislation. For instance, the term ``terrorism'' is not 
intended to superscede the definition of terrorism found 
elsewhere in statute or as that term is used under 
international law.

Section 3. Construction; Severability

    This section provides that terms of the legislation are to 
be construed to provide the maximum effect permitted by law, 
unless a term is held to be invalid or unenforceable, in which 
case that provision is to be deemed severable from the rest of 
the legislation.

Section 4. Effective Date

    This section provides that the effective date of the 
legislation is 30 days after the date of enactment, or January 
1, 2003, if the bill is enacted within 30 days of that date.

                title i--department of homeland security


Section 101. Executive Department; Mission

    This section establishes the Department of Homeland 
Security in the executive branch of the United States 
government and defines its primary missions and 
responsibilities. The primary missions of the department 
include: preventing terrorist attacks within the United States, 
reducing the vulnerability of the United States to terrorism at 
home, and minimizing the damage and assisting in the recovery 
from any attacks that may occur.
    The Department must continue to carry out all the functions 
from organizations it is absorbing including acting as the 
focal point for natural and manmade crises and emergency 
planning. The Department must also continue perform non-
homeland security related functions previously assigned to the 
organizations being transferred in a way that does not diminish 
or neglect those functions. While the Department promotes 
homeland security programs, it must also ensure those programs 
do not negatively impact the United States' economic security. 
Law enforcement functions, including responsibility for 
investigating and prosecuting acts of terrorism, will remain 
the responsibility of Federal, State, and local law enforcement 
agencies, except as specifically noted.

Section 102. Secretary, Functions

    This section provides that a Secretary of Homeland Security 
appointed by the President and confirmed by the Senate will 
head the Department. The section gives full authority and 
control over the Department and the duties and activities 
performed by its personnel, and endows the Secretary with the 
authorities necessary to fulfill the Department's statutory 
mission to protect the United States. In carrying out the 
duties prescribed by this legislation, the Secretary will 
coordinate with State and local governments, agencies, 
authorities and with the private sector to help with planning, 
training, equipment and exercises as well as provide 
information and warnings. The Secretary will also work to 
consolidate the Federal Government's homeland security related 
communications and communications systems to better work with 
other parts of government and the private sector. This section 
also provides that the promulgation of rules and regulations 
will be governed by the Administrative Procedures Act, unless 
otherwise noted.
    The bill directs the Secretary to appoint a Special 
Assistant to help coordinate with the private sector. The 
Select Committee recognizes that any comprehensive approach to 
providing for homeland security requires the involvement of all 
sectors of society, both public and private. The private sector 
has an important role to play and must be included in the 
overall security strategies designed by the Department. To 
facilitate a strong public-private partnership, this section 
creates the position of the Special Assistant for Private 
Sector Liaison in the office of the Secretary.
    The Special Assistant will be the primary contact for 
private sector activities and coordination with the Department. 
Through Private Sector Advisory Councils, comprised of industry 
and associated representatives, the Department will have a 
forum to identify the best available technology for homeland 
security, develop creative solutions to the nation's homeland 
security challenges, and receive feedback on the impact of 
these measures. The Special Assistant will also maintain 
relationships with the national laboratories, Federally Funded 
Research and Development Centers, and academia engaged in 
homeland security efforts. The Special Assistant should 
identify and facilitate projects that enable the nation to 
realize gains from combining cutting-edge research and 
development with commercial sound projects to achieve the most 
effective and cost efficient equipment possible to address 
terrorist activities. The Special Assistant will also promote 
existing public-private partnerships such as the Secret 
Service's Electronic Crimes Task Force and Customs-Trade 
partnership Against Terrorism while promoting new partnerships 
to fight terrorism and supporting the development of best 
practices to secure the nation's critical infrastructure. The 
Select Committee desires that the Special Assistant be given 
adequate support staff and facilities to support this effort.

Section 103. Other Officers

    This section creates the personnel structure that will 
support the Secretary in carrying out the missions and 
responsibilities of the Department. This section establishes a 
senior management team, including a Deputy Secretary, an Under 
Secretary for each of the four functional divisions within the 
Department, an Under Secretary for Management and up to 4 
assistant secretaries who are subject to the advice and consent 
of the Senate. Additionally, the section provides for the 
appointment of an Inspector General and a Commandant of the 
Coast Guard, each subject to the advice and consent of the 
Senate. The General Counsel, a Director of Secret Service, a 
Chief Information Officer and not more than eight Assistant 
Secretaries will be presidential appointees not requiring 
Senate confirmation.

Section 104. National Council of First Responders

    In addition to the Secretary's management team, the 
President will appoint a National Council of First Responders 
of not less than 100 members. The Council will include police, 
firefighters, emergency medical technicians, rescue workers, 
and hospital personnel who serve for a term of three years. 
Members will not be compensated for their work but will advise 
the Secretary on matters of importance to the first responder 
community including technology advances, improvements to 
communications, and coordination and threats to first 
responders. The Council will send a report to Congress annually 
on October 1 on the use of first responders.

      title ii--information analysis and infrastructure protection


Subtitle A--Under Secretary for Information Analysis and Infrastructure 
                               Protection


Section 201. Under Secretary for Information Analysis and 
        Infrastructure Protection

    This section creates an Under Secretary for Information 
Analysis and Infrastructure Protection and specifies the Under 
Secretary's primary responsibilities. These include: (1) 
receiving and analyzing law enforcement information, 
intelligence, and other lawfully obtained information in order 
to understand the nature and scope of the terrorist threat to 
the United States homeland; (2) integrating relevant 
information to produce and disseminate infrastructure 
vulnerabilities assessments; (3) analyzing that information to 
identify and prioritize the types of protective measures to be 
taken; (4) making recommendations for information sharing and 
developing a national plan that would outline recommendations 
to improve the security of key resources; (5) administering the 
Homeland Security Advisory System; (6) exercising primary 
responsibility for public threat advisories and providing 
specific warning information to State and local governments and 
the private sector, as well as advice about appropriate 
protective actions and countermeasures; and (7) making 
recommendations for improvements in the policies and procedures 
governing the sharing of law enforcement, intelligence and 
other information relating to homeland security within the 
Federal government and between the Federal government and State 
and local governments.

Section 202. Functions Transferred

    This section identifies agencies and functions relevant to 
information analysis and infrastructure protection that are to 
be transferred to the Department of Homeland Security. These 
include the National Infrastructure Protection Center of the 
Federal Bureau of Investigation (other than the Computer 
Investigations and Operations Section); the National 
Communications System of the Department of Defense; the 
Critical Infrastructure Assurance Office of the Department of 
Commerce; the Energy Security and Assurance Program of the 
Department of Energy, including the National Infrastructure 
Simulation and Analysis Center; and the Federal Computer 
Incident Response Center of the General Services 
Administration.

Section 203. Access to Information

    This section establishes the Secretary of Homeland 
Security's entitlement to receive intelligence and other 
information relating to information analysis and infrastructure 
protection from agencies and departments of the United States 
Government. Under the terms of this section, there are three 
broad categories of information to which the Secretary is given 
access. Unless the President directs otherwise, all executive 
agencies have an obligation to furnish appropriate information 
to the Secretary, even if no request has been made for them.
    First, the Secretary is authorized to receive all reports, 
assessments and analytic information relating to terrorist 
threats against the United States and to other areas within the 
Department's responsibilities. In this case, the Secretary does 
not normally receive ``raw'' or unprocessed intelligence data 
which would include, for example, recordings or verbatim 
transcripts of conversations.
    The second category of information to which the Secretary 
is granted access is information concerning infrastructure or 
other vulnerabilities of the United States to terrorism. In 
this case, material may include raw data in addition to other 
types of data, reports, and analysis previously mentioned.
    The final category of information also includes unprocessed 
or raw data on significant and credible threats of terrorism in 
the United States, but only if the President determines the 
Secretary may have access to such information. The Secretary 
will also have access to other material that the President 
determines is needed to fulfill the mission of the Homeland 
Security Department.
    Additionally, the Secretary is required to have access and 
input to information from any national collaborative 
information analysis capability that may be established by the 
Secretary of Defense and the Director of Central Intelligence.
    The section provides that the Secretary and executive 
agency heads will enter into agreements regarding thresholds 
for the automatic provision of each category of materials, but 
that information sharing will not be delayed pending such 
agreements.
    In all cases, the Secretary is required to ensure that 
material received as outlined in this section is used only for 
the performance of official duties and is protected from 
unauthorized disclosure. The Secretary's right to receive 
information is also subject to the traditional authority of the 
intelligence and law enforcement agencies to protect sources 
and methods and sensitive law enforcement information.

Section 204. Procedures for Sharing Information

    This section outlines procedures to ensure the proper 
safeguards and security for information received by the 
Department. The Select Committee believes that it is imperative 
that the constitutional and statutory privacy rights of 
individuals are protected. This section provides that the 
Secretary will take measures to prevent unauthorized use of 
information, ensure the security and confidentiality of 
information, and remove or destroy obsolete or erroneous 
material in a timely matter.

Section 205. Privacy Officer

    This section requires the appointment of an officer to 
guide the Department in decisions that have an impact on 
privacy. This officer will also ensure the Department's 
compliance with the Privacy Act of 1974 and permit 
congressional oversight of the activities of the Department 
that have privacy implications.
    The Privacy Officer would be responsible for assuring that 
all forms of technologies, in addition to information 
technologies, are not employed by DHS in any way that erodes 
citizens' privacy protections.
    The Privacy Officer would also be responsible for 
evaluating regulatory and legislative proposals that have an 
impact on privacy. The Privacy Officer will report to Congress 
on privacy violations and conduct privacy impact assessments of 
proposed rules.
    The Secretary will establish procedures ensuring the 
confidentiality and accuracy of personally identifiable 
information. These procedures would require the Secretary to 
(1) limit use and access to personally identifiable information 
(such as Social Security numbers) 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 
subject of such information; and (4) provide data integrity 
through the timely removal and destruction of obsolete or 
erroneous names and information.

Section 206. Cybersecurity Program

    This section directs the Secretary to establish and manage 
a program to improve the security of Federal critical 
information systems. It establishes three duties for the 
Secretary. First the Secretary is responsible for evaluating 
the increased use by civilian executive agencies of techniques 
and tools to enhance the security of Federal critical systems. 
Second, the Secretary is responsible for providing assistance 
to civilian executive agencies in protecting the security of 
Federal critical information systems, including identification 
of significant risks to such systems. Third, the Secretary is 
responsible for coordinating research and development to 
enhance the security of critical information systems, including 
supervisory control and data acquisition systems.
    This section also establishes as part of the program to 
improve security of Federal critical information systems, a 
Federal Information System Security Team to provide technical 
expertise to civilian executive agencies by conducting 
cybersecurity audits of civilian executive agency information 
systems (other than national security systems) in accordance 
with agreements between the Secretary and the head of those 
agencies. This team will be comprised of computer security 
technical experts who will conduct tests of the effectiveness 
of logical access controls of interconnected computer systems 
and networks of civilian executive agencies and contractors, 
including penetration tests and other vulnerability assessment 
techniques on Federal critical information systems.
    The Select Committee believes greater emphasis is needed on 
information security of Federal critical information systems, 
and on research and development to enhance security of the 
Nation's critical information systems.

                Subtitle B--Intelligence Analysis Center


Section 211. Intelligence Analysis Center

    This section establishes the Intelligence Analysis Center, 
headed by the Under Secretary for Information Analysis and 
Infrastructure Protection. The Intelligence Center is a program 
of the National Foreign Intelligence Program and is responsible 
for analyzing information, preparing and disseminating reports, 
working with other elements of Federal, State, and local 
governments and supporting the intelligence and information 
requirements of the Department.
    Through agreements between the Secretary and other Federal 
departments, individuals may be temporarily assigned for a 
period of less than two years to the Intelligence Analysis 
Center. The Secretary must reimburse the detailee's parent 
organization.
    This section also amends section 3(4) of the National 
Security Act of 1947 (50 U.S.C. 401a(4)) by adding the 
Intelligence Analysis Center of the Department of Homeland 
Security as an element of the Intelligence Community.

Section 212. Mission of the Intelligence Analysis Center

    This section outlines the primary mission of the 
Intelligence Analysis Center (Center) and denotes the functions 
transferred into the Center. The Center will be responsible for 
analyzing information and intelligence, preparing all source 
reports and warnings and subsequently disseminating reports and 
warnings on both terrorist threats and ways to better protect 
critical infrastructures. To perform its duties, the Center 
must coordinate with elements of the intelligence community as 
well as Federal, State and local law enforcement agencies and 
the private sector to both receive and share information.
    The Center is also directed to prepare strategic and 
tactical assessments on the terrorism and infrastructure 
topics. These topics include: domestic terrorism, international 
terrorism, counterintelligence, transnational crime, 
proliferation of weapons of mass destruction, illicit financing 
of terrorist activities, cybersecurity and cybercrime, and key 
resources and critical infrastructures.
    Staffing for the Intelligence Analysis Center will include 
resources and personnel from the National Infrastructure 
Protection Center of the Federal Bureau of Investigation (other 
than the Computer Investigations and Operations Section); the 
National Communications System of the Department of Defense; 
the Critical Infrastructure Assurance Office of the Department 
of Commerce; the National Infrastructure Simulation and 
Analysis Center of the Department of Energy; and the Federal 
Computer Incident Response Center of the General Services 
Administration. The intelligence elements of the following 
organizations will also be included: United States Customs 
Services, Immigration and Naturalization Service, 
Transportation Security Administration, and the Federal 
Protective Service.
    This section also expresses the sense of Congress that the 
Undersecretary should model the Center on the technical and 
analytic approach of the Information Dominance Center of the 
Department of the Army.
    It is the expectation of the Select Committee that the 
Secretary will from time to time consult with the President 
regarding the information needs of the Department, and the 
President may, in his deiscretion, direct such action as he 
deems appropiate following these consultations.

                   title iii--science and technology


Section 301. Under Secretary for Research and Development.

    This section specifies primary responsibilities of the 
Under Secretary for Research and Development. The Secretary 
will be responsible for preparing the national policy and plans 
for developing countermeasures to chemical, biological, 
radiological, nuclear and other emerging threats; administering 
research and development priorities based on needs and risk 
assessments and subsequently conducting and managing basic and 
applied research, development, demonstration, testing, and 
evaluation activities for the Department with the exception of 
human health related research and development. The Department 
will also develop guidelines for reviewing the merits of 
homeland security related research.
    This section provides that particular emphasis should be 
placed on fielding technology and systems for preventing the 
importation of, detecting and protecting against chemical, 
biological, radiological and nuclear weapons and related 
materials; and for improving the ability of emergency response 
providers to have robust and interoperable communications.
    This section also provides that the Department will also 
establish methods to help Federal, State, and local government 
and private sector entities evaluate and implement homeland 
security technologies including, but not limited to, 
establishing a centralized Federal repository to help those who 
may wish to pursue proposals to develop or deploy homeland 
security technologies.
    This section also directs the Secretary to assist others in 
evaluating and implementing homeland security related 
technologies.
    The Select Committee believes the private sector should 
continue to lead the standard setting development process. 
Therefore, the Select Committee recommends any standard-setting 
functions transferred to the department should conform with the 
National Technology Transfer Act of 1995 and OMB circular A-119 
to ensure the private sector maintains its leadership role in 
standard setting.

Section 302. Functions Transferred

    This section identifies agencies and functions relevant to 
research and development that are to be transferred to the 
Department of Homeland Security. These include the select agent 
registration enforcement programs and activities of the 
Department of Health and Human Services, provided that a 
related program within the Department of Agriculture is 
transferred; certain relevant programs of the Department of 
Energy, the Environmental Measurements Laboratory, the advanced 
scientific computing research program and activities at 
Lawrence Livermore National Laboratory; the Biological Defense 
Homeland Security Support Program and the Biological Counter-
Terrorism Research Program from the Department of Defense.

Section 303. Conduct of Certain Public Health-Related Activities

    This section provides that the Secretary of Health and 
Human Services will continue to carry out human health related 
research and development. In recognition of the fact that the 
new Department will have important intelligence, threat, and 
vulnerability-related information necessary for the 
identification of certain research priorities, this section 
provides that the Secretary of Health and Human Services will 
set priorities, goals, and objectives in collaboration with the 
Secretary of the Department of Homeland Security with respect 
to human health-related research and development activities on 
countermeasures for chemical, biological, radiological, and 
nuclear terrorist threats.

Section 304. Federally Funded Research and Development Center

    This section directs the Secretary to establish or contract 
with existing Federally Funded Research and Development Centers 
(FFRDC's) to obtain advice and assistance.

Section 305. Miscellaneous Provisions

    This section outlines a variety of miscellaneous provisions 
dealing with the administration of the Department. In order to 
share information and technology on the widest scale possible 
with public and private sectors, this section provides that 
research conducted or supported by the Department will be 
unclassified to the greatest extent possible. Other elements 
within the Department may conduct research and associated 
activities as long as they are coordinated with the under 
secretary for Research and Development. The Secretary has the 
authority to issue regulations for the Department for research 
and associated matters.
    This section requires the President to notify Congress not 
later than 60 days before transferring the Department of Energy 
life sciences activities into the Department, including the 
reasons for the transfer and the impact on the Department of 
Energy.

Section 306. Homeland Security Science and Technology Coordination 
        Council

    This section directs the establishment of a Homeland 
Security Science and Technology Coordination Council within the 
Department to assist the Secretary in establishing priorities 
for homeland security that begin with basic research and follow 
through to acquisition needs.

Section 307. Conduct of Research, Development, Demonstration, Testing, 
        and Evaluation

    This section directs the Secretary to fund both government 
and non-government organizations to conduct homeland security 
research, development, demonstration, testing, and evaluation 
programs. Specifically, the Secretary, acting through the Under 
Secretary for Research and Development, must ensure that as 
many colleges, universities, private research institutes and 
companies throughout the United States can compete for funds 
that may be available through grants, cooperative agreements, 
and contracts. The Secretary will also establish a university-
based center for homeland security research within the academic 
community. Funds are authorized to carry out this program.
    Similarly, the Secretary should draw upon expertise within 
the Federal Government's own National Laboratories. This 
section permits the Secretary to establish a headquarters 
laboratory to coordinate the Federal homeland security efforts 
and may add other laboratory units as needed. If the Secretary 
decides to establish a headquarters laboratory, then a formal 
process is required to document criteria and justification for 
selection of a specific laboratory. A report to Congress is 
mandated on lab selection and no laboratory may begin operating 
as the headquarters until at least 30 days after Congressional 
notification.
    The Select Committee believes that contracting or other 
work agreements should be agile and flexible to allow maximum 
participation by the public and private sector.

Section 308. Transfer of Plum Island Animal Disease Center, Department 
        of Agriculture

    This section transfers the Plum Island Animal Disease 
Center from the Department of Agriculture to the Department of 
Homeland Security. The Plum Island Facility also performs 
research that is vital to the mission of the Department of 
Agriculture, therefore, the Secretary of Agriculture and the 
Department of Homeland Security will complete a formal 
agreement to ensure the Department of Agriculture will continue 
to have access to the Plum Island Facility. Additionally, this 
section requires the President to notify Congress at least 180 
days before any change in the biosafety level at the Plum 
Island Animal Disease Center.

              title iv--border and transportation security


                     Subtitle A--General Provisions


Section 401. Under Secretary for Border and Transportation Security

    This section outlines the primary responsibilities for the 
Under Secretary for Border and Transportation Security. These 
include: preventing the entry of terrorists and the instruments 
of terrorism into the United States; securing the borders, 
territorial waters, ports, terminals, waterways, and air, land, 
and sea transportation systems of the United States; carrying 
out the immigration enforcement functions including 
establishment of rules governing the granting of visas and 
other forms of permission to enter the United States to 
individuals who are not citizens or lawful permanent residents; 
administering the customs laws of the United States, except for 
the collection of revenues which remains under the authority of 
the Secretary of Treasury; conducting agricultural related 
border inspections and associated administrative functions; and 
ensuring the speedy orderly, and efficient flow of lawful 
traffic and commerce in carrying out these responsibilities.

Section 402. Functions Transferred

    This section identifies agencies and functions relevant to 
border and transportation security that are to be transferred 
to the Department of Homeland Security. These include the 
United States Customs Service (now in the Department of the 
Treasury), except that certain revenue collecting functions 
will remain within the Department of Treasury; the 
Transportation Security Administration (now in the Department 
of Transportation); the Federal Protective Service (now in the 
General Services Administration); the Office of National 
Preparedness (now in the Federal Emergency Management Agency); 
the Office of Domestic Preparedness of the Office of Justice 
Programs (now in the Department of Justice); the National 
Domestic Preparedness Office (now in the Federal Bureau of 
Investigation); and the Domestic Emergency Support Teams (now 
in the Department of Justice). The section expressly requires 
that the Coast Guard, be maintained as a distinct entity within 
the Department of Homeland Security.

Section 403. Visa Issuance

    This section transfers to the Secretary of Homeland 
Security certain functions regarding the issuance and denial of 
visas to enter the United States. Subsection (a)(1) provides 
that (with certain exceptions provided in subsection (b)), the 
Secretary will be vested exclusively with regulatory, 
administrative, and enforcement authority over immigration and 
nationality laws relating to the functions of consular officers 
in connection with the granting or refusal of visas. This 
paragraph further provides that the visa-related authorities 
conferred upon the Secretary of Homeland Security will be 
exercised through the Secretary of State, and that the 
Secretary of Homeland Security does not have authority to alter 
or reverse a decision of a consular officer to refuse a visa.
    Subsection (a)(2) provides that the Secretary of Homeland 
Security may confer or impose the visa-related authorities 
specified in paragraph (1) on any officer or employee of the 
United States, with the consent of the head of the agency by 
which that person is employed. This could include, for 
instance, a delegation of some or all of these authorities back 
to the Secretary of State.
    Subsection (b)(1) provides that the Secretary of State may 
direct a consular officer to refuse a visa on foreign policy or 
security grounds. This authority is similar to the authority 
currently provided the Secretary of State under section 
212(a)(3)(c) of the Immigration and Nationality Act. Subsection 
(b)(2) specifies a number of foreign policy-related authorities 
under the Immigration and Nationality Act which will be 
retained by the Secretary of State.
    Subsection (c)(1) provides that the Secretary of Homeland 
Security is authorized to assign Homeland Security employees to 
diplomatic and consular posts abroad to advise consular 
officers on homeland security issues, to review visa 
applications, and to conduct investigations on threats to 
homeland security. Subsection (c)(2) provides that the overseas 
assignments described in paragraph (1) may, where appropriate, 
be permanent assignments, and that the Secretary of Homeland 
Security may direct employees on those permanent assignments 
participate in terrorist lookout committees at those posts.
    Paragraph (3) provides that the Secretary of Homeland 
Security will: provide training for Homeland Security employees 
assigned abroad in foreign languages, country conditions, and 
other appropriate areas of study; establish foreign language 
requirements for those positions and employment preferences for 
persons who meet those requirements; and may use the National 
Foreign Affairs Training Center for the purpose of training 
described in subparagraph (A).
    Subsection (d) provides that nothing in section 403 can be 
construed to create a private right of action to challenge a 
decision of a consular officer to grant or deny a visa. This 
savings clause is to ensure that the amendment provided by this 
section does not affect current law with respect to non-
reviewability of visa decisions.
    The Secretary of Homeland Security is directed to provide 
several reports and studies to Congress to determine the 
appropriate use of foreign nationals employed to issue visas 
and how the visa issuance process affects procedures for 
student visas. The United States depends heavily on foreign 
graduate students in many science and technology fields. The 
Select Committee believes that it is important that procedures 
for granting student visas balance the need to improve homeland 
security with the benefits that are gained when talented 
students from other countries study in the United States.
    This section also terminates a program that allowed 
applicants in Saudi Arabia to obtain visas from travel agents 
and other third parties. Now applications must be interviewed 
by on site personnel unless they certify an alien is unlikely 
to present a risk to homeland security.

Section 404. Transfer of Certain Agricultural Inspection Functions of 
        the Department of Agriculture

    This section transfers to the Secretary of Homeland 
Security the functions of the Secretary of Agriculture related 
to agricultural import and entry inspection activities. The 
Secretary is charged with carrying out inspections including 
pre-clearance of passengers, luggage, cargo, and their means of 
conveyance and enforcing existing laws and those regulations 
established by the Department of Agriculture.
    While agricultural inspection functions, as well as those 
related administrative and enforcement functions, will become 
the responsibility of the Secretary of Homeland Security, 
quarantine activities and facilities will be retained by the 
Secretary of Agriculture. This section does not preclude the 
Secretary of Homeland Security from taking actions related to 
inspection functions, such as seizing or holding plant or 
animal materials entering the United States.
    Because the Secretary of Agriculture retains unique 
expertise in the areas of animal, plant, associated products, 
soils or other biological materials that may present an 
unacceptable risk to the agriculture of the United States, this 
section requires the Secretary of Agriculture to continue to 
provide regulations, policies and procedures for administering 
the covered laws while the Department of Homeland Security 
carries out actual inspections. However, the Secretary of 
Homeland Security, in consultation with the Secretary of 
Agriculture, may issue directives and guidelines for the 
effective use of personnel.
    This section requires the Secretary of Agriculture and the 
Secretary of Homeland Security to enter into an agreement to 
transfer functions. This agreement must address the training of 
employees and the transfer of funds. In addition, the agreement 
may include the authority for the Secretary of Homeland 
Security to perform functions delegated to the Animal and Plant 
Health Inspection Service of the Department of Agriculture 
(APHIS) for the protection of domestic livestock and plants as 
well as authority for the Secretary of Agriculture to use 
employees of the Department of Homeland Security to carry out 
APHIS functions. The Secretary of Agriculture will transfer 
funds collected by fee authorities to the Secretary of Homeland 
Security as long as the funds do not exceed the proportion of 
the costs incurred by the Secretary of Homeland Security in 
carrying out activities funded by such fees.
    During the transition period, the Secretary of Agriculture 
will transfer to the Secretary of Homeland Security not more 
than 3,200 full-time equivalent positions of the Department of 
Agriculture. This section also makes conforming amendments to 
title V of the Agricultural Risk Protection Act of 2000 related 
to the protection of inspection animals.

Section 405. Functions of Administrator of General Services

    This section transfers to the Secretary only those 
functions of the Administrator of General Services related to 
law enforcement and security functions. Any amount of money 
transferred by the Administrator of General Services to the 
Secretary will be used by the Secretary solely for the 
protection of buildings or grounds owned or occupied by the 
Federal Government.

Section 406. Functions of Transportation Security Administration

    This section requires the Secretary to establish a liaison 
office within the Department to 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 air space. The Secretary 
must submit a report to Congress that outlines a plan for 
complying with the requirements of section 44901(d) of title 
49, United States Code. The Secretary of Homeland Security is 
expressly prohibited from spending any Airport Improvement 
Program (AIP) funds.

Section 407. Preservation of Transportation Security Administration as 
        a Distinct Entity

    To assist the newly created Transportation Security 
Administration (TSA) in transitioning to the Homeland Security 
Department, this section mandates that the TSA remain a 
distinct entity within the Department of Homeland Security for 
a period of two years after this legislation is enacted. The 
Select Committee recognizes that the TSA is being transferred 
to the Department at the same time it is working to meet a 
number of statutory deadlines as a newly created agency. The 
TSA has a responsibility to ensure both effective security and 
an efficient transportation system. Therefore, the Select 
Committee believes the TSA should use all reasonable measures 
to ensure efficiency and a viable transportation system in all 
modes as it fulfills its security responsibilities.

Section 408. Annual Assessment of Terrorist-Related Threats to Public 
        Transportation

    This section requires the Secretary, in consultation with 
other Federal departments and agencies, to conduct an annual 
assessment of terrorist-related threats to public 
transportation and associated areas where the public may 
gather.

Section 409. Explosive Detection Systems

    This section requires the Under Secretary of Homeland 
Security to notify the owner or operator of each United States 
airport on the number and type of explosive detection systems 
required to screen all checked baggage without imposing an 
unreasonable delay on passengers. In turn, airport owners and 
operators will report back to the Under Secretary if they are 
unable to make modifications to the airport's terminal 
buildings to accommodate explosive detection systems with a 
plan for making those changes. All plans shall be executed as 
soon as possible, but not later than December 31, 2003. A copy 
of the plan will be sent to Congress, but not disclosed to the 
public for security reasons.
    The Under Secretary for Homeland Security will purchase 
explosive detection systems for airports. Explosive detection 
systems should have high throughput, low false alarm rates, and 
high reliability without reducing detection rates. These 
systems should be placed in non-public areas such as baggage 
sorting areas and to the maximum extent possible, not in 
airport lobbies. If airports are unable to have explosive 
detection systems operational by December 31, 2002, baggage 
will continue to be screened by other methods.
    With concerns mounting about the ability of the TSA to 
place explosive detection systems in all airports by current 
statutory deadlines, the Select Committee believes that this 
approach balances the need for confidence in explosive 
detection technology with the need for rapid deployment of this 
technology at the Nation's airports.

Section 410. Transportation Security

    This section amends current law to reflect the Secretary of 
Homeland Security has assumed responsibility for the 
Transportation Security Administration. Accordingly, the 
Secretary of Homeland Security will establish and chair a 
Transportation Security Oversight Board. Additionally, the 
Secretary of Transportation will consult with the Secretary of 
Homeland Security before approving airport development project 
grants that relate to security equipment and the installation 
of bulk explosive detection systems.

           Subtitle B--Immigration and Nationality Functions


                   CHAPTER 1--IMMIGRATION ENFORCEMENT


Section 411. Transfer of Functions to Under Secretary for Border and 
        Transportation Security

    This section transfers the functions of (1) the Border 
Patrol program, (2) the detention and removal program, (3) the 
intelligence program, (4) the investigations program, and (5) 
the inspections program from the Commissioner of the 
Immigration and Naturalization to the Under Secretary for 
Border and Transportation Security, including the personnel, 
assets, and liabilities of those programs.

Section 412. Establishment of Bureau of Border Security

    This section establishes the Bureau of Border Security 
within the Department and provides that the head of the Bureau 
will be the Assistant Secretary of the Bureau of Border 
Security, who must have at least 10 years of law enforcement 
experience, 5 of which must have been as a manager. The 
Assistant Secretary will report directly to the Under Secretary 
for Border and Transportation Security.
    The Assistant Secretary will be responsible for the 
establishment and administration of policies for performing the 
functions transferred by section 411, and advising the Under 
Secretary with respect to any policy of the Bureau of Border 
Security that may affect or conflict with the policies and 
operations of the Bureau of Citizenship and Immigration 
Services of the Department of Justice. The Assistant Secretary 
must also operate a program to collect information relating to 
foreign students, and a program to rotate senior managers 
through all of the major functions of the Bureau.
    This section also creates the position of Chief of Policy 
and Strategy and the Citizenship and Immigration Services 
Liaison in the Bureau. The Chief of Policy and Strategy will 
establish national immigration enforcement policies and 
practices, perform research and analysis on immigration 
enforcement issues, and coordination of these policies with the 
Bureau of Citizenship and Immigration Services of the 
Department of Justice. The Citizenship and Immigration Services 
Liaison will be responsible for the appropriate allocation and 
coordination of resources involving shared support functions 
for the Bureau and the Bureau of Citizenship and Immigration 
Services of the Department of Justice.

Section 413. Professional Responsibility and Quality Review

    This section provides that the Under Secretary for Border 
and Transportation Security will be responsible for conducting 
noncriminal investigations of allegations of improper conduct 
by any employee of the Bureau, unless that allegation is being 
investigated by the Inspector General. The Under Secretary is 
also responsible for inspecting and analyzing the ongoing 
operations and management of the Bureau.

Section 414. Employee Discipline

    This section authorizes the Under Secretary to discipline 
any Bureau employee, including terminating that employee, for 
willfully deceiving Congress or agency leadership, subject to 
the policies and procedures applicable to the Federal Bureau of 
Investigation for similar behavior.

Section 415. Report on Improving Enforcement Functions

    Not later than 1 year after being sworn into office, the 
Secretary must submit a report to the Committees on 
Appropriations and the Judiciary of the House and Senate 
detailing a plan to effectively, comprehensively, and fairly 
enforce the Immigration and Nationality Act (8 U.S.C. 1101 et 
seq.) after the transfer of the functions pursuant to section 
411. In preparing the report, the Secretary must consult with 
other specified Federal, State, and local officials.

            CHAPTER 2--CITIZENSHIP AND IMMIGRATION SERVICES


                  Subchapter A--Transfers of Functions


Section 421. Establishment of the Bureau of Citizenship and Immigration 
        Services

    Subsection (a) establishes the Bureau of Citizenship and 
Immigration Service (BCIS) in the Justice Department. The 
bureau is headed by the Assistant Attorney General for 
Citizenship and Immigration Services, who reports directly to 
the Deputy Attorney General and must have at least 10 years 
professional experience in adjudicating Government benefits or 
services, at least five of which must have been years of 
service in a managerial capacity or in a position affording 
comparable management experience.
    The Assistant Attorney General: (1) establishes citizenship 
and immigration services policies for the bureau; (2) oversees 
the administration of those policies and advises the Deputy 
Attorney General on any policy or operation of the BCIS that 
may affect the Bureau of Border Security of the Department of 
Homeland Security, including potentially conflicting policies 
or operations; (3) meets regularly with the Citizenship and 
Immigration Services Ombudsman to correct serious service 
problems identified by the Ombudsman; and (4) establishes 
procedures for a formal response to any recommendations 
submitted in the Ombudsman's annual report to Congress within 3 
months of its submission to Congress. The Assistant Attorney 
General must also design and implement a program to rotate 
senior managers through all of the major functions of the 
bureau. Finally, the Assistant Attorney General is authorized 
to implement innovative pilot initiatives to eliminate any 
remaining backlog in the processing of immigration benefit 
applications, including increasing and transferring personnel, 
and streamlining paperwork.
    Subsection (b) transfers from the Commissioner of the 
Immigration and Naturalization Service (INS) to the Assistant 
Attorney General of the BCIS the following functions, and all 
personnel, infrastructure, and funding given to the 
Commissioner in support of such functions prior to the 
abolishment of the INS: (1) adjudications of immigrant visa 
petitions; (2) naturalization petition adjudications; (3) 
asylum and refugee application adjudications; (4) service 
center adjudications; and (5) all other immigration benefit 
adjudications.
    Subsection (c) establishes the position of Chief of Policy 
and Strategy. The Chief must (1) establish national immigration 
services policies and priorities; (2) perform policy research 
and analysis on immigration services issues; and (3) coordinate 
immigration services policy issues with the Chief of Policy and 
Strategy for the Bureau of Border Security in the Department of 
Homeland Security.
    Subsection (d) establishes the position of General Counsel 
for the BCIS to provide serve as the principal legal adviser to 
the Assistant Attorney General, and will provide legal advice, 
opinions, and other help to the Assistant Attorney General, and 
represent the BCIS in visa petition appeal proceedings in legal 
or administrative proceedings involving immigration services 
issues.
    Subsection (e) establishes the position of Chief Budget 
Officer for the BCIS. This officer formulates and executes the 
budget of the BCIS according to the needs of the service 
bureau. This officer will have all of the authorities and 
functions for the BCIS of an agency chief financial officer 
under section 902 of title 31, United States Code.
    Subsection (f) establishes the position of Chief of 
Congressional, Intergovernmental, and Public Affairs in the 
BCIS. The Chief (1) provides citizenship and immigration 
services information to the Congress, including information on 
specific constituent cases relating to immigration services; 
(2) serves as a liaison with other Federal agencies on 
citizenship and immigration services issues; and (3) responds 
to inquiries from the media and general public on citizenship 
and immigration services issues.
    Subsection (g) establishes the position of Border Security 
Liaison for the Bureau of Citizenship and Immigration Services. 
This officer will be responsible for the appropriate allocation 
and coordination of resources involving shared support 
functions for the BCIS and the Bureau of Border Security of the 
Department of Homeland Security.
    Subsection (h) establishes the position of Chief of the 
Office of Citizenship in the BCIS. The Chief promotes 
instruction and training on citizenship responsibilities for 
aliens interested in becoming naturalized citizens of the 
United States, including the development of educational 
materials.

Section 422. Citizenship and Immigration Services Ombudsman

    Subsection (a) establishes the position of Citizenship and 
Immigration Services Ombudsman within the Department of 
Justice. The Ombudsman will report directly to the Deputy 
Attorney General and must have a background in customer service 
and immigration law.
    The functions of the Ombudsman include: (1) assisting 
individuals and employers in resolving problems with the BCIS; 
(2) identifying areas in which individuals and employers have 
problems in dealing with the BCIS; (3) proposing changes in the 
administrative practices of the BCIS to mitigate identified 
problems; and (4) identifying potential legislative changes 
appropriate to mitigate such problems.
    The Ombudsman is required to submit a report to the 
Judiciary Committees of the House and Senate by June 30 of each 
calendar year on the objectives of the Office of the Ombudsman 
for the fiscal year beginning in that calendar year. Those 
reports must contain full and substantive analysis, statistical 
analysis, and (1) identify the initiatives the Office has taken 
to improve the services and responsiveness of the BCIS; (2) 
contain a summary of the most pervasive and serious problems 
encountered by individuals and employers, including a 
description of the nature of such problems; (3) contain an 
inventory of the items described in (1) and (2) above for which 
action has been taken and the result of such action, for which 
action remains to be completed and the period in which each 
item has remained on such inventory, finally for which no 
action has been taken, including the period in which each item 
has remained on such inventory, the reasons for the inaction, 
and the identity of any BCIS official responsible for such 
inaction; (4) contain recommendations for appropriate 
administrative and legislative action 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 (5) include any other information deemed advisable by the 
Ombudsman. The annual report is to be provided directly to the 
congressional committees without prior review or comment from 
the Attorney General, the Assistant Attorney General for 
Citizenship and Immigration Services, any employee of the 
Justice Department, or the Office of Management and Budget. The 
Select Committee believes that to help improve services, it is 
important that Congress have an accurate, unfiltered report on 
serious problems with the BCIS.
    The Ombudsman also monitors the coverage and geographic 
allocation of local Ombudsman offices; develops guidance to 
distribute to all BCIS officers and employees outlining the 
criteria for referral of inquiries to the local Ombudsman 
offices; ensures that each local Ombudsman office telephone 
number is published and available to individuals and employers 
served by the local office; and meets regularly with the 
Assistant Attorney General for Citizenship and Immigration 
Services to identify serious service problems and to present 
recommendations for appropriate administrative actions to 
resolve problems encountered by individuals and employers.
    The Ombudsman has the responsibility and authority to 
appoint local ombudsmen and ensure that at least 1 ombudsman is 
available to each State. The Ombudsman is also authorized to 
evaluate and take personnel actions, including dismissal, 
against any employee of any local ombudsman office. In carrying 
out these responsibilities, the Ombudsman may consult with the 
appropriate BCIS supervisory personnel.
    Subsection (f) requires the BCIS director to establish 
procedures requiring a formal, written response to all 
recommendations submitted to the director by the Ombudsman 
within 3 months of receiving the recommendations.
    Each local ombudsman is required to report to the Ombudsman 
or delegate; may consult with the appropriate BCIS supervisory 
personnel regarding the daily operation of the local ombudsman 
office; will notify any individual or employer initially 
seeking assistance from the local office that the local offices 
operate independently of any other component of the Department 
of Justice and report directly to Congress through the 
Ombudsman; and at the local ombudsman's discretion, may 
determine not to disclose to the BCIS that the office has had 
contact with, or has had information provided by an individual 
or employer. Each local ombudsman office is required to 
maintain a phone, fax, and other electronic communication 
access, and a post office address that is separate from those 
maintained by the BCIS or any component of the BCIS.

Section 423. Professional Responsibility and Quality Review

    This section provides that the Assistant Attorney General 
for Citizenship and Immigration Services will be responsible 
for conducting noncriminal investigations of allegations of 
improper conduct by any employee of the BCIS, unless that 
allegation is being investigated by the Department of Justice 
Inspector General. The Assistant Attorney General is also 
responsible for inspecting and analyzing the ongoing operations 
and management of the Bureau.

Section 424. Employee Discipline

    This section authorizes the Assistant Attorney General for 
Citizenship and Immigration Services to discipline any Bureau 
employee, including terminating that employee, for willfully 
deceiving Congress or agency leadership, subject to the 
policies and procedures applicable to the Federal Bureau of 
Investigation for similar behavior, notwithstanding any other 
provision of law.

Section 425. Office of Immigration Statistics within the Bureau of 
        Justice Statistics

    This section amends the Omnibus Crime Control and Safe 
Streets Act of 1968 (42 U.S.C. 3731 et seq.) to establish 
within the Justice Department's Bureau of Justice Statistics an 
Office of Immigration Statistics. The Office is headed by a 
director who is appointed by the Attorney General and reports 
to the Director of Justice Statistics. The director is 
responsible for maintaining all immigration statistical 
information of the Office of the BCIS and the Executive Office 
for Immigration Review (EOIR). The statistical information is 
required to include the information and immigration statistics 
in a publication similar to the statistical yearbook prepared 
by the INS and EOIR. However, the Select Committee believes 
that the Office of Immigration Statistics should endeavor to 
collect much more statistical information than the INS 
currently does. Too often, much of the statistical information 
that Congress requests from the INS is unavailable because the 
INS does not gather such statistics, even after the Congress 
has asked for similar statistics repeatedly.
    The director is also responsible for establishing standards 
of reliability and validity for immigration statistics 
collected by the BCIS and EOIR.
    While this new Office of Immigration Statistics maintains 
all immigration statistics, the BCIS and EOIR each gives the 
Office of Immigration Statistics statistical information from 
the operational data systems controlled by each respective 
component.
    Subsection (b) transfers the functions performed by the 
Statistics Branch of the INS Office of Policy and Planning to 
this newly established Office of Immigration Statistics.

Section 426. Preservation of Attorney General's Authority

    This section permits the Attorney General, or the Attorney 
General's delegate, to perform any function delegated to 
another official under this subchapter and provides that 
references in Federal law, Executive orders, rules, 
regulations, or other similar authorities are deemed to refer 
to the Attorney General.

Section 427. Effective Date

    This section establishes the effective date for this 
subchapter (and amendments made thereunder), as the date on 
which the functions identified in section 411 are transferred.

Section 428. Transition

    Subsection (a) ensures that references to predecessor 
organizations are deemed to refer to the organizations 
described in this subchapter. Subsection (b) governs the 
exercise of authorities under the law, applies certain 
transition rules in title VIII to the organizations created 
under this subchapter, addresses the transfer and allocation of 
appropriations and personnel, and provides incidental 
authorities to the Attorney General.

                     Subchapter B--Other Provisions


Section 431. Funding for Citizenship and Immigration Services

    This section amends section 286(m) of the Immigration and 
Nationality Act (8 U.S.C. 1356(m)) to strike references to 
services provided without charge to asylum applicants and 
authorizes such sums as may be necessary to carry out sections 
207 through 209 of the Immigration and Nationality Act (8 
U.S.C. 1157-1159). Funds appropriated pursuant to this 
authorization will be deposited into the Immigration 
Examinations Fee Account and will remain available until 
expended.

Section 432. Backlog Elimination

    This section changes the deadline under section 204(a) of 
the Immigration Services and Infrastructure Improvements Act of 
2000 (8 U.S.C. 1573(a)) for the Attorney General to eliminate 
the backlog in the processing of immigration benefit 
applications to 2 years after the date of enactment of the 
Homeland Security Act of 2002.

Section 433. Report on Immigration Services

    This section requires that the Attorney General report to 
the Committees on Appropriations and the Judiciary of the House 
and Senate on a plan detailing how the BCIS will complete the 
adjudications described in section 421(b) efficiently and 
fairly after the transfer of functions takes effect. The report 
is due not later than 1 year after the enactment of this 
legislation.
    The report must describe for each type of adjudication to 
be undertaken by the Assistant Attorney General for Citizenship 
and Immigration Services (1) any potential savings of resources 
that may be implemented without affecting adjudication quality, 
(2) the goal for processing time, and (3) any necessary 
statutory modifications considered advisable by the Attorney 
General. In the preparation of this report, the Attorney 
General must consult with certain specified Federal officials.

Section 434. Report on Responding to Fluctuating Needs

    This section requires that the Attorney General submit to 
Congress on changes in law (including changes in authorizations 
and appropriations) necessary to permit the INS and BCIS to 
ensure a prompt and timely response to emergent, unforeseen, or 
impending changes in the number of applications for immigration 
benefits or other changing immigration service needs. This 
report is due not later than 30 days after the date of 
enactment of this legislation.

Section 435. Application of Internet-Based Technologies

    Subsection (a) requires the Attorney General to establish 
an Internet-based system that will permit individuals and 
employers with immigration applications filed with the Attorney 
General to have access to online information about the 
processing status of the application within 1 year from the 
date of enactment of this legislation. Currently, individuals 
and employers must spend far too much time waiting in line at, 
and on the phone with, the INS to learn the status of a pending 
application. Allowing applicants to go on-line to check the 
status of an application will save hours of time and 
frustration in dealing with the INS' poor customer service and 
information officers.
    Subsection (b) requires the Attorney General to conduct a 
feasibility study for applicants to have the ability to file 
applications on-line, in addition to checking the status on 
line. The study must include a review of computerization and 
technology of the INS relating to the immigration services and 
processing of filings related to immigrant services. The study 
must also include a time and cost estimate and consider other 
factors in implementing such a filing system, including the 
feasibility of fee payment on-line. The Attorney General is 
required to submit a report on this study to the Committees on 
the Judiciary for both chambers of Congress within 1 year from 
the date of enactment of the bill.
    Subsection (c) requires the Attorney General to establish 
an advisory committee within 60 days from the date of enactment 
of this bill to assist the Attorney General in establishing the 
tracking system and conducting the study discussed above. The 
Attorney General should consult with the Judiciary Committees 
in establishing the Technology Advisory Committee. The advisory 
committee shall be composed of representatives from high 
technology companies capable of establishing and implementing 
the system expeditiously and representatives of persons who may 
use the tracking system and the on-line filing system described 
above.

Section 436. Children's Affairs

    This section transfers those functions relating to the care 
of unaccompanied alien children that were vested by statute in 
or performed by the Commissioner of the INS to the Director of 
the Office of Refugee Resettlement within the Department of 
Health and Human Services. These functions include care and 
placement that were exercised by the INS Commissioner prior to 
the effective date of the bill; coordinating and implementing 
the law and policy for unaccompanied alien children who come 
into Federal custody; making placement determinations for all 
unaccompanied alien children in federal custody; identifying 
and overseeing the infrastructure and personnel of facilities 
that house unaccompanied alien children; annually publishing a 
State-by-State list of professionals or other entities 
qualified to provide guardian and attorney services; 
maintaining statistics on unaccompanied alien children; and 
reuniting unaccompanied alien children with a parent abroad, 
where appropriate.

                     CHAPTER 3--GENERAL PROVISIONS


Section 441. Abolishment of the INS

    This section abolishes the Immigration and Naturalization 
Service.

Section 442. Voluntary Separation Incentive Payments

    Subsection (a) defines certain terms for purposes of this 
section.
    Subsection (b) directs the Secretary and the Attorney 
General to submit a strategic restructuring plan to the 
appropriate committees of Congress showing how they would 
restructure their organizations.
    Subsection (c) authorizes the Attorney General and the 
Secretary to make voluntary separation incentive payments to 
employees subject to certain restrictions.
    Subsection (d) requires the Department of Justice and the 
Department of Homeland Security to remit to the Office of 
Personnel Management for deposit in the Treasury funds to be 
credited to the Civil Service Retirement and Disability Fund. 
The amount to be remitted may be calculated by one of two 
methods, and provides that those computations are to be 
calculated based upon separations occurring in a particular 
fiscal year.
    Subsection (e) provides that any individual who receives a 
voluntary separation incentive payment under this section and 
accepts compensated employment with the Federal Government 
within 5 years of receiving such a payment, will be required to 
repay the total amount of that payment prior to starting work.
    Finally, subsection (f) provides that the voluntary 
separations authorized by this section are not necessarily 
intended to reduce the total number of employees of the 
agencies, and clarifies that a covered agency may redeploy 
positions throughout the agency.

Section 443. Authority to Conduct a Demonstration Project Relating to 
        Disciplinary Action

    This section authorizes a 5-year demonstration project 
relating to disciplinary actions. It permits the Attorney 
General to change policies and procedures regarding methods of 
disciplining employees in order to improve personnel 
management. This would ensure discipline for both employee 
malfeasance and nonfeasance.
    The demonstration project must encourage the use of 
alternative means of dispute resolution, where appropriate, and 
require expeditious, fair and independent review of 
disciplinary actions. The amendment provides needed flexibility 
for managing the new immigration components.

Section 444. Sense of Congress

    This section expresses the sense of Congress that the 
missions of the Bureau of Border Security of the Department of 
Homeland Security and the BCIS are equally important and should 
be adequately funded, and the functions transferred should not 
operate at levels below those prior to the transfer.

Section 445. Reports and Implementation Plans

    This section requires that the Attorney General and the 
Secretary report to Congress on (1) the transfer of funds 
between the BCIS and the Bureau of Border Security and (2) the 
proposed division of personnel between the two agencies.
    This section also requires that the Attorney General and 
the Secretary submit to the Committees on Appropriations and 
the Judiciary of both the House and Senate 120 days after the 
enactment of this legislation, and every 6 months thereafter 
until the end of fiscal year 2005, an implementation plan to 
carry out the provisions of the legislation. This plan must 
include details concerning the separation of the BCIS and the 
Bureau of Border Security specified in the bill.
    Finally, this section requires the Comptroller General to 
report to the aforementioned committees regarding the status of 
the transition, the management of the organizations, and 
whether the BCIS will derive sufficient funds from fees to 
carry out its functions in the absence of appropriated funds.

Section 446. Immigration Functions

    This section requires the Attorney General to submit an 
annual report to the President and the Committees on the 
Judiciary and Government Reform of the House, and 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 beginning 1 year after the date of 
enactment of this legislation. The sections specifies the 
matter to be included in the annual report.
    This section also includes a provision expressing the sense 
of Congress that the quality and efficiency of immigration 
services should improve after the transfer, and the Attorney 
General should take steps to ensure that concerns regarding the 
quality and efficiency of immigration services are addressed 
after the effective date of the transfer.

               Subtitle C--United States Customs Service


Section 451. Establishment; Commissioner of Customs

    This section establishes within the Department of Homeland 
Security the United States Customs Service that will come under 
the authority of the Under Secretary of Border and 
Transportation Security. The Customs Service will be headed by 
a Commissioner of Customs who will be appointed by the 
President and with the advice and consent of the Senate.
    This section also directs the Commissioner will be 
compensated at the same rate as when that position resided in 
the Department of Treasury and may continue to serve as the 
Commissioner of Customs in the Department of Homeland Security 
until such time as a Commissioner is appointed.

Section 452. Retention of Customs Revenue Functions by Secretary of 
        Treasury

    Subsection (a) directs the Secretary of the Treasury to 
retain revenue collecting functions as directed by law and 
specifies that the Secretary of Treasury may delegate any such 
authority to the Secretary of Homeland Security. The Secretary 
of the Treasury is also directed by this section to consult 
with the Secretary of Homeland Security regarding exercising 
any such authority not delegated. This section also lists the 
associated laws related to Customs.
    The Select Committee notes that it is not unusual for the 
Customs Service to implement and enforce laws that by statute 
are intended to be implemented by entirely different 
departments; indeed, the Customs Service currently enforces 400 
laws on behalf of 40 different agencies. The proposed changes 
would continue to empower the Secretary of the Treasury to 
promulgate regulations on a myriad of highly technical trade 
matters, while leaving it to the new Department of Homeland 
Security to implement them. In this way, the Department of the 
Treasury's trade expertise and macroeconomic outlook is 
retained to address technical trade matters.
    Subsection (b) prohibits the Secretary of Homeland Security 
from reorganizing or decreasing the funding or staffing the 
Customs Service revenue functions. The functions documented in 
this section include: Import Specialists, Entry Specialists, 
Drawback Specialists, National Import Specialists, Fines and 
Penalties Specialists, attorneys of the Office of Regulations 
and Rulings, Customs Auditors, International Trade Specialists, 
and Financial System Specialists. The Select Committee believes 
that the revenue-oriented group established under section 451 
has unique functions distinct from security functions. It is 
therefore appropriate to prohibit reductions to this core group 
and to preserve these critical trade functions.
    Subsection (c) authorizes the Secretary of the Treasury to 
appoint up to 20 new personnel to work with the personnel of 
the Homeland Security Department in performing revenue 
functions.

Section 453. Establishment and Implementation of Cost Accounting 
        System; Reports

    This section requires that the Customs Service to implement 
a cost accounting system in order to determine and track the 
use of customer user fees by September 30, 2003. The system 
will be able to identify merchandise processing fees. The 
Commissioner of Customs will prepare and submit to the 
Committee on Ways and Means of the House and the Committee on 
Finance of the Senate quarterly reports on the progress of 
implementing such a cost accounting system.
    In its recommendations to the Select Committee, the 
Committee on Ways and Means expressed concern regarding the 
Customs Service's ability to account for funds spent by the 
agency. For example, Customs officials assert that the 
organization spends a certain amount of money on commercial 
operations. The figure is not based upon the addition of 
various commercial costs from all operations within the Customs 
Service, such as the number of people who actually processed 
entries of merchandise at specific ports during a set period. 
Instead, the figure is based upon Customs officials' belief 
that a set percentage of its work is always related to 
commercial activities. That static percentage is based upon an 
ad hoc survey conducted by Customs several years ago, and is no 
longer available. A modern cost accounting system would allow 
the Customs Service to accurately identify the amount of money 
spent at specific locations and for specific revenue functions. 
Therefore, the Select Committee believes that it is appropriate 
to reform these procedures as the Customs Service is transfered 
to the Department of Homeland Security.
    The Select Committee also notes that such a system would 
also provide compliance with the core financial system 
requirements of the Joint Financial Management Improvement 
Program (JFMIP), which is a joint and cooperative undertaking 
of the U.S. Department of the Treasury, the General Accounting 
Office, the Office of Management and Budget, and the Office of 
Personnel Management working in cooperation with each other and 
other agencies to improve financial management practices in 
government. That Program has statutory authorization in the 
Budget and Accounting Procedures Act of 1950 (31 U.S.C. 65).

Section 454. Preservation of Customs Funds

    This section provides that Customs fees (with the exception 
of the merchandise processing fee) must continue to be used for 
currently authorized functions. Fee receipts may not be 
transferred to any other agency or office in the Department.
    Congress created import fees to help fund critical customs 
activities. Fees are paid by commercial interests in return for 
specific commercial services. There have long been concerns 
about whether Customs can adequately account for the cost of 
providing commercial services in return for the fees collected. 
See the discussion in Section 414 above. It would be 
inappropriate and potentially inconsistent with United States 
trade obligation for importers to pay fees that subsidize non-
commercial functions of the new Department of Homeland 
Security. For these reasons, the Committee believes that fees 
should continue to be spent only on activities already defined 
in 19 U.S.C. 58c.

Section 455. Separate Budget Request for Customs

    This section directs the President to include a separate 
budget request for the United States Customs Service. This 
recommendation is consistent with the overall approach of the 
Committee in assuring that the core revenue-collecting 
components of the Customs Service are maintained. Coupled with 
the cost accounting system that will record expenditures for 
customs revenue services, this requirement for a separate 
budget request will ensure that the Committee can continue to 
oversee that revenue is properly collected and trade is 
continuing appropriately.

Section 456. Payment of Duties and Fees

    This section changes the merchandise entry process to 
authorize monthly billing with a prohibition against deferral 
of duty past a statutory deadline. This provision will 
modernize the Customs Service from its antiquated entry-by-
entry billing method to a modern monthly billing system as it 
moves to the Department, with established deadlines to ensure 
completion.

Section 457. Definition

    This section defines the term ``customs revenue function'' 
to include assessing and collecting all types of duties, fees, 
and taxes; the processing and denial of entry of persons and 
goods; enforcing quota, marking, and intellectual property 
laws; collecting trade data; enforcing trade agreements; 
functions of certain revenue collecting specialists; and 
functions of certain revenue collecting support offices.

Section 458. GAO Report to Congress

    This section provides that the Government Accounting Office 
will report on all trade functions performed by the Executive 
Branch within 3 months of the date of enactment of this 
legislation.

Section 459. Allocation of Resources by the Secretary

    This section requires the Secretary to maintain the same 
level of customs revenue service as before the organization was 
transferred to the Homeland Security Department. The Secretary 
is required to notify Congress if any decrement to changes or 
services occur.

Section 460. Reports to Congress

    This section directs the Secretary to maintain the same 
reporting requirements to Congress.

Section 461. Customs User Fees

    This section modifies section 13031(f) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)) to 
create a separate Treasury account known as the Customs 
Commercial and Homeland Security Automation Account. In each 
fiscal year from 2003 through 2005, $350 million will be 
deposited into the account to develop and implement an 
Automated Commercial Environmental computer system to process 
the merchandise that is imported and released into the United 
States. After 2006 the Secretary of Treasury may adjust fees.

              title v--emergency preparedness and response


Section 501. Under Secretary for Emergency Preparedness and Response

    This section specifies primary responsibilities of the 
Under Secretary of Emergency Preparedness and Response. These 
include: helping to ensure the preparedness of emergency 
response providers for terrorist attacks, major disasters, and 
other emergencies; establishing standards, conducting exercises 
and training, evaluating performance, and providing funds in 
relation to the Nuclear Incident Response Team; providing the 
Federal government's response to terrorist attacks and major 
disasters; aiding the recovery from terrorist attacks and major 
disasters; working with other Federal and non-Federal agencies 
to build a comprehensive national incident management system; 
consolidating existing Federal government emergency response 
plans into a single, coordinated national response plan; and 
developing comprehensive programs for developing interoperable 
communications technology and ensuring that emergency response 
providers acquire such technology. The responsibility of 
providing the Federal government's response to terrorist 
attacks and major disasters includes a number of specific 
functions including: coordinating the overall response, 
directing the Domestic Emergency Support Team, the Strategic 
National Stockpile, the National Disaster Medical System, and 
the Nuclear Incident Response Team, overseeing the Metropolitan 
Medical Response System and coordinating other Federal response 
resources.
    The Select Committee emphasizes that the Under Secretary is 
still required to perform all non-homeland security functions 
transferred to the Department.

Section 502. Functions Transferred

    This section identifies agencies and functions relevant to 
emergency preparedness and response that are to be transferred 
to the Department of Homeland Security. These include: the 
Federal Emergency Management Agency, except for the Office of 
National Preparedness which reports to the Deputy Secretary for 
Border and Transportation Security; the Office of Emergency 
Preparedness, the National Disaster Medical System, and the 
Metropolitan Medical Response System of the Department of 
Health and Human Services; and the Strategic National Stockpile 
of the Department of Health and Human Services.
    The Integrated Hazard Information System (not including 
personnel) of the Department of Defense to the Department of 
Homeland Security so that the latter would have a near real-
time capability to detect wild fires in North America.

Section 503. Nuclear Incident Response

    This section authorizes the Secretary, in connection with 
an actual or threatened terrorist attack, major disaster, or 
other emergency, to call certain elements of the Department of 
Energy and the Environmental Protection Agency into service as 
an organizational unit of the Department of Homeland Security. 
While so operating, these elements would be subject to the 
direction, authority, and control of the Secretary of Homeland 
Security. This grant of authority to the Secretary would not 
limit the ordinary responsibility of the Secretary of Energy 
and the Administrator of the Environmental Protection Agency 
for organizing, training, equipping, and using the elements 
from their respective agencies, or from exercising ordinary 
direction, authority, and control over these elements. Current 
Department of Energy contracts that may contain an 
indemnification provision for elements of the Nuclear Incident 
Response Team will remain in effect for the duration of the 
contract whether the Team is operating under the direction of 
the Secretary of Energy or the Secretary of Homeland Security.
    In adopting this section, the Select Committee does not 
intend to disrupt the traditional response functions of these 
DOE and EPA teams. Except as specifically directed by the 
Secretary of Homeland Security in connection with an actual or 
threatened terrorist attack, major disaster, or other 
emergency, the Administrator of the EPA and the Secretary of 
Energy will continue to exercise control of their respective 
entities in the Nuclear Incident Response Team for responding 
to emergencies and other incidents. For example, the 
radiological and emergency response team at EPA has previously 
responded to emergencies at Hanford Nuclear Reservation in 
Washington, and Los Alamos, New Mexico. Similarly, DOE's 
radiological assistance teams often deploy at the request of 
State or local officials to investigate potential radiation 
exposures or contamination events. The Select Committee intends 
that DOE and EPA to continue to exercise their responsibilities 
to respond to these kinds of events as in the past, without the 
need for direction by the Secretary of Homeland Security.

Section 504. Definition

    This section defines the term ``Nuclear Incident Response 
Team'' for the purpose of this title to mean those entities in 
the Department of Energy and the Environmental Protection 
Agency that could be called into service as a unit of the 
Department of Homeland Security.

Section 505. Conduct of Certain Public-Health Related Activities

    This section provides that, with respect to all public 
health-related activities to improve State, local, and hospital 
preparedness and response to chemical, biological, radiological 
and other emerging terrorist threats carried out by the 
Department of Health and Human Services, the Secretary of 
Health and Human Services will set priorities and preparedness 
goals and further develop a coordinated strategy for such 
activities in collaboration with the Secretary of Homeland 
Security. Subsection (b) further provides for the collaborative 
development of specific benchmarks and outcome measurements for 
evaluating progress toward the relevant priorities and goals.
    The Select Committee believes, however, that the Secretary 
of Health and Human Services must maintain the primary role in 
public health preparedness. This section leaves all operational 
and implementation responsibilities for such activities with 
the Secretary of Health and Human Services. All relevant legal 
authorities and functions under the Public Health Service Act 
and any other Act administered by the Secretary of Health and 
Human Services remain with that Secretary. This would include, 
among other items, the authority to declare public health 
emergencies and issue grants and contracts.

                          title vi--management


Section 601. Under Secretary for Management

    This section specifies primary responsibilities of the 
Under Secretary for Management. These include: budget and 
fiscal matters; procurement; human resources and personnel; 
information technology and communications systems; facilities, 
property, equipment, and other material resources; security for 
personnel, information technology and communications systems 
and material resources; identification and tracking of 
performance measures; grants and other assistance management 
programs; the transition and reorganization process including 
development of a transition plan; the conduct of internal 
audits and management analysis; and other management duties 
that may be assigned by the Secretary.
    The Under Secretary for Management is also responsible for 
maintenance of all immigration statistics. Accordingly, the 
following agencies and functions are transferred to the Under 
Secretary for Management: all functions performed by the 
Statistics Branch of the Office of Policy Planning of the 
Immigration and Naturalization Service with respect to the 
following programs: The Border Patrol program, the detention 
and removal program, the intelligence program, the 
investigations program, and the inspections program.

Section 602. Chief Financial Officer

    This section establishes the position of the Chief 
Financial Officer who will report to the Secretary or another 
departmental official as directed by the Secretary.

Section 603. Chief Information Officer

    This section establishes the position of the Chief 
Information Officer who will report to the Secretary or another 
departmental official as directed by the Secretary.

Section 604. Establishment of an Office for Civil Rights and Civil 
        Liberties

    The Select Committee believes that protecting the privacy 
rights of United States citizens requires additional protection 
and oversight to encourage the Department of Homeland Security 
to maintain and practice the highest standards in protecting 
Constitutional liberties. Accordingly, this section establishes 
an Office for Civil Rights and Civil Liberties. The Director of 
the Office will review and assess information alleging civil 
rights, civil liberty and racial and ethnic profiling 
violations by employees and offices of the Department. The 
Director will also report to Congress on a semi-annual basis 
any allegations of abuses and corrective actions taken by the 
Department.

                        title vii--miscellaneous


                     Subtitle A--Inspector General


Section 701. Authority of the Secretary

    This section places the Inspector General of the Department 
of Homeland Security under the authority of the Secretary with 
respect to audits or investigations, or issuance of subpoenas 
that require access to sensitive information concerning 
intelligence, counterintelligence, or counterterrorism matters; 
ongoing criminal investigations or proceedings; undercover 
operations; identity of confidential sources, including 
protected witnesses; other matters, the disclosure of which 
would, in the Secretary's judgment, threaten the protection of 
any person or property authorized protection by section 3056 of 
title XVIII, section 202 of title III, or any provision of the 
Protection Assistance Act of 1976; or other matters, the 
disclosure of which would, in the Secretary's judgment, 
threaten national security. This authority is similar to that 
given the heads of other departments which routinely handle 
sensitive information, such as the Departments of Defense, 
Justice, Treasury, and the Central Intelligence Agency.
    This section also provides the Secretary may also prohibit 
the Inspector General from carrying out or completing any 
audit, investigation, or subpoena issuance initiated by the 
Inspector General if the Secretary determines that the 
prohibition is necessary to prevent the disclosure of any 
information described in subsection (a), to preserve the 
national security, or prevent impairment to U.S. interests. If 
the Secretary exercises any power under this section, he must 
notify the Inspector General in writing, stating his reasons. 
Within 30 days after receipt of that notice, the Inspector 
General must transmit a copy of the notice and his written 
response stating whether the Inspector General agrees or 
disagrees with the Secretary's action, and the reasons for any 
disagreement to Congress. Additionally, the right of Congress 
to access any information is not limited by the Secretary's 
authority under this section.
    Section 701 further provides oversight responsibility by 
the Inspector General for investigations performed by the U.S. 
Customs Service Office of Internal Affairs, and the Secret 
Service Office of Inspections.

                Subtitle B--United States Secret Service


Section 711. Secret Service Transferred

    This section transfers the functions, personnel, assets, 
and obligations of the Secret Service to the Secretary, to be 
maintained as a distinct entity within the Department. This 
includes the functions of the Secretary of the Treasury related 
thereto.

            Subtitle C--Critical Infrastructure Information


Section 721. Short Title

    This section provides the short title of this subtitle, the 
``Critical Infrastructure Information Act of 2002.''

Section 722. Definitions

    This defines the terms used in this subtitle.

Section 723. Designation of Critical Infrastructure Protection Program

    This section provides that only the President or the 
Secretary of Homeland Security may designate a critical 
infrastructure protection program.

Section 724. Protection of voluntarily shared critical infrastructure 
        information

    This section exempts from disclosure under the Freedom of 
Information Act certain critical infrastructure information 
that is voluntarily submitted to a covered Federal agency 
regarding the security of critical infrastructure and protected 
systems when accompanied by a written statement identifying the 
material as critical infrastructure information.
    This section provides that covered information will not be 
subject to agency rules or judicial doctrine regarding ex-parte 
communications, nor used directly in civil actions if that 
information is submitted in good faith. Further, this critical 
infrastructure information will not be used or disclosed by any 
Federal employee except to further criminal investigation or 
prosecution or to disclose the information to Congress or the 
General Accounting Office.
    If the critical infrastructure information under this 
provision is provided to a State or local government, it may 
not be made available pursuant to any State or local law 
requiring disclosure of information or records; otherwise be 
disclosed by a State or local government without written 
consent of the entity submitting the information; or be used 
other than to protect critical infrastructure, or to further 
criminal investigation or prosecution.
    Disclosure of information under this section does not 
constitute waiver of legal privilege or protection, such as 
trade secret protection. Communications of critical 
infrastructure information under this subtitle are not subject 
to the requirements of the Federal Advisory Committee Act.
    Nothing in this section limitsthe ability of Federal, 
State, or local government entities, or any third party, to 
obtain critical infrastructure information in a manner not 
covered by subsection (a) of this section.
    Voluntary submittal of information protected from 
disclosure by this subtitle does not constitute compliance with 
any requirement to submit such information to a Federal agency 
under other law. The Secretary of Homeland Security is to 
consult with the National Security Council and the Office of 
Science and Technology Policy to establish uniform procedures 
for the receipt, care, and storage by Federal agencies of 
critical infrastructure information voluntarily submitted to 
the government. Unauthorized disclosures of critical 
infrastructure information by any U.S. employee may be punished 
by fines, imprisonment up to one year, and removal from 
employment.
    This section also provides the Federal Government with 
authority to advise, alert, and warn relevant companies, 
targeted sectors, other governmental entities, or the general 
public regarding threats to critical infrastructure. In issuing 
a warning, the Federal Government must protect from disclosure 
the source of any voluntarily submitted critical infrastructure 
information that forms the basis for the warning, or 
information that is proprietary, business sensitive, or 
otherwise not appropriately in the public domain.

Section 725. No Private Right of Action

    This section clarifies that this subtitle creates no 
private right of action to enforce any provision of this 
subtitle.
    The Select Committee intends that subtitle C only protect 
private, security-related information that is voluntarily 
shared with the government in order to assist in increasing 
homeland security. This subtitle does not protect information 
required under any health, safety, or environmental law.

                        Subtitle D--Acquisitions


Section 731. Research and Development Projects

    This section gives the Secretary the authority to carry out 
a pilot program with streamlined procedures for the acquisition 
of goods and services that the Secretary determines are 
essential to the Department's mission of fighting terror. It 
would provide the Secretary with enhanced, but specifically 
defined, flexibilities while maintaining adequate safeguards. 
The provisions are based on procedures that are currently part 
of the Government's acquisition system such as micro purchases, 
simplified acquisition procedures, and special simplified 
commercial item acquisitions. The procedures are in the current 
version of part 13 of the government-wide Federal Acquisition 
Regulation. The Department is to use current government-wide 
authorities for its ``normal'' procurements.

Section 732. Personal Services

    The Secretary may hire, on a temporary or intermittent 
basis, the services of experts or consultants in accordance 
with section 3109 of title 5, United States Code. In the case 
of an urgent homeland security need, the Secretary may procure 
such services (not to exceed one year) without regard to the 
pay limitations in section 3109 of title 5.

Section. 733. Special Streamlined Acquisition Authority

    Subsection (a) expands the coverage of these streamlined 
procedures only after the Secretary for Homeland Security or a 
Senate confirmed official of the Department determines in 
writing that pursuant to that the terror-fighting mission of 
the new Department would be seriously impaired without the use 
of the streamlined procedures. The Secretary would further have 
to notify the House Government Reform and Senate Governmental 
Affairs Committees of the determination.
    Subsection (b) raises the current $2,500 ``micro purchase'' 
threshold for the use of government credit cards to $5,000 for 
a limited number of government employees to help fight terror. 
The Department would be required to carefully monitor the use 
of these special cards.
    Subsection (c) raises the current $100,000 simplified 
acquisition threshold, for procurements to fight terror, to 
$175,000. These simplified procedures would allow officials of 
the new Homeland Security Department greater discretion in 
selecting the most advantageous offer and do away with 
arbitrary ``notice and wait'' periods.
    Subsection (d) permits the application of current 
streamlined commercial acquisition procedures and statutory 
waivers applicable to commercial items to non-commercial goods 
and services to help fight terror. In addition, the $5 million 
ceiling on the use of streamlined commercial procedures would 
be raised to $7.5 million for the purchase of these goods and 
services. The streamlined commercial acquisition procedures 
that were created under the Clinger-Cohen Act of 1996 would be 
applied to purchases of all items used to fight terror. In 
order to attract cutting edge firms to join the government 
market under this authority government-unique certification and 
audit provisions would be waived. Adequate safeguards would be 
maintained by restrictions against the use of sole-source 
contracts and a requirement that maximum practicable 
competition be obtained.
    Subsection (e) requires the Comptroller General to submit a 
detailed report on the use of the authorities provided in this 
section to the Committee on Governmental Affairs of the Senate 
and the Committee on Government Reform of the House of 
Representatives not later than 180 days after the end of fiscal 
year 2005.

Section 734. Procurements from Small Business

    This section establishes in the Department an Office of 
Small and Disadvantaged Business Utilization. This office will 
be managed in the manner described in the Small Business Act 
(15 U.S.C. 644(k)).

                          Subtitle E--Property


Section 741. Department Headquarters

    This section requires the Administrator of General Services 
to construct a public building to serve as headquarters for the 
Department. The project would be subject to the requirements of 
the Public Buildings Act of 1959.
    Site selection is to give preference to land parcels that 
are Federally owned. The Administrator is to make the 
headquarters facility and other Government-owned or leased 
facilities available to the Secretary pursuant to section 210 
of the Federal Property and Administrative Services Act of 
1949. This section authorizes appropriations to the Secretary 
such amount as may be necessary to pay the annual charges for 
General Services Administration furnished space and services.

Subtitle F--Support Anti-terrorism by Fostering Effective Technologies 
                      Act of 2002 (the SAFETY Act)

    The Select Committee believes that technological innovation 
is the Nation's front-line defense against the terrorist 
threat. Unfortunately, the Nation's products liability system 
threatens to keep important new technologies from the market 
where they could protect our citizens. In order to ensure that 
these important technologies are available, the Select 
Committee believes that it is important to adopt a narrow set 
of liability protections for manufacturers of these important 
technologies.

Section 751. Short Title

    This section provides the short title of this subtitle, the 
``Support Anti-terrorism by Fostering Effective Technology Act 
of 2002'' or the ``SAFETY Act''.

Section 752. Administration

    Subsection (a) provides that the Secretary will be 
responsible for the administration of this provision.
    Subsection (b) provides that the Secretary may designate 
anti-terrorism technologies that qualify for protection under 
the system of risk management set forth in this provision in 
accordance with criteria that must include, but not be limited 
to, the following: (1) prior and extensive United States 
government use and 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 Act 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.
    Subsection (c) provides that 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 provision.

Section 753. Litigation Management

    Subsection (a)(1) provides that there a Federal cause of 
action will exist 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 
such act and such claims result or may result in loss to any 
person or entity that sells or otherwise provides a qualified 
anti-terrorism technology to non-Federal government customers 
(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.
    Subsection (a)(2) provides that such appropriate district 
court of the United States will 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 
such act and such claims result or may result in loss to the 
Seller.
    Subsection (b) provides that in an action brought under 
this section for damages: (1) 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; and (2) 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. 
``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.
    Subsection (c) provides that any recovery by a plaintiff in 
an action under this subsection 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.
    Subsection (d)(1) provides that, should a product liability 
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 (2) and (3) of this section (e), have been deployed in 
defense against such act and such claims result or may result 
in loss to the Seller, there will be a rebuttable presumption 
that the government contractor defense applies in such lawsuit. 
This presumption will 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 (e). This presumption of the government contractor 
defense will apply regardless of whether the claim against the 
Seller arises from a sale of the product to Federal government 
or non-federal government customers.
    Subsection (d)(2) provides that 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 (2) and (3) of this section 
(e), have been deployed in defense against such act and such 
claims result or may result in loss to the Seller. Upon 
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.
    Subsection (d)(3) provides that for those products reviewed 
and approved by the Secretary, the Secretary will issue a 
certificate of conformance to the Seller and place the product 
on an Approved Product List for Homeland Security.
    Subsection (e) provides that 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.

Section 754. Risk Management

    Subsection (a)(1) provides that any Seller must obtain 
liability insurance of such types and in such amounts as 
required in accordance with this section to satisfy otherwise 
compensable third party claims arising out of, relating to, or 
resulting from an act of terrorism when qualified anti-
terrorism technologies have been deployed in defense against 
such act.
    Subsection (a)(2) provides that for the total claims 
related to one 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.
    Subsection (a)(3) provides that liability insurance 
obtained pursuant to this subsection (a) 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 an act of 
terrorism: contractors, subcontractors, suppliers, vendors and 
customers of the Seller; and contractors, subcontractors, 
suppliers and vendors of the customer.
    Subsection (a)(4) provides that 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.
    Subsection (b) provides that the Seller must 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 such act.
    Subsection (c) provides that, 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 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.

Section 755. Definitions

    This section defines terms used in this subtitle.

                      Subtitle G--Other Provisions


Section 761. Establishment of Human Resources Management System

    Section 761 adds a new ``Chapter 97--Department of Homeland 
Security'' to subpart I of part III of title 5, United States 
Code.
    This new chapter authorizes the Secretary of Homeland 
Security, in regulations prescribed jointly with the Director 
of the Office of Personnel Management, to establish and, from 
time to time, adjust a human resource management system for 
some or all organizational units of the Department of Homeland 
Security. The section requires that any human resource 
management system established pursuant to this section be 
flexible, contemporary, and not waive, modify, or otherwise 
affect the public employment principles of merit and fitness 
set out in section 2301 of title 5 of the United States Code, 
including the principles of hiring based upon merit, fair 
treatment without regard to political affiliation or other non-
merit considerations, equal pay for equal work, and protection 
of employees against reprisal for whistleblowing.
    This section also ensures that employees of the Department 
will be protected by law against the prohibited personnel 
practices set out section 2302 of title 5 of the United States 
Code by explicitly providing that any human resource management 
system developed under this section may not permit any employee 
of the Department who is engaged in any personnel action to 
discriminate on the basis of race, color, religion, sex, or 
national origin, age, handicapping condition, marital status, 
or political affiliation.
    This section also prohibits certain other practices, by 
incorporating them by reference. They include: soliciting or 
considering any recommendation or statement with respect to any 
individual under consideration for any personnel action unless 
that statement is based on the personal knowledge or records of 
the person making the statement and it consists of performance 
ability aptitude or qualifications of such individual or an 
evaluation of the character, loyalty, or suitability of such 
individual; coercion of political activity of any person or 
taking any reprisal for refusal to engage in political 
activity; deceiving or obstructing any person's right to 
compete for employment, or influencing any person to withdraw 
from competition for any position for the purpose of improving 
the chances of another.
    Section 9701(b)(4) of the amendment ensures that employees 
may organize, bargain collectively, and participate through 
labor organizations of their own choosing in decisions which 
affect them. The latter provision is subject to any exclusion 
from coverage or limitation on negotiability established by 
law. In addition, this subsection permits the Secretary, 
through regulations promulgated jointly with the Director of 
the Office of Personnel Management, to exclude certain 
employees from the Federal Labor Management Relations Act if 
such employees are engaged in intelligence, 
counterintellligence, investigative, or security work which 
directly affects national security. This provision, in effect, 
grants the Secretary authority to exclude from coverage 
individual employees within the Department, in addition to the 
President's existing authority to exclude entire agencies or 
subdivisions.
    The following chapters of title 5 are eligible for 
adjustment during the Department's process of developing a 
human resource system under the chapter added by this section: 
chapter 43, Performance Appraisal; chapter 51, Classification; 
chapter 53, Pay Rates and Systems; chapter 71, Labor Management 
Relations (except as to employee rights to organize, 
collectively bargain and participate in union organizations as 
set out above); chapter 75, Adverse Actions; and chapter 77, 
Appeals.
    Section 761 also places limitations on the authority of the 
Department to modify the pay of Executive Level and other 
highly compensated employees beyond certain limits referenced 
in subsection (d) of the new section 9701 of title 5.
    Authority to develop new regulations to carry out the 
flexible human resource management system development 
activities authorized by this section ceases to be available 5 
year after the date of enactment of this section. Regulations 
in effect prior to the end of 5 years after enactment would 
remain in force, pending further change in law.
    It is the intention of the Select Committee that all 
interested stakeholders have the opportunity to collaborate in 
the development of the human resource management systems 
provided for in this section.

Section 762. Advisory Committees

    This section authorizes the Secretary to establish, 
appoint, and use the services of advisory committees. The 
section gives the Secretary authority to exempt these advisory 
committees from the Federal Advisory Committee Act (Public Law 
92-463), but the Secretary must announce the establishment of 
such a committee in the Federal Register, identifying its 
purpose and membership. Special government employees (within 
the meaning of 18 U.S.C. 202) serving on such exempt committees 
are eligible for certification under 18 U.S.C. 208(b)(3).

Section 763. Reorganization; Transfer of Appropriations

    This section authorizes the Secretary to allocate or 
reallocate functions among the Department officers and to 
establish, consolidate, alter, or discontinue organizational 
units with the Department pursuant to the reorganization plan 
provided for in section 802 or 60 days after providing notice 
to the appropriate Congressional Committees. Such notice must 
include an explanation of the rationale for the action.
    Subsection (b) of this section authorizes the Secretary to 
transfer not more than 2 percent of any appropriation available 
to the Secretary between such appropriations. Before any such 
transfer is made not less than 15 days notice must be given to 
the Committees on Appropriations of the House and Senate. This 
transfer authority expires 2 years after enactment.
    Any reorganization pursuant to a reorganization plan as 
provided in section 802 may not include the abolition of any 
agency or function required to be maintained as a separate 
entity or function by this legislation, and any reorganization 
pursuant to a notice to Congress 60 days in advance of the 
reorganization may not include the abolition of any agency or 
function required to be maintained as a separate entity or 
function by statute.

Section 764. Miscellaneous Authorities

    Subsection (a) provides that the Department will have a 
seal, whose design is subject to Presidential approval.
    Subsection (b) gives the Secretary the same authorities 
that the Attorney General has with respect to the Department of 
Justice with regard to gifts, devises, and bequests.
    Subsection (c) gives the Secretary the same authorities 
that the Secretary of Transportation has with respect to the 
Department of Transportation with regard to participation of 
members of the Armed Forces.
    Subsection (d) provides that any function delegated under 
this legislation may be redelegated to a subordinate.

Section 765. Military Activities

    This section clarifies that nothing in this bill confers 
authority upon the Secretary to engage in war-fighting, 
military defense of the United States, or other military 
activities. This section further clarifies that nothing in this 
bill limits the authority of the Defense Department or the 
Armed Forces to engage in war-fighting, military defense of the 
United States or other military activities.

Section 766. Regulatory Authority

    This section provides a rule of construction regarding the 
transfers of authority made by the legislation. Importantly, 
this rule of construction ensures that, with respect to 
regulatory authority, this legislation does not establish that 
authority for the Secretary, except to the extent that a 
function transfered to the Secretary pursuant to this bill 
includes that regulatory authority. This section also ensures 
that the legislation does not alter or diminish the regulatory 
authority of any other executive agency, except to the extent 
that this legislation transfers that authority from the agency. 
This section also clarifies that regulatory authority 
transferred to the Secretary exclusively resides with the 
Secretary, and the agency from which the authority was 
transferred can no longer exercise that authority.

Section 767. Provisions Regarding Transfers from Department of Energy

    Section 767 provides the Secretary of Homeland Security may 
establish a primary center for carrying out the RDT&E; 
activities of the Department of Homeland Security at a national 
laboratory of the National Nuclear Security Administration. 
This subsection would also provide for the establishment of 
secondary centers at one or more national laboratories of the 
Department of Energy. While the Select Committee does not 
specify which laboratory will serve as this center, the 
committee understands that the Administration initially 
proposed Lawrence Livermore National Laboratory as the 
preferred site for this activity. Secondary centers would be 
established at the discretion of the Secretary of Homeland 
Security with the concurrence of the Secretary of Energy. It is 
the intent of the Select Committee to give the Secretary of 
Homeland Security and the Secretary of Energy the flexibility 
to organize and consolidate facilities and assets in a manner 
that is advantageous to the execution of their respective 
missions, consistent with the transfer of functions described 
in this Act. The committee expects this consolidation to occur 
within the existing infrastructure of the national 
laboratories, and for nothing in this section to be construed 
as authorization for new construction.
    This section clarifies how the transfers of authority from 
the Department of Energy (DOE) to the Department of Homeland 
Security will occur with respect to the activities being 
carried out for DOE by its national laboratories. In these 
circumstances, the two Secretaries will ensure that the 
contracts between the DHS and the operators of the national 
laboratories are separate from the general management contracts 
between DOE and the operators of the national laboratories. 
Given that the national laboratories performing work for the 
Department of Homeland Security may continue to utilize DOE 
facilities, this section further provides that the new 
Department will reimburse DOE for costs relating to those 
activities. However, the DHS will not be required to pay 
administrative or personnel costs of DOE or its contractors in 
excess of the amount that the Secretary of Energy normally pays 
for an activity carried out by that contractor. Through this 
provision, the Select Committee intends to permit direct 
tasking of the national laboratories by the DHS with respect to 
those transferred activities.
    The Select Committee wishes to convey special intent with 
the choice of the word ``center''. The Select Committee 
believes that there is great value for the Department of 
Homeland Security in establishing and physically consolidating, 
within the national laboratories, a critical mass of talent and 
technology whose primary focus and application is homeland 
security. At the same time, the committee recognizes that, due 
to the unique nature of some facilities, it will not be 
possible in all cases to achieve such a consolidation.
    The Select Committee believes homeland security programs 
should be executed under separate contracts with the Department 
of Homeland Security. The Select Committee believes that 
separate contracts will ensure proper focus on the Secretary of 
Homeland Security's unique priorities and expects the 
Department of Homeland Security to take advantage of the unique 
opportunity to stand up a new organizational structure and 
establish a streamlined process for managing these contracts, 
with clearly defined responsibilities and accountability. A 
small headquarters organization can focus on policy, budgeting, 
technical objectives, and strategic planning for research and 
development, with responsibility for day-to-day oversight of 
contract activities delegated to site offices. The committee 
sees no need for intermediate levels of federal management; nor 
does it see a need for the Department of Homeland Security to 
generate detailed guidance for its contractors on how to 
conduct RDT&E; activities.
    The Select Committee recognizes that certain activities the 
Department of Homeland Security may wish to conduct at a 
Department of Energy national laboratory might be of limited 
scope or duration. In such cases, it may be more advantageous 
for the Department of Homeland Security to conduct those 
activities on a reimbursable ``work-for-others'' basis, rather 
than through a separate contract. In such a circumstance, 
subsection 305(c) would waive the Department of Energy ``added 
factor'' for pass through of funds from the Department of 
Homeland Security to the national laboratory. It would further 
stipulate that personnel costs charged to the program for 
laboratory contractors could not exceed those that the 
Secretary of Energy authorizes for Department of Energy 
programs at that same laboratory. In other words, this 
subsection would prevent higher personnel costs or pass through 
charges, as is common practice, for future work performed by 
the Department of Energy for the Department of Homeland 
Security on a work-for-others basis.
    The Select Committee understands the value of laboratory-
directed research and development, but believes that funds 
should be expended for the purpose for which they are 
authorized and appropriated by Congress. Section 307 would 
require that any laboratory-directed research and development 
projects undertaken at a national laboratory of the Department 
of Energy, with funds derived from the Department of Homeland 
Security, shall support the mission of the Department of 
Homeland Security. This section would prevent the use of 
Department of Homeland Security funds for self-directed 
research that is not relevant to homeland security.
    This section would also require the Secretary of Energy to 
coordinate with the Secretary of Homeland Security to ensure 
that homeland security-related RDT&E; activities undertaken by 
the Department of Energy are not duplicative of Department of 
Homeland Security efforts. Specifically, the committee cautions 
the Department of Energy against requesting funds in future 
budget submissions for functions that have been assumed by the 
Department of Homeland Security.

Section 768. Counternarcotics Officer

    This section requires the Secretary to appoint a senior 
Department official to assume primary responsibility for 
coordinating policy and operations within the Department and 
with other Federal Departments and agencies with respect to 
illegal drug interdiction, and tracking and severing 
connections between illegal drug trafficking and terrorism.

Section 769. Office of International Affairs

    This section establishes an Office of International Affairs 
headed by a director appointed by the Secretary. The office is 
established within the Office of Secretary. The Director's 
duties are to promote information and education exchange with 
nations friendly to the United States to promote sharing of 
best practices and technologies relating to homeland security, 
including joint research and development on countermeasures, 
joint training of first responders, and expertise exchange on 
terrorism prevention, response, and crisis management. The 
Director's duties under this section also include identifying 
areas for homeland security information and training exchange 
where the United States has a demonstrated weakness and another 
friendly nation or nations have demonstrated expertise; 
planning and undertaking international conferences, exchange 
programs, and training activities; and managing international 
activities within the Department in coordination with other 
Federal officials responsible for counter-terrorism.

Section 770. Prohibition of the Terrorism Information and Prevention 
        System

    This section prohibits all Federal activities to implement 
the proposed component program of the Citizen Corps known as 
Operation TIPS (Terrorism Information and Prevention System). 
This program was designed to recruit private citizens to report 
``suspicious'' activities of other individuals so that these 
reports could be gathered and recorded in a centralized 
database.

Section 771. Review of Pay and Benefit Plans

    This section requires the Secretary, with the Director of 
the Office of Personnel Management, to review the pay and 
benefit plans of each agency transferred to the Department of 
Homeland Security and, within 90 days of enactment, to submit a 
plan to Congress to eliminate disparities in pay and benefits 
throughout the Department, especially among law enforcement 
personnel. This plan must be consistent with the merit system 
principles at 5 U.S.C. 2301.

Section 772. Role of the District of Columbia

    This section requires the Secretary to cooperate with the 
District of Columbia government to integrate the District into 
the planning, coordination, and execution of Federal government 
activities for the enhancement of domestic preparedness against 
the consequences of terrorists attacks.

Section 773. Transfer of the Federal Law Enforcement Training Center

    This section transfers the Federal Law Enforcement Training 
Center (FLETC) to the Department of Justice from the Department 
of the Treasury. The FLETC was established in 1970 to provide 
an interagency law enforcement training program to train 
Federal, State, local, and foreign law enforcement entities. 
FLETC's transfer to the Department of Justice assures a greater 
level of consistency and coordination of Federal law 
enforcement training procedures under the direction of the 
Nation's chief law enforcement officer, the Attorney General.

                         title viii--transition


                    Subtitle A--Reorganization Plan


Section 801. Definitions

    This section defines the terms ``agency'' and ``transition 
period''.

Section 802. Reorganization Plan

    This section directs the President to submit to the 
appropriate congressional committees a reorganization plan not 
later than 60 days after enactment of this bill. The intent of 
this section is to ensure Congress has adequate opportunity to 
insure that the transfer of agencies and functions is being 
carried out consistent with the intent of this legislation. 
This section also directs the plan to include the transfer of 
agencies, personnel, assets and obligations to the Department 
and any consolidation, reorganization, or streamlining of 
organizations transferred to the Department.
    Plan elements, as specified by this section, include: 
identification of any functions of agencies transferred to the 
Department as this bill directs that will not be transferred to 
the Department; specific steps taken by the Secretary to 
organize the Department, including delegation or assignment of 
functions to officers of the Department; the amount of funds 
that will be transferred to the Department; the amount of the 
proposed allocations within the Department of unexpended funds 
transferred in connection with transfers to the Department, the 
proposed disposition of property, facilities, contracts, 
records and other assets and obligations of agencies 
transferred under the plan; the proposed allocations within the 
Department of the functions of the organizations that are not 
related directly to securing the homeland.
    This section also allows the President, after consultation 
with appropriate Congressional Committees, to modify or revise 
any part of the plan until that portion of the plan becomes 
effective. The reorganization plan becomes effective for an 
agency on the date specified in the plan (but not earlier than 
90 days after the President submits the plan to Congress) or 
the end of the transition plan. This section does not require 
transfers to occur on a single date.

                  Subtitle B--Transitional Provisions


Section 811. Transitional Authorities

    This section directs officials having authority over 
agencies or functions that will transfer to the Department of 
Homeland Security to assist the Secretary during the transition 
and integration periods including the use of personnel and 
assets the Secretary may request. This section also permits the 
head of any executive agency, at the request of the Secretary 
of Homeland Security, on a reimbursable basis, to provide 
services or detail personnel to assist with the transition.
    This bill also directs the President to transfer to the 
Secretary funds for two purposes. The President is authorized 
to transfer no more than two percent of the unobligated balance 
of any appropriation for an agency enacted prior to October 1, 
2002 for administrative expenses related to establishing the 
Department until the agency transfers to the Department. The 
President is also authorized to transfer funds for the purposes 
for which they were appropriated, not to exceed three percent 
of the unobligated balance of any appropriation available to 
that agency. The Committees on Appropriations of the House and 
the Senate will be notified not less than 15 days before any 
such funds are transferred.
    This section also allows the President to designate 
incumbents in organizations being transferred who are currently 
in advice and consent positions, to act in the same capacity 
during the transition period, until the position is filled as 
provided for in this legislation. These officials will be 
compensated at the higher of the rates provided in this bill or 
for the offices held at the time of designation.
    All personnel, assets, and obligations of a designated 
agency will transfer to the Secretary, subject to the approval 
of the Director of the Office of Management and Budget and in 
accordance with section 1531(a)(2) of title 31 United States 
Code. The Secretary will have all the functions related to the 
agency being transferred and additional functions as enumerated 
in this bill.
    This section expressly prohibits the transfer and use of 
funds by the Secretary of Homeland Security from the following 
transportation trust funds: Highway Trust Fund, Airport and 
Airway Trust Fund, Inland Waterway Trust Fund, Harbor 
Maintenance Trust Fund, or Oil Spill Liability Trust Fund. This 
limitation does not apply to security-related funds provided to 
the Federal Aviation Administration prior to fiscal year 2003 
for operations, facilities and equipment, or research, 
engineering and development. The Select Committee believes that 
national security costs should be funded by the general fund, 
not the transportation trust funds that should be used to 
maintain transportation systems.

Section 812. Savings Provisions

    This section directs that all orders, determinations, 
rules, regulations, permits, grants, loans, contracts, 
agreements, personnel actions, and certificates, that have been 
issued, made, granted, or allowed to become effective by an 
agency that are in effect on the date of that transfer (or 
become effective after such date pursuant to their terms as in 
effect on such effective date), will continue in effect 
according to their terms until modified, terminated, 
superseded, set aside, or revoked in accordance with law by, an 
officer of the United States, a court of competent 
jurisdiction, or operation of law.
    This section directs that any pending proceedings in an 
agency including notices of proposed rulemaking, and 
applications for licenses, permits, certificates, grants, and 
financial assistance will not be affected by enactment of this 
legislation or the transfer of the agency to the Department 
unless discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that 
such proceeding could have been discontinued or modified if 
this transfer had not occurred.
    Subject to the authority of the Secretary as specified in 
this legislation, pending civil actions will not be affected by 
this bill or the transfer of an agency to the Department. All 
matters will be adjudicated in the same manner and with the 
same effect as if such enactment or transfer had not occurred.
    All references relating to an agency that is transferred to 
the Department in statues, Executive Orders, rules, 
regulations, directives, or delegations of authority that 
preceded the transfer or effective date of this bill shall 
continue to apply to the Department following such a transfer 
if they refer to the agency by name.
    Additionally, 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 statue, rule, or regulation before the effective 
date of this legislation, relating to employment in any agency 
transferred to the Department. Unless otherwise specified, the 
terms and conditions of employment, including compensation for 
personnel transferred to the Department will not be altered.

Section 813. Terminations

    This section directs that once all the functions of an 
agency have transferred to the Department as directed by this 
bill, then those positions and offices that were authorized to 
receive compensation at level II, III, IV, or V of the 
Executive Schedule in the predecessor agency will terminate.

Section 814. Incidental Transfers

    This section authorizes and directs the Director of the 
Office of Management and Budget, in consultation with the 
Secretary, to make additional incidental dispositions of 
personnel, assets, and obligations held, or used, or to be made 
available, in connection with the functions transferred by this 
legislation to accomplish the purposes of this bill.

Section 815. National Identification System Not Authorized

    This section clarifies that nothing in the bill authorizes 
the Federal government to promote, develop or implement 
national standards for an identification system or card. 
Authority to design and issue identification cards and systems 
(such as drivers' licenses) will remain with the States.

Section 816. Continuity of Inspector General Oversight

    This section directs the Inspector General that exercised 
oversight of an agency prior its transfer to the Department of 
Homeland Security to continue to provide oversight of that 
agency until an Inspector General is appointed for the 
Department.

Section 817. Reference

    This section directs that any references to laws, 
functions, personnel, the reorganization plan in section 802, 
any officer, organization or function being transferred to the 
Department of Homeland Security will now be deemed to refer to 
the Secretary, other appropriate official or component of the 
Department.

             title ix--conforming and technical amendments


Section 901. Inspector General Act of 1978

    This section makes technical and conforming amendments to 
the Inspector General Act of 1978 (Public Law 95-452).

Section 902. Executive Schedule

    This section makes technical and conforming amendments to 
the Executive Schedule, title 5, United States Code. In the 
case of the Commissioner of Immigration and Naturalization, 
this section will become effective when the function is 
transferred to the Department of Homeland Security.

Section 903. United States Secret Service

    This section makes technical and conforming amendments to 
the United States Code in sections 202 and 208 of title 3 and 
section 3056 of title 18, United States Code.

Section 904. Coast Guard

    This section makes technical and conforming amendments to 
title 14, title 10, title 37 and other defense-related laws 
including: Public Law 104-193 (110 Stat. 2247), Public Law 104-
201 (10 U.S.C. 1073 note), Public Law 102-484 (10 U.S.C. 1143a 
note), Public Law 103-337 (10 U.S.C. 1293 note), Public Law 
106-181 (10 U.S.C. 2576 note), the Defense Dependents' 
Education Act of 1978 (20 U.S.C. 926(b)), Public Law 107-110 
(20 U.S.C. 6671(5)(D)), Public Law 107-110 (20 U.S.C. 6677(a), 
Public Law 105-85 (21 U.S.C. 1505a(a)), The Military Selective 
Service Act (50 U.S.C.). This section provides that the 
amendments made by this section will take effect on the date of 
transfer of the Coast Guard to the Department of Homeland 
Security.

Section 905. Strategic National Stockpile and Smallpox Vaccine 
        Development

    This section makes technical and conforming amendments to 
the Public Health Security and Bioterrorism Preparedness and 
Response Act of 2002. The amendments made by this section take 
effect on the date of transfer of the Strategic National 
Stockpile of the Department of Health and Human Services to the 
Department of Homeland Security.

Section 906. Biological Agent Registration; Public Health Service Act

    This section makes technical and conforming amendments to 
the Public Health Service Act and the Public Health Security 
and Bioterrorism Preparedness and Response Act of 2002. The 
amendments made by this section take effect on the date of 
transfer of the select agent registration enforcement programs 
and the activities of the Department of Health and Human 
Services to the Department of Homeland Security.

Section 907. Transfer of Certain Security and Law Enforcement Functions 
        and Authorities

    This section repeals section 210(a)(2) of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 
490(a)(2)) and amends the Act of June 1, 1948 (40 U.S.C. 318-
318d; chapter 359; 62 Stat. 281). Section 1 of the amendment 
provides a short title for the amendment, the ``Protection of 
Public Property Act''. Section 2 of the amendment directs the 
Secretary of Homeland Security to provide security for 
Federally owned buildings grounds, property and the people on 
the property. The Secretary may use employees of the Department 
of Homeland Security including those transferred into the 
Department from the Federal Protective Service of the General 
Services Administration for this purpose. Employees performing 
security duties in an official capacity may enforce Federal 
laws and regulations for protecting persons and property, carry 
firearms, make arrests for felonies, serve warrants and 
subpoenas, conduct investigations as they relate to offenses 
that may have been committed against property owned by the 
Federal government or persons on the property and other duties 
as assigned by the Secretary that would promote homeland 
security. The Secretary, in consultation with the Administrator 
of General Services, may prescribe regulations, including fines 
and imprisonment for not more than 30 days as described under 
title 18, United States Code, for offenses related to the 
protection of Federal property and personnel on that property. 
The Secretary may detail officers and agents under this section 
to support Federal agency heads upon their request and the 
Secretary may apply the regulations in this section to Federal 
property being protected. When it is economical and in the 
public interest, the Secretary may use the facilities and 
services of Federal, State, and local law enforcement agencies 
with their consent. The Secretary may also enter into 
agreements with Federal agencies, and with State and local 
governments to have officers and agents from the Homeland 
Security Department enforce Federal, State, and local laws 
concurrently with other law enforcement officers. The Secretary 
of Homeland Security and the Attorney General will set 
guidelines for exercising the powers granted to officers and 
agencies covered by this section. Nothing in this section will 
preclude or limit the authority of any Federal law enforcement 
agency or restrict the Administrator of General Services' 
authority to issue regulations affecting the property under the 
Administrator's custody and control.

Section 908. Transportation Security Regulations

    This section makes technical and conforming amendments to 
portions of title 49, United States Code.

Section 909. Railroad Security Laws

    This section makes technical and conforming amendments to 
portions of title 49, United States Code.

Section 910. Office of Science and Technology Policy

    This section amends the National Science and Technology 
Policy, Organization, and Priorities Act by giving homeland 
security the same status as national security.

Section 911. National Oceanographic Partnership Program

    This section amends section 7902(b) of title 10, United 
States Code, by adding the Under Secretary for Science and 
Technology of the Department of Homeland Security and other 
Federal officials to the Council.

Section 912. Chief Financial Officer

    This section makes technical and conforming amendments to 
section 901(b)(1) of title 31, United States Code, by including 
a Chief Financial Officer for the Department of Homeland 
Security to ensure that the Department is subject to the Chief 
Financial Officer Act.

Section 913. Chief Information Officer

    This section ensures that the Department's Chief 
Information Officer is subject to the Clinger-Cohen Act and 
allows for Presidential appointment of the Chief Information 
Officer.

              title x--national homeland security council


Section 1001. National Homeland Security Council

    This section establishes the Homeland Security Council 
within the Executive Office of the President.

Section 1002. Function

    This section directs the Council to advise the Present on 
homeland security matters.

Section 1003. Membership

    This section denotes the members of the Council including: 
The President, the Vice President, the Secretary of Homeland 
Security, the Attorney General, the Secretary of Health and 
Human Services, the Director of Central Intelligence, the 
Secretary of Defense, the Secretary of the Treasury, the 
Secretary of Energy, the Secretary of Agriculture and other 
individuals designed by the President.

Section 1004. Other Functions and Activities

    This section directs the Council to make recommendations to 
the President on matters related to homeland security including 
objectives, commitments, risk management, policy and other 
issues.

Section 1005. Homeland Security Budget

    This section requires that the President submit to Congress 
a homeland security budget as part of the annual budget 
request.

Section 1006. Staff Composition

    This section establishes a Homeland Security Council staff, 
headed by a civilian Executive Secretary. The Executive 
Secretary's salary may not exceed that of the Executive 
Secretary of the National Security Council.

Section 1007. Relation to the National Security Council

    This section provides that the President may hold joint 
meetings of the Homeland Security Council and the National 
Security Council with membership and participation as directed 
by the President.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

             SECTION 3 OF THE NATIONAL SECURITY ACT OF 1947


                              DEFINITIONS

  Sec. 3. As used in this Act:
          (1) * * *

           *       *       *       *       *       *       *

          (4) The term ``intelligence community'' includes--
                  (A) * * *

           *       *       *       *       *       *       *

                  (I) the Bureau of Intelligence and Research 
                of the Department of State; [and]
                  (J) the Intelligence Analysis Center of the 
                Department of Homeland Security; and
                  [(J)] (K) such other elements of any other 
                department or agency as may be designated by 
                the President, or designated jointly by the 
                Director of Central Intelligence and the head 
                of the department or agency concerned, as an 
                element of the intelligence community.

           *       *       *       *       *       *       *

                              ----------                              


AGRICULTURAL RISK PROTECTION ACT OF 2000

           *       *       *       *       *       *       *


                      TITLE V--INSPECTION ANIMALS

SEC. 501. CIVIL PENALTY.

  (a) In General.--Any person that causes harm to, or 
interferes with, an animal used for the purposes of official 
inspections by the Department of Agriculture or the Department 
of Homeland Security, may, after notice and opportunity for a 
hearing on the record, be assessed a civil penalty by the 
Secretary of Agriculture or the Secretary of Homeland Security 
not to exceed $10,000.
  (b) Factors in Determining Civil Penalty.--In determining the 
amount of a civil penalty, the Secretary concerned shall take 
into account the nature, circumstance, extent, and gravity of 
the offense.
  (c) Settlement of Civil Penalties.--The Secretary concerned 
may compromise, modify, or remit, with or without conditions, 
any civil penalty that may be assessed under this section.
  (d) Finality of Orders.--
          (1) In general.--The order of the Secretary concerned 
        assessing a civil penalty shall be treated as a final 
        order reviewable under chapter 158 of title 28, United 
        States Code. The validity of the order of the Secretary 
        concerned may not be reviewed in an action to collect 
        the civil penalty.

           *       *       *       *       *       *       *

  (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. 502. SUBPOENA AUTHORITY.

  (a) In General.--The Secretary concerned shall have power to 
subpoena the attendance and testimony of any witness, and the 
production of all documentary evidence relating to the 
enforcement of section 501 or any matter under investigation in 
connection with this title.

           *       *       *       *       *       *       *

  (c) Enforcement of Subpoena.--In the case of disobedience to 
a subpoena by any person, the Secretary concerned may request 
the Attorney General to invoke the aid of any court of the 
United States within the jurisdiction in which the 
investigation is conducted, or where the person resides, is 
found, transacts business, is licensed to do business, or is 
incorporated, in requiring the attendance and testimony of any 
witness and the production of documentary evidence. In case of 
a refusal to obey a subpoena issued to any person, a court may 
order the person to appear before the Secretary concerned and 
give evidence concerning the matter in question or to produce 
documentary evidence. Any failure to obey the court's order may 
be punished by the court as a contempt of the court.
  (d) Compensation.--Witnesses summoned by the Secretary 
concerned shall be paid the same fees and mileage that are paid 
to witnesses in courts of the United States, and witnesses 
whose depositions are taken, and the persons taking the 
depositions shall be entitled to the same fees that are paid 
for similar services in the courts of the United States.
  (e) Procedures.--The Secretary concerned shall publish 
procedures for the issuance of subpoenas under this section. 
Such procedures shall include a requirement that subpoenas be 
reviewed for legal sufficiency and signed by the Secretary 
concerned. If the authority to sign a subpoena is delegated, 
the agency receiving the delegation shall seek review for legal 
sufficiency outside that agency.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE I--DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *


CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *


Sec. 114. Transportation Security Administration

  (a) * * *

           *       *       *       *       *       *       *

  (l) Regulations.--
          (1) * * *
          (2) Emergency procedures.--
                  (A) * * *
                  (B) Review by transportation security 
                oversight board.--Any regulation or security 
                directive issued under this paragraph shall be 
                subject to review by the Transportation 
                Security Oversight Board established under 
                section 115. Any regulation or security 
                directive issued under this paragraph shall 
                remain effective for a period not to exceed 30 
                days unless ratified or disapproved by the 
                Board or rescinded by the Under Secretary.

           *       *       *       *       *       *       *


Sec. 115. Transportation Security Oversight Board

  (a) In General.--There is established in the Department of 
[Transportation] Homeland Security a board to be known as the 
``Transportation Security Oversight Board''.
  (b) Membership.--
          (1) Number and appointment.--The Board shall be 
        composed of 7 members as follows:
                  (A) The Secretary of Homeland Security, or 
                the Secretary's designee.
                  [(A)] (B) The Secretary of Transportation, or 
                the Secretary's designee.
                  [(B)] (C) The Attorney General, or the 
                Attorney General's designee.
                  [(C)] (D) The Secretary of Defense, or the 
                Secretary's designee.
                  [(D)] (E) The Secretary of the Treasury, or 
                the Secretary's designee.
                  [(E)] (F) The Director of the Central 
                Intelligence Agency, or the Director's 
                designee.
                  [(F)] (G) One member appointed by the 
                President to represent the National Security 
                Council.
                  [(G) One member appointed by the President to 
                represent the Office of Homeland Security.]
          (2) Chairperson.--The Chairperson of the Board shall 
        be the Secretary of [Transportation] Homeland Security.

           *       *       *       *       *       *       *


SUBTITLE V--RAIL PROGRAMS

           *       *       *       *       *       *       *


                             PART A--SAFETY

CHAPTER 201--GENERAL

           *       *       *       *       *       *       *


SUBCHAPTER I--GENERAL

           *       *       *       *       *       *       *


Sec. 20105. State participation

  (a) Investigative and Surveillance Activities.--The Secretary 
of Transportation or the Secretary of Homeland Security may 
prescribe investigative and surveillance activities necessary 
to enforce the safety regulations prescribed and orders issued 
by the Secretary of Transportation or the Secretary of Homeland 
Security that apply to railroad equipment, facilities, rolling 
stock, and operations in a State. The State may participate in 
those activities when the safety practices for railroad 
equipment, facilities, rolling stock, and operations in the 
State are regulated by a State authority and the authority 
submits to the Secretary of Transportation or the Secretary of 
Homeland Security, as appropriate, an annual certification as 
provided in subsection (b) of this section.
  (b) Annual Certification.--(1) A State authority's annual 
certification must include--
          (A) a certification that the authority--
                  (i) * * *
                  (ii) was given a copy of each safety 
                regulation prescribed and order issued by the 
                Secretary of Transportation or the Secretary of 
                Homeland Security, as appropriate, that applies 
                to the equipment, facilities, rolling stock, or 
                operations, as of the date of certification; 
                and
                  (iii) is conducting the investigative and 
                surveillance activities prescribed by the 
                Secretary of Transportation or the Secretary of 
                Homeland Security, as appropriate, under 
                subsection (a) of this section; and
          (B) a report, in the form the Secretary of 
        Transportation or the Secretary of Homeland Security, 
        as appropriate, prescribes by regulation, that 
        includes--
                  (i) * * *
                  (ii) each accident or incident reported 
                during the prior 12 months by a railroad 
                carrier involving a fatality, personal injury 
                requiring hospitalization, or property damage 
                of more than $750 (or a higher amount 
                prescribed by the Secretary of Transportation 
                or the Secretary of Homeland Security, as 
                appropriate), and a summary of the authority's 
                investigation of the cause and circumstances 
                surrounding the accident or incident;
                  (iii) the record maintenance, reporting, and 
                inspection practices conducted by the authority 
                to aid the Secretary of Transportation or the 
                Secretary of Homeland Security, as appropriate, 
                in enforcing railroad safety regulations 
                prescribed and orders issued by the Secretary 
                of Transportation or the Secretary of Homeland 
                Security, as appropriate, including the number 
                of inspections made of railroad equipment, 
                facilities, rolling stock, and operations by 
                the authority during the prior 12 months; and
                  (iv) other information the Secretary of 
                Transportation or the Secretary of Homeland 
                Security, as appropriate, requires.

           *       *       *       *       *       *       *

  (3) If, after receipt of an annual certification, the 
Secretary of Transportation or the Secretary of Homeland 
Security, as appropriate, decides the State authority is not 
complying satisfactorily with the investigative and 
surveillance activities prescribed under subsection (a) of this 
section, the Secretary of Transportation or the Secretary of 
Homeland Security, as appropriate, may reject any part of the 
certification or take other appropriate action to achieve 
adequate enforcement. The Secretary of Transportation or the 
Secretary of Homeland Security, as appropriate, must give the 
authority notice and an opportunity for a hearing before taking 
action under this paragraph. When the Secretary of 
Transportation or the Secretary of Homeland Security, as 
appropriate, gives notice, the burden of proof is on the 
authority to show that it is complying satisfactorily with the 
investigative and surveillance activities prescribed by the 
Secretary of Transportation or the Secretary of Homeland 
Security, as appropriate.
  (c) Agreement When Certification Not Received.--(1) If the 
Secretary of Transportation or the Secretary of Homeland 
Security, as appropriate, does not receive an annual 
certification under subsection (a) of this section related to 
any railroad equipment, facility, rolling stock, or operation, 
the Secretary of Transportation or the Secretary of Homeland 
Security, as appropriate, may make an agreement with a State 
authority for the authority to provide any part of the 
investigative and surveillance activities prescribed by the 
Secretary of Transportation or the Secretary of Homeland 
Security, as appropriate, as necessary to enforce the safety 
regulations and orders applicable to the equipment, facility, 
rolling stock, or operation.
  (2) The Secretary of Transportation or the Secretary of 
Homeland Security, as appropriate, may terminate any part of an 
agreement made under this subsection on finding that the 
authority has not provided every part of the investigative and 
surveillance activities to which the agreement relates. The 
Secretary of Transportation or the Secretary of Homeland 
Security, as appropriate, must give the authority notice and an 
opportunity for a hearing before making such a finding. The 
finding and termination shall be published in the Federal 
Register and may not become effective for at least 15 days 
after the date of publication.
  (d) Agreement for Investigative and Surveillance 
Activities.--In addition to providing for State participation 
under this section, the Secretary of Transportation or the 
Secretary of Homeland Security, as appropriate, may make an 
agreement with a State to provide investigative and 
surveillance activities related to the [Secretary's] Secretary 
of Transportation's duties under chapters 203-213 of this title 
or the Secretary of Homeland Security's duties under section 
114.
  (e) Payment.--On application by a State authority that has 
submitted a certification under subsections (a) and (b) of this 
section or made an agreement under subsection (c) or (d) of 
this section, the Secretary of Transportation or the Secretary 
of Homeland Security, as appropriate, shall pay not more than 
50 percent of the cost of the personnel, equipment, and 
activities of the authority needed, during the next fiscal 
year, to carry out a safety program under the certification or 
agreement. However, the Secretary of Transportation or the 
Secretary of Homeland Security, as appropriate, may pay an 
authority only when the authority assures the Secretary of 
Transportation or the Secretary of Homeland Security, as 
appropriate, that it will provide the remaining cost of the 
safety program and that the total State money expended for the 
safety program, excluding grants of the United States 
Government, will be at least as much as the average amount 
expended for the fiscal years that ended June 30, 1969, and 
June 30, 1970.
  (f) Monitoring.--The Secretary of Transportation or the 
Secretary of Homeland Security, as appropriate, may monitor 
State investigative and surveillance practices and carry out 
other inspections and investigations necessary to help enforce 
this chapter or section 114.

Sec. 20106. National uniformity of regulation

  Laws, regulations, and orders related to railroad safety 
shall be nationally uniform to the extent practicable. A State 
may adopt or continue in force a law, regulation, or order 
related to railroad safety, including security, until the 
Secretary of Transportation or the Secretary of Homeland 
Security prescribes a regulation or issues an order covering 
the subject matter of the State requirement. A State may adopt 
or continue in force an additional or more stringent law, 
regulation, or order related to railroad safety when the law, 
regulation, or order--
          (1) * * *

           *       *       *       *       *       *       *


SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *


SUBPART III--SAFETY

           *       *       *       *       *       *       *


CHAPTER 449--SECURITY

           *       *       *       *       *       *       *


                       SUBCHAPTER I--REQUIREMENTS

Sec. 44901. Screening passengers and property

  (a) * * *

           *       *       *       *       *       *       *

  (d) Explosive Detection Systems.--
          (1) * * *
          (2) Modification of airport terminal buildings to 
        accommodate explosive detection systems.--
                  (A) Notification of airports.--Not later than 
                October 1, 2002, the Under Secretary shall 
                notify the owner or operator of each United 
                States airport described in section 44903(c) of 
                the number and type of explosive detection 
                systems that will be required to be deployed at 
                the airport in order to screen all checked 
                baggage by explosive detection systems without 
                imposing unreasonable delays on the passengers 
                using the airport.
                  (B) Assessments of airport terminal 
                buildings.--If the owner or operator of a 
                United States airport described in section 
                44903(c) determines that the airport will not 
                be able to make the modifications to the 
                airport's terminal buildings that are necessary 
                to accommodate the explosive detection systems 
                required under subparagraph (A) in a cost-
                effective manner on or before December 31, 
                2002, the owner or operator shall provide 
                notice of that determination to the Under 
                Secretary not later than November 1, 2002.
                  (C) Plans for making modifications to airport 
                terminal buildings.--
                          (i) In general.--If the owner or 
                        operator of an airport provides notice 
                        to the Under Secretary under 
                        subparagraph (B), the Under Secretary, 
                        in consultation with the owner or 
                        operator, shall develop, not later than 
                        December 1, 2002, a plan for making 
                        necessary modifications to the 
                        airport's terminal buildings so as to 
                        deploy and fully utilize explosive 
                        detection systems to screen all checked 
                        baggage.
                          (ii) Deadline.--A plan developed 
                        under this subparagraph shall include a 
                        date for executing the plan. All such 
                        plans shall be executed as 
                        expeditiously as practicable but not 
                        later than December 31, 2003.
                          (iii) Transmission of plans to 
                        congress.--On the date of completion of 
                        a plan under this subparagraph, the 
                        Under Secretary shall transmit a copy 
                        of the plan to Congress. For security 
                        purposes, information contained in the 
                        plan shall not be disclosed to the 
                        public.
                  (D) Requirements for plans.--A plan developed 
                and published under subparagraph (C), shall 
                provide for, to the maximum extent 
                practicable--
                          (i) the deployment of explosive 
                        detection systems in the baggage 
                        sorting area or other non-public area 
                        rather than the lobby of an airport 
                        terminal building; and
                          (ii) the deployment of state of the 
                        art explosive detection systems that 
                        have high throughput, low false alarm 
                        rates, and high reliability without 
                        reducing detection rates.
                  (E) Use of screening methods other than 
                eds.--Notwithstanding the deadline in paragraph 
                (1)(A), after December 31, 2002, if explosive 
                detection systems are not screening all checked 
                baggage at a United States airport described in 
                section 44903(c), such baggage shall be 
                screened by the methods described in subsection 
                (e) until such time as all checked baggage is 
                screened by explosive detection systems at the 
                airport.
          (3) Purchase of explosive detection systems.--Any 
        explosive detection system required to be purchased 
        under paragraph (2)(A) shall be purchased by the Under 
        Secretary.
          (4) Explosive detection system defined.--In this 
        subsection, the term ``explosive detection system'' 
        means a device, or combination of devices, that can 
        detect different types of explosives.
  (e) Mandatory Screening Where EDS Not Yet Available.--As soon 
as practicable but not later than the 60th day following the 
date of enactment of the Aviation and Transportation Security 
Act and until the requirements of subsection [(b)(1)(A)] 
(d)(1)(A) are met, the Under Secretary shall require 
alternative means for screening any piece of checked baggage 
that is not screened by an explosive detection system. Such 
alternative means may include 1 or more of the following:
          (1) * * *

           *       *       *       *       *       *       *


                 PART B--AIRPORT DEVELOPMENT AND NOISE

CHAPTER 471--AIRPORT DEVELOPMENT

           *       *       *       *       *       *       *


SUBCHAPTER I--AIRPORT IMPROVEMENT

           *       *       *       *       *       *       *


Sec. 47106. Project grant application approval conditioned on 
                    satisfaction of project requirements

  (a) * * *

           *       *       *       *       *       *       *

  (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) (relating to security equipment) or 
section 47102(3)(B)(x) (relating to installation of bulk 
explosive detection systems).

           *       *       *       *       *       *       *

                              ----------                              


OMNIBUS CRIME CONTROL AND SAFE STREETS ACT OF 1968

           *       *       *       *       *       *       *


TITLE I--JUSTICE SYSTEM IMPROVEMENT

           *       *       *       *       *       *       *


Part C--Bureau of Justice Statistics

           *       *       *       *       *       *       *


                  establishment, duties, and functions

  Sec. 302. (a) * * *

           *       *       *       *       *       *       *

  (c) The Bureau is authorized to--
          (1) * * *

           *       *       *       *       *       *       *

          (22) ensure conformance with security and privacy 
        requirement of section 812 and identify, analyze, and 
        participate in the development and implementation of 
        privacy, security and information policies which impact 
        on Federal and State criminal justice operations and 
        related statistical activities; [and]
          (23) exercise the powers and functions set out in 
        part H[.]; and
          (24) collect, maintain, compile, analyze, publish, 
        and disseminate information and statistics involving 
        the functions of the Bureau of Citizenship and 
        Immigration Services and the Executive Office for 
        Immigration Review.

           *       *       *       *       *       *       *


                    OFFICE OF IMMIGRATION STATISTICS

  Sec. 305. (a) There is established within the Bureau of 
Justice Statistics of the Department of Justice an Office of 
Immigration Statistics (in this section referred to as the 
``Office''), which shall be headed by a Director who shall be 
appointed by the Attorney General and who shall report to the 
Director of Justice Statistics.
  (b) The Director of the Office shall be responsible for the 
following:
          (1) Maintenance of all immigration statistical 
        information of the Bureau of Citizenship and 
        Immigration Services and the Executive Office for 
        Immigration Review. 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 on the day prior 
        to the effective date specified in section 427 of the 
        Homeland Security Act of 2002), 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 offices and 
        bureaus, and the reasons for such denials, 
        disaggregated by category of denial and application or 
        petition type.
          (2) Establishment of standards of reliability and 
        validity for immigration statistics collected by the 
        Bureau of Citizenship and Immigration Services and the 
        Executive Office for Immigration Review.
  (c) The Bureau of Citizenship and Immigration Services and 
the Executive Office for Immigration Review shall provide 
statistical information to the Office of Immigration Statistics 
from the operational data systems controlled by the Bureau of 
Citizenship and Immigration Services and the Executive Office 
for Immigration Review, respectively, for the purpose of 
meeting the responsibilities of the Director.

           *       *       *       *       *       *       *

                              ----------                              


           SECTION 286 OF THE IMMIGRATION AND NATIONALITY ACT

   disposition of moneys collected under the provisions of this title

  Sec. 286. (a) * * *

           *       *       *       *       *       *       *

  (m) Notwithstanding any other provisions of law, all 
adjudication fees as are designated by the Attorney General in 
regulations shall be deposited as offsetting receipts into a 
separate account entitled ``Immigration Examinations Fee 
Account'' in the Treasury of the United States, whether 
collected directly by the Attorney General or through clerks of 
courts: Provided, however, That all fees received by the 
Attorney General from applicants residing in the Virgin Islands 
of the United States and in Guam, under this subsection shall 
be paid over to the treasury of the Virgin Islands and to the 
treasury of Guam: Provided further, That fees for providing 
adjudication and naturalization services may be set at a level 
that will ensure recovery of the full costs of providing all 
such [services, including the costs of similar services 
provided without charge to asylum applicants or other 
immigrants.] services. Such fees may also be set at a level 
that will recover any additional costs associated with the 
administration of the fees collected.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 204 OF THE IMMIGRATION SERVICES AND INFRASTRUCTURE IMPROVEMENTS 
                              ACT OF 2000

SEC. 204. IMMIGRATION SERVICES AND INFRASTRUCTURE IMPROVEMENT ACCOUNT.

  (a) Authority of the Attorney General.--The Attorney General 
shall take such measures as may be necessary to--
          (1) reduce the backlog in the processing of 
        immigration benefit applications, with the objective of 
        the total elimination of the backlog not later than one 
        year after [the date of enactment of this Act;] 1 year 
        after the date of the enactment of the Homeland 
        Security Act of 2002;

           *       *       *       *       *       *       *

                              ----------                              


TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *


PART III--EMPLOYEES

           *       *       *       *       *       *       *


                        Subpart I--Miscellaneous

       Personnel flexibilities relating to the Internal Revenue Serv9501
9701 Department of Homeland Security..................................

           *       *       *       *       *       *       *


Subpart D--Pay and Allowances

           *       *       *       *       *       *       *


CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *


SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

           *       *       *       *       *       *       *


Sec. 5312. Positions at level I

  Level I of the Executive Schedule applies to the following 
positions for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Secretary of State.

           *       *       *       *       *       *       *

          Secretary of Homeland Security.

           *       *       *       *       *       *       *


Sec. 5313. Positions at level II

  Level II of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Secretary of Defense.

           *       *       *       *       *       *       *

          Deputy Secretary of Homeland Security.

           *       *       *       *       *       *       *


Sec. 5314. Positions at level III

  Level III of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Solicitor General of the United States.

           *       *       *       *       *       *       *

          Under Secretaries, Department of Homeland Security.

           *       *       *       *       *       *       *

          [Commissioner of Customs, Department of the Treasury]
          Commissioner of Customs, Department of Homeland 
        Security.

Sec. 5315. Positions at level IV

  Level IV of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Administrator of General Services.

           *       *       *       *       *       *       *

          [Commissioner of Immigration and Naturalization, 
        Department of Justice.]

           *       *       *       *       *       *       *

          Assistant Secretaries, Department of Homeland 
        Security.
          General Counsel, Department of Homeland Security.
          Chief Financial Officer, Department of Homeland 
        Security.
          Chief Information Officer, Department of Homeland 
        Security.
          Inspector General, Department of Homeland Security.

           *       *       *       *       *       *       *


Subpart I--Miscellaneous

           *       *       *       *       *       *       *


              CHAPTER 97--DEPARTMENT OF HOMELAND SECURITY

Sec.
9701. Establishment of human resources management system.

Sec. 9701. Establishment of human resources management system

  (a) In General.--Notwithstanding any other provision of this 
title, 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 non-merit 
                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); or
                  (ii) any provision of law implementing any 
                provision of law referred to in section 
                2302(b)(1) 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 title (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 or under 
        subsection (a) for employees engaged in intelligence, 
        counterintelligence, investigative, or security work 
        which directly affects national security; 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 title, 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) Sunset Provision.--Effective 5 years after the date of 
the enactment of this section, 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.

           *       *       *       *       *       *       *

                              ----------                              


                 SECTION 505 OF THE TARIFF ACT OF 1930

SEC. 505. PAYMENT OF DUTIES AND FEES.

  (a) Deposit of Estimated Duties, Fees, and Interest.--[Unless 
merchandise] Unless the entry of merchandise is covered by an 
import activity summary statement, or the merchandise is 
entered for warehouse or transportation, or under bond, the 
importer of record shall deposit with the Customs Service at 
the time of making entry, or at such later time as the 
Secretary may prescribe by regulation (but not to exceed 10 
working days after entry or release, whichever occurs first), 
the amount of duties and fees estimated to be payable thereon. 
[Such regulations may provide that estimated duties and fees 
shall be deposited before or at the time an import activity 
summary statement is filed. If an import activity summary 
statement is filed, the estimated duties and fees shall be 
deposited together with interest, at a rate determined by the 
Secretary, accruing from the first date of the month the 
statement is required to be filed until the date such statement 
is actually filed.] If an import activity summary statement is 
filed, the importer of record shall deposit estimated duties 
and fees for entries of merchandise covered by the import 
activity summary statement no later than the 15th day of the 
month following the month in which the merchandise is entered 
or released, whichever occurs first.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 13031 OF THE CONSOLIDATED OMNIBUS BUDGET RECONCILIATION ACT OF 
                                  1985

SEC. 13031. FEES FOR CERTAIN CUSTOM SERVICES.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Disposition of Fees.--(1) There is established in the 
general fund of the Treasury a separate account which shall be 
known as the ``Customs User Fee Account''. Notwithstanding 
section 524 of the Tariff Act of 1930 (19 U.S.C. 1524), there 
shall be deposited as offsetting receipts into the Customs User 
Fee Account all fees collected under subsection (a) except--
                  (A) * * *
                  [(B) the portion of such fees that is 
                determined by the Secretary to be excess fees 
                under paragraph (5).]
                  (B) amounts deposited into the Customs 
                Commercial and Homeland Security Automation 
                Account under paragraph (5).

           *       *       *       *       *       *       *

  (4) At the close of fiscal year 1988 and each even-numbered 
fiscal year occurring thereafter, the Secretary of the Treasury 
shall submit a report to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the 
Senate regarding how the fees imposed under subsection (a) 
[(other than the excess fees determined by the Secretary under 
paragraph (5))] should be adjusted in order that the balance of 
the Customs User Fee Account approximates a zero balance. 
Before making recommendations regarding any such adjustments, 
the Secretary of the Treasury shall provide adequate 
opportunity for public comment. The recommendation shall, a 
precisely as possible, propose fees which reflect the actual 
costs to the United States Government for the commercial 
services provided by the United States Custom Service.
          [(5) At the close of each of fiscal years 1994, 1995, 
        1996, and 1997, the Secretary of the Treasury shall 
        determine the amount of the fees collected under 
        paragraph (5)(A) of subsection (a) for that fiscal year 
        that exceeds the amount of such fees that would have 
        been collected for such fiscal year if the fees that 
        were in effect on the day before the effective date of 
        this paragraph applied to such fiscal year. The amount 
        of the excess fees determined under the preceding 
        sentence shall be deposited in the Customs User Fee 
        Account and shall be available for reimbursement of 
        inspectional costs (including passenger processing 
        costs) not otherwise reimbursed under this section, and 
        shall be available only to the extent provided in 
        appropriations Acts.]
  (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.

           *       *       *       *       *       *       *

                              ----------                              


INSPECTOR GENERAL ACT OF 1978

           *       *       *       *       *       *       *


   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.

           *       *       *       *       *       *       *


                              DEFINITIONS

  Sec. 11. As used in this Act--
          (1) the term ``head of the establishment'' means the 
        Secretary of Agriculture, Commerce, Defense, Education, 
        Energy, Health and Human Services, Housing and Urban 
        Development, the Interior, Labor, State, 
        Transportation, Homeland Security, or the Treasury; the 
        Attorney General; the Administrator of the Agency for 
        International Development, Environmental Protection, 
        General Services, National Aeronautics and Space, or 
        Small Business, or Veterans' Affairs; the Director of 
        the Federal Emergency Management Agency, or the Office 
        of Personnel Management; the Chairman of the Nuclear 
        Regulatory Commission or the Railroad Retirement Board; 
        the Chairperson of the Thrift Depositor Protection 
        Oversight Board; the Chief Executive Officer of the 
        Corporation for National and Community Service; the 
        Administrator of the Community Development Financial 
        Institutions Fund; [and] the chief executive officer of 
        the Resolution Trust Corporation; [and] the Chairperson 
        of the Federal Deposit Insurance Corporation; the 
        Commissioner of Social Security, Social Security 
        Administration; or the Board of Directors of the 
        Tennessee Valley Authority; as the case may be;
          (2) the term ``establishment'' means the Department 
        of Agriculture, Commerce, Defense, Education, Energy, 
        Health and Human Services, Housing and Urban 
        Development, the Interior, Justice, Labor, State, 
        Transportation, Homeland Security, or the Treasury; the 
        Agency for International Development, the Community 
        Development Financial Institutions Fund, the 
        Environmental Protection Agency, the Federal Emergency 
        Management Agency, the General Services Administration, 
        the National Aeronautics and Space Administration, the 
        Nuclear Regulatory Commission, the Office of Personnel 
        Management, the Railroad Retirement Board, the 
        Resolution Trust Corporation, the Federal Deposit 
        Insurance Corporation, the Small Business 
        Administration, the Corporation for National and 
        Community Service, or the Veterans' Administration, the 
        Social Security Administration, or the Tennessee Valley 
        Authority; as the case may be;

           *       *       *       *       *       *       *

                              ----------                              


       SECTION 18 OF THE OFFICE OF FEDERAL PROCUREMENT POLICY ACT

SEC. 18. PROCUREMENT NOTICE.

  (a) * * *

           *       *       *       *       *       *       *

  (c)(1) A notice is not required under subsection (a)(1) if--
          (A) * * *

           *       *       *       *       *       *       *

          (F) the procurement is for utility services, other 
        than telecommunication services, and only one source is 
        available; [or]
          (G) the procurement is for the services of an expert 
        for use in any litigation or dispute (including any 
        reasonably foreseeable litigation or dispute) involving 
        the Federal Government in any trial, hearing, or 
        proceeding before any court, administrative tribunal, 
        or agency, or in any part of an alternative dispute 
        resolution process, whether or not the expert is 
        expected to testify[.]; or
          (H) the procurement is by the Secretary of Homeland 
        Security pursuant to the special procedures provided in 
        section 733(c) of the Homeland Security Act of 2002.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 3, UNITED STATES CODE

           *       *       *       *       *       *       *


 CHAPTER 3--PROTECTION OF THE PRESIDENT; UNITED STATES SECRET SERVICE 
UNIFORMED DIVISION

           *       *       *       *       *       *       *


Sec. 202. United States Secret Service Uniformed Division; 
                    establishment, control, and supervision; 
                    privileges, powers, and duties

  There is hereby created and established a permanent police 
force, to be known as the ``United States Secret Service 
Uniformed Division''. Subject to the supervision of the 
Secretary [of the Treasury] of Homeland Security, the United 
States Secret Service Uniformed Division shall perform such 
duties as the Director, United States Secret Service, may 
prescribe in connection with the protection of the following: 
(1) the White House in the District of Columbia; (2) any 
building in which Presidential offices are located; (3) the 
Treasury Building and grounds; (4) the President and members of 
his immediate family; (5) foreign diplomatic missions located 
in the metropolitan area of the District of Columbia; (6) the 
temporary official residence of the Vice President and grounds 
in the District of Columbia; (7) the Vice President and members 
of his immediate family; (8) foreign diplomatic missions 
located in metropolitan areas (other than the District of 
Columbia) in the United States where there are located twenty 
or more such missions headed by full-time officers, except that 
such protection shall be provided only (A) on the basis of 
extraordinary protective need, (B) upon request of the affected 
metropolitan area, and (C) when the extraordinary protective 
need arises at or in association with a visit to (i) a 
permanent mission to, or an observer mission invited to 
participate in the work of, an international organization of 
which the United States is a member; or (ii) an international 
organization of which the United States is a member, except 
that such protection may also be provided for motorcades and at 
other places associated with any such visit and may be extended 
at places of temporary domicile in connection with any such 
visit;

           *       *       *       *       *       *       *


Sec. 208. Reimbursement of State and local governments

  (a) In carrying out the functions pursuant to sections 202(8) 
and 202(10), the Secretary [of Treasury] of Homeland Security 
may utilize, with their consent, on a reimbursable basis, the 
services, personnel, equipment, and facilities of State and 
local governments, and is authorized to reimburse such State 
and local governments for the utilization of such services, 
personnel, equipment, and facilities. The Secretary [of 
Treasury] of Homeland Security may carry out the functions 
pursuant to sections 202(8) and 202(10) by contract. The 
authority of this subsection may be transferred by the 
President to the Secretary of State. In carrying out any duty 
under sections 202(8) and 202(10), the Secretary of State is 
authorized to utilize any authority available to the Secretary 
under title II of the State Department Basic Authorities Act of 
1956.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 3056 OF TITLE 18, UNITED STATES CODE

Sec. 3056. Powers, authorities, and duties of United States Secret 
                    Service

  (a) Under the direction of the Secretary [of the Treasury] of 
Homeland Security, the United States Secret Service is 
authorized to protect the following persons:
          (1) * * *

           *       *       *       *       *       *       *

Provided, That the Secretary [of the Treasury] of Homeland 
Security shall have the authority to direct the Secret Service 
to provide temporary protection for any of these individuals at 
any time if the Secretary [of the Treasury] of Homeland 
Security or designee determines that information or conditions 
warrant such protection.

           *       *       *       *       *       *       *

          (7) Major Presidential and Vice Presidential 
        candidates and, within 120 days of the general 
        Presidential election, the spouses of such candidates. 
        As used in this paragraph, the term ``major 
        Presidential and Vice Presidential candidates'' means 
        those individuals identified as such by the Secretary 
        [of the Treasury] of Homeland Security after 
        consultation with an advisory committee consisting of 
        the Speaker of the House of Representatives, the 
        minority leader of the House of Representatives, the 
        majority and minority leaders of the Senate, and one 
        additional member selected by the other members of the 
        committee.
The protection authorized in paragraphs (2) through (7) may be 
declined.
  (b) Under the direction of the Secretary [of the Treasury] of 
Homeland Security, the Secret Service is authorized to detect 
and arrest any person who violates--
          (1) * * *

           *       *       *       *       *       *       *

          (3) any of the laws of the United States relating to 
        electronic fund transfer frauds, access device frauds, 
        false identification documents or devices, and any 
        fraud or other criminal or unlawful activity in or 
        against any federally insured financial institution; 
        except that the authority conferred by this paragraph 
        shall be exercised subject to the agreement of the 
        Attorney General and the Secretary [of the Treasury] of 
        Homeland Security and shall not affect the authority of 
        any other Federal law enforcement agency with respect 
        to those laws.
  (c)(1) Under the direction of the Secretary [of the Treasury] 
of Homeland Security, officers and agents of the Secret Service 
are authorized to--
          (A) * * *

           *       *       *       *       *       *       *

          (E) pay expenses for unforeseen emergencies of a 
        confidential nature under the direction of the 
        Secretary [of the Treasury] of Homeland Security and 
        accounted for solely on the Secretary's certificate; 
        and

           *       *       *       *       *       *       *

  (e)(1) When directed by the President, the United States 
Secret Service is authorized to participate, under the 
direction of the Secretary [of the Treasury] of Homeland 
Security, in the planning, coordination, and implementation of 
security operations at special events of national significance, 
as determined by the President.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 14, UNITED STATES CODE

           *       *       *       *       *       *       *


CHAPTER 1--ESTABLISHMENT AND DUTIES

           *       *       *       *       *       *       *


Sec. 1. Establishment of Coast Guard

  The Coast Guard as established January 28, 1915, shall be a 
military service and a branch of the armed forces of the United 
States at all times. The Coast Guard shall be a service in the 
Department [of Transportation] of Homeland Security, except 
when operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 3. Relationship to Navy Department

  Upon the declaration of war or when the President directs, 
the Coast Guard shall operate as a service in the Navy, and 
shall so continue until the President, by Executive order, 
transfers the Coast Guard back to the Department [of 
Transportation] of Homeland Security. While operating as a 
service in the Navy, the Coast Guard shall be subject to the 
orders of the Secretary of the Navy who may order changes in 
Coast Guard operations to render them uniform, to the extent he 
deems advisable, with Navy operations.

           *       *       *       *       *       *       *


CHAPTER 3--COMPOSITION AND ORGANIZATION

           *       *       *       *       *       *       *


Sec. 53. Office of the Coast Guard Reserve; Director

  (a) * * *
  (b) Appointment.--The President, by and with the advice and 
consent of the Senate, shall appoint the Director of the Coast 
Guard Reserve, from officers of the Coast Guard who--
          (1) have had at least 10 years of commissioned 
        service;
          (2) are in a grade above captain; and
          (3) have been recommended by the Secretary [of 
        Transportation] of Homeland Security.
  (c) Term.--(1) The Director of the Coast Guard Reserve holds 
office for a term determined by the President, normally two 
years, but not more than four years. An officer may be removed 
from the position of Director for cause at any time.
  (2) The Director of the Coast Guard Reserve, while so 
serving, holds a grade above Captain, without vacating the 
officer's permanent grade.
  (d) Budget.--The Director of the Coast Guard Reserve is the 
official within the executive part of the Coast Guard who, 
subject to the authority, direction, and control of the 
Secretary [of Transportation] of Homeland Security and the 
Commandant, is responsible for preparation, justification, and 
execution of the personnel, operation and maintenance, and 
construction budgets for the Coast Guard Reserve. As such, the 
Director of the Coast Guard Reserve is the director and 
functional manager of appropriations made for the Coast Guard 
Reserve in those areas.
  (e) Annual Report.--The Director of the Coast Guard Reserve 
shall submit to the Secretary [of Transportation] of Homeland 
Security and the Secretary of Defense an annual report on the 
state of the Coast Guard Reserve and the ability of the Coast 
Guard Reserve to meet its missions. The report shall be 
prepared in conjunction with the Commandant and may be 
submitted in classified and unclassified versions.

           *       *       *       *       *       *       *


CHAPTER 5--FUNCTIONS AND POWERS

           *       *       *       *       *       *       *


Sec. 95. Special agents of the Coast Guard Investigative Service law 
                    enforcement authority

  (a) * * *

           *       *       *       *       *       *       *

  (c) The authority provided under subsection (a) shall be 
exercised in accordance with guidelines prescribed by the 
Commandant and approved by the Attorney General and any other 
applicable guidelines prescribed by the Secretary [of 
Transportation] of Homeland Security or the Attorney General.

           *       *       *       *       *       *       *


CHAPTER 7--COOPERATION WITH OTHER AGENCIES

           *       *       *       *       *       *       *


Sec. 145. Navy Department

  (a) * * *

           *       *       *       *       *       *       *

  (c) When the Coast Guard is operating in the Department [of 
Transportation] of Homeland Security, the Secretary shall 
provide for such peacetime training and planning of reserve 
strength and facilities as is necessary to insure an organized, 
manned, and equipped Coast Guard when it is required for 
wartime operation in the Navy. To this end, the Secretary of 
the Navy for the Navy, and the Secretary [of Transportation] of 
Homeland Security, for the Coast Guard, may from time to time 
exchange such information, make available to each other such 
personnel, vessels, facilities, and equipment, and agree to 
undertake such assignments and functions for each other as they 
may agree are necessary and advisable.

           *       *       *       *       *       *       *


CHAPTER 13--PAY, ALLOWANCES, AWARDS, AND OTHER RIGHTS AND BENEFITS

           *       *       *       *       *       *       *


Sec. 516. Presentation of United States flag upon retirement

  (a) Presentation of Flag.--Upon the release of a member of 
the Coast Guard from active duty for retirement, the Secretary 
[of Transportation] of Homeland Security shall present a United 
States flag to the member.

           *       *       *       *       *       *       *


CHAPTER 17--ADMINISTRATION

           *       *       *       *       *       *       *


Sec.
631.  Delegation of powers by the Secretary.
     * * * * * * *
[673] 673a.  Small boat station rescue capability.

           *       *       *       *       *       *       *


Sec. 666. Local hire

  (a) Notwithstanding any other law, each contract awarded by 
the Coast Guard for construction or services to be performed in 
whole or in part in a State that has an unemployment rate in 
excess of the national average rate of unemployment (as 
determined by the Secretary of Labor) shall include a provision 
requiring the contractor to employ, for the purpose of 
performing that portion of the contract in that State, 
individuals who are local residents and who, in the case of any 
craft or trade, possess or would be able to acquire promptly 
the necessary skills. The Secretary [of Transportation] of 
Homeland Security may waive the requirements of this subsection 
in the interest of national security or economic efficiency.

           *       *       *       *       *       *       *


Sec. 669. Telephone installation and charges

  Under regulations prescribed by the Secretary, amounts 
appropriated to the Department [of Transportation] of Homeland 
Security are available to install, repair, and maintain 
telephone wiring in residences owned or leased by the United 
States Government and, if necessary for national defense 
purposes in other private residences.

           *       *       *       *       *       *       *


Sec. 673. Designation, powers, and accountability of deputy disbursing 
                    officials

  (a)(1) * * *

           *       *       *       *       *       *       *

  (3) A disbursing official may make a designation under 
paragraph (1) only with the approval of the Secretary [of 
Transportation] of Homeland Security (when the Coast Guard is 
not operating as a service in the Navy).

           *       *       *       *       *       *       *


[Sec. 673] Sec. 673a. Small boat station rescue capability

  The Secretary [of Transportation] of Homeland Security shall 
ensure that each Coast Guard small boat station (including a 
seasonally operated station) maintains, within the area of 
responsibility for the station, at least 1 vessel that is fully 
capable of performing offshore rescue operations, taking into 
consideration prevailing weather, marine conditions, and 
depositional geologic features such as sand bars.

Sec. 674. Small boat station closures

  (a) Closures.--The Secretary [of Transportation] of Homeland 
Security may not close a Coast Guard multimission small boat 
station or subunit unless the Secretary--
          (1) * * *

           *       *       *       *       *       *       *


CHAPTER 18--COAST GUARD HOUSING AUTHORITIES

           *       *       *       *       *       *       *


Sec. 687. Coast Guard Housing Fund

  (a) * * *
  (b) Credits to Fund.--There shall be credited to the Fund the 
following:
          (1) * * *
          (2) Subject to subsection (e), any amounts that the 
        Secretary transfers, in such amounts as provided in 
        appropriation Acts, to that Fund from amounts 
        authorized and appropriated to the Department [of 
        Transportation] of Homeland Security or Coast Guard for 
        the acquisition or construction of military family 
        housing or unaccompanied housing.

           *       *       *       *       *       *       *


Sec. 688. Reports

  The Secretary shall include each year in the materials the 
Secretary submits to the Congress in support of the budget 
submitted by the President pursuant to section 1105 of title 
31, the following:
          (1) * * *

           *       *       *       *       *       *       *

          (4) A description of the objectives of the Department 
        [of Transportation] of Homeland Security for providing 
        military family housing and military unaccompanied 
        housing for members of the Coast Guard.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 10, UNITED STATES CODE

           *       *       *       *       *       *       *


Subtitle A--General Military Law

           *       *       *       *       *       *       *


PART I--ORGANIZATION AND GENERAL MILITARY POWERS

           *       *       *       *       *       *       *


CHAPTER 1--DEFINITIONS

           *       *       *       *       *       *       *


Sec. 101. Definitions

  (a) In General.--The following definitions apply in this 
title:
          (1) * * *

           *       *       *       *       *       *       *

          (9) The term ``Secretary concerned'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) the Secretary [of Transportation] of 
                Homeland Security, with respect to matters 
                concerning the Coast Guard when it is not 
                operating as a service in the Department of the 
                Navy.

           *       *       *       *       *       *       *


CHAPTER 3--GENERAL POWERS AND FUNCTIONS

           *       *       *       *       *       *       *


Sec. 130b. Personnel in overseas, sensitive, or routinely deployable 
                    units: nondisclosure of personally identifying 
                    information

  (a) Exemption From Disclosure.--The Secretary of Defense and, 
with respect to the Coast Guard when it is not operating as a 
service in the Navy, the Secretary [of Transportation] of 
Homeland Security may, notwithstanding section 552 of title 5, 
authorize to be withheld from disclosure to the public 
personally identifying information regarding--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Definitions.--In this section:
          (1) * * *

           *       *       *       *       *       *       *

          (4) The term ``sensitive unit'' means a unit that is 
        primarily involved in training for the conduct of, or 
        conducting, special activities or classified missions, 
        including--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) any other unit that is designated as a 
                sensitive unit by the Secretary of Defense or, 
                in the case of the Coast Guard when it is not 
                operating as a service in the Navy, by the 
                Secretary [of Transportation] of Homeland 
                Security.

           *       *       *       *       *       *       *


Sec. 130c. Nondisclosure of information: certain sensitive information 
                    of foreign governments and international 
                    organizations

  (a) * * *

           *       *       *       *       *       *       *

  (h) Definitions.--In this section:
          (1) The term ``national security official concerned'' 
        means the following:
                  (A) * * *
                  (B) The Secretary [of Transportation] of 
                Homeland Security, with respect to information 
                of concern to the Coast Guard, as determined by 
                the Secretary, but only while the Coast Guard 
                is not operating as a service in the Navy.

           *       *       *       *       *       *       *


CHAPTER 18--MILITARY SUPPORT FOR CIVILIAN LAW ENFORCEMENT AGENCIES

           *       *       *       *       *       *       *


Sec. 379. Assignment of Coast Guard personnel to naval vessels for law 
                    enforcement purposes

  (a) The Secretary of Defense and the Secretary [of 
Transportation] of Homeland Security shall provide that there 
be assigned on board every appropriate surface naval vessel at 
sea in a drug-interdiction area members of the Coast Guard who 
are trained in law enforcement and have powers of the Coast 
Guard under title 14, including the power to make arrests and 
to carry out searches and seizures.
  (b) Members of the Coast Guard assigned to duty on board 
naval vessels under this section shall perform such law 
enforcement functions (including drug-interdiction functions)--
          (1) as may be agreed upon by the Secretary of Defense 
        and the Secretary [of Transportation] of Homeland 
        Security; and
          (2) as are otherwise within the jurisdiction of the 
        Coast Guard.
  (c) No fewer than 500 active duty personnel of the Coast 
Guard shall be assigned each fiscal year to duty under this 
section. However, if at any time the Secretary [of 
Transportation] of Homeland Security, after consultation with 
the Secretary of Defense, determines that there are 
insufficient naval vessels available for purposes of this 
section, such personnel may be assigned other duty involving 
enforcement of laws listed in section 374(b)(4)(A) of this 
title.

           *       *       *       *       *       *       *


PART II--PERSONNEL

           *       *       *       *       *       *       *


CHAPTER 31--ENLISTMENTS

           *       *       *       *       *       *       *


Sec. 513. Enlistments: Delayed Entry Program

  (a) * * *

           *       *       *       *       *       *       *

  (d) This section shall be carried out under regulations to be 
prescribed by the Secretary of Defense or the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy.

           *       *       *       *       *       *       *


  CHAPTER 33A--APPOINTMENT, PROMOTION, AND INVOLUNTARY SEPARATION AND 
RETIREMENT FOR MEMBERS ON THE WARRANT OFFICER ACTIVE-DUTY LIST

           *       *       *       *       *       *       *


Sec. 575. Recommendations for promotion by selection boards

  (a) * * *
  (b)(1) * * *
  (2) The number of officers recommended for promotion from 
below the promotion zone may not exceed 10 percent of the total 
number recommended, except that the Secretary of Defense and 
the Secretary [of Transportation] of Homeland Security, when 
the Coast Guard is not operating as a service in the Navy, may 
authorize such percentage to be increased to not more than 15 
percent. If the number determined under this subsection with 
respect to a promotion zone within a grade (or grade and 
competitive category) is less than one, the board may recommend 
one such officer for promotion from below the zone within that 
grade (or grade and competitive category).

           *       *       *       *       *       *       *


Sec. 580. Regular warrant officers twice failing of selection for 
                    promotion: involuntary retirement or separation

  (a) * * *

           *       *       *       *       *       *       *

  (e)(1) * * *

           *       *       *       *       *       *       *

  (6) The Secretary of Defense and the Secretary [of 
Transportation] of Homeland Security, when the Coast Guard is 
not operating as a service in the Navy, shall prescribe 
regulations for the administration of this subsection.

Sec. 580a. Enhanced authority for selective early discharges

  (a) * * *

           *       *       *       *       *       *       *

  (e) This section applies to the Secretary [of Transportation] 
of Homeland Security in the same manner and to the same extent 
as it applies to the Secretary of Defense. The Commandant of 
the Coast Guard shall take the action set forth in subsection 
(b) with respect to regular warrant officers of the Coast 
Guard.

           *       *       *       *       *       *       *


CHAPTER 37--GENERAL SERVICE REQUIREMENTS

           *       *       *       *       *       *       *


Sec. 651. Members: required service

  (a) Each person who becomes a member of an armed force, other 
than a person deferred under the next to the last sentence of 
section 6(d)(1) of the Military Selective Service Act (50 
U.S.C. App. 456(d)(1)) shall serve in the armed forces for a 
total initial period of not less than six years nor more than 
eight years, as provided in regulations prescribed by the 
Secretary of Defense for the armed forces under his 
jurisdiction and by the Secretary [of Transportation] of 
Homeland Security for the Coast Guard when it is not operating 
as a service in the Navy, unless such person is sooner 
discharged under such regulations because of personal hardship. 
Any part of such service that is not active duty or that is 
active duty for training shall be performed in a reserve 
component.

           *       *       *       *       *       *       *


CHAPTER 39--ACTIVE DUTY

           *       *       *       *       *       *       *


Sec. 671. Members not to be assigned outside United States before 
                    completing training

  (a) * * *

           *       *       *       *       *       *       *

  (c)(1) * * *
  (2) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, shall 
prescribe regulations for the purposes of paragraph (1). The 
regulations prescribed by the Secretary of Defense shall apply 
uniformly to the military departments.

           *       *       *       *       *       *       *


CHAPTER 40--LEAVE

           *       *       *       *       *       *       *


Sec. 708. Educational leave of absence

  (a) Under such regulations as the Secretary of Defense may 
prescribe after consultation with the Secretary [of 
Transportation] of Homeland Security and subject to subsection 
(b), the Secretary concerned may grant to any eligible member 
(as defined in subsection (e)) a leave of absence for a period 
of not to exceed two years for the purposes of permitting the 
member to pursue a program of education.

           *       *       *       *       *       *       *


CHAPTER 41--SPECIAL APPOINTMENTS, ASSIGNMENTS, DETAILS, AND DUTIES

           *       *       *       *       *       *       *


Sec. 716. Commissioned officers: transfers among the armed forces, the 
                    National Oceanic and Atmospheric Administration, 
                    and the Public Health Service

  (a) Notwithstanding any other provision of law, the 
President, within authorized strengths and with the consent of 
the officer involved, may transfer any commissioned officer of 
a uniformed service from his uniformed service to, and appoint 
him in, another uniformed service. The Secretary of Defense, 
the Secretary [of Transportation] of Homeland Security, the 
Secretary of Commerce, and the Secretary of Health and Human 
Services shall jointly establish, by regulations approved by 
the President, policies and procedures for such transfers and 
appointments.

           *       *       *       *       *       *       *


Sec. 717. Members of the armed forces: participation in international 
                    sports

  (a) The Secretary of Defense, or the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, may 
permit members of the armed forces under his jurisdiction to 
train for, attend, and participate in--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Subject to subsections (c) and (d), the Secretary of 
Defense or the Secretary [of Transportation] of Homeland 
Security, as the case may be, may spend such funds, and acquire 
and use such supplies, as he determines to be necessary to 
provide for--
          (1) * * *

           *       *       *       *       *       *       *

  (d) Appropriations available to the Department of Defense or 
to the Department [of Transportation] of Homeland Security, as 
the case may be, may be used to carry out this section.

           *       *       *       *       *       *       *


CHAPTER 47--UNIFORM CODE OF MILITARY JUSTICE

           *       *       *       *       *       *       *


SUBCHAPTER I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


Sec. 801. Article 1. Definitions

  In this chapter:
          (1) The term ``Judge Advocate General'' means, 
        severally, the Judge Advocates General of the Army, 
        Navy, and Air Force and, except when the Coast Guard is 
        operating as a service in the Navy, [the General 
        Counsel of the Department of Transportation] an 
        official designated to serve as Judge Advocate General 
        of the Coast Guard by the Secretary of Homeland 
        Security.

           *       *       *       *       *       *       *


Sec. 806. Art. 6. Judge advocates and legal officers

  (a) * * *

           *       *       *       *       *       *       *

  (d)(1) * * *
  (2) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, shall 
prescribe regulations providing that reimbursement may be a 
condition of assistance by judge advocates assigned or detailed 
under section 973(b)(2)(B) of this title.

           *       *       *       *       *       *       *


SUBCHAPTER III--NON-JUDICIAL PUNISHMENT

           *       *       *       *       *       *       *


Sec. 815. Art. 15. Commanding officer's non-judicial punishment

  (a) * * *

           *       *       *       *       *       *       *

  (e) A person punished under this article who considers his 
punishment unjust or disproportionate to the offense may, 
through the proper channel, appeal to the next superior 
authority. The appeal shall be promptly forwarded and decided, 
but the person punished may in the meantime be required to 
undergo the punishment adjudged. The superior authority may 
exercise the same powers with respect to the punishment imposed 
as may be exercised under subsection (d) by the officer who 
imposed the punishment. Before acting on an appeal from a 
punishment of--
          (1) * * *

           *       *       *       *       *       *       *

the authority who is to act on the appeal shall refer the case 
to a judge advocate or a lawyer of the Department [of 
Transportation] of Homeland Security for consideration and 
advice, and may so refer the case upon appeal from any 
punishment imposed under subsection (b).

           *       *       *       *       *       *       *


SUBCHAPTER X--PUNITIVE ARTICLES

           *       *       *       *       *       *       *


Sec. 888. Art. 88. Contempt toward officials

  Any commissioned officer who uses contemptuous words against 
the President, the Vice President, Congress, the Secretary of 
Defense, the Secretary of a military department, the Secretary 
[of Transportation] of Homeland Security, or the Governor or 
legislature of any State, Territory, Commonwealth, or 
possession in which he is on duty or present shall be punished 
as a court-martial may direct.

           *       *       *       *       *       *       *


SUBCHAPTER XII--UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

           *       *       *       *       *       *       *


Sec. 946. Art. 146. Code committee

  (a) * * *

           *       *       *       *       *       *       *

  (c) Reports.--(1) After each such survey, the committee shall 
submit a report--
          (A) * * *
          (B) to the Secretary of Defense, the Secretaries of 
        the military departments, and the Secretary [of 
        Transportation] of Homeland Security.

           *       *       *       *       *       *       *


CHAPTER 49--MISCELLANEOUS PROHIBITIONS AND PENALTIES

           *       *       *       *       *       *       *


Sec. 973. Duties: officers on active duty; performance of civil 
                    functions restricted

  (a) * * *

           *       *       *       *       *       *       *

  (d) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating in the Navy, shall prescribe 
regulations to implement this section.

           *       *       *       *       *       *       *


Sec. 978. Drug and alcohol abuse and dependency: testing of new 
                    entrants

  (a) * * *

           *       *       *       *       *       *       *

  (d) The testing and evaluation required by subsection (a) 
shall be carried out under regulations prescribed by the 
Secretary of Defense in consultation with the Secretary [of 
Transportation] of Homeland Security. Those regulations shall 
apply uniformly throughout the armed forces.

           *       *       *       *       *       *       *


Sec. 983. Institutions of higher education that prevent ROTC access or 
                    military recruiting on campus: denial of grants and 
                    contracts from Department of Defense, Department of 
                    Education, and certain other departments and 
                    agencies

  (a) * * *
  (b) Denial of Funds for Preventing Military Recruiting on 
Campus.--No funds described in subsection (d)(2) may be 
provided by contract or by grant (including a grant of funds to 
be available for student aid) to an institution of higher 
education (including any subelement of such institution) if the 
Secretary of Defense determines that that institution (or any 
subelement of that institution) has a policy or practice 
(regardless of when implemented) that either prohibits, or in 
effect prevents--
          (1) the Secretary of a military department or 
        Secretary [of Transportation] of Homeland Security from 
        gaining entry to campuses, or access to students (who 
        are 17 years of age or older) on campuses, for purposes 
        of military recruiting; or

           *       *       *       *       *       *       *

  (d) Covered Funds.--(1) * * *
  (2) The limitation established in subsection (b) applies to 
the following:
          (A) Funds described in paragraph (1).
          (B) Any funds made available for the Department [of 
        Transportation] of Homeland Security.

           *       *       *       *       *       *       *


Sec. 985. Persons convicted of capital crimes: denial of certain 
                    burial-related benefits

  (a) Prohibition of Performance of Military Honors.--The 
Secretary of a military department and the Secretary [of 
Transportation] of Homeland Security, with respect to the Coast 
Guard when it is not operating as a service in the Navy, may 
not provide military honors at the funeral or burial of a 
person who has been convicted of a capital offense under 
Federal or State law for which the person was sentenced to 
death or life imprisonment without parole.

           *       *       *       *       *       *       *


CHAPTER 53--MISCELLANEOUS RIGHTS AND BENEFITS

           *       *       *       *       *       *       *


Sec. 1033. Participation in management of specified non-Federal 
                    entities: authorized activities

  (a) * * *
  (b) Designated Entities.--(1) The Secretary of Defense, and 
the Secretary [of Transportation] of Homeland Security in the 
case of the Coast Guard when it is not operating as a service 
in the Navy, shall designate those entities for which 
authorization under subsection (a) may be provided. The list of 
entities so designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall 
designate each military welfare society and may designate any 
other entity described in paragraph (3). No other entities may 
be designated.

           *       *       *       *       *       *       *

  (d) Regulations.--The Secretary of Defense, and the Secretary 
[of Transportation] of Homeland Security in the case of the 
Coast Guard when it is not operating as a service in the Navy, 
shall prescribe regulations to carry out this section.

Sec. 1034. Protected communications; prohibition of retaliatory 
                    personnel actions

  (a) * * *

           *       *       *       *       *       *       *

  (c) Inspector General Investigation of Allegations of 
Prohibited Personnel Actions.--(1) * * *

           *       *       *       *       *       *       *

  (5) The Inspector General of the Department of Defense, or 
the Inspector General of the Department [of Transportation] of 
Homeland Security (in the case of a member of the Coast Guard 
when the Coast Guard is not operating as a service in the 
Navy), shall ensure that the Inspector General conducting the 
investigation of an allegation under this subsection is outside 
the immediate chain of command of both the member submitting 
the allegation and the individual or individuals alleged to 
have taken the retaliatory action.

           *       *       *       *       *       *       *

  (e) Reports on Investigations.--(1) After completion of an 
investigation under subsection (c) or (d) or, in the case of an 
investigation under subsection (c) by an Inspector General 
within a military department, after approval of the report of 
that investigation under subsection (c)(3)(E), the Inspector 
General conducting the investigation shall submit a report on 
the results of the investigation to the Secretary of Defense 
(or to the Secretary [of Transportation] of Homeland Security 
in the case of a member of the Coast Guard when the Coast Guard 
is not operating as a service in the Navy) and shall transmit a 
copy of the report on the results of the investigation to the 
member of the armed forces who made the allegation 
investigated. The report shall be transmitted to the Secretary, 
and the copy of the report shall be transmitted to the member, 
not later than 30 days after the completion of the 
investigation or, in the case of an investigation under 
subsection (c) by an Inspector General within a military 
department, after approval of the report of that investigation 
under subsection (c)(3)(E).

           *       *       *       *       *       *       *

  (3) If, in the course of an investigation of an allegation 
under this section, the Inspector General determines that it is 
not possible to submit the report required by paragraph (1) 
within 180 days after the date of receipt of the allegation 
being investigated, the Inspector General shall provide to the 
Secretary of Defense (or to the Secretary [of Transportation] 
of Homeland Security in the case of a member of the Coast Guard 
when the Coast Guard is not operating as a service in the Navy) 
and to the member making the allegation a notice--
          (A) * * *

           *       *       *       *       *       *       *

  (h) Regulations.--The Secretary of Defense, and the Secretary 
[of Transportation] of Homeland Security with respect to the 
Coast Guard when it is not operating as a service in the Navy, 
shall prescribe regulations to carry out this section.
  (i) Definitions.--In this section:
          (1) * * *
          (2) The term ``Inspector General'' means any of the 
        following:
                  (A) The Inspector General of the Department 
                of Defense.
                  (B) The Inspector General of the Department 
                [of Transportation] of Homeland Security, in 
                the case of a member of the Coast Guard when 
                the Coast Guard is not operating as a service 
                in the Navy.

           *       *       *       *       *       *       *


Sec. 1037. Counsel before foreign judicial tribunals and administrative 
                    agencies; court costs and bail

  (a) * * *

           *       *       *       *       *       *       *

  (c) Appropriations available to the military department 
concerned or the Department [of Transportation] of Homeland 
Security, as the case may be, for the pay of persons under its 
jurisdiction may be used to carry out this section.

           *       *       *       *       *       *       *


Sec. 1044d. Military testamentary instruments: requirement for 
                    recognition by States

  (a) * * *

           *       *       *       *       *       *       *

  (f ) Regulations.--Regulations for the purposes of this 
section shall be prescribed jointly by the Secretary of Defense 
and by the Secretary [of Transportation] of Homeland Security 
with respect to the Coast Guard when it is not operating as a 
service in the Department of the Navy.

           *       *       *       *       *       *       *


Sec. 1058. Responsibilities of military law enforcement officials at 
                    scenes of domestic violence

  (a) * * *

           *       *       *       *       *       *       *

  (c) Regulations.--The Secretary of Defense, and the Secretary 
[of Transportation] of Homeland Security with respect to the 
Coast Guard when it is not operating as a service in the Navy, 
shall prescribe by regulation the definition of ``domestic 
violence'' for purposes of this section and such other 
regulations as may be necessary for purposes of this section.

           *       *       *       *       *       *       *


Sec. 1059. Dependents of members separated for dependent abuse: 
                    transitional compensation; commissary and exchange 
                    benefits

  (a) Authority To Pay Compensation.--The Secretary of Defense, 
with respect to the armed forces (other than the Coast Guard 
when it is not operating as a service in the Navy), and the 
Secretary [of Transportation] of Homeland Security, with 
respect to the Coast Guard when it is not operating as a 
service in the Navy, may each establish a program to pay 
monthly transitional compensation in accordance with this 
section to dependents or former dependents of a member of the 
armed forces described in subsection (b). Upon establishment of 
such a program, the program shall apply in the case of each 
such member described in subsection (b) who is under the 
jurisdiction of the Secretary establishing the program.

           *       *       *       *       *       *       *

  (k) Regulations.--(1) The Secretary of Defense shall 
prescribe regulations to carry out this section with respect to 
the armed forces (other than the Coast Guard when it is not 
operating as a service in the Navy). The Secretary [of 
Transportation] of Homeland Security shall prescribe 
regulations to carry out this section with respect to the Coast 
Guard when it is not operating as a service in the Navy.

           *       *       *       *       *       *       *


CHAPTER 55--MEDICAL AND DENTAL CARE

           *       *       *       *       *       *       *


Sec. 1073. Administration of this chapter

  (a) Responsible Officials.--Except as otherwise provided in 
this chapter, the Secretary of Defense shall administer this 
chapter for the armed forces under his jurisdiction, the 
Secretary [of Transportation] of Homeland Security shall 
administer this chapter for the Coast Guard when the Coast 
Guard is not operating as a service in the Navy, and the 
Secretary of Health and Human Services shall administer this 
chapter for the National Oceanic and Atmospheric Administration 
and the Public Health Service. This chapter shall be 
administered consistent with the Assisted Suicide Funding 
Restriction Act of 1997 (42 U.S.C. 14401 et seq.).

           *       *       *       *       *       *       *


Sec. 1074. Medical and dental care for members and certain former 
                    members

  (a) * * *

           *       *       *       *       *       *       *

  (c)(1) Funds appropriated to a military department, the 
Department [of Transportation] of Homeland Security (with 
respect to the Coast Guard when it is not operating as a 
service in the Navy), or the Department of Health and Human 
Services (with respect to the National Oceanic and Atmospheric 
Administration and the Public Health Service) may be used to 
provide medical and dental care to persons entitled to such 
care by law or regulations, including the provision of such 
care (other than elective private treatment) in private 
facilities for members of the armed forces. If a private 
facility or health care provider providing care under this 
subsection is a health care provider under the Civilian Health 
and Medical Program of the Uniformed Services, the Secretary of 
Defense, after consultation with the other administering 
Secretaries, may by regulation require the private facility or 
health care provider to provide such care in accordance with 
the same payment rules (subject to any modifications considered 
appropriate by the Secretary) as apply under that program.

           *       *       *       *       *       *       *


Sec. 1089. Defense of certain suits arising out of medical malpractice

  (a) * * *

           *       *       *       *       *       *       *

  (g) In this section, the term ``head of the agency 
concerned'' means--
          (1) the Director of Central Intelligence, in the case 
        of an employee of the Central Intelligence Agency;
          (2) the Secretary [of Transportation] of Homeland 
        Security, in the case of a member or employee of the 
        Coast Guard when it is not operating as a service in 
        the Navy;

           *       *       *       *       *       *       *


Sec. 1090. Identifying and treating drug and alcohol dependence

  The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, shall 
prescribe regulations, implement procedures using each 
practical and available method, and provide necessary 
facilities to identify, treat, and rehabilitate members of the 
armed forces who are dependent on drugs or alcohol.

Sec. 1091. Personal services contracts

  (a) Authority.--(1) The Secretary of Defense, with respect to 
medical treatment facilities of the Department of Defense, and 
the Secretary [of Transportation] of Homeland Security, with 
respect to medical treatment facilities of the Coast Guard when 
the Coast Guard is not operating as a service in the Navy, may 
enter into personal services contracts to carry out health care 
responsibilities in such facilities, as determined to be 
necessary by the Secretary. The authority provided in this 
subsection is in addition to any other contract authorities of 
the Secretary, including authorities relating to the management 
of such facilities and the administration of this chapter.
  (2) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, may 
also enter into personal services contracts to carry out other 
health care responsibilities of the Secretary (such as the 
provision of medical screening examinations at Military 
Entrance Processing Stations) at locations outside medical 
treatment facilities, as determined necessary pursuant to 
regulations prescribed by the Secretary. The Secretary may not 
enter into a contract under this paragraph after December 31, 
2002.

           *       *       *       *       *       *       *


CHAPTER 57--DECORATIONS AND AWARDS

           *       *       *       *       *       *       *


Sec. 1124. Cash awards for disclosures, suggestions, inventions, and 
                    scientific achievements

  (a) The Secretary of Defense, or the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, may 
authorize the payment of a cash award to, and incur necessary 
expense for the honorary recognition of, a member of the armed 
forces under his jurisdiction who by his disclosure, 
suggestion, invention, or scientific achievement contributes to 
the efficiency, economy, or other improvement of operations or 
programs relating to the armed forces.
  (b) Whenever the President considers it desirable, the 
Secretary of Defense, and the Secretary [of Transportation] of 
Homeland Security with respect to the Coast Guard when it is 
not operating as a service in the Navy, are authorized to pay a 
cash award to, and incur necessary expense for the honorary 
recognition of, a member of the armed forces who by his 
disclosure, suggestion, invention, or scientific achievement 
contributes to the efficiency, economy, or other improvement of 
operations of the Government of the United States. Such award 
is in addition to any other award made to that member under 
subsection (a).

           *       *       *       *       *       *       *

  (g) Awards under this section shall be made under regulations 
to be prescribed by the Secretary of Defense, or by the 
Secretary [of Transportation] of Homeland Security with respect 
to the Coast Guard when it is not operating as a service in the 
Navy.

           *       *       *       *       *       *       *


   CHAPTER 58--BENEFITS AND SERVICES FOR MEMBERS BEING SEPARATED OR 
RECENTLY SEPARATED

           *       *       *       *       *       *       *


Sec. 1143. Employment assistance

  (a) Employment Skills Verification.--The Secretary of Defense 
and the Secretary [of Transportation] of Homeland Security with 
respect to the Coast Guard shall provide to members of the 
armed forces who are discharged or released from active duty a 
certification or verification of any job skills and experience 
acquired while on active duty that may have application to 
employment in the civilian sector. The preceding sentence shall 
be carried out in conjunction with the Secretary of Labor.
  (b) Employment Assistance Centers.--The Secretary of Defense 
shall establish permanent employment assistance centers at 
appropriate military installations. The Secretary [of 
Transportation] of Homeland Security shall establish permanent 
employment assistance centers at appropriate Coast Guard 
installations.
  (c) Information to Civilian Entities.--For the purpose of 
assisting members covered by subsection (a) and their spouses 
in locating civilian employment and training opportunities, the 
Secretary of Defense and the Secretary [of Transportation] of 
Homeland Security shall establish and implement procedures to 
release to civilian employers, organizations, State employment 
agencies, and other appropriate entities the names (and other 
pertinent information) of such members and their spouses. Such 
names may be released for such purpose only with the consent of 
such members and spouses.
  (d) Employment Preference by Nonappropriated Fund 
Instrumentalities.--The Secretary of Defense shall take such 
steps as necessary to provide that members of Army, Navy, Air 
Force, or Marine Corps who are involuntarily separated, and the 
dependents of such members, shall be provided a preference in 
hiring by nonappropriated fund instrumentalities of the 
Department. Such preference shall be administered in the same 
manner as the preference for military spouses provided under 
section 1784(a)(2) of this title, except that a preference 
under that section shall have priority over a preference under 
this subsection. A person may receive a preference in hiring 
under this subsection only once. The Secretary [of 
Transportation] of Homeland Security shall provide the same 
preference in hiring to involuntarily separated members of the 
Coast Guard, and the dependents of such members, in Coast Guard 
nonappropriated fund instrumentalities.

Sec. 1143a. Encouragement of postseparation public and community 
                    service

  (a) * * *

           *       *       *       *       *       *       *

  (h) Coast Guard.--This section shall apply to the Coast Guard 
in the same manner and to the same extent as it applies to the 
Department of Defense. The Secretary [of Transportation] of 
Homeland Security shall implement the requirements of this 
section for the Coast Guard.

           *       *       *       *       *       *       *


Sec. 1144. Employment assistance, job training assistance, and other 
                    transitional services: Department of Labor

  (a) In General.--(1) The Secretary of Labor, in conjunction 
with the Secretary of Defense, the Secretary [of 
Transportation] of Homeland Security, and the Secretary of 
Veterans Affairs, shall establish and maintain a program to 
furnish counseling, assistance in identifying employment and 
training opportunities, help in obtaining such employment and 
training, and other related information and services to members 
of the armed forces under the jurisdiction of the Secretary 
concerned who are being separated from active duty and the 
spouses of such members. Such services shall be provided to a 
member within the time periods provided under paragraph (3) of 
section 1142(a) of this title, except that the Secretary 
concerned shall not provide preseparation counseling to a 
member described in paragraph (4)(A) of such section.
  (2) The Secretary of Defense, the Secretary [of 
Transportation] of Homeland Security, and the Secretary of 
Veterans Affairs shall cooperate with the Secretary of Labor in 
establishing and maintaining the program under this section.
  (3) The Secretaries referred to in paragraph (1) shall enter 
into a detailed agreement to carry out this section.
  (b) Elements of Program.--In establishing and carrying out a 
program under this section, the Secretary of Labor shall do the 
following:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Inform such members that the Department of 
        Defense and the Department [of Transportation] of 
        Homeland Security are required under section 1143(a) of 
        this title to provide proper certification or 
        verification of job skills and experience acquired 
        while on active duty that may have application to 
        employment in the civilian sector for use in seeking 
        civilian employment and in obtaining job search skills.

           *       *       *       *       *       *       *

  (c) Participation.--The Secretary of Defense and the 
Secretary [of Transportation] of Homeland Security shall 
encourage and otherwise promote maximum participation by 
members of the armed forces eligible for assistance under the 
program carried out under this section.
  (d) Use of Personnel and Organizations.--In carrying out the 
program established under this section, the Secretaries may--
          (1) * * *
          (2) use military and civilian personnel of the 
        Department of Defense and the Department [of 
        Transportation] of Homeland Security;

           *       *       *       *       *       *       *


Sec. 1145. Health benefits

  (a) * * *

           *       *       *       *       *       *       *

  (e) Coast Guard.--The Secretary [of Transportation] of 
Homeland Security shall implement this section for the Coast 
Guard.

           *       *       *       *       *       *       *


Sec. 1148. Relocation assistance for personnel overseas

  The Secretary of Defense and the Secretary [of 
Transportation] of Homeland Security shall develop a program 
specifically to assist members of the armed forces stationed 
overseas who are preparing for discharge or release from active 
duty, and the dependents of such members, in readjusting to 
civilian life. The program shall focus on the special needs and 
requirements of such members and dependents due to their 
overseas locations and shall include, to the maximum extent 
possible, computerized job relocation assistance and job search 
information.

Sec. 1149. Excess leave and permissive temporary duty

  Under regulations prescribed by the Secretary of Defense or 
the Secretary [of Transportation] of Homeland Security with 
respect to the Coast Guard, the Secretary concerned shall grant 
a member of the armed forces who is to be involuntarily 
separated such excess leave (for a period not in excess of 30 
days), or such permissive temporary duty (for a period not in 
excess of 10 days), as the member requires in order to 
facilitate the member's carrying out necessary relocation 
activities (such as job search and residence search 
activities), unless to do so would interfere with military 
missions.

Sec. 1150. Affiliation with Guard and Reserve units: waiver of certain 
                    limitations

  (a) * * *

           *       *       *       *       *       *       *

  (c) Coast Guard.--This section shall apply to the Coast Guard 
in the same manner and to the same extent as it applies to the 
Department of Defense. The Secretary [of Transportation] of 
Homeland Security shall prescribe regulations to implement this 
section for the Coast Guard.

           *       *       *       *       *       *       *


Sec. 1152. Assistance to eligible members and former members to obtain 
                    employment with law enforcement agencies

  (a) Placement Program.--The Secretary of Defense, and the 
Secretary [of Transportation] of Homeland Security with respect 
to the Coast Guard, may enter into an agreement with the 
Attorney General to establish or participate in a program to 
assist eligible members and former members of the armed forces 
to obtain employment as law enforcement officers with eligible 
law enforcement agencies following the discharge or release of 
such members or former members from active duty. Eligible law 
enforcement agencies shall consist of State law enforcement 
agencies, local law enforcement agencies, and Indian tribes 
that perform law enforcement functions (as determined by the 
Secretary of the Interior).

           *       *       *       *       *       *       *

  (d) Grants To Facilitate Employment.--(1) The Secretary of 
Defense, and the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard, may provide funds to 
the Attorney General for grants under this section to reimburse 
participating eligible law enforcement agencies for costs, 
including salary and fringe benefits, of employing members or 
former members pursuant to a program referred to in subsection 
(a).

           *       *       *       *       *       *       *


Sec. 1153. Assistance to separated members to obtain employment with 
                    health care providers

  (a) Placement Program.--The Secretary of Defense, and the 
Secretary [of Transportation] of Homeland Security with respect 
to the Coast Guard, may establish a program to assist eligible 
members of the armed forces to obtain employment with health 
care providers upon their discharge or release from active 
duty.

           *       *       *       *       *       *       *

  (c) Selection of Participants.--(1) The Secretary of Defense, 
and the Secretary [of Transportation] of Homeland Security with 
respect to the Coast Guard, shall select members to participate 
in the program established under subsection (a) on the basis of 
applications submitted to the Secretary concerned not later 
than one year after the date of the discharge or release of the 
members from active duty or, in the case of an applicant 
becoming educationally qualified for teacher placement 
assistance in accordance with subsection (b)(2), not later than 
one year after the date on which the applicant becomes 
educationally qualified. An application shall be in such form 
and contain such information as the Secretaries may require.
  (2) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard, may not select a member to participate in the program 
unless the Secretary concerned has sufficient appropriations 
for the placement program available at the time of the 
selection to satisfy the obligations to be incurred by the 
United States under subsection (d) with respect to that member.

           *       *       *       *       *       *       *

  (d) Grants to Facilitate Employment.--(1) The Secretary of 
Defense and the Secretary [of Transportation] of Homeland 
Security may enter into an agreement with a health care 
provider to assist eligible members selected under subsection 
(c) to obtain suitable employment with the health care 
provider. Under such an agreement, a health care provider shall 
agree to employ a participant in the program on a full-time 
basis for at least five years.

           *       *       *       *       *       *       *

  (e) Agreements With States.--(1) In addition to the 
agreements referred to in subsection (d)(1), the Secretary of 
Defense, and the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard, may enter into an 
agreement directly with a State to allow the State to arrange 
the placement of participants in the program with health care 
providers. Paragraphs (2) through (5) of subsection (d) shall 
apply with respect to any placement made through such an 
agreement.

           *       *       *       *       *       *       *


CHAPTER 59--SEPARATION

           *       *       *       *       *       *       *


Sec. 1175. Voluntary separation incentive

  (a)(1) Consistent with this section and the availability of 
appropriations for this purpose, the Secretary of Defense and 
the Secretary [of Transportation] of Homeland Security may 
provide a financial incentive to members of the armed forces 
described in subsection (b) for voluntary appointment, 
enlistment, or transfer to a reserve component, requested and 
approved under subsection (c).
  (2)(A) * * *
  (B) If, before the expiration of the period otherwise 
applicable under subparagraph (A) to a member receiving a 
financial incentive under this section, the member is separated 
from a reserve component or is transferred to the Retired 
Reserve, the period for payment of a financial incentive to the 
member under this section shall terminate on the date of the 
separation or transfer unless--
          (i) * * *
          (ii) the separation or transfer is required by reason 
        of the failure of selection for promotion or the 
        medical disqualification of the member, except in a 
        case in which the Secretary of Defense or the Secretary 
        [of Transportation] of Homeland Security determines 
        that the basis for the separation or transfer is a 
        result of a deliberate action taken by the member with 
        the intent to avoid retention in the Ready Reserve or 
        Standby Reserve; or

           *       *       *       *       *       *       *

  (b) The Secretary of Defense and the Secretary [of 
Transportation] of Homeland Security may provide the incentive 
to a member of the armed forces if the member--
          (1) * * *

           *       *       *       *       *       *       *

  (g) Subject to subsection (h), payments under this provision 
shall be paid from appropriations available to the Department 
of Defense and the Department [of Transportation] of Homeland 
Security for the Coast Guard.

           *       *       *       *       *       *       *

  (i) The Secretary of Defense and the Secretary [of 
Transportation] of Homeland Security may issue such regulations 
as may be necessary to carry out this section.

           *       *       *       *       *       *       *


CHAPTER 61--RETIREMENT OR SEPARATION FOR PHYSICAL DISABILITY

           *       *       *       *       *       *       *


Sec. 1212. Disability severance pay

  (a) Upon separation from his armed force under section 1203 
or 1206 of this title, a member is entitled to disability 
severance pay computed by multiplying (1) his years of service, 
but not more than 12, computed under section 1208 of this 
title, by (2) the highest of the following amounts:
          (A) * * *
          (B) Twice the amount of monthly basic pay to which he 
        would be entitled if serving (i) on active duty on the 
        date when his name was placed on the temporary 
        disability retired list or, if his name was not carried 
        on that list, on the date when he is separated, and 
        (ii) in any temporary grade or rank higher than that 
        described in clause (A), in which he served 
        satisfactorily as determined by the Secretary of the 
        military department or the Secretary [of 
        Transportation] of Homeland Security, as the case may 
        be, having jurisdiction over the armed force from which 
        he is separated.

           *       *       *       *       *       *       *


CHAPTER 71--COMPUTATION OF RETIRED PAY

           *       *       *       *       *       *       *


Sec. 1408. Payment of retired or retainer pay in compliance with court 
                    orders

  (a) * * *

           *       *       *       *       *       *       *

  (h) Benefits for Dependents Who Are Victims of Abuse by 
Members Losing Right to Retired Pay.--(1) * * *
  (2) A spouse or former spouse of a member or former member of 
the armed forces is eligible to receive payment under this 
subsection if--
          (A) the member or former member, while a member of 
        the armed forces and after becoming eligible to be 
        retired from the armed forces on the basis of years of 
        service, has eligibility to receive retired pay 
        terminated as a result of misconduct while a member 
        involving abuse of a spouse or dependent child (as 
        defined in regulations prescribed by the Secretary of 
        Defense or, for the Coast Guard when it is not 
        operating as a service in the Navy, by the Secretary 
        [of Transportation] of Homeland Security); and

           *       *       *       *       *       *       *

  (8) Payments in accordance with this subsection shall be made 
out of funds in the Department of Defense Military Retirement 
Fund established by section 1461 of this title or, in the case 
of the Coast Guard, out of funds appropriated to the Department 
[of Transportation] of Homeland Security for payment of retired 
pay for the Coast Guard.

           *       *       *       *       *       *       *


CHAPTER 74--DEPARTMENT OF DEFENSE MILITARY RETIREMENT FUND

           *       *       *       *       *       *       *


Sec. 1463. Payments from the Fund

  (a) There shall be paid from the Fund--
          (1) * * *
          (2) retired pay payable under chapter 1223 of this 
        title to former members of the armed forces (other than 
        retired pay payable by the Secretary [of 
        Transportation] of Homeland Security);

           *       *       *       *       *       *       *


CHAPTER 75--DECEASED PERSONNEL

           *       *       *       *       *       *       *


SUBCHAPTER II--DEATH BENEFITS

           *       *       *       *       *       *       *


Sec. 1482a. Expenses incident to death: civilian employees serving with 
                    an armed force

  (a) * * *
  (b) Regulations.--The Secretary of Defense shall prescribe 
regulations to implement this section. The Secretary [of 
Transportation] of Homeland Security shall prescribe 
regulations to implement this section with regard to civilian 
employees of the Department [of Transportation] of Homeland 
Security. Regulations under this subsection shall be uniform to 
the extent possible and shall provide for the Secretary's 
consideration of the conditions and circumstances surrounding 
the death of an employee and the nature of the employee's 
service with the armed force.

           *       *       *       *       *       *       *


CHAPTER 76--MISSING PERSONS

           *       *       *       *       *       *       *


Sec. 1510. Applicability to Coast Guard

  (a) Designated Officer To Have Responsibility.--The 
Secretary [of Transportation] of Homeland Security shall 
designate an officer of the Department [of Transportation] of 
Homeland Security to have responsibility within the Department 
[of Transportation] of Homeland Security for matters relating 
to missing persons who are members of the Coast Guard.
  (b) Procedures.--The Secretary [of Transportation] of 
Homeland Security shall prescribe procedures for the 
determination of the status of persons described in section 
1501(c) of this title who are members of the Coast Guard and 
for the collection, analysis, review, and update of information 
on such persons. To the maximum extent practicable, the 
procedures prescribed under this section shall be similar to 
the procedures prescribed by the Secretary of Defense under 
section 1501(b) of this title.

           *       *       *       *       *       *       *


CHAPTER 79--CORRECTION OF MILITARY RECORDS

           *       *       *       *       *       *       *


Sec. 1552. Correction of military records: claims incident thereto

  (a)(1) The Secretary of a military department may correct any 
military record of the Secretary's department when the 
Secretary considers it necessary to correct an error or remove 
an injustice. Except as provided in paragraph (2), such 
corrections shall be made by the Secretary acting through 
boards of civilians of the executive part of that military 
department. The Secretary [of Transportation] of Homeland 
Security may in the same manner correct any military record of 
the Coast Guard.

           *       *       *       *       *       *       *


CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

           *       *       *       *       *       *       *


Sec. 1565. DNA identification information: collection from certain 
                    offenders; use

  (a) * * *

           *       *       *       *       *       *       *

  (f ) Regulations.--This section shall be carried out under 
regulations prescribed by the Secretary of Defense, in 
consultation with the Secretary [of Transportation] of Homeland 
Security and the Attorney General. Those regulations shall 
apply, to the extent practicable, uniformly throughout the 
armed forces.

           *       *       *       *       *       *       *


CHAPTER 81--CIVILIAN EMPLOYEES

           *       *       *       *       *       *       *


Sec. 1588. Authority to accept certain voluntary services

  (a) * * *

           *       *       *       *       *       *       *

  (f) Authority To Install Equipment.--(1) * * *

           *       *       *       *       *       *       *

  (4) The Secretary of Defense and, with respect to the Coast 
Guard when it is not operating as a service in the Navy, the 
Secretary [of Transportation] of Homeland Security shall 
prescribe regulations to carry out this subsection.

           *       *       *       *       *       *       *


Sec. 1589. Participation in management of specified non-Federal 
                    entities: authorized activities

  (a) Authorization.--(1) * * *
  (2) Paragraph (1) applies to any employee of the Department 
of Defense or, in the case of the Coast Guard when not 
operating as a service in the Navy, of the Department [of 
Transportation] of Homeland Security. For purposes of this 
section, the term ``employee'' includes a civilian officer.
  (b) Designated Entities.--The Secretary of Defense, and the 
Secretary [of Transportation] of Homeland Security in the case 
of the Coast Guard when it is not operating as a service in the 
Navy, shall designate those entities for which authorization 
under subsection (a) may be provided. The list of entities so 
designated may not be revised more frequently than 
semiannually. In making such designations, the Secretary shall 
designate each military welfare society named in paragraph (2) 
of section 1033(b) of this title and may designate any other 
entity described in paragraph (3) of such section. No other 
entities may be designated.

           *       *       *       *       *       *       *

  (e) Regulations.--The Secretary of Defense, and the Secretary 
[of Transportation] of Homeland Security in the case of the 
Coast Guard when it is not operating as a service in the Navy, 
shall prescribe regulations to carry out this section.

           *       *       *       *       *       *       *


PART III--TRAINING AND EDUCATION

           *       *       *       *       *       *       *


CHAPTER 101--TRAINING GENERALLY

           *       *       *       *       *       *       *


Sec. 2002. Dependents of members of armed forces: language training

  (a) Notwithstanding section 701(b) of the Foreign Service Act 
of 1980 (22 U.S.C. 4021(b)) or any other provision of law, and 
under regulations to be prescribed by the Secretary of Defense 
or, with respect to the Coast Guard when it is not operating as 
a service in the Navy, the Secretary [of Transportation] of 
Homeland Security, language training may be provided in--
          (1) * * *

           *       *       *       *       *       *       *


PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *


CHAPTER 137--PROCUREMENT GENERALLY

           *       *       *       *       *       *       *


Sec. 2302. Definitions

  In this chapter:
          (1) The term ``head of an agency'' means the 
        Secretary of Defense, the Secretary of the Army, the 
        Secretary of the Navy, the Secretary of the Air Force, 
        the Secretary [of Transportation] of Homeland Security, 
        and the Administrator of the National Aeronautics and 
        Space Administration.

           *       *       *       *       *       *       *


Sec. 2306b. Multiyear contracts: acquisition of property

  (a) * * *
  (b) Regulations.--(1) * * *
  (2)(A) * * *
  (B) The Secretary [of Transportation] of Homeland Security 
shall prescribe the regulations applicable to the Coast Guard, 
except that the regulations prescribed by the Secretary of 
Defense shall apply to the Coast Guard when it is operating as 
a service in the Navy.

           *       *       *       *       *       *       *


Sec. 2323. Contract goal for small disadvantaged businesses and certain 
                    institutions of higher education

  (a) * * *

           *       *       *       *       *       *       *

  (j) Definitions.--In this section:
          (1) * * *
          (2) The term ``head of an agency'' means the 
        Secretary of Defense, the Secretary [of Transportation] 
        of Homeland Security, and the Administrator of the 
        National Aeronautics and Space Administration.

           *       *       *       *       *       *       *


CHAPTER 140--PROCUREMENT OF COMMERCIAL ITEMS

           *       *       *       *       *       *       *


Sec. 2376. Definitions

  In this chapter:
          (1) * * *
          (2) The term ``head of an agency'' means the 
        Secretary of Defense, the Secretary [of Transportation] 
        of Homeland Security, and the Administrator of the 
        National Aeronautics and Space Administration.

           *       *       *       *       *       *       *


CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS

           *       *       *       *       *       *       *


Sec. 2396. Advances for payments for compliance with foreign laws, rent 
                    in foreign countries, tuition, public utility 
                    services, and pay and supplies of armed forces of 
                    friendly foreign countries

  (a) * * *
  (b)(1) Under regulations prescribed by the Secretary of 
Defense, or by the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service of the Navy, an officer of an armed 
force of the United States accountable for public money may 
advance amounts to a disbursing official of a friendly foreign 
country or members of an armed force of a friendly foreign 
country for--
          (A) * * *

           *       *       *       *       *       *       *


Sec. 2410a. Severable service contracts for periods crossing fiscal 
                    years

  (a) Authority.--The Secretary of Defense, the Secretary of a 
military department, or the Secretary [of Transportation] of 
Homeland Security with respect to the Coast Guard when it is 
not operating as a service in the Navy, may enter into a 
contract for procurement of severable services for a period 
that begins in one fiscal year and ends in the next fiscal year 
if (without regard to any option to extend the period of the 
contract) the contract period does not exceed one year.

           *       *       *       *       *       *       *


CHAPTER 153--EXCHANGE OF MATERIAL AND DISPOSAL OF OBSOLETE, SURPLUS, OR 
UNCLAIMED PROPERTY

           *       *       *       *       *       *       *


Sec. 2572. Documents, historical artifacts, and condemned or obsolete 
                    combat materiel: loan, gift, or exchange

  (a) The Secretary concerned may lend or give items described 
in subsection (c) that are not needed by the military 
department concerned (or by the Coast Guard, in the case of the 
Secretary [of Transportation] of Homeland Security), to any of 
the following:
          (1) * * *

           *       *       *       *       *       *       *


Sec. 2575. Disposition of unclaimed property

  (a) The Secretary of any military department, and the 
Secretary [of Transportation] of Homeland Security, under such 
regulations as they may respectively prescribe, may each by 
public or private sale or otherwise, dispose of all lost, 
abandoned, or unclaimed personal property that comes into the 
custody or control of the Secretary's department, other than 
property subject to section 4712, 6522, or 9712 of this title 
or subject to subsection (c). However, property may not be 
disposed of until diligent effort has been made to find the 
owner (or the heirs, next of kin, or legal representative of 
the owner. The diligent effort to find the owner (or the heirs, 
next of kin, or legal representative of the owner) shall begin, 
to the maximum extent practicable, not later than seven days 
after the date on which the property comes into the custody or 
control of the Secretary. The period for which that effort is 
continued may not exceed 45 days. If the owner (or the heirs, 
next of kin, or legal representative of the owner is determined 
but not found, the property may not be disposed of until the 
expiration of 45 days after the date when notice, giving the 
time and place of the intended sale or other disposition, has 
been sent by certified or registered mail to that person at his 
last known address. When diligent effort to determine the owner 
(or the heirs, next of kin, or legal representative of the 
owner is unsuccessful, the property may be disposed of without 
delay, except that if it has a fair market value of more than 
$300, the Secretary may not dispose of the property until 45 
days after the date it is received at a storage point 
designated by the Secretary.

           *       *       *       *       *       *       *


Sec. 2578. Vessels: transfer between departments

  A vessel under the jurisdiction of a military department may 
be transferred or otherwise made available without 
reimbursement to another military department or to the 
Department [of Transportation] of Homeland Security, and a 
vessel under the jurisdiction of the Department [of 
Transportation] of Homeland Security may be transferred or 
otherwise made available without reimbursement to a militry 
department. Any such transfer may be made only upon the request 
of the Secretary of the military department concerned or the 
Secretry [of Transportation] of Homeland Security, as the case 
may be, and with the approval of the Secretary of the 
department having jurisdiction of the vessel.

           *       *       *       *       *       *       *


CHAPTER 155--ACCEPTANCE OF GIFTS AND SERVICES

           *       *       *       *       *       *       *


Sec. 2601. General gift funds

  (a) * * *
  (b) Gifts and bequests of money, and the proceeds of the sale 
of property, received under subsection (a) shall be deposited 
in the Treasury in the fund called--
          (1) * * *

           *       *       *       *       *       *       *

          (4) ``Coast Guard General Gift Fund'', in the case of 
        deposits of the Secretary [of Transportation] of 
        Homeland Security.

           *       *       *       *       *       *       *


CHAPTER 157--TRANSPORTATION

           *       *       *       *       *       *       *


Sec. 2634. Motor vehicles: transportation or storage for members on 
                    change of permanent station or extended deployment

  (a) * * *

           *       *       *       *       *       *       *

  (e) The Secretary of Defense (and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy) may 
prescribe regulations limiting those leased motor vehicles that 
may be transported pursuant to this section based upon the 
length of the lease and other terms and conditions of the lease 
that the Secretary considers appropriate.

           *       *       *       *       *       *       *


Sec. 2635. Medical emergency helicopter transportation assistance and 
                    limitation of individual liability

  (a) The Secretary of Defense is authorized to assist the 
Department of Health and Human Services and the Department [of 
Transportation] of Homeland Security in providing medical 
emergency helicopter transportation services to civilians. Any 
resources provided under this section shall be under such terms 
and conditions, including reimbursement, as the Secretary of 
Defense deems appropriate and shall be subject to the following 
specific limitations:
          (1) * * *

           *       *       *       *       *       *       *


  CHAPTER 159--REAL PROPERTY; RELATED PERSONAL PROPERTY; AND LEASE OF 
NONEXCESS PROPERTY

           *       *       *       *       *       *       *


Sec. 2665. Sale of certain interests in land; logs

  (a) * * *
  (b) The President, through an executive department, may sell 
to any person or foreign government any forest products 
produced on land owned or leased by a military department or 
the Department [of Transportation] in which the Coast Guard is 
operating.

           *       *       *       *       *       *       *


CHAPTER 163--MILITARY CLAIMS

           *       *       *       *       *       *       *


Sec. 2734. Property loss; personal injury or death: incident to 
                    noncombat activities of the armed forces; foreign 
                    countries

  (a) * * *

           *       *       *       *       *       *       *

  (g) Payment of claims against the Coast Guard arising while 
it is operating as a service in the Department [of 
Transportation] of Homeland Security shall be made out of the 
appropriation for the operating expenses of the Coast Guard.

           *       *       *       *       *       *       *


Sec. 2734a. Property loss; personal injury or death: incident to 
                    noncombat activities of armed forces in foreign 
                    countries; international agreements

  (a) When the United States is a party to an international 
agreement which provides for the settlement or adjudication and 
cost sharing of claims against the United States arising out of 
the acts or omissions of a member or civilian employee of an 
armed force of the United States done in the performance of 
official duty, or arising out of any other act, omission, or 
occurrence for which an armed force of the United States is 
legally responsible under the law of another party to the 
international agreement, and causing damage in the territory of 
such party, the Secretary of Defense or the Secretary [of 
Transportation] of Homeland Security or their designees may--
          (1) * * *

           *       *       *       *       *       *       *

  (c) A reimbursement or payment under this section shall be 
made by the Secretary of Defense out of appropriations as 
provided in section 2732 of this title except that payment of 
claims against the Coast Guard arising while it is operating as 
a service of the Department [of Transportation] of Homeland 
Security shall be made out of the appropriations for the 
operating expenses of the Coast Guard. The appropriations 
referred to in this subsection may be used to buy foreign 
currencies required for the reimbursement or payment.
  (d) Upon the request of the Secretary [of Transportation] of 
Homeland Security or his designee, any payments made relating 
to claims arising from the activities of the Coast Guard and 
covered by subsection (a) may be reimbursed or paid to the 
foreign country concerned by the authorized representative of 
the Department of Defense out of appropriations as provided in 
section 2732 of this title, subject to reimbursement from the 
Department [of Transportation] of Homeland Security.

           *       *       *       *       *       *       *


CHAPTER 165--ACCOUNTABILITY AND RESPONSIBILITY

           *       *       *       *       *       *       *


Sec. 2775. Liability of members assigned to military housing

  (a)(1) A member of the armed forces shall be liable to the 
United States for damage to any family housing unit or 
unaccompanied personal housing unit, or damage to or loss of 
any equipment or furnishings of any family housing unit or 
unaccompanied personnel housing unit, assigned to or provided 
such member if (as determined under regulations prescribed by 
the Secretary of Defense or the Secretary [of Transportation] 
of Homeland Security with respect to the Coast Guard when it is 
not operating as a service in the Navy) the damage or loss was 
caused by the abuse or negligence of the member (or a dependent 
of the member) or of a guest of the member (or a dependent of 
the member).
  (2) A member of the armed forces--
          (A) * * *
          (B) who fails to clean satisfactorily that housing 
        unit (as determined under regulations prescribed by the 
        Secretary of Defense or the Secretary [of 
        Transportation] of Homeland Security with respect to 
        the Coast Guard when it is not operating as a service 
        in the Navy) upon termination of the assignment or 
        provision of that housing unit.
shall be liable to the United States for the cost of cleaning 
made necessary as a result of that failure.
  (b) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, may 
establish limitations on liability under this section, 
including (in the case of liability under subsection (a)(1)) 
different limitations based upon the degree of abuse or 
negligence involved, and may compromise or waive a claim of the 
United States under this section.

           *       *       *       *       *       *       *

  (e) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, shall 
prescribe regulations to carry out this section. Such 
regulations shall include--
          (1) * * *

           *       *       *       *       *       *       *


CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *


SUBCHAPTER II--MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *


Sec. 2830. Occupancy of substandard family housing units

  (a) * * *
  (b)(1) * * *
  (2) The authority to enter into leases under paragraph (1) 
shall be exercised--
          (A) * * *
          (B) in the case of a lease by the Secretary [of 
        Transportation] of Homeland Security with respect to 
        the Coast Guard when it is not operating as a service 
        in the Navy, subject to regulations prescribed by that 
        Secretary.

           *       *       *       *       *       *       *


Sec. 2835. Long-term leasing of military family housing to be 
                    constructed

  (a) Build and Lease Authorized.--Subject to subsection (b), 
the Secretary of a military department, or the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard, may enter into a contract for the lease of family 
housing units to be constructed or rehabilitated to residential 
use near a military installation within the United States under 
the Secretary's jurisdiction at which there is a shortage of 
family housing. Housing units leased under this section shall 
be assigned, without rental charge, as family housing to 
members of the armed forces who are eligible for assignment to 
military family housing.
  (b) Submission and Authorization of Proposed Lease 
Contracts.--(1) The Secretary of a military department, or the 
Secretary [of Transportation] of Homeland Security with respect 
to the Coast Guard, may enter into a lease contract under 
subsection (a) for such military housing as is authorized by 
law for the purposes of this section.
  (2) The budget material submitted to Congress by the 
Secretary of Defense, and the Secretary [of Transportation] of 
Homeland Security with respect to the Coast Guard, in 
connection with the budget submitted pursuant to section 1105 
of title 31 for each fiscal year shall include materials that 
identify the military housing projects for which lease 
contracts are proposed to be entered into under subsection (a) 
in such fiscal year.
  (c) Competitive Process.--Each contract under subsection (a) 
shall be awarded through the use of publicly advertised, 
competitively bid, or competitively negotiated, contracting 
procedures as provided in chapter 137 of this title. In 
accordance with such procedures, the Secretary of a military 
department, or the Secretary [of Transportation] of Homeland 
Security, as the case may be, shall solicit bids or proposals 
for a contract for the lease of military housing authorized in 
accordance with subsection (b)(1). Such a contract may provide 
for the contractor of the housing facilities to operate and 
maintain such housing facilities during the term of the lease.
  (d) Conditions on Obligation of Funds.--A lease contract 
entered into for a military housing project under subsection 
(a) shall include the following provisions:
          (1) * * *

           *       *       *       *       *       *       *

          (4) A requirement that housing units constructed 
        pursuant to the contract shall be constructed--
                  (A) * * *
                  (B) to Department [of Transportation] of 
                Homeland Security specifications, in the case 
                of a contract for the Coast Guard.

           *       *       *       *       *       *       *

  (g) Notice and Wait Requirements.--A contract may not be 
entered into for the lease of housing facilities under this 
section until--
          (1) the Secretary of Defense, or the Secretary [of 
        Transportation] of Homeland Security with respect to 
        the Coast Guard, submits to the appropriate committees 
        of Congress, in writing, an economic analysis (based 
        upon accepted life cycle costing procedures) which 
        demonstrates that the proposed contract is cost-
        effective when compared with alternative means of 
        furnishing the same housing facilities; and

           *       *       *       *       *       *       *


Sec. 2836. Military housing rental guarantee program

  (a) Authority.--Subject to subsection (b), the Secretary of a 
military department, or the Secretary [of Transportation] of 
Homeland Security with respect to the Coast Guard, may enter 
into an agreement to assure the occupancy of rental housing to 
be constructed or rehabilitated to residential use by a private 
developer or by a State or local housing authority on private 
land, on land owned by a State or local government, or on land 
owned by the United States, if the housing is to be located on 
or near a new military installation or an existing military 
installation that has a shortage of housing to meet the 
requirements of eligible members of the armed forces (with or 
without accompanying dependents). The authority provided under 
this subsection shall be exercised under uniform regulations 
prescribed by the Secretary of Defense.
  (b) Submission and Authorization of Proposed Agreements.--(1) 
The Secretary of a military department, or the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard, may enter into agreements pursuant to subsection (a) for 
such military housing rental guaranty projects as are 
authorized by law.
  (2) The budget material submitted to Congress by the 
Secretary of Defense, and the Secretary [of Transportation] of 
Homeland Security with respect to the Coast Guard, in 
connection with the budget submitted pursuant to section 1105 
of title 31 for each fiscal year shall include materials that 
identify the military housing rental guaranty projects for 
which agreements are proposed to be entered into under 
subsection (a) in that fiscal year.
  (c) Content of Agreement.--An agreement under subsection 
(a)--
          (1) * * *

           *       *       *       *       *       *       *

          (4) shall require that the housing units be 
        constructed--
                  (A) * * *
                  (B) in the case of an agreement for the Coast 
                Guard, to Department [of Transportation] of 
                Homeland Security specifications;

           *       *       *       *       *       *       *

          (11) shall include a provision authorizing the 
        Secretary of the military department concerned, or the 
        Secretary [of Transportation] of Homeland Security with 
        respect to the Coast Guard, to take such action as the 
        Secretary considers appropriate to protect the 
        interests of the United States, including rendering the 
        agreement null and void if, in the opinion of the 
        Secretary, the owner of the housing fails to maintain a 
        satisfactory level of operation and maintenance;

           *       *       *       *       *       *       *

  (e) Competitive Process.--An agreement under subsection (a) 
shall be made through the use of publicly advertised, 
competitively bid, or competitively negotiated, contracting 
procedures as provided in chapter 137 of this title. In 
accordance with such procedures, the Secretary of a military 
department, or the Secretary [of Transportation] of Homeland 
Security, as the case may be, shall solicit bids or proposals 
for a guaranty agreement for each military housing rental 
guaranty project authorized in accordance with subsection (b).
  (f) Notice and Wait Requirements.--An agreement may not be 
entered into under subsection (a) until--
          (1) the Secretary of Defense, or the Secretary [of 
        Transportation] of Homeland Security with respect to 
        the Coast Guard, submits to the appropriate committees 
        of Congress, in writing, an economic analysis (based 
        upon accepted life cycle costing procedures) which 
        demonstrates that the proposed agreement is cost 
        effective when compared with alternative means of 
        furnishing the same housing facilities; and

           *       *       *       *       *       *       *


Subtitle B--Army

           *       *       *       *       *       *       *


PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *


CHAPTER 447--TRANSPORTATION

           *       *       *       *       *       *       *


Sec. 4745. Civilian passengers and commercial cargoes: transports in 
                    trans-Atlantic service

  (a) Whenever space is unavailable on commercial lines and is 
available (1) on vessels operated by Army transport agencies, 
or (2) within bulk space allocations made to the Department of 
the Army on vessels operated by any transport agency of the 
Department of Defense, civilian passengers and commercial cargo 
may, in the discretion of the Secretary of the Army and the 
Secretary [of Transportation] of Homeland Security, be 
transported on those vessels. Rates for transportation under 
this section may not be less than those charged by commercial 
lines for the same kinds of service.

           *       *       *       *       *       *       *


Subtitle C--Navy and Marine Corps

           *       *       *       *       *       *       *


PART I--ORGANIZATION

           *       *       *       *       *       *       *


CHAPTER 503--DEPARTMENT OF THE NAVY

           *       *       *       *       *       *       *


Sec. 5013a. Secretary of the Navy: powers with respect to Coast Guard

  (a) Whenever the Coast Guard operates as a service in the 
Navy under section 3 of title 14, the Secretary of the Navy has 
the same powers and duties with respect to the Coast Guard as 
the Secretary [of Transportation] of Homeland Security has when 
the Coast Guard is not so operating.

           *       *       *       *       *       *       *


PART III--EDUCATION AND TRAINING

           *       *       *       *       *       *       *


CHAPTER 605--UNITED STATES NAVAL POSTGRADUATE SCHOOL

           *       *       *       *       *       *       *


Sec. 7045. Officers of the other armed forces; enlisted members: 
                    admission

  (a)(1) The Secretary of the Navy may permit officers of the 
Army, Air Force, and Coast Guard to receive instruction at the 
Naval Postgraduate School. The numbers and grades of such 
officers shall be as agreed upon by the Secretary of the Navy 
with the [Secretaries of the Army, Air Force, and 
Transportation] Secretary of the Army, the Secretary of the Air 
Force, and the Secretary of Homeland Security, respectively.

           *       *       *       *       *       *       *

  (b) The Department of the Army, the Department of the Air 
Force, and the Department [of Transportation] of Homeland 
Security shall bear the cost of the instruction received by 
officers detailed for that instruction by the [Secretaries of 
the Army, Air Force, and Transportation] Secretary of the Army, 
the Secretary of the Air Force, and the Secretary of Homeland 
Security, respectively. In the case of an enlisted member 
permitted to receive instruction at the Postgraduate School, 
the Secretary of the Navy shall charge that member only for 
such costs and fees as the Secretary considers appropriate 
(taking into consideration the admission of enlisted members on 
a space-available basis).

           *       *       *       *       *       *       *


PART IV--GENERAL ADMINISTRATION

           *       *       *       *       *       *       *


CHAPTER 637--SALVAGE FACILITIES

           *       *       *       *       *       *       *


Sec. 7361. Authority to provide for necessary salvage facilities

  (a) * * *
  (b) Coordination With Secretary of [Transportation] Homeland 
Security.--The Secretary shall submit to the Secretary [of 
Transportation] of Homeland Security for comment each proposed 
contract for salvage facilities that affects the interests of 
the Department of Transportation.

           *       *       *       *       *       *       *


CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

           *       *       *       *       *       *       *


Sec. 7902. National Ocean Research Leadership Council

  (a) * * *
  (b) Membership.--The Council is composed of the following 
members:
          (1) * * *

           *       *       *       *       *       *       *

          (13) The Under Secretary for Science and Technology 
        of the Department of Homeland Security.
          (14) Other Federal officials the Council considers 
        appropriate.

           *       *       *       *       *       *       *


Subtitle E--Reserve Components

           *       *       *       *       *       *       *


PART I--ORGANIZATION AND ADMINISTRATION

           *       *       *       *       *       *       *


CHAPTER 1005--ELEMENTS OF RESERVE COMPONENTS

           *       *       *       *       *       *       *


Sec. 10143. Ready Reserve: Selected Reserve

  (a) * * *
  (b) The organization and unit structure of the Selected 
Reserve shall be approved--
          (1) * * *
          (2) in the case of the Coast Guard Reserve, by the 
        Secretary [of Transportation] of Homeland Security upon 
        the recommendation of the Commandant of the Coast 
        Guard.

           *       *       *       *       *       *       *


Sec. 10146. Ready Reserve: transfer from

  (a) Subject to subsection (c) and under regulations 
prescribed by the Secretary of Defense, or by the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, a 
member in the Ready Reserve may be transferred to the Standby 
Reserve.

           *       *       *       *       *       *       *


Sec. 10147. Ready Reserve: training requirements

  (a) Except as specifically provided in regulations to be 
prescribed by the Secretary of Defense, or by the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, each 
person who is enlisted, inducted, or appointed in an armed 
force, and who becomes a member of the Ready Reserve under any 
provision of law except section 513 or 10145(b) of this title, 
shall be required, while in the Ready Reserve, to--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 10149. Ready Reserve: continuous screening

  (a) * * *
  (b) Under regulations to be prescribed by the Secretary of 
Defense, and by the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy, a member of the Ready 
Reserve who is designated as a member not to be retained in the 
Ready Reserve as a result of screening under subsection (a) 
shall, as appropriate, be--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 10150. Ready Reserve: transfer back from Standby Reserve

  Under regulations to be prescribed by the Secretary of 
Defense, and by the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy, a member of the Standby 
Reserve who has not completed his required period of service in 
the Ready Reserve may be transferred to the Ready Reserve when 
the reason for his transfer to the Standby Reserve no longer 
exists.

           *       *       *       *       *       *       *


CHAPTER 1007--ADMINISTRATION OF RESERVE COMPONENTS

           *       *       *       *       *       *       *


Sec. 10202. Regulations

  (a) * * *
  (b) The Secretary [of Transportation] of Homeland Security, 
with the concurrence of the Secretary of the Navy, shall 
prescribe such regulations as the Secretary considers necessary 
to carry out all provisions of law relating to the reserve 
components insofar as they relate to the Coast Guard, except 
when the Coast Guard is operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 10203. Reserve affairs: designation of general or flag officer of 
                    each armed force

  (a) * * *

           *       *       *       *       *       *       *

  (d) The Secretary [of Transportation] of Homeland Security 
may designate a flag officer of the Coast Guard to be directly 
responsible for reserve affairs to the Commandant of the Coast 
Guard.

           *       *       *       *       *       *       *


Sec. 10205. Members of Ready Reserve: requirement of notification of 
                    change of status

  (a) * * *
  (b) This section shall be administered under regulations 
prescribed by the Secretary of Defense and by the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy.

           *       *       *       *       *       *       *


CHAPTER 1009--RESERVE FORCES POLICY BOARDS AND COMMITTEES

           *       *       *       *       *       *       *


Sec. 10301. Reserve Forces Policy Board

  (a) * * *
  (b) Whenever the Coast Guard is not operating as a service in 
the Navy, the Secretary [of Transportation] of Homeland 
Security may designate two officers of the Coast Guard, Regular 
or Reserve, to serve as voting members of the Board.

           *       *       *       *       *       *       *


PART II--PERSONNEL GENERALLY

           *       *       *       *       *       *       *


CHAPTER 1203--ENLISTED MEMBERS

           *       *       *       *       *       *       *


Sec. 12103. Reserve components: terms

  (a) * * *
  (b) Under regulations to be prescribed by the Secretary of 
Defense, and by the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy, a person who is qualified 
for enlistment for active duty in an armed force, and who is 
not under orders to report for induction into an armed force 
under the Military Selective Service Act (50 U.S.C. App. 451 et 
seq.), may be enlisted as a Reserve for service in the Army 
Reserve, Naval Reserve, Air Force Reserve, Marine Corps 
Reserve, or Coast Guard Reserve, for a term of not less than 
six years nor more than eight years. Each person enlisted under 
this subsection shall serve--
          (1) * * *

           *       *       *       *       *       *       *

  (d) Under regulations to be prescribed by the Secretary of 
Defense, or the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy, a non-prior-service person 
who is qualified for induction for active duty in an armed 
force and who is not under orders to report for induction into 
an armed force under the Military Selective Service Act (50 
U.S.C. App. 451 et seq.), except as provided in section 
6(c)(2)(A)(ii) and (iii) of such Act, may be enlisted in the 
Army National Guard or the Air National Guard, or as a Reserve 
for service in the Army Reserve, Naval Reserve, Air Force 
Reserve, Marine Corps Reserve, or Coast Guard Reserve, for a 
term of not less than six years nor more than eight years. Each 
person enlisted under this subsection shall perform an initial 
period of active duty for training of not less than twelve 
weeks to commence insofar as practicable within 270 days after 
the date of that enlistment.

           *       *       *       *       *       *       *


CHAPTER 1209--ACTIVE DUTY

           *       *       *       *       *       *       *


Sec. 12304. Selected Reserve and certain Individual Ready Reserve 
                    members; order to active duty other than during war 
                    or national emergency

  (a) Authority.--Notwithstanding the provisions of section 
12302(a) or any other provision of law, when the President 
determines that it is necessary to augment the active forces 
for any operational mission or that it is necessary to provide 
assistance referred to in subsection (b), he may authorize the 
Secretary of Defense and the Secretary [of Transportation] of 
Homeland Security with respect to the Coast Guard when it is 
not operating as a service in the Navy, without the consent of 
the members concerned, to order any unit, and any member not 
assigned to a unit organized to serve as a unit of the Selected 
Reserve (as defined in section 10143(a) of this title), or any 
member in the Individual Ready Reserve mobilization category 
and designated as essential under regulations prescribed by the 
Secretary concerned, under their respective jurisdictions, to 
active duty (other than for training) for not more than 270 
days.

           *       *       *       *       *       *       *

  (e) Policies and Procedures.--The Secretary of Defense and 
the Secretary [of Transportation] of Homeland Security shall 
prescribe such policies and procedures for the armed forces 
under their respective jurisdictions as they consider necessary 
to carry out this section.
  (f) Notification of Congress.--Whenever the President 
authorizes the Secretary of Defense or the Secretary [of 
Transportation] of Homeland Security to order any unit or 
member of the Selected Reserve or Individual Ready Reserve to 
active duty, under the authority of subsection (a), he shall, 
within 24 hours after exercising such authority, submit to 
Congress a report, in writing, setting forth the circumstances 
necessitating the action taken under this section and 
describing the anticipated use of these units or members.

           *       *       *       *       *       *       *


Sec. 12311. Active duty agreements

  (a) * * *

           *       *       *       *       *       *       *

  (c) Agreements made under subsection (a) shall be uniform so 
far as practicable, and are subject to such standards and 
policies as may be prescribed by the Secretary of Defense for 
the armed forces under his jurisdiction or by the Secretary [of 
Transportation] of Homeland Security for the Coast Guard when 
the Coast Guard is not operating as a service in the Navy.

           *       *       *       *       *       *       *


CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

           *       *       *       *       *       *       *


Sec. 12522. Establishment of insurance program

  (a) * * *

           *       *       *       *       *       *       *

  (c) Agreement With Secretary of [Transportation] Homeland 
Security.--The Secretary and the Secretary [of Transportation] 
of Homeland Security shall enter into an agreement with respect 
to the administration of the insurance program for the Coast 
Guard Reserve.

           *       *       *       *       *       *       *


CHAPTER 1214--READY RESERVE MOBILIZATION INCOME INSURANCE

           *       *       *       *       *       *       *


Sec. 12527. Payment of premiums

  (a) Methods of Payment.--(1) * * *
  (2) The Secretary of Defense, in consultation with the 
Secretary [of Transportation] of Homeland Security, shall 
prescribe regulations which specify the procedures for payment 
of premiums by members of the Individual Ready Reserve and 
other members who do not receive pay on a monthly basis.

           *       *       *       *       *       *       *


CHAPTER 1223--RETIRED PAY FOR NON-REGULAR SERVICE

           *       *       *       *       *       *       *


Sec. 12731. Age and service requirements

  (a) * * *
  (b) Application for retired pay under this section must be 
made to the Secretary of the military department, or the 
Secretary [of Transportation] of Homeland Security, as the case 
may be, having jurisdiction at the time of application over the 
armed force in which the applicant is serving or last served.

           *       *       *       *       *       *       *


Sec. 12731a. Temporary special retirement qualification authority

  (a) * * *

           *       *       *       *       *       *       *

  (e) Regulations.--The authority provided in this section 
shall be subject to regulations prescribed by the Secretary of 
Defense and by the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard.

           *       *       *       *       *       *       *


  PART IV--TRAINING FOR RESERVE COMPONENTS AND EDUCATIONAL ASSISTANCE 
PROGRAMS

           *       *       *       *       *       *       *


   CHAPTER 1606--EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE SELECTED 
RESERVE

           *       *       *       *       *       *       *


Sec. 16131. Educational assistance program: establishment; amount

  (a) To encourage membership in units of the Selected Reserve 
of the Ready Reserve, the Secretary of each military 
department, under regulations prescribed by the Secretary of 
Defense, and the Secretary [of Transportation] of Homeland 
Security, under regulations prescribed by the Secretary with 
respect to the Coast Guard when it is not operating as a 
service in the Navy, shall establish and maintain a program to 
provide educational assistance to members of the Selected 
Reserve of the Ready Reserve of the armed forces under the 
jurisdiction of the Secretary concerned who agree to remain 
members of the Selected Reserve for a period of not less than 
six years.

           *       *       *       *       *       *       *


Sec. 16136. Administration of program

  (a) Educational assistance under this chapter shall be 
provided through the Department of Veterans Affairs, under 
agreements to be entered into by the Secretary of Defense, and 
by the Secretary [of Transportation] of Homeland Security, with 
the Secretary of Veterans Affairs. Such agreements shall 
include administrative procedures to ensure the prompt and 
timely transfer of funds from the Secretary concerned to the 
Department of Veterans Affairs for the making of payments under 
this chapter.

           *       *       *       *       *       *       *


CHAPTER 1609--EDUCATION LOAN REPAYMENT PROGRAMS

           *       *       *       *       *       *       *


Sec. 16301. Education loan repayment program: enlisted members of 
                    Selected Reserve with critical specialties

  (a) * * *

           *       *       *       *       *       *       *

  (g) The Secretary [of Transportation] of Homeland Security 
may repay loans described in subsection (a)(1) and otherwise 
administer this section in the case of members of the Selected 
Reserve of the Coast Guard Reserve when the Coast Guard is not 
operating as a service in the Navy.

           *       *       *       *       *       *       *


PART V--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *


CHAPTER 1805--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


Sec. 18501. Reserve components: personnel and logistic support by 
                    military departments

  The Secretary concerned is responsible for providing the 
personnel, equipment, facilities, and other general logistic 
support necessary to enable units and Reserves in the Ready 
Reserve of the reserve components under his jurisdiction to 
satisfy the training requirements and mobilization readiness 
requirements for those units and Reserves as recommended by the 
Secretary concerned and by the Chairman of the Joint Chiefs of 
Staff and approved by the Secretary of Defense, and as 
recommended by the Commandant of the Coast Guard and approved 
by the Secretary [of Transportation] of Homeland Security when 
the Coast Guard is not operated as a service of the Navy.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 37, UNITED STATES CODE

           *       *       *       *       *       *       *


CHAPTER 1--DEFINITIONS

           *       *       *       *       *       *       *


Sec. 101. Definitions

  In addition to the definitions in sections 1-5 of title 1, 
the following definitions apply in this title:
          (1)  * * *

           *       *       *       *       *       *       *

          (5) The term ``Secretary concerned'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (D) the Secretary [of Transportation] of 
                Homeland Security, with respect to matters 
                concerning the Coast Guard when it is not 
                operating as a service in the Navy;

           *       *       *       *       *       *       *


CHAPTER 3--BASIC PAY

           *       *       *       *       *       *       *


Sec. 204. Entitlement

  (a)  * * *

           *       *       *       *       *       *       *

  (i)(1)  * * *

           *       *       *       *       *       *       *

  (4) Regulations with respect to procedures for paying pay and 
allowances under subsections (g) and (h) shall be prescribed--
          (A)  * * *
          (B) by the Secretary [of Transportation] of Homeland 
        Security for the Coast Guard when the Coast Guard is 
        not operating as a service in the Navy.

           *       *       *       *       *       *       *


CHAPTER 5--SPECIAL AND INCENTIVE PAYS

           *       *       *       *       *       *       *


Sec. 301a. Incentive pay: aviation career

    (a)(1)  * * *

           *       *       *       *       *       *       *

  (3) Under regulations prescribed by the Secretary of Defense, 
the Secretary [of Transportation] of Homeland Security with 
respect to the Coast Guard when it is not operating as a 
service in the Navy, or the Secretary of Commerce and the 
Secretary of Health and Human Services with respect to members 
under their respective jurisdiction, an officer (except a 
flight surgeon or other medical officer) who is entitled to 
basic pay, holds an aeronautical rating or designation, and is 
qualified for aviation service under regulations prescribed by 
the Secretary concerned, is entitled to continuous monthly 
incentive pay in the amount set forth in subsection (b) that is 
applicable to him. A flight surgeon or other medical officer 
who is entitled to basic pay, holds an aeronautical rating or 
designation, and is qualified for aviation service under 
regulations prescribed by the Secretary concerned, is not 
entitled to continuous monthly incentive pay but is entitled to 
monthly incentive pay in the amounts set forth in subsection 
(b) for the frequent and regular performance of operational 
flying duty.

           *       *       *       *       *       *       *


Sec. 306. Special pay: officers holding positions of unusual 
                    responsibility and of critical nature

  (a)  * * *

           *       *       *       *       *       *       *

  (d) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under his jurisdiction, and by the Secretary [of 
Transportation] of Homeland Security for the Coast Guard when 
the Coast Guard is not operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 307. Special pay: special duty assignment pay for enlisted members

  (a)  * * *

           *       *       *       *       *       *       *

  (c) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under his jurisdiction and by the Secretary [of Transportation] 
of Homeland Security for the Coast Guard when the Coast Guard 
is not operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 308. Special pay: reenlistment bonus

  (a)(1) A member of a uniformed service who--
          (A)  * * *
          (B) is qualified in a military skill designated as 
        critical by the Secretary of Defense, or by the 
        Secretary [of Transportation] of Homeland Security with 
        respect to the Coast Guard when it is not operating as 
        a service in the Navy;

           *       *       *       *       *       *       *

  (d)(1)  * * *
    (2) If a refund is not required under paragraph (1) in the 
case of a member who fails to complete a term of enlistment, 
the Secretary of Defense with respect to the armed forces under 
the Secretary's jurisdiction, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, may 
decline to make any payment to a bonus installment under this 
section that is due to be paid to the member after the date on 
which the member fails to complete the term of enlistment for 
which the bonus is being paid. The Secretary of Defense and the 
Secretary [of Transportation] of Homeland Security may 
prescribe the circumstances under which bonus installments may 
be terminated under this paragraph.

           *       *       *       *       *       *       *

  (f) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under his jurisdiction, and by the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 308b. Special pay: reenlistment bonus for members of the Selected 
                    Reserve

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the 
armed forces under his jurisdiction and by the Secretary [of 
Transportation] of Homeland Security for the Coast Guard when 
it is not operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 308c. Special pay: bonus for enlistment in the Selected Reserve

    (a)  * * *

           *       *       *       *       *       *       *

  (c) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under his jurisdiction and by the Secretary [of Transportation] 
of Homeland Security for the Coast Guard when it is not 
operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 308d. Special pay: enlisted members of the Selected Reserve 
                    assigned to certain high priority units

    (a) Under regulations prescribed by the Secretary of 
Defense, or the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy, an enlisted member who is 
assigned to a high priority unit of the Selected Reserve of the 
Ready Reserve of an armed force, as designated under subsection 
(b), and who performs inactive duty for training for 
compensation under section 206 of this title with such unit may 
be paid compensation, in addition to the compensation to which 
the member is otherwise entitled, in an amount not to exceed 
$10 for each regular period of instruction, or period of 
appropriate duty, at which the member is engaged for at least 
four hours, including any such instruction or duty performed on 
a Sunday or holiday.

           *       *       *       *       *       *       *


Sec. 308e. Special pay: bonus for reserve affiliation agreement

  (a)  * * *

           *       *       *       *       *       *       *

  (f) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under the jurisdiction of the Secretary of Defense and by the 
Secretary [of Transportation] of Homeland Security for the 
Coast Guard when the Coast Guard is not operating as a service 
in the Navy.

           *       *       *       *       *       *       *


Sec. 308g. Special pay: bonus for enlistment in elements of the Ready 
                    Reserve other than the Selected Reserve

  (a)  * * *

           *       *       *       *       *       *       *

  (g) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under his jurisdiction and by the Secretary [of Transportation] 
of Homeland Security for the Coast Guard when it is not 
operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 308h. Special pay: bonus for reenlistment, enlistment, or 
                    voluntary extension of enlistment in elements of 
                    the Ready Reserve other than the Selected Reserve

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Regulations.--(1) This section shall be administered 
under regulations to be prescribed by the Secretary of Defense 
for the armed forces under his jurisdiction and by the 
Secretary [of Transportation] of Homeland Security for the 
Coast Guard when it is not operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 308i. Special pay: prior service enlistment bonus

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the 
armed forces under his jurisdiction and by the Secretary [of 
Transportation] of Homeland Security for the Coast Guard when 
the Coast Guard is not operating as a service in the Navy.

           *       *       *       *       *       *       *


Sec. 309. Special pay: enlistment bonus

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the 
armed forces under the jurisdiction of the Secretary of Defense 
and by the Secretary [of Transportation] of Homeland Security 
for the Coast Guard when the Coast Guard is not operating as a 
service in the Navy.

           *       *       *       *       *       *       *


Sec. 316. Special pay: foreign language proficiency pay

  (a)  * * *

           *       *       *       *       *       *       *

  (d) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces 
under the jurisdiction of the Secretary, by the Secretary [of 
Transportation] of Homeland Security for the Coast Guard when 
the Coast Guard is not operating as a service in the Navy, by 
the Secretary of Health and Human Services for the Commissioned 
Corps of the Public Health Service, and by the Secretary of 
Commerce for the National Oceanic and Atmospheric 
Administration.

           *       *       *       *       *       *       *


Sec. 323. Special pay: retention incentives for members qualified in a 
                    critical military skill

  (a)  * * *
  (b) Designation of Critical Skills.--(1) A designated 
critical military skill referred to in subsection (a) is a 
military skill designated as critical by the Secretary of 
Defense, or by the Secretary [of Transportation] of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy.
  (2) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Navy, shall 
notify Congress, in advance, of each military skill to be 
designated by the Secretary as critical for purposes of this 
section. The notice shall be submitted at least 90 days before 
any bonus with regard to that critical skill is offered under 
subsection (a) and shall include a discussion of the necessity 
for the bonus, the amount and method of payment of the bonus, 
and the retention results that the bonus is expected to 
achieve.

           *       *       *       *       *       *       *

  (g) Repayment of Bonus.--(1) If an officer who has entered 
into a written agreement under subsection (a) fails to complete 
the total period of active duty specified in the agreement, or 
an enlisted member who voluntarily or because of misconduct 
does not complete the term of enlistment for which a bonus was 
paid under this section, the Secretary of Defense, and the 
Secretary [of Transportation] of Homeland Security with respect 
to members of the Coast Guard when it is not operating as a 
service in the Navy, may require the member to repay the United 
States, on a pro rata basis and to the extent that the 
Secretary determines conditions and circumstances warrant, all 
sums paid under this section.

           *       *       *       *       *       *       *


Sec. 325. Incentive bonus: savings plan for education expenses and 
                    other contingencies

  (a)  * * *

           *       *       *       *       *       *       *

  (i) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the 
armed forces under his jurisdiction and by the Secretary [of 
Transportation] of Homeland Security for the Coast Guard when 
the Coast Guard is not operating as a service in the Navy.

           *       *       *       *       *       *       *


CHAPTER 7--ALLOWANCES

           *       *       *       *       *       *       *


Sec. 402. Basic allowance for subsistence

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Special Rule for Members Authorized to Mess Separately.--
(1) In areas prescribed by the Secretary of Defense, and the 
Secretary [of Transportation] of Homeland Security with respect 
to the Coast Guard when it is not operating as a service in the 
Navy, an enlisted member described in paragraph (2) is entitled 
to not more than the pro rata allowance in effect under 
paragraph (1) or (2) of subsection (b) for each meal the member 
buys from a source other than a messing facility of the United 
States.

           *       *       *       *       *       *       *


Sec. 402a. Supplemental subsistence allowance for low-income members 
                    with dependents

  (a)  * * *

           *       *       *       *       *       *       *

  (g) Definitions.--In this section:
          (1) The term ``Secretary concerned'' means--
                  (A) the Secretary of Defense; and
                  (B) the Secretary [of Transportation] of 
                Homeland Security, with respect to the Coast 
                Guard when it is not operating as a service in 
                the Navy.

           *       *       *       *       *       *       *


Sec. 403. Basic allowance for housing

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Ineligibility During Initial Field Duty or Sea Duty.--(1) 
 * * *

           *       *       *       *       *       *       *

  (3) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service in the Department 
of the Navy, shall prescribe regulations defining the terms 
``field duty'' and ``sea duty'' for purposes of this section.

           *       *       *       *       *       *       *

  (l) Temporary Continuation of Allowance for Dependents of 
Members Dying on Active Duty.--(1) The Secretary of Defense, or 
the Secretary [of Transportation] of Homeland Security in the 
case of the Coast Guard when not operating as a service in the 
Navy, may allow the dependents of a member of the armed forces 
who dies on active duty and whose dependents are occupying 
family housing provided by the Department of Defense, or by the 
Department [of Transportation] of Homeland Security in the case 
of the Coast Guard, other than on a rental basis on the date of 
the member's death to continue to occupy such housing without 
charge for a period of 180 days.

           *       *       *       *       *       *       *


Sec. 403b. Cost-of-living allowance in the continental United States

  (a)  * * *

           *       *       *       *       *       *       *

  (i) Other Definitions.--In this section:
          (1)  * * *

           *       *       *       *       *       *       *

          (5) The term ``administering Secretaries'' means the 
        following:
                  (A)  * * *
                  (B) The Secretary [of Transportation] of 
                Homeland Security, with respect to the Coast 
                Guard when it is not operating as a service in 
                the Navy.

           *       *       *       *       *       *       *


Sec. 406. Travel and transportation allowances: dependents; baggage and 
                    household effects

  (a)  * * *
  (b)(1)(A)  * * *

           *       *       *       *       *       *       *

    (E) Under regulations prescribed by the Secretary of 
Defense, or the Secretary [of Transportation] of Homeland 
Security for the Coast Guard when it is not operating as a 
service in the Navy, cadets at the United States Military 
Academy, the United States Air Force Academy, and the United 
States Coast Guard Academy, and midshipmen at the United States 
Naval Academy shall be entitled, in connection with temporary 
or permanent station change, to transportation of baggage and 
household effects as provided in subparagraph (A). The weight 
allowance for cadets and midshipmen is 350 pounds.
  (F) A member entitled to transportation of baggage and 
household effects under subparagraph (A) may, as an alternative 
to the provision of transportation, be paid reimbursement or, 
at the member's request, a monetary allowance in advance for 
the cost of transportation of the baggage and household 
effects. The monetary allowance may be paid only if the amount 
of the allowance does not exceed the cost that would be 
incurred by the Government under subparagraph (A) for the 
transportation of the baggage and household effects. 
Appropriations available to the Department of Defense, the 
Department [of Transportation] of Homeland Security, and the 
Department of Health and Human Services for providing 
transportation of baggage or household effects of members of 
the uniformed services shall be available to pay a 
reimbursement or monetary allowance under this subparagraph. 
The Secretary concerned may prescribe the manner in which the 
risk of liability for damage, destruction, or loss of baggage 
or household effects arranged, packed, crated, or loaded by a 
member is allocated among the member, the United States, and 
any contractor when a reimbursement or monetary allowance is 
elected under this subparagraph.

           *       *       *       *       *       *       *


Sec. 417. Uniform allowance: officers; general provisions

  (a) Subject to standards, policies, and procedures prescribed 
by the Secretary of Defense, the Secretary of each military 
department may prescribe regulations that he considers 
necessary to carry out sections 415(a)-(c) and 416 of this 
title within his department. The Secretary [of Transportation] 
of Homeland Security, with the concurrence of the Secretary of 
the Navy, may prescribe regulations that he considers necessary 
to carry out those sections for the Coast Guard when it is not 
operating as a service in the Navy. As far as practicable, 
regulations for all reserve components shall be uniform.
  (b) Under regulations approved by the Secretary of Defense, 
or by the Secretary [of Transportation] of Homeland Security 
with respect to the Coast Guard when it is not operating as a 
service in the Navy, and subject to section 415(a)-(c) or 416 
of this title, a reserve officer of an armed force who has 
received a uniform and equipment allowance under section 
415(a)-(c) or 416 of this title, may, if a different uniform is 
required, be paid a uniform and equipment reimbursement upon 
transfer to, or appointment in, another reserve component.

           *       *       *       *       *       *       *


Sec. 418. Clothing allowance: enlisted members

  (a) The Secretary of Defense and the Secretary [of 
Transportation] of Homeland Security, with respect to the Coast 
Guard when it is not operating as a service in the Navy, may 
prescribe the quantity and kind of clothing to be furnished 
annually to an enlisted member of the armed forces or the 
National Guard, and may prescribe the amount of a cash 
allowance to be paid to such a member if clothing is not so 
furnished to him.

           *       *       *       *       *       *       *


CHAPTER 13--ALLOTMENTS AND ASSIGNMENTS OF PAY

           *       *       *       *       *       *       *


Sec. 703. Allotments: members of Coast Guard

  Members of the Coast Guard may, under regulations prescribed 
by the Secretary [of Transportation] of Homeland Security, make 
allotments from their pay and allowances.

           *       *       *       *       *       *       *


CHAPTER 19--ADMINISTRATION

           *       *       *       *       *       *       *


Sec. 1001. Regulations relating to pay and allowances

  (a)  * * *

           *       *       *       *       *       *       *

  (c) The Secretary of Defense, the Secretary [of 
Transportation] of Homeland Security, the Secretary of 
Commerce, or the Secretary of Health and Human Services, may 
obtain from the Comptroller General an advisory opinion with 
respect to a proposed regulation especially affecting a 
department under the Secretary's jurisdiction.

           *       *       *       *       *       *       *


Sec. 1006. Advance payments

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Under regulations prescribed by the Secretary [of 
Transportation] of Homeland Security, an advance of pay of not 
more than three months' pay may be made to an officer of the 
Coast Guard who is ordered to sea duty or to or from shore duty 
beyond the seas. In addition, the Commandant of the Coast Guard 
may direct such advances as he considers necessary and proper 
to members of the Coast Guard stationed at distant stations 
where the pay and emoluments to which they are entitled cannot 
be paid regularly.

           *       *       *       *       *       *       *


Sec. 1007. Deductions from pay

  (a) The pay of an officer of an armed force may be withheld, 
under section 5512 of title 5, only for an indebtedness to the 
United States admitted by the officer or shown by the judgment 
of a court, or upon a special order issued in the discretion of 
the Secretary of Defense (or the Secretary [of Transportation] 
of Homeland Security, in the case of a disbursing official of 
the Coast Guard when the Coast Guard is not operating as a 
service in the Navy), or upon the denial of relief of an 
officer pursuant to section 3527 of title 31.

           *       *       *       *       *       *       *


Sec. 1011. Mess operation: reimbursement of expenses

  (a)  * * *

           *       *       *       *       *       *       *

  (d) When the Coast Guard is not operating as a service in the 
Navy, the Secretary [of Transportation] of Homeland Security 
shall establish rates for meals sold at Coast Guard dining 
facilities, provide for reimbursement  of  operating  expenses  
and  food  costs  to  the  appropriations concerned, and reduce 
the rates for such meals when the Secretary determines that it 
is in the best interest of the United States to do so.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 363 OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY 
                       RECONCILIATION ACT OF 1996

                          (Public Law 104-193)

SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF 
                    MEMBERS OF THE ARMED FORCES.

  (a) Availability of Locator Information.--
          (1) Maintenance of address information.--The 
        Secretary of Defense shall establish a centralized 
        personnel locator service that includes the address of 
        each member of the Armed Forces under the jurisdiction 
        of the Secretary. Upon request of the Secretary [of 
        Transportation] of Homeland Security, addresses for 
        members of the Coast Guard shall be included in the 
        centralized personnel locator service.

           *       *       *       *       *       *       *

  (b) Facilitating Granting of Leave for Attendance at 
Hearings.--
          (1) Regulations.--The Secretary of each military 
        department, and the Secretary [of Transportation] of 
        Homeland Security with respect to the Coast Guard when 
        it is not operating as a service in the Navy, shall 
        prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the 
        jurisdiction of that Secretary in a case in which--
                  (A)  * * *

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 721 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1997

                          (Public Law 104-201)

SEC. 721. DEFINITIONS.

  In this subtitle:
          (1) The term ``administering Secretaries'' means the 
        Secretary of Defense, the Secretary [of Transportation] 
        of Homeland Security, and the Secretary of Health and 
        Human Services.

           *       *       *       *       *       *       *

                              ----------                              


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1993

(Public Law 102-484)

           *       *       *       *       *       *       *


DIVISION D--DEFENSE CONVERSION, REINVESTMENT, AND TRANSITION ASSISTANCE

           *       *       *       *       *       *       *


TITLE XLIV--PERSONNEL ADJUSTMENT, EDUCATION, AND TRAINING PROGRAMS

           *       *       *       *       *       *       *


Subtitle F--Job Training and Employment and Educational Opportunities

           *       *       *       *       *       *       *


SEC. 4463. PROGRAM OF EDUCATIONAL LEAVE RELATING TO CONTINUING PUBLIC 
                    AND COMMUNITY SERVICE.

  (a) Program.--Under regulations prescribed by the Secretary 
of Defense [after consultation with the Secretary of 
Transportation] and subject to subsections (b) and (c), the 
Secretary concerned may grant to an eligible member of the 
Armed Forces a leave of absence for a period not to exceed one 
year for the purpose of permitting the member to pursue a 
program of education or training (including an internship) for 
the development of skills that are relevant to the performance 
of public and community service. A program of education or 
training referred to in the preceding sentence includes any 
such program that is offered by the Department of Defense or by 
any civilian educational or training institution.

           *       *       *       *       *       *       *


SEC. 4466. PARTICIPATION OF DISCHARGED MILITARY PERSONNEL IN UPWARD 
                    BOUND PROJECTS TO PREPARE FOR COLLEGE.

  (a)  * * *

           *       *       *       *       *       *       *

  (h) Application to Coast Guard.--The Secretary [of 
Transportation] of Homeland Security may implement the 
provisions of this section for the Coast Guard in the same 
manner and to the same extent as such section applies to the 
Department of Defense.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 542 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1995

                          (Public Law 103-337)

SEC. 542. COAST GUARD FORCE REDUCTION TRANSITION BENEFITS.

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Temporary Early Retirement Authority.--Section 4403 of 
the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484; 106 Stat. 2702; 10 U.S.C. 1293 note) shall 
apply to the Coast Guard in the same manner and to the same 
extent as that provision applies to the Department of Defense. 
The Secretary [of Transportation] of Homeland Security shall 
implement the provisions of that section with respect to the 
Coast Guard and apply the applicable provisions of title 14, 
United States Code, relating to retirement of Coast Guard 
personnel.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 740 OF THE WENDELL H. FORD AVIATION INVESTMENT AND REFORM ACT 
                          FOR THE 21ST CENTURY

                          (Public Law 106-181)

SEC. 740. AUTHORITY TO SELL AIRCRAFT AND AIRCRAFT PARTS FOR USE IN 
                    RESPONDING TO OIL SPILLS.

  (a)  * * *
  (b) Conditions of Sale.--Aircraft and aircraft parts sold 
under subsection (a)--
          (1)  * * *
          (2) may not be flown outside of or removed from the 
        United States except for the purpose of fulfilling an 
        international agreement to assist in oil spill 
        dispersing efforts, for immediate response efforts for 
        an oil spill outside United States waters that has the 
        potential to threaten United States waters, or for 
        other purposes that are jointly approved by the 
        Secretary of Defense and the Secretary [of 
        Transportation] of Homeland Security.
  (c) Certification of Persons and Entities.--The Secretary of 
Defense may sell aircraft and aircraft parts to a person or 
entity under subsection (a) only if the Secretary [of 
Transportation] of Homeland Security certifies to the Secretary 
of Defense, in writing, before the sale, that the person or 
entity is capable of meeting the terms and conditions of a 
contract to deliver oil spill dispersants by air, and that the 
overall system to be employed by that person or entity for the 
delivery and application of oil spill dispersants has been 
sufficiently tested to ensure that the person or entity is 
capable of being included in an oil spill response plan that 
has been approved by the Secretary of the Department in which 
the Coast Guard is operating.
  (d) Regulations.--
          (1) Issuance.--As soon as practicable after the date 
        of the enactment of this Act, the Secretary of Defense, 
        in consultation with the Secretary [of Transportation] 
        of Homeland Security and the Administrator of General 
        Services, shall prescribe regulations relating to the 
        sale of aircraft and aircraft parts under this section.

           *       *       *       *       *       *       *

                              ----------                              


     SECTION 1407 OF THE DEFENSE DEPENDENTS' EDUCATION ACT OF 1978

             SCHOOL SYSTEM FOR DEPENDENTS IN OVERSEAS AREAS

  Sec. 1407. (a)  * * *
  (b) Tuition and Assistance When Schools Unavailable.--(1)  * 
* *
  (2)(A) The Secretary of Defense, and the Secretary [of 
Transportation] of Homeland Security with respect to the Coast 
Guard when it is not operating as a service of the Navy, may 
provide financial assistance to sponsors of dependents in 
overseas areas where schools operated by the Secretary of 
Defense under subsection (a) are not reasonably available in 
order to assist the sponsors to defray the costs incurred by 
the sponsors for the attendance of the dependents at schools in 
such areas other than schools operated by the Secretary of 
Defense.
  (B) The Secretary of Defense and the Secretary [of 
Transportation] of Homeland Security shall each prescribe 
regulations relating to the availability of financial 
assistance under subparagraph (A). Such regulations shall, to 
the maximum extent practicable, be consistent with Department 
of State regulations relating to the availability of financial 
assistance for the education of dependents of Department of 
State personnel overseas.

           *       *       *       *       *       *       *

                              ----------                              


     TITLE II OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
PRINCIPALS

           *       *       *       *       *       *       *


                 PART C--INNOVATION FOR TEACHER QUALITY

                   Subpart 1--Transitions to Teaching

                 CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

SEC. 2301. DEFINITIONS.

  In this chapter:
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Secretary concerned.--The term ``Secretary 
        concerned'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (D) the Secretary [of Transportation] of 
                Homeland Security, with respect to matters 
                concerning the Coast Guard Reserve.

           *       *       *       *       *       *       *


SEC. 2307. REPORTING REQUIREMENTS.

  (a) Report Required.--Not later than March 31, 2006, the 
Secretary (in consultation with the Secretary of Defense and 
the Secretary [of Transportation] of Homeland Security) and the 
Comptroller General of the United States shall submit to 
Congress a report on the effectiveness of the Program in the 
recruitment and retention of qualified personnel by local 
educational agencies and public charter schools.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 1034 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1998

                          (Public Law 105-85)

SEC. 1034. ANNUAL REPORT ON DEVELOPMENT AND DEPLOYMENT OF NARCOTICS 
                    DETECTION TECHNOLOGIES.

  (a) Report Requirement.--Not later than December 1st of each 
year, the Director of the Office of National Drug Control 
Policy shall submit to Congress and the President a report on 
the development and deployment of narcotics detection 
technologies by Federal agencies. Each such report shall be 
prepared in consultation with the Secretary of Defense, the 
Secretary of State, the Secretary [of Transportation] of 
Homeland Security, and the Secretary of the Treasury.

           *       *       *       *       *       *       *

                              ----------                              


                     MILITARY SELECTIVE SERVICE ACT

TITLE I

           *       *       *       *       *       *       *


                          training and service

    Sec. 4. (a) Except as otherwise provided in this title, 
every person required to register pursuant to section 3 of this 
title who is between the ages of eighteen years and six months 
and twenty-six years, at the time fixed for his registration, 
or who attains the age of eighteen years and six months after 
having been required to register pursuant to section 3 of this 
title, or who is otherwise liable as provided in section 6(h) 
of this title, shall be liable for training and service in the 
Armed Forces of the United States: Provided, That each 
registrant shall be immediately liable for classification and 
examination, and shall, as soon as practicable following his 
registration, be so classified and examined, both physically 
and mentally, in order to determine his availability for 
induction for training and service in the Armed Forces: 
Provided further, That, notwithstanding any other provision of 
law, any registrant who has failed or refused to report for 
induction shall continue to remain liable for induction and 
when available shall be immediately inducted. The President is 
authorized, from time to time, whether or not a state of war 
exists, to select and induct into the Armed Forces of the 
United States for training and service in the manner provided 
in this title (including but not limited to selection and 
induction by age group or age groups) such number of persons as 
may be required to provide and maintain the strength of the 
Armed Forces.

           *       *       *       *       *       *       *

    No persons shall be inducted for such training and service 
until adequate provision shall have been made for such shelter, 
sanitary facilities, water supplies, heating and lighting 
arrangements, medical care, and hospital accommodations for 
such persons as may be determined by the Secretary of Defense 
or the Secretary [of Transportation] of Homeland Security to be 
essential to the public and personal health.

           *       *       *       *       *       *       *

    (b) Each person inducted into the Armed Forces under the 
provisions of subsection (a) of this section shall serve on 
active training and service for a period of twenty-four 
consecutive months, unless sooner released, transferred, or 
discharged in accordance with procedures prescribed by the 
Secretary of Defense (or the Secretary [of Transportation] of 
Homeland Security with respect to the United States Coast 
Guard) or as otherwise prescribed by subsection (d) of section 
4 of this title. The Secretaries of the Army, Navy, and Air 
Force, with the approval of the Secretary of Defense (and the 
Secretary [of Transportation] of Homeland Security with respect 
to the United States Coast Guard), may provide, by regulations 
which shall be as nearly uniform as practicable, for the 
release from training and service in the armed forces prior to 
serving the periods required by this subsection of individuals 
who volunteered for and are accepted into organized units of 
the Army National Guard and Air National Guard and other 
reserve compoments.

           *       *       *       *       *       *       *


                        deferment and exemptions

    Sec. 6. (a)  * * *

           *       *       *       *       *       *       *

    (d)(1) Within such numbers as may be prescribed by the 
Secretary of Defense, any person who (A) has been or may 
hereafter be selected for enrollment or continuance in the 
senior division, Reserve Officers' Training Corps, or the Air 
Reserve Officers' Training Corps, or the Naval Reserve 
Officers' Training Corps, or the naval and Marine Corps officer 
candidate traning program established by the Act of August 13, 
1946 (60 Stat. 1057), as amended, or the Reserve officers' 
candidate program of the Navy, or the platoon leaders' class of 
the Marine Corps, or the officer recruitment programs of the 
Coast Guard and the Coast Guard Reserve, or appointed an 
ensign, United States Naval Reserve, while undergoing 
professional training; (B) agrees, in writing, to accept a 
commission, if tendered, and to serve, subject to order of the 
Secretary of the military department having jurisdiction over 
him (or the Secretary [of Transportation] of Homeland Security 
with respect to the United States Coast Guard), not less than 
two years on active duty after receipt of a commission; and (C) 
agrees to remain a member of a regular or reserve component 
until the eighth anniversary of the receipt of a commission in 
accordance with his obligation under the first sentence of 
section 651 of title 10, United States Code, or until the sixth 
anniversary of the receipt of a commission in accordance with 
his obligation under the second sentence of section 651 of 
title 10, United States Code, shall be deferred from induction 
under this title until after completion or termination of the 
course of instruction and so long as he continues in a regular 
or reserve status upon being commissioned, but shall not be 
exempt from registration. Such persons, except those persons 
who have previously completed an initial period of military 
training or an equivalent period of active military training 
and service, shall be required while enrolled in such programs 
to complete a period of training equal (as determined under 
regulation approved by the Secretary of Defense or the 
Secretary [of Transportation] of Homeland Security with respect 
to the United States Coast Guard) in duration and type of 
training to an initial period of military training. There shall 
be added to the obligated active commissioned service of any 
person who has agreed to perform such obligatory service in 
return for financial assistance while attending a civilian 
college under any such training program a period of not to 
exceed one year. Except as provided in paragraph (5), upon the 
successful completion by any person of the required course of 
instruction under any program listed in clause (A) of the first 
sentence of this paragraph, such person shall be tendered a 
commission in the appropriate reserve component of the Armed 
Forces if he is otherwise qualified for such appointment. If, 
at the time of, or subsequent to, such appointment, the armed 
force in which such person is commissioned does not require his 
service on active duty in fulfillment of the obligation 
undertaken by him in compliance with clause (B) of the first 
sentence of this paragraph, such person, shall be ordered to 
active duty for training with such armed force in the grade in 
which he was commissioned for a period of active duty for 
training of not more than six months (not including duty 
performed under section 10147 of title 10, United States Code), 
as determined by the Secretary of the military department 
concerned to be necessary to qualify such person for a 
mobilization assignment. Upon being commissioned and assigned 
to a reserve component, such person shall be required to serve 
therein, or in a reserve component of any other armed force in 
which he is later appointed, until the eighth anniversary of 
the receipt of such commission pursuant to the provisions of 
this section. So long as such person performs satisfactory 
service, as determined under regulations prescribed by the 
Secretary of Defense, he shall be deferred from training and 
service under the provisions of this Act. If such person fails 
to perform satisfactory service, and such failure is not 
excused under regulations prescribed by the Secretary of 
Defense, his commission may be revoked by the Secretary of the 
military department concerned.

           *       *       *       *       *       *       *


              separation from service; reemployment rights

    Sec. 9. (a)  * * *

           *       *       *       *       *       *       *

    (c) The [Secretaries of Army, Navy, Air Force, or 
Transportation] Secretary of a military department, and the 
Secretary of Homeland Security with respect to the Coast Guard, 
shall furnish to the Selective Service System hereafter 
established a report of separation for each person separated 
from active duty.

           *       *       *       *       *       *       *


                 notice of title; voluntary enlistments

    Sec. 15. (a)  * * *

           *       *       *       *       *       *       *

    (e) In order to assist the Armed Forces in recruiting 
individuals for voluntary service in the Armed Forces, the 
Director shall, upon the request of the Secretary of Defense or 
the Secretary [of Transportation] of Homeland Security, furnish 
to the Secretary the names and addresses of individuals 
registered under this Act. Names and addresses furnished 
pursuant to the preceding sentence may be used by the Secretary 
of Defense or Secretary [of Transportation] of Homeland 
Security only for recruiting purposes.

           *       *       *       *       *       *       *

                              ----------                              


 PUBLIC HEALTH SECURITY AND BIOTERRORISM PREPAREDNESS AND RESPONSE ACT 
OF 2002

           *       *       *       *       *       *       *


TITLE I--NATIONAL PREPAREDNESS FOR BIOTERRORISM AND OTHER PUBLIC HEALTH 
EMERGENCIES

           *       *       *       *       *       *       *


   Subtitle B--Strategic National Stockpile; Development of Priority 
                            Countermeasures

SEC. 121. STRATEGIC NATIONAL STOCKPILE.

  (a) Strategic National Stockpile.--
          (1) In general.--The [Secretary of Health and Human 
        Services] Secretary of Homeland Security (referred to 
        in this section as the ``Secretary''), in coordination 
        with the Secretary of Health and Human Services and the 
        Secretary of Veterans Affairs, shall maintain a 
        stockpile or stockpiles of drugs, vaccines and other 
        biological products, medical devices, and other 
        supplies in such numbers, types, and amounts as are 
        determined by the Secretary of Health and Human 
        Services to be appropriate and practicable, taking into 
        account other available sources, to provide for the 
        emergency health security of the United States, 
        including the emergency health security of children and 
        other vulnerable populations, in the event of a 
        bioterrorist attack or other public health emergency.

           *       *       *       *       *       *       *

          (2) Procedures.--The Secretary of Health and Human 
        Services, in managing the stockpile under paragraph 
        (1), shall--
                  (A)  * * *

           *       *       *       *       *       *       *

  (b) Smallpox Vaccine Development.--
          (1) In general.--The Secretary of Health and Human 
        Services shall award contracts, enter into cooperative 
        agreements, or carry out such other activities as may 
        reasonably be required in order to ensure that the 
        stockpile under subsection (a) includes an amount of 
        vaccine against smallpox as determined by the Secretary 
        of Health and Human Services to be sufficient to meet 
        the health security needs of the United States.

           *       *       *       *       *       *       *


 TITLE II--ENHANCING CONTROLS ON DANGEROUS BIOLOGICAL AGENTS AND TOXINS

          Subtitle A--Department of Health and Human Services

SEC. 201. REGULATION OF CERTAIN BIOLOGICAL AGENTS AND TOXINS.

  (a)  * * *
  (b) Report to Congress.--Not later than one year after the 
date of the enactment of this Act, the [Secretary of Health and 
Human Services] Secretary of Homeland Security, after 
consultation with other appropriate Federal agencies, shall 
submit to the Congress a report that--
          (1)  * * *

           *       *       *       *       *       *       *

                              ----------                              


             SECTION 351A OF THE PUBLIC HEALTH SERVICE ACT

SEC. 351A. ENHANCED CONTROL OF DANGEROUS BIOLOGICAL AGENTS AND TOXINS.

  (a) Regulatory Control of Certain Biological Agents and 
Toxins.--
          (1) List of biological agents and toxins.--
                  (A) In general.--The Secretary (as defined in 
                subsection (l)(9)) shall by regulation 
                establish and maintain a list of each 
                biological agent and each toxin that has the 
                potential to pose a severe threat to public 
                health and safety.

           *       *       *       *       *       *       *

  (h) Disclosure of Information.--
          (1)  * * *
          (2) Covered agencies.--For purposes of paragraph (1) 
        only, the Federal agencies specified in this paragraph 
        are the following:
                  (A) The Department of Homeland Security, the 
                Department of Health and Human Services, the 
                Department of Justice, the Department of 
                Agriculture, and the Department of 
                Transportation.

           *       *       *       *       *       *       *

  (l) Definitions.--For purposes of this section:
          (1)  * * *

           *       *       *       *       *       *       *

          (9) The term ``Secretary'' means the Secretary of 
        Homeland Security, in consultation with the Secretary 
        of Health and Human Services.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 210 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 
                                  1949

SEC. 210. OPERATION OF BUILDINGS AND RELATED ACTIVITIES

  (a) Whenever and to the extent that the Administrator has 
been or hereafter may be authorized by any provision of law 
other than this subsection to maintain, operate, and protect 
any building, property, or grounds situated in or outside the 
District of Columbia, including the construction, repair, 
preservation, demolition, furnishing, and equipment thereof, he 
is authorized in the discharge of the duties so conferred upon 
him--
          (1)  * * *
          [(2) to furnish arms and ammunition for the 
        protection force maintained by the General Services 
        Administration;]

           *       *       *       *       *       *       *

                              ----------                              


                          ACT OF JUNE 1, 1948

AN ACT to authorize the Federal Works Administrator or officials of the 
    Federal Works Agency duly authorized by him to appoint special 
policemen for duty upon Federal property under the jurisdiction of the 
             Federal Works Agency, and for other purposes.

[SECTION 1. SPECIAL POLICE.

  [(a) Appointment.--The Administrator of General Services, or 
officials of the General Services Administration duly 
authorized by the Administrator, may appoint uniformed guards 
of such Administration as special policemen without additional 
compensation for duty in connection with the policing of all 
buildings and areas owned or occupied by the United States and 
under the charge and control of the Administrator.
  [(b) Powers.--Special policemen appointed under this section 
shall have the same powers as sheriffs and constables upon 
property referred to in subsection (a) to enforce the laws 
enacted for the protection of persons and property, and to 
prevent breaches of the peace, to suppress affrays or unlawful 
assemblies, and to enforce any rules and regulations 
promulgated by the Administrator of General Services or such 
duly authorized officials of the General Services 
Administration for the property under their jurisdiction; 
except that the jurisdiction and policing powers of such 
special policemen shall not extend to the service of civil 
process.
  [Sec. 2. The Administrator of General Services or officials 
of the General Services Administration duly authorized by him 
are hereby authorized to make all needful rules and regulations 
for the government of the property under their charge and 
control, and to annex to such rules and regulations such 
reasonable penalties, within the limits prescribed in section 4 
of this Act, as will insure their enforcement: Provided, That 
such rules and regulations shall be posted and kept posted in a 
conspicuous place on such property.
  [Sec. 3. Upon the application of the head of any department 
or agency of the United States having property of the United 
States under its administration and control, the Administrator 
of General Services or officials of the General Services 
Administration duly authorized by him are authorized to detail 
any such special policemen for the protection of such property 
and if he deems it desirable, to extend to such property the 
applicability of any such regulations and to enforce the same 
as herein set forth; and the Administrator of General Services 
or official of the General Services Administration duly 
authorized by him, whenever it is deemed economical and in the 
public interest, may utilize the facilities and services of 
existing Federal law-enforcement agencies, and, with the 
consent of any State or local agency, the facilities and 
services of such State or local law-enforcement agencies.
  [Sec. 4. (a) Except as provided in subsection (b), whoever 
violates any rule or regulation promulgated pursuant to section 
2 of this Act shall be fined not more than $50 or imprisoned 
not more than thirty days, or both.
  [(b)(1) Whoever violates any military traffic regulation 
shall be fined an amount not to exceed the amount of the 
maximum fine for a like or similar offense under the criminal 
or civil law of the State, territory, possession, or district 
where the military installation in which the violation occurred 
is located, or imprisoned for not more than 30 days, or both.
  [(2) For purposes of this subsection, the term ``military 
traffic regulation'' means a rule or regulation for the control 
of vehicular or pedestrian traffic on military installations 
that is promulgated by the Secretary of Defense, or the 
designee of the Secretary, under the authority delegated 
pursuant to section 2.
  [Sec. 5. Officials or employees of the General Services 
Administration who have been duly authorized to perform 
investigative functions may be empowered by the Administrator 
of General Services, or officials of General Services 
Administration duly authorized by him, to act as nonuniformed 
special policemen in order to protect property under the charge 
and control of the General Services Administration and to carry 
firearms, whether on Federal property or in travel status. Such 
officials or employees who are empowered to act as nonuniformed 
special policemen shall have, while on real property under the 
charge and control of the General Services Administration, the 
power to enforce Federal laws for the protection of persons and 
property and the power to enforce rules and regulations made 
and published for such purposes by the Administrator or duly 
authorized officials of the General Services Administration. 
Any such special policeman may make arrests without warrant for 
any offense committed upon such property if he has reasonable 
ground to believe (1) the offense constitutes a felony under 
the laws of the United States, and (2) that the person to be 
arrested is guilty of that offense.]

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Protection of Public Property 
Act''.

SEC. 2. LAW ENFORCEMENT AUTHORITY OF SECRETARY OF HOMELAND SECURITY FOR 
                    PROTECTION OF PUBLIC PROPERTY.

  (a) In General.--The Secretary of Homeland Security (in this 
Act 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 officers and agents designated 
        under this section for the protection of the property 
        and persons on the property.
          (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.
                              ----------                              


 NATIONAL SCIENCE AND TECHNOLOGY POLICY, ORGANIZATION, AND PRIORITIES 
ACT OF 1976

           *       *       *       *       *       *       *


TITLE II--OFFICE OF SCIENCE AND TECHNOLOGY POLICY

           *       *       *       *       *       *       *


                               FUNCTIONS

  Sec. 204. (a)  * * *
  (b) In addition to such other functions and activities as the 
President may assign, the Director shall--
          (1) advise the President of scientific and 
        technological considerations involved in areas of 
        national concern including, but not limited to, the 
        economy, national security, homeland security, health, 
        foreign relations, the environment, and the 
        technological recovery and use of resources;

           *       *       *       *       *       *       *


                 COORDINATION WITH OTHER ORGANIZATIONS

  Sec. 208. (a) In exercising his functions under this Act, the 
Director shall--
          (1) work in close consultation and cooperation with 
        the Domestic Council, the National Security Council, 
        the Office of Homeland Security, the Council on 
        Environmental Quality, the Council of Economic 
        Advisers, the Office of Management and Budget, the 
        National Science Board, and the Federal departments and 
        agencies;

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 901 OF TITLE 31, UNITED STATES CODE

Sec. 901. Establishment of agency Chief Financial Officers

  (a)  * * *
  (b)(1) The agencies referred to in subsection (a)(1) are the 
following:
          (A)  * * *

           *       *       *       *       *       *       *

          (G) The Department of Homeland Security.
          [(G)] (H) The Department of Housing and Urban 
        Development.
          [(H)] (I) The Department of the Interior.
          [(I)] (J) The Department of Justice.
          [(J)] (K) The Department of Labor.
          [(K)] (L) The Department of State.
          [(L)] (M) The Department of Transportation.
          [(M)] (N) The Department of the Treasury.
          [(N)] (O) The Department of Veterans Affairs.
          [(O)] (P) The Environmental Protection Agency.
          [(P)] (Q) The National Aeronautics and Space 
        Administration.

           *       *       *       *       *       *       *

                              ----------                              


             SECTION 5131 OF THE CLINGER-COHEN ACT OF 1996

SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY, AND PRIVACY 
                    OF FEDERAL COMPUTER SYSTEMS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Waiver of Standards.--The standards determined under 
subsection (a) to be compulsory and binding may be waived by 
the Secretary of Commerce in writing upon a determination that 
compliance would adversely affect the accomplishment of the 
mission of an operator of a Federal computer system, or cause a 
major adverse financial impact on the operator which is not 
offset by Government-wide savings. The Secretary may delegate 
to the head of one or more Federal agencies authority to waive 
such standards to the extent to which the Secretary determines 
such action to be necessary and desirable to allow for timely 
and effective implementation of Federal computer system 
standards. The head of such agency may redelegate such 
authority only to a Chief Information Officer designated or 
appointed pursuant to section 3506 of title 44, United States 
Code. Notice of each such waiver and delegation shall be 
transmitted promptly to Congress and shall be published 
promptly in the Federal Register.

           *       *       *       *       *       *       *

                              ----------                              


               CHAPTER 35 OF TITLE 44, UNITED STATES CODE

CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

           *       *       *       *       *       *       *


SUBCHAPTER I--FEDERAL INFORMATION POLICY

           *       *       *       *       *       *       *


Sec. 3506. Federal agency responsibilities

  (a)(1)  * * *
  (2)(A) Except as provided under [subparagraph (B)] 
subparagraphs (B) and (C), the head of each agency shall 
designate a Chief Information Officer who shall report directly 
to such agency head to carry out the responsibilities of the 
agency under this subchapter.

           *       *       *       *       *       *       *

  (C) The Chief Information Officer of the Department of 
Homeland Security shall be an individual who is appointed by 
the President.
  (3) The Chief Information Officer designated or appointed 
under paragraph (2) shall head an office responsible for 
ensuring agency compliance with and prompt, efficient, and 
effective implementation of the information policies and 
information resources management responsibilities established 
under this subchapter, including the reduction of information 
collection burdens on the public. The Chief Information Officer 
and employees of such office shall be selected with special 
attention to the professional qualifications required to 
administer the functions described under this subchapter.
  (4) Each agency program official shall be responsible and 
accountable for information resources assigned to and 
supporting the programs under such official. In consultation 
with the Chief Information Officer designated or appointed 
under paragraph (2) and the agency Chief Financial Officer (or 
comparable official), each agency program official shall define 
program information needs and develop strategies, systems, and 
capabilities to meet those needs.

           *       *       *       *       *       *       *

  (c) With respect to the collection of information and the 
control of paperwork, each agency shall--
          (1) establish a process within the office headed by 
        the Chief Information Officer designated or appointed 
        under subsection (a), that is sufficiently independent 
        of program responsibility to evaluate fairly whether 
        proposed collections of information should be approved 
        under this subchapter, to--
                  (A)  * * *

           *       *       *       *       *       *       *


                             Minority Views

    We are united with the President and with our Republican 
colleagues in our determination to win the war against 
terrorism. We have a responsibility to the victims and 
survivors of the terrorist attacks on our soil and to all 
Americans to reduce the risk of further attacks. We believe 
that our government must be reorganized to meet that goal.
    The most important responsibility of our government is to 
protect and defend our citizens, in their daily lives and in 
their basic freedoms. Any proposal upon which Congress acts 
must be measured against a simple test: Do the actions we take 
make the American people safer? Regrettably, we do not believe 
that the bill passed by the House Select Committee on Homeland 
Security sufficiently meets that test.
    Rather than developing a streamlined, agile government 
department capable of making maximum use of new information 
technologies, the Select Committee's legislation in its present 
form would create a huge, costly, and inefficient 1950s style 
government bureaucracy that will likely take years before it 
functions properly. The proposed department's size, cost, and 
speed will not make it the best instrument to fight terrorism.
    The majority on the Select Committee has included 
provisions that may actually make us less safe. By retaining 
the President's plan to dismantle civil service protections, 
they have virtually guaranteed that the new department will not 
have the best possible workforce. The majority's bill also 
provides overly broad exemptions from ``good government'' laws 
that do not obstruct the war on terrorism but do protect our 
tradition of open, accountable government. Finally, the Select 
Committee's bill gratuitously protects irresponsible 
corporations, including those that incorporate offshore to 
avoid paying their share of the war on terrorism and those who 
knowingly make faulty products.
    These shortages could have been addressed if the Select 
Committee had adhered to the bipartisan work product of the 
standing committees of jurisdiction. The Select Committee was 
established to reconcile the work of twelve separate 
Congressional committees. These committees represent an 
enormous reservoir of expertise on all facets of the federal 
government. The Members who serve on them, on both sides of the 
aisle, have dedicated years to learning about the government 
agencies for which they are responsible. These committees 
worked in a bipartisan way to analyze and make reasoned changes 
to the President's proposed legislation. Unfortunately, the 
Chairman's mark did not reflect the committees' actions. The 
bill considered and passed by the Select Committee did not 
include many sound and sensible provisions passed by the 
committees with expertise. At the same time, the Select 
Committee added a number of flawed and controversial provisions 
which were neither proposed by the President nor considered by 
the committees of jurisdiction to the legislation.

                           transition issues

    Establishing any department of the magnitude the President 
has proposed would take a significant amount of time. David 
Walker, Comptroller General of the United States, testified 
before the Select Committee on July 17 that, ``The experiences 
of organizations that have undertaken transformational change 
efforts along the lines that will be necessary for the new 
department to be fully effective suggest that this process can 
take up to 5 to 10 years to provide meaningful and sustainable 
results.'' During this extended period, the new department will 
experience growing pains at a time when we do not have the 
luxury of a less than fully functioning organization. Our 
country could become more vulnerable, not less. As will be 
noted later, Democratic Members offered an amendment to improve 
management of the department and to reduce this time, but the 
majority rejected it.
    The President has said that his proposal, because it 
rearranges existing agencies, will not increase the size of 
government. He has further stated that, for the same reason, it 
will be budget neutral. He neglects, however, the inherent cost 
of such a large transition.
    The Chairman and Ranking Member of the Government Reform 
Committee wrote to the Congressional Budget Office (CBO) to 
request an estimate of the cost of the President's proposal. 
The CBO found that the combination of mundane transfer matters, 
such as providing and equipping office space, and the agency's 
new responsibilities would make the costs of the new department 
significant. According to the CBO's analysis, ``implementing 
H.R. 5005 would cost about $3 billion over the 2003-2007 
period.'' This amount is only for transition costs and does not 
include all the necessary funds to carry out the homeland 
security functions of the agencies transferred into the new 
Department. For example, the $3 billion will not cover the 
costs of bringing the new Department up to date 
technologically. These technological upgrades are essential.

               good government--civil service protections

    There is no conflict between the security of the American 
people and the hard-won job protections of working people. 
Unfortunately, the majority on the Select Committee has weighed 
down this bill with controversial language that would undermine 
civil service protections for 170,000 dedicated workers. These 
provisions could compromise the effectiveness of the 
Department's efforts to ensure homeland security.
    Some Republican leaders have long wanted to gut America's 
civil service system, but it is shameful that they would try to 
use homeland security as an excuse to do it. The civil service 
system protects Americans against a 'spoils' system that would 
allow politicians to reward their friends and supporters with 
important government jobs. It is crucial that the Department of 
Homeland Security be staffed by professionals--not by the 
political cronies of whichever party happens to hold the White 
House.
    The majority adopted an amendment that they labeled a 
compromise between the Administration's original proposal and 
current law. Yet, the Committee on Government Reform, the 
committee with primary jurisdiction over creating this new 
department, voted unanimously to continue current civil service 
protections for the workers who would be transferred. The 
majority on the select committee rejected this bipartisan 
recommendation and instead approved a proposal that will deny 
these dedicated public servants the rights they have enjoyed.
    When they are transferred to the new DHS, their jobs may 
not change, but by virtue of that address change, these 
employees will no longer be entitled to a number of important 
protections, including the guarantee that their pay will not be 
reduced. The majority gives the Secretary the right to waive 
the right to appeal disciplinary actions to the Merit System 
Protection Board (MSPB), essentially eliminating their 
guarantee of due process when disciplined by management. The 
majority also allows the Secretary to waive the employee 
classification system and seeks to abandon the General Schedule 
(GS) pay system, the senior executive pay system, the 
prevailing rate pay system, locality pay, and the system of 
annual cost-of-living adjustments.
    Finally, the majority would waive the requirements of 
current law that give federal employees hard-earned collective 
bargaining rights. We agree that the President should have the 
authority, as he does under current law, to exclude from union 
membership those select workers who have direct national 
security responsibilities. But the majority is insisting on the 
wholesale abrogation of the rights of workers--the very same 
public servants the President has gone out of his way to praise 
for their patriotism and dedication to duty--simply because 
they have been moved from one department in the federal 
government to another.
    In contesting the majority's apparent partisan attack on 
worker protections, the minority offered two common-sense, 
bipartisan amendments to the majority's proposal. The first was 
an amendment that Democrats and Republicans on the Government 
Reform Committee had agreed to unanimously. Our amendment would 
have ensured that federal employees in the new Department of 
Homeland Security have basic title 5 protections and would 
have:
     Given the Secretary the authority to harmonize pay 
schedules;
     Allowed the Secretary to suspend or remove 
Department employees in the interest of national or homeland 
security;
     Guaranteed that federal employees transferred to 
the new agency will not have their pay reduced;
     Prevented the employment system of the 
Transportation Security Administration, which includes few of 
the protections of title 5, from being applied to new hires 
outside of the Transportation Security Administration;
     Strengthened whistleblower protections by giving 
whistleblowers across the government the right to sue for lost 
wages, as well as compensatory and punitive damages.
    Despite the unanimous, bipartisan support this amendment 
earned in the Government Reform Committee, the majority on the 
Select Committee rejected it on a straight party-line vote (5-
4).
    The second amendment offered by the Select Committee 
minority also passed out of the Government Reform Committee 
with bipartisan support (on a 21-19 vote). Authored by Rep. 
Morella of Maryland, this amendment would ensure that workers' 
collective bargaining rights could not be waived unless their 
functions change when they move into the new Department. The 
Morella amendment would ensure that if employees' jobs did not 
change, then they would not lose their current protections. 
Additionally, the amendment would ensure that only the 
President--not the Secretary or any other official--has the 
authority to deny union representation to employees based on 
national security. Unfortunately, the Select Committee majority 
rejected this bipartisan amendment on a straight party-line 
vote (5-4).
    The combination of these ill-advised assaults on our time-
tested civil service system will undermine the quality of the 
new department's workforce-not an auspicious start to securing 
the homeland.

           good government--freedom of information act (foia)

    We have serious concerns regarding the bill's provisions 
relating to the Freedom of Information Act (FOIA). FOIA was 
designed to preserve openness and accountability in government. 
In recognition that there is a need to protect some sensitive 
information, FOIA already contains exemptions from disclosure 
for national security information (exemption 1), sensitive law 
enforcement information (exemption 7), or confidential business 
information (exemption 4). New exemptions to its provisions are 
not necessary and are a retreat from openness in government.
    H.R. 5005, however, would broaden the FOIA exemption, 
defining ``critical infrastructure'' in such broad terms that 
it would even cover corporations seeking liability protection. 
For example, an energy company could hide from the public 
information about a leak at its nuclear power plant simply by 
submitting information, unsolicited, to the DHS.
    H.R. 5005 would also preempt state disclosure laws, stating 
that information submitted under this section ``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.''
    The United States has a strong tradition of open and 
accountable government, and we must not sacrifice those basic 
principles as we secure our homeland. This provision would 
threaten that tradition and needlessly curtail the public's 
right to health and safety information. It should be removed 
from the bill.

            good government--federal advisory commission act

    We are disappointed and concerned that the majority chose 
to exempt the proposed department from the requirements of the 
Federal Advisory Committee Act (FACA). FACA is one of the 
central mechanisms to assure that advice to the government is 
balanced and made in an open manner. FACA takes that advice out 
of the backroom and into the sunshine.
    FACA requires that any committee formed to provide advice 
to the federal government, and which consists of members who 
are not federal employees, follow certain rules in order to 
promote good-government values such as openness, 
accountability, and a balance of viewpoints. Generally, FACA 
requires that such committees announce their meetings, hold 
their meetings in public, take minutes of the meetings, and 
provide the opportunity for divergent viewpoints to be 
represented.
    FACA already contains protections for sensitive 
information. It already exempts information that relates to 
national security issues or information that is classified. As 
a result, many agencies with homeland security missions, such 
as the Department of Justice, the Federal Bureau of 
Investigation, and the Department of Defense, currently operate 
under FACA without difficulty. There is an established waiver 
process, and FACA provides for closed meetings when necessary 
for national security and privacy.
    The minority offered an amendment to apply FACA to the new 
department. It was defeated on a party-line vote.

            good government--deputy secretary for management

    A reorganization of this magnitude requires strong 
management if we are to meet our homeland security goals. This 
is the largest government reorganization of our time, bringing 
in 170,000 employees from disparate agencies to work under the 
guidance of one secretary. The General Accounting Office (GAO) 
has said that the experiences of organizations undergoing 
radical change like this one show that it could be five to ten 
years before the new department becomes fully effective. That 
is too long for the American people to wait.
    In his testimony before the Select Committee on Homeland 
Security on July 17, GAO Comptroller General David Walker said, 
``it is important for Congress to give serious consideration to 
creating a deputy secretary for management/chief operating 
officer (COO) position within the department to provide the 
sustained management attention essential for addressing key 
infrastructure and stewardship issues while helping to 
facilitate the transition and transformation process.''
    We believe the Select Committee should have heeded the 
GAO's advice and elevated the undersecretary for management to 
a deputy secretary position. We believe this would make the 
transition smoother and faster so the department can place its 
entire focus on protecting our homeland. We offered such an 
amendment, but it was defeated on a party-line vote.

         complete immunity for defective anti-terrorism devices

    We are also particularly troubled that the majority has 
chosen to use the creation of the new Department of Homeland 
Security as a vehicle to institute broad changes to our tort 
laws. Under the majority's plan, knowingly shipping tainted 
anthrax vaccine to our soldiers in harm's way in Afghanistan 
would not be a cause for legal action. A soldier's widow would 
not be able to sue the company that created the vaccine even if 
it had known the product was defective.
    In what was supposed to be a bipartisan process, the 
majority presented Democratic Members one day prior to the 
markup with a new Subtitle G of Title VII, entitled the Support 
Anti-Terrorism by Fostering Effective Technologies Act (the 
SAFETY Act). This provision would protect manufacturers of 
defective anti-terrorism products from legal liability. As 
written, the SAFETY Act would bar access to state courts, 
eliminate punitive damages, cap liability, extend a form of 
immunity to sellers of potentially defective products, 
eliminate joint liability, and limit all forms of liability to 
the limits of ``reasonably priced'' insurance. Under current 
law, the heads of designated departments or agencies already 
have the discretionary power to provide contractors with 
government indemnity when there are ``unusually hazardous or 
nuclear risks.''
    In short, this provision severely restricts the ability of 
claimants to recover for their injuries and fails to provide 
for any alternative form of compensation or indemnification. 
The provision was not reported from any of the committees with 
jurisdiction over the creation of the new Department of 
Homeland Security. We offered an amendment to strike it from 
the bill, but the amendment was rejected on a party-line vote.
    In addition, the mechanism established in the SAFETY Act 
differs substantially from past attempts to limit seller 
liability in emergency circumstances. For example, the Air 
Transportation Safety and System Act, enacted after September 
11, imposed limits of liability and established an exclusively 
federal cause of action but also established an alternative 
victim's compensation fund. In another example, the Swine Flu 
Act of 1976 shielded manufacturers of the Swine Flu vaccine 
from liability, but preserved the right of victims to sue the 
federal government under the Federal Tort Claims Act. We 
believe the country, and its citizens, would be better served 
by a more judicious extension of indemnification rather than 
the blanket exemption from liability on the part of a 
manufacturer of anti-terrorism technology or services.

                         corporate expatriates

    We are deeply disappointed that the Committee did not 
include an amendment offered by Congresswoman DeLauro that 
would have prohibited the Department of Homeland Security from 
entering into contracts with so-called ``corporate 
expatriates.'' A similar provision was passed unanimously by 
the Ways and Means Committee but was removed in the chairman's 
mark.
    Corporate expatriates receive $2 billion a year in 
government procurement contracts. Their principal equity market 
is the United States and they depend on our Armed Services to 
protect their physical assets, yet they incorporate on paper in 
another country to avoid their fiduciary responsibility to 
America. Already, these companies are lining up to receive 
contracts from the DHS. The Department of Homeland Security 
should not reward these companies for putting profits over 
patriotism by awarding them new government contracts.

                          information sharing

    The events and factors that led to the terrorist attacks of 
September 11th regrettably involved failures among federal 
agencies and between the federal agencies and state and local 
authorities to share critical information related to the threat 
of terrorism. We learned as much--and much more--from FBI agent 
Colleen Rowley, who courageously testified in detail about 
shortcomings in the FBI's handling of the case of the so-called 
20th hijacker, Zacarias Moussaoui.
    The amendment presented by Rep. Menendez closely tracks, 
with minor modifications, the proposal of Reps. Chambliss and 
Harman in the Information Security Act of 2002--a bill that 
passed the House a month ago. The amendment, which failed by a 
5-4 party-line vote, would have required the President to 
prescribe and implement procedures for federal agencies to 
share information both among themselves, and between them and 
state and local governments. The amendment would ensure that 
critical threat information would be shared, thus addressing 
the key and most glaring shortcoming of our Federal Government 
leading up to the events of September 11th.

                               conclusion

    We are disappointed that the majority missed an historic 
opportunity to approve a homeland security bill worthy of the 
American people. We want a strong bipartisan bill to create a 
new Department of Homeland Security that would make the 
American people safer while respecting its workforce and 
maximizing the advances of technology.
    Unfortunately, the majority opposed initiatives to reduce 
risk and respond to terrorists' attacks. They attempted to 
postpone indefinitely the deadline for deployment of explosive 
detection devices at our nation's airports. They rejected the 
imperative of information-sharing. They defended the expatriate 
companies who have chosen profits over patriotism, rejecting an 
amendment that would have prevented these companies who avoid 
paying taxes from receiving government contracts to fight 
terrorism. They turned back the clock on civil service 
protection for workers and also voted to grant unprecedented 
liability protections for those who manufacture defective anti-
terrorism devices.
    We remain committed to a strong, effective Department of 
Homeland Security and hope that these issues and other concerns 
will be successfully addressed during consideration on the 
House floor.

                                   Nancy Pelosi.
                                   Martin Frost.
                                   Robert Menendez.
                                   Rosa L. DeLauro.

                            Dissenting Views

    In a bill to improve homeland security, the majority has 
inserted a provision that will do the exact opposite. We 
strongly object to Section 409 of the reported bill, which 
extends for one year the December 31, 2002 deadline for the 
Transportation Security Administration (TSA) to use certified 
explosive detection equipment to screen all checked baggage on 
airlines. We can think of no good reason why this provision was 
inserted. The Department of Transportation has said this 
extension is not necessary. Secretary of Transportation Mineta 
has repeatedly promised to meet the original deadline. The 
Administration did not ask for an extension.
    An extension at this time will halt the current program and 
substantially delay the installation of equipment that could be 
in place in the next few months. Screening airline baggage by 
explosive detection equipment is the only effective way to 
prevent a suicide bomber from bringing down an aircraft.
    Section 409 does not belong in this bill. This is a bill to 
create a new Department, not to change the rules governing the 
component agencies. On baggage screening, the committee of 
jurisdiction, the Transportation and Infrastructure Committee, 
is holding hearings this week on the status of TSA's 
installation of explosive detection equipment. This issue 
should be explored and dealt with by the Transportation 
Committee, the Committee with specific expertise in these 
issues.
    The December 31, 2002 deadline was imposed in the Aviation 
and Transportation Security Act that we passed last November by 
a vote of 410 to 9. In the debates on the bill, Members on both 
sides of the aisle strongly supported a deadline for 
installation of explosive detection equipment and criticized 
the Senate bill because it did not have a deadline.
    It has been suggested that delay is needed to await the 
development of new technology. In reality, none of the new 
technology currently being evaluated is likely to be certified 
in time for installation by December 31, 2003, the new deadline 
established by the Select Committee.
    We already have certified equipment that can detect 
explosives that can destroy an airplane. Awaiting even better 
technology starts us down a dangerous path. It is reminiscent 
of the Federal Aviation Administration's (FAA) failure in the 
1980s to require the installation of collision avoidance 
equipment (TCAS II), because the equipment gave only vertical 
directions for evasive action. FAA was awaiting the development 
of TCAS III, which would also give horizontal directions. While 
FAA delayed installation of the existing technology, there were 
three tragic midair collisions that could have been prevented 
by TCAS II, resulting in the loss of hundreds of lives. After 
the last of these crashes over Cerritos, California, we passed 
legislation to require the installation of TCAS II.
    It is difficult to see why the Majority has decided to 
include in a bill to enhance security a provision which will 
detract from security. The deadline was necessary to ensure the 
security of our aviation system when it passed the House 410-9, 
and it still is.

                                   Nancy Pelosi.
                                   Robert Menendez.
                                   Rosa L. DeLauro.