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108th Congress                                                   Report
 1st Session            HOUSE OF REPRESENTATIVES                 108-169
======================================================================
 
       DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS BILL, 2004

                                _______
                                

 June 23, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Rogers of Kentucky, from the Committee on Appropriations, submitted 
                             the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2555]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Department of Homeland Security for the 
fiscal year ending
September 30, 2004.

                        INDEX TO BILL AND REPORT

                                                            Page number

                                                            Bill Report
Summary of the Bill........................................
                                                                      3
TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS:                 
                                                                       
        Departmental Administration........................     2
                                                                      5
        Counterterrorism Fund..............................     3
                                                                      9
        Department-Wide Technology Investments.............     3
                                                                     10
        Office of the Inspector General....................     4
                                                                     12
TITLE II--BORDER AND TRANSPORTATION SECURITY:                    
                                                                       
        Bureau of Customs and Border Protection............     4
                                                                     13
        Automation Modernization...........................     6
                                                                     19
        Bureau of Immigration and Customs Enforcement......     7
                                                                     20
        Federal Protective Service.........................     8
                                                                     23
        Automation and Infrastructure Modernization........     9
                                                                     23
        Air and Marine Interdiction........................    10
                                                                     25
        Transportation Security Administration:
                Aviation Security..........................    11
                                                                     28
                Federal Air Marshals.......................    12
                                                                     33
                Maritime and Land Security.................    12
                                                                     34
                Intelligence...............................    13
                                                                     37
                Research and Development...................    13
                                                                     37
                Administration.............................    13
                                                                     38
        Federal Law Enforcement Training Center:
                Salaries and Expenses......................    13
                                                                     40
                Acquisition, Construction, Improvements, 
                    and Related Expenses...................    16
                                                                     41
        Office for Domestic Preparedness...................    16
                                                                     42
TITLE III--EMERGENCY PREPAREDNESS AND RESPONSE:                  
                                                                       
        Administrative and Regional Operations.............    18
                                                                     47
        Preparedness, Mitigation, Response, and Recovery...    19
                                                                     47
        Public Health Programs.............................    20
                                                                     50
        Biodefense Countermeasures.........................    20
                                                                     50
        Grant Programs.....................................    20
                                                                     51
        Emergency Food and Shelter.........................    21
                                                                     51
        Firefighter Assistance Grants......................    21
                                                                     52
        Disaster Relief....................................    22
                                                                     52
        Flood Map Modernization Fund.......................    22
                                                                     53
        National Flood Insurance Fund......................    22
                                                                     54
        Disaster Assistance Direct Loan Program Account....    23
                                                                     55
TITLE IV--OTHER DEPARTMENTAL ACTIVITIES:                         
                                                                       
        Citizenship and Immigration Services...............    24
                                                                     56
        United States Coast Guard:
                Operating Expenses.........................    24
                                                                     57
                Environmental Compliance and Restoration...    25
                                                                     61
                Reserve Training...........................    25
                                                                     62
                Acquisitions, Construction, and 
                    Improvements...........................    25
                                                                     64
                Alteration of Bridges......................    26
                                                                     65
                Research, Development, Test, and Evaluation    26
                                                                     66
                Retired Pay................................    27
                                                                     66
        Information Analysis and Infrastructure Protection.    27
                                                                     67
        Science and Technology.............................    28
                                                                     72
        United States Secret Service:
                Salaries and Expenses......................    29
                                                                     79
                Acquisition, Construction, Improvements, 
                    and Related Expenses...................    31
                                                                     81
TITLE V--GENERAL PROVISIONS:
        This Act...........................................    31
                                                                     82
        Compliance with House Rules........................   ---
                                                                     85
        Tables.............................................   ---
                                                                     93
        Summary of the Total Bill..........................   ---


    The accompanying bill contains recommendations for new 
budget (obligational) authority for fiscal year 2004 for the 
Department of Homeland Security. The following table summarizes 
these recommendations and reflects comparisons with the budget, 
and with amounts appropriated to date for fiscal year 2003:

                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Budget                           Bill compared with . . .
                                                                        New budget      estimates of                   ---------------------------------
                                                                       (obligation)         new
                           Bureau/agency                                authority      (obligational)   Recommended in     New budget         Budget
                                                                       fiscal year       authority,        the bill        authority        estimate,
                                                                     2003 enacted to    fiscal year                       fiscal year      fiscal year
                                                                           date             2004                              2003             2003
--------------------------------------------------------------------------------------------------------------------------------------------------------
Departmental Management and Operations.............................          460,136          598,118          505,611          +45,475          -92,507
Border and Transportation Security.................................       16,500,550       14,580,569       14,852,095       -1,648,455         +271,526
Emergency Preparedness and Response................................        3,373,127        4,352,296        5,100,056       +1,726,929         +747,760
Other Departmental Activities......................................        7,846,420        8,626,311        8,738,220         +891,800         +111,909
      Grand total..................................................       28,875,233       28,372,294       29,410,982         +535,749       +1,038,688
--------------------------------------------------------------------------------------------------------------------------------------------------------

              SUMMARY OF MAJOR RECOMMENDATIONS IN THE BILL

    The Committee recommends a total of $29,410,982,000 in 
discretionary resources for the Department of Homeland 
Security, an increase of $1,038,688,000 above the President's 
request, and $666,749,000 above fiscal year 2003 enacted 
levels. The Committee recommends a total of $4,446,000,000 for 
First Responders, including: $1,900,000,000 for the Office for 
Domestic Preparedness basic grant program; $500,000,000 for 
State and Local Law Enforcement Terrorism Prevention grants; 
$500,000,000 for grants to high-threat, high-density, urban 
areas; and $200,000,000 for critical infrastructure grants. The 
Committee also includes $750,000,000 for Firefighter Assistance 
Grants through the Emergency Preparedness and Response 
Directorate, as well as a total of $168,000,000 for Emergency 
Management Performance Grants.
    The Committee recommends advance appropriations of 
$5,593,000,000 for biodefense countermeasures, with a 
limitation of $890,000,000 for fiscal year 2004 obligations. 
The Committee believes that by providing these funds in an 
advance appropriation, a market place is created for those 
manufacturers who would otherwise not undertake the lengthy and 
expensive process to produce needed countermeasures as 
identified by the Secretary.
    The Committee provides a total of $5,172,000,000 for the 
Transportation Security Administration, continuing efforts to 
enhance both aviation and non-aviation security, including: 
$100,000,000 for port security grants, $335,000,000 for the 
procurement and installation of explosive detection systems; 
$50,000,000 for air cargo security, including $30,000,000 for 
state-of-the-art detection technologies; and $10,000,000 for 
intercity bus security.
    For the Bureau of Customs and Border Protection, the 
Committee provides a total of $5,081,327,000, including 
$493,727,000 for Automation Modernization, and $129,000,000 for 
continuing efforts to develop and deploy inspection 
technologies.
    For the Bureau of Immigration and Customs Enforcement, the 
Committee recommends $2,996,816,000, including $350,000,000 for 
US VISIT, and $175,000,000 for the Air and Marine Interdiction 
Program.
    The Committee recommends a total of $6,681,081,000 for the 
U.S. Coast Guard, including $1,300,000,000 for national 
security related activities, and $530,000,000 for the 
Integrated Deepwater Systems program. In addition, the 
Committee recommends $134,000,000 for Rescue 21.
    The Committee includes a total of $776,000,000 for 
Information Analysis and Infrastructure Protection, and 
$900,360,000 for Science and Technology. Included in the 
amounts for Science and Technology are $80,000,000 for the 
Rapid Prototyping Program; $35,000,000 for University and 
Fellowship Programs, including university-based centers of 
excellence; and $60,000,000 for the research, development, 
testing and evaluation of an antimissile device for commercial 
aircraft.

                 TRANSFER AND REPROGRAMMING GUIDELINES

    The Committee includes a general provision (Section 503) 
specifying conditions for the transfer and reprogramming of 
funds made available to the Department of Homeland Security. 
The Committee has also included a table at the end of this 
Report detailing the specific levels of funding which will be 
used to determine both transfer and reprogramming thresholds.
            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS

                      Departmental Administration

                         SALARIES AND EXPENSES

  
 Appropriation, fiscal year 2003.......................      $195,370,000
Budget estimate, fiscal year 2004.....................       294,000,000
Recommended in the bill...............................       221,493,000
Bill compared with:
    Appropriation, fiscal year 2003...................       +26,123,000
    Budget estimate, fiscal year 2004.................       -72,507,000
                                MISSION

    The Homeland Security Act of 2002 created the new 
Department of Homeland Security through the merger of 22 
federal agencies into this new organization. The mission of 
Departmental Administration is to provide efficient services to 
the Department of Homeland Security and to support the 
Department in its achievement of strategic goals: preventing 
terrorist attacks within the United States; reducing America's 
vulnerabilities to terrorism; and minimizing the damage and 
recovery from attacks that may occur.
    Departmental Administration will focus on department-wide 
efforts, such as national policy development and planning as 
well as be responsible for such functions as strategy, 
interagency coordination, public affairs, legislative affairs, 
information technology, legal affairs, and financial matters. 
The Departmental Administration appropriation also includes 
funding for the immediate offices of the Under Secretaries and 
associated staff in the four operating directorates (Border and 
Transportation Security, Emergency Preparedness and Response, 
Information Analysis and Infrastructure Protection, and Science 
and Technology), as well as other headquarters activities.

                             RECOMMENDATION

    The Committee recommends $221,493,000 for Departmental 
Administration. The request for a consolidated appropriation 
for the salaries and expenses of various departmental offices 
has been denied because the Committee wants to ensure adequate 
Congressional oversight and control over these expenses. The 
Committee is unable to ensure that oversight given the lack of 
supporting detail and inadequacy of the budget justifications. 
Instead, the appropriation of $221,493,000 includes specific 
funding for the salaries and expenses of various offices 
comprising the Office of the Secretary and Executive 
Management; Under Secretary for Management; and the Immediate 
Offices of the Under Secretaries for Border and Transportation 
Security, Information Analysis and Infrastructure Protection, 
Emergency Preparedness and Response, and Science and 
Technology. The following table summarizes the fiscal year 2004 
budget estimate and Committee recommendations by office:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Office of the Secretary and
 Executive Management:
    Immediate Office of the                $2,340,000         $2,340,000
     Secretary....................
    Immediate Office of the Deputy          1,207,000          1,207,000
     Secretary....................
    Security......................         20,025,000         20,025,000
    Chief of Staff................          5,283,750          5,284,000
    Executive Secretary...........          6,102,500          4,882,000
    Special Assistant to the                4,777,500          3,822,000
     Secretary/Private Sector.....
    NCR Coordinator...............            582,750            583,000
    State and Local Affairs.......          3,697,750          2,959,000
    International Affairs.........          1,384,000          1,108,000
    Public Affairs................          9,632,750          7,577,000
    Legislative Affairs...........          7,463,250          5,841,000
    General Counsel...............         10,750,500          8,601,000
    Civil Rights and Liberties....         14,885,000         11,908,000
    Immigration Ombudsman.........          1,304,000          1,304,000
    Homeland Security Advisory                767,000            767,000
     Committee....................
    Privacy.......................            767,000            767,000
Office of the Under Secretary for
 Management:
    Under Secretary for Management          1,470,800          1,177,000
    Strategic Initiatives.........          1,843,750          1,475,000
    Chief Financial Officer.......         12,175,000          9,740,000
    Procurement...................          7,133,750          5,707,000
    Human Resources...............          7,823,750          6,259,000
    Chief Information Officer.....         82,167,250         68,734,000
    Administration................         28,808,750         23,047,000
Under Secretary for Border and             10,132,250          8,106,000
 Transportation Security..........
Under Secretary for Information             5,729,750          4,584,000
 Analysis and Infrastructure
 Protection.......................
Command Center....................          5,459,200          5,460,000
Under Secretary for Emergency               4,115,500          3,293,000
 Preparedness and Response........
Under Secretary for Science and             6,170,000          4,936,000
 Technology.......................
Headquarters building.............         30,000,000  .................
                                   -------------------------------------
      Total.......................       $294,000,000       $221,493,000
------------------------------------------------------------------------

    The Committee recognizes the many difficulties the 
Department of Homeland Security (DHS) has faced in staffing a 
new Department and recognizes that this will take time. In 
particular, the Committee is aware of the unique challenges DHS 
faces in hiring homeland security, intelligence, and 
information technology experts at a time when many other 
federal agencies and the private sector are also seeking 
personnel with these same skills. As a result, many offices 
within the Department are not fully staffed. The Committee has 
made reductions to the budget request for those offices that 
have less than half of their estimated personnel onboard 
recognizing that they will not need full year funding for all 
planned positions or travel expenses in fiscal year 2004. 
However, the recommended level assumes full funding for all 
onboard staff and operational requirements in fiscal year 2004. 
If there is a discrepancy, the Committee will consider a 
reprogramming request.
    The Committee directs the Department to submit the fiscal 
year 2005 Congressional justification materials for the 
salaries and expenses of the Office of the Secretary and 
Executive Management, Under Secretary for Management, and the 
Immediate Offices of the Under Secretaries for Border and 
Transportation Security, Information Analysis and 
Infrastructure Protection, Emergency Preparedness and Response, 
and Science and Technology at the same level of detail as 
presented in the table above.

                            TRAVEL EXPENSES

    Within the funding provided for the Office of Public 
Affairs and Office of Legislative Affairs, no more than 
$100,000 shall be allocated for travel expenses in fiscal year 
2004 unless additional expenses are fully justified. The 
Committee cannot support $860,000 in travel expenses for the 
Office of Public Affairs or $735,000 for the Office of 
Legislative Affairs. This funding level is well above what the 
Immediate Office of the Secretary has requested or received.

    DETECTION AND MONITORING DEVICES FOR WEAPONS OF MASS DESTRUCTION

    The Committee is aware that a number of different agencies 
within the Department are testing and investing in a variety of 
radiation, chemical, biological, and high-explosives detection 
and inspection technologies, and integrating such technologies 
into their operations and programs. It is imperative that the 
Secretary use the Science and Technology Directorate to 
centrally coordinate these efforts across all the agencies 
within the Department. The advantages of this are clear; as 
many other agencies (Bureau of Customs and Border Protection, 
Transportation Security Administration, Coast Guard, and the 
Secret Service) pursue similar ventures, coordination will 
ensure that maximum benefits can be derived from the diverse 
work going on within the homeland security community. In 
addition, the Committee expects each agency, on an ongoing 
basis, to actively share information about its plans and 
experiences about such technology programs with its 
counterparts at other agencies, as well as with the Office of 
the Secretary.

                       COMMAND OPERATIONS CENTER

    The Committee recommends $20,000,000 for the Command 
Operations Center. This center is a command and control 
facility that operates 24 hours-per-day, 7 days-per-week 
monitoring situations worldwide that may impact homeland 
security. Funding for this center is divided between the 
Information Analysis and Infrastructure Protection Directorate 
($5,460,000) and the Chief Information Officer ($14,540,000).

                         HEADQUARTERS BUILDING

    The Department requested $30,000,000 for the design and 
acquisition of a site suitable for construction of a permanent 
headquarters. The Committee has denied this request for a 
variety of reasons. The Committee is aware that a number of 
alternatives are under consideration for a new headquarters 
facility, including renovations to existing space at the 
Nebraska Avenue Complex and/or the acquisition of alternative 
space in the Washington, D.C. metropolitan area. Given the 
status of these discussions, there is limited information 
available on how the $30,000,000 would be obligated, including 
information regarding costs of alternative sites. The Committee 
further believes that the General Services Administration (GSA) 
should be the lead agency as it relates to all DHS headquarters 
construction-related activities, and directs DHS to work with 
GSA on these efforts. The Committee is also concerned that that 
Department may be proceeding in advance of required 
authorizations, and includes a general provision (Section 519) 
that prohibits the use of funds in this Act for the expenses of 
any construction, repair, alteration, and acquisition project 
for which a prospectus, if required by the Public Buildings Act 
of 1959, has not been approved. Funds are included as part of 
the Salaries and Expenses appropriation for necessary expenses 
associated with the review of alternatives, as well as the 
development of a prospectus, if required.

                  CONGRESSIONAL BUDGET JUSTIFICATIONS

    While the Committee recognizes that the majority of the 22 
federal agencies did not transfer into DHS until March 1, 2003, 
and developing detailed budget justifications for the merger 
and consolidation of these agencies was particularly 
challenging, the Committee expects that delays in the 
submission of detailed budget justifications will not occur 
next year. The Committee directs the Department to submit all 
of its fiscal year 2005 budget justifications on the first 
Monday in February, concurrent with official submission of the 
President's budget to Congress. These justifications should 
have the customary level of detailed data and explanatory 
statements to support the appropriations requests, including 
tables that detail each agencies' programs, projects, and 
activities for fiscal years 2004 and 2005. The budget 
justifications must also include a table identifying the last 
year that authorizing legislation was provided by Congress for 
each program; project, or activity; the amount of that 
authorization; and the appropriation in the last year of 
authorization.

                     MONTHLY REPORTING REQUIREMENT

    The Department is directed to submit to the Committee a 
monthly budget execution report showing the status of 
obligations and costs for all components of the Department. The 
report should include the total obligational authority 
appropriated (new budget authority plus unobligated carryover), 
undistributed obligational authority, amount allotted, current 
year obligations, unobligated authority, beginning unexpended 
obligations, costs year to date, and ending unexpended 
obligations. This budget execution information is to be 
provided at the level of detail shown in the tables displayed 
in the House report for each Departmental component. The first 
report is due January 2004, showing data through December 2003, 
and monthly thereafter.

                  PROTECTION OF CLASSIFIED INFORMATION

    Federal requirements for storage of classified information 
and materials mandate that GSA-approved containers be secured 
with locks that meet or exceed federal specification FF-L-2740-
A. The Committee is concerned that many containers used for 
storage of sensitive information do not provide this required 
level of security. The Secretary of Homeland Security is 
directed to identify the number of containers under the control 
of, or accessible by, federal employees and contractors in the 
Department that are not in compliance with the federal 
specification. The results of this survey are to be submitted 
to the Committee no later than August 15, 2003.

                            REGIONAL OFFICES

    The Committee is aware that DHS is evaluating the need for 
and location of DHS regional offices. The Committee directs DHS 
to submit a report by August 31, 2003 on the locations being 
considered for regional offices and the factors being analyzed 
to make such decisions, including costs. The report should also 
discuss how the proposed regional structure would affect all 
DHS' agencies current structures, including those of the Coast 
Guard. The Committee directs the Department to notify the 
Committee three days prior to any final announcement on DHS 
regional office locations.

           OFFICE FOR STATE AND LOCAL GOVERNMENT COORDINATION

    The Committee believes that the strong participation of 
local governments, including those of midsize and rural 
communities and counties and multi-county regional 
cooperatives, is essential to the development of sound homeland 
security plans within each State. Therefore, the Committee 
directs the Department, through the Office for State and Local 
Government Coordination, to formalize a process for States to 
incorporate local governments, including those of midsize and 
rural communities and counties and multi-county regional 
cooperatives, in the development and review of State homeland 
security plans, and to submit a report on the implementation no 
later than October 1, 2003.

                         Counterterrorism Fund


  
 Appropriation, fiscal year 2003.......................      $159,935,000
Budget estimate, fiscal year 2004.....................        40,000,000
Recommended in the bill...............................        20,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................      -139,935,000
    Budget estimate, fiscal year 2004.................       -20,000,000
                                MISSION

    This appropriation provides funding for unbudgeted and 
unanticipated costs associated with support to counter, 
investigate, or pursue domestic or international terrorism, and 
to re-establish the operational capability of an office, 
facility, or other property damaged or destroyed as a 
consequence of any domestic or international terrorist act. 
Funds may be used for reward payments for information to assist 
in the pursuit of suspects or networks that support and foster 
terrorist activity. Funding may also be used to pay the costs 
for officially designated National Special Security Events. 
These funds are available to the extent that prior notification 
is given to the Committees on Appropriations in accordance with 
guidelines on reprogramming and transfer of funds.

                             RECOMMENDATION

    The Committee recommends an appropriation of $20,000,000 
for the Counterterrorism Fund, a reduction of $20,000,000 from 
the budget request. The Committee understands that there is a 
sizeable balance available to this Fund from prior year 
appropriations.

                 Department-Wide Technology Investments


  
 Appropriation, fiscal year 2003.......................       $63,321,000
Budget estimate, fiscal year 2004.....................       206,000,000
Recommended in the bill...............................       206,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +142,679,000
    Budget estimate, fiscal year 2004.................  ................
                                MISSION

    This appropriation provides funding for department-wide 
investments in information technology and wireless 
communications technology. These investments will enable the 
Department to establish priorities for information technology 
integration, modernize high-priority business processes, and 
increase efficiency through technological improvements. In 
addition, funding is provided for conversion of wireless radio 
communications to narrowband operations while continuing to 
support existing legacy land mobile radio systems.

                             RECOMMENDATION

    The Committee recommends $206,000,000 for Department-wide 
Technology Investments, the same as the budget request. 
Statutory language has been included prohibiting the use of 
funds in this account to support or supplement the 
appropriations for the U.S. Visitor and Immigrant Status 
Indicator Technology (US VISIT) and the Automated Commercial 
Environment (ACE) programs.

                         REPORTING REQUIREMENT

    The Committee directs the Department to provide to the 
Committee by December 15, 2003, a detailed program plan 
describing the scope, total estimated cost, cost by year, and 
the schedule for completion, including significant milestones, 
for each individual project funded in the information 
technology services, security activities, and wireless 
programs.

                        WATCH LIST CONSOLIDATION

    The Committee is concerned that there are still several 
individual terrorist and criminal watch list systems being 
maintained within the Department and expects the Department to 
proceed expeditiously to consolidate and standardize these 
lists. The Department is to provide to the Committee, by 
October 15, 2003, a detailed program plan for consolidating all 
the watch lists in the Department during fiscal year 2004. The 
program plan should include the total estimated cost, the scope 
of the project, and the schedule for completion, including 
significant milestones. The plan should also identify those 
watch lists maintained by other federal agencies that are not 
part of the consolidated Department of Homeland Security watch 
list and explain why those lists are not included.

                           RECORDS MANAGEMENT

    The Committee directs the Department to conduct a 
department-wide inventory of existing records and information 
and review the need for the capability to convert critical 
records and information to digital format and online storage. 
The results of this review should be conveyed to the Committee 
as soon as available, but no later than March 15, 2004.

                        COMMUNICATIONS SECURITY

    Many parts of the Department have already implemented 
Public Key Infrastructure programs that are designed to support 
secure communications against internal and external threats. 
The Committee directs the Department's Chief Information 
Officer to evaluate whether these programs should be expanded 
throughout the Department and report the findings to the 
Committee on Appropriations.

                    INFORMATION TECHNOLOGY SERVICES

    Funding of $72,506,000, a reduction of $2,494,000 from the 
budget request of $75,000,000, is provided for information 
technology services. A major function of this program is to 
design and help implement a Department enterprise architecture 
that will guide investment in and use of information technology 
across the Department. Other activities include improving 
department-wide collaboration capabilities; optimizing and 
integrating management systems such as financial and human 
resources systems; and implementing e-learning capabilities for 
Departmental components. Funding of $2,494,000 has been 
transferred to the salaries and expenses program.

                          SECURITY ACTIVITIES

    Funding of $31,000,000, the same as the budget request, is 
provided for additional security activities, including the 
integration of the federal watch lists, and support to the 
Homeland Security Information Technology and Evaluation program 
that will work to improve homeland security-related information 
sharing across the federal government, as well as with state 
and local governments and the private sector.

                            WIRELESS PROGRAM

    Funding of $100,000,000, the same as the budget request, is 
provided for the wireless program for conversion of wireless 
radio communications to narrowband operations as required by 47 
U.S.C. 903(d)(1). Resources will be allocated to invest in new 
narrowband infrastructure and subscriber equipment while 
continuing to support existing legacy land mobile radio systems 
along the nation's borders.
    The Department is to report to the Committee, by December 
15, 2003, describing how the federal wireless program will 
operate with the state and local wireless communication systems 
that are being implemented concurrently. Since a large share of 
the nation's communications infrastructure is owned and 
operated at the state and local levels, the federal program 
must ensure that it is compatible with the proposed state and 
local upgrades, where appropriate.

                         SALARIES AND EXPENSES

    The Committee recommends $2,494,000 for salaries and 
associated expenses for the federal employees funded in the 
Department-wide Technology Investments program. The budget 
request incorporated funds for salaries and expenses within 
each program area, but the Committee prefers to maintain a 
separate account for these expenses. These funds will be used 
to support 15 full-time federal employees.

                    Office of the Inspector General


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

  
 Appropriation, fiscal year 2003.......................       $62,947,000
Budget estimate, fiscal year 2004 \1\.................        80,118,000
Recommended in the bill \1\...........................        80,118,000
Bill compared with:
    Appropriation, fiscal year 2003...................       +17,171,000
    Budget estimate, fiscal year 2004.................  ................
 \1\ Including $22,000,000 to be derived by transfer from the Emergency
  Preparedness and Response Disaster Relief Fund.

                                MISSION

    The Homeland Security Act of 2002 established an Office of 
the Inspector General in the Department of Homeland Security by 
amendment to the Inspector General Act of 1978. This office was 
established to provide an objective and independent 
organization that would be more effective in: (1) preventing 
and detecting fraud, waste, and abuse in departmental programs 
and operations; (2) providing a means of keeping the Secretary 
of Homeland Security and the Congress fully and currently 
informed of problems and deficiencies in the administration of 
programs and operations; (3) fulfilling statutory 
responsibilities for the annual audit of the Department's 
financial statements and to ensure security of its information 
technology pursuant to the Federal Information Security 
Management Act; and (4) reviewing and making recommendations 
regarding existing and proposed legislation and regulations to 
the Department's programs and operations. According to the 
authorizing legislation, the Inspector General is to report 
dually to the Secretary of Homeland Security and to the 
Congress.

                             RECOMMENDATION

    The Committee recommendation provides a total of 
$80,118,000 for activities of the Office of the Inspector 
General (IG), the same level as the budget request. Of this 
total, $22,000,000 shall be derived by transfer from the 
Emergency Preparedness and Response Disaster Relief Fund. This 
funding will be used to support 457 full-time employees.

                    INTERNAL AFFAIRS INVESTIGATIONS

    It is the Committee's intent that the IG serve as the 
primary entity within the Department for investigating, as to 
employees, contractors, and grantees, all criminal allegations 
of waste, fraud, abuse and mismanagement; allegations of 
misconduct against all political appointees, personnel at the 
level of GS-15 and above; and any allegations that indicate 
systemic problems in the Department or otherwise affect public 
health or safety. The IG's statutory independence, and its dual 
reporting responsibilities to the Department and to the 
Congress, make it ideally situated to address such matters. All 
employees must have immediate, direct, and unfettered access to 
the IG to report allegations without fear of retribution.
    The Department's numerous internal affairs offices can play 
a useful adjunct role to the IG. By handling less serious 
investigative matters of an administrative nature, these 
internal affairs offices can enable the IG to leverage its 
resources, provided these offices cooperate fully with the IG 
and regularly report their activities to the IG.

                             AUDIT REPORTS

    The Committee requests that the Inspector General forward 
copies of all audit reports to the Committee immediately after 
they are issued, and immediately make the Committee aware of 
any review that recommends cancellation of, or modification to, 
any major acquisition project or grant, or which recommends 
significant budgetary savings. The IG is also directed to 
withhold from public distribution for a period of 15 days any 
final audit or investigation report, which was requested by the 
House Committee on Appropriations.

           TITLE II--BORDER AND TRANSPORTATION SECURITY (BTS)


                     CUSTOMS AND BORDER PROTECTION


                Bureau of Customs and Border Protection


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

  
 Appropriation, fiscal year 2003.......................    $4,804,087,000
Budget estimate, fiscal year 2004.....................     5,647,000,000
Recommended in the bill...............................     4,587,600,000
Bill compared with:
  Appropriation, fiscal year 2003.....................      -216,487,000
  Budget estimate, fiscal year 2004...................    -1,059,400,000
                                MISSION

    The mission of the Bureau of Customs and Border Protection 
(CBP) is to protect the borders of the United States by 
preventing, preempting and deterring threats through ports of 
entry, and to interdict illegal crossing between ports of 
entry. The Bureau consolidates the inspection, trade, and 
revenue functions of the U.S. Customs Service, the inspection, 
Border Patrol, intelligence and related functions of the 
Immigration and Naturalization Service, and the inspection 
functions of the Agriculture Quarantine and Inspection program, 
formerly part of the Animal and Plant Health Inspection 
Service. To accomplish its missions, CBP has a workforce of 
over 40,000, including inspectors, canine enforcement officers, 
Border Patrol agents, trade specialists, and mission support 
staff. The integration of homeland security, safety, and border 
management is aimed at ensuring that all goods and persons 
crossing U.S. borders do so in accordance with all United 
States laws and regulations, and pose no threat to the United 
States.

                             RECOMMENDATION

    The Committee recommends an appropriation of $4,587,600,000 
for the salaries and expenses of the Bureau of Customs and 
Border Protection (CBP), including $3,000,000 for the 
collection of the Harbor Maintenance Fee. This represents a 
decrease of $1,059,400,000 below the President's request and 
reflects a realignment of funding carried in the request into 
three stand-alone appropriations: Automation Modernization, 
which includes information technology initiatives of the 
Bureau, particularly the Automated Commercial Environment; Air 
and Marine Interdiction; and Automation and Infrastructure 
Modernization, which includes information technology 
initiatives of the Bureau of Immigration and Customs 
Enforcement primarily related to the US VISIT system. This 
realignment is necessary to identify resources and programs 
obscured within a monolithic CBP account.
    These realignments would reduce the Salaries and Expenses 
appropriation by $1,113,018,000. Otherwise, the recommendation 
fully funds the President's request for the Bureau. The 
Committee also adds $17,884,000 to fully fund 2003 pay 
adjustments; $21,000,000 to partially offset unspecified 
reductions in base funding; $4,750,000 to fund textile 
transshipment enforcement as authorized by Section 352 of the 
Trade Act of 2002; and $10,000,000 for additional non-intrusive 
inspection technology to address unfunded requirements such as 
pallet inspection.

              SUPPLY CHAIN SECURITY AND CONTAINER SECURITY

    The Committee gives high priority to preserving the 
security of the lines of international trade and commerce on 
which the U.S. and its economy depend, but recognizes that 
trade and seaport operations are complex mechanisms, sensitive 
to international actions and processes over which the U.S. 
often has no direct control. It therefore funds the request for 
two critical CBP efforts to ``push out'' the borders and 
increase the perimeter of security: (1) $12,100,000 for the 
Customs-Trade Partnership Against Terrorism (C-TPAT), which 
involves working with members of trade and industry to 
establish and certify security within their own operations and 
facilities: and (2) $61,754,000 to continue and expand the 
Container Security Initiative (CSI).
    CSI was initiated in January 2002 to pre-screen cargo 
containers at ports of origin or transit rather than wait for 
these goods to arrive in our ports for inspection. It consists 
of four core elements: (1) establishing security criteria to 
identify high-risk containers; (2) pre-screening containers 
before they arrive at U.S. ports; (3) using technology to pre-
screen high-risk containers; and (4) developing and using smart 
and secure containers. The fundamental objective of the CSI is 
to join with seaports that send the highest volumes of 
container traffic into the United States to facilitate 
detection of potential problems at the earliest possible 
opportunity. CBP has established CSI programs at 19 of these 
ports, and inspectors are currently based at 7 of them. When 
combined with the $60,300,000 previously provided for this 
initiative, the funding in the bill will move the program to 
phase two, to a total of 30 mega-ports and strategically 
important ports worldwide. These will include ports in the 
Middle East and other strategic locations; such as Dubai, which 
could become the first CSI port in the Arab world; ports in 
Turkey, Malaysia, and Sri Lanka, South Africa, Latin America, 
and additional European ports.

       ENFORCEMENT OF U.S. TRADE LAWS PERTAINING TO STEEL IMPORTS

    The Committee continues to support CBP enforcement of U.S. 
trade laws, to include the President's March 2002 steel 201 
proclamation and related antidumping and countervailing duty 
orders. The fiscal year 2003 appropriation provided $1,250,000 
to remain available until October 2004 for this purpose, and 
required a report to be provided by April 20, 2003, to describe 
steps taken to improve training for steel tariff implementation 
and to enhance enforcement. The report was also to include data 
on types and value of illegal imports seized and penalties 
imposed. The Committee strongly urges the Department to 
complete and submit the report as soon as possible.

                UNIFORMITY OF CUSTOMS RULINGS AND POLICY

    The Committee understands that in the reorganization of CBP 
and the Department there will be some adjustment between 
autonomy of field directors and the need to have a clear 
national policy. When it comes to rulings on trade and customs 
matters, or administrative actions that might establish de 
facto policy on the processing of imports and exports, industry 
and commerce expect that decision making will be standardized 
and represent national policy, and not vary by locale. The 
potential for individuals or businesses to feel pressure to 
``shop'' between ports in order to avoid disadvantageous 
rulings or treatments is too great. The Committee strongly 
urges CBP to establish a formal process and communications 
mechanism to prevent any perceptions that policy may vary 
between ports or field offices.

 NON-INTRUSIVE INSPECTION TECHNOLOGY AND RADIATION DETECTION TECHNOLOGY

    The Committee is convinced of the need to deploy non-
intrusive inspection technology and radiation detection 
technology, and provided additional resources in the Wartime 
Supplemental to accelerate the implementation of these 
technologies. The Committee includes $10,000,000 in addition to 
the base request of $119,000,000 for inspection technologies. 
The Committee directs CBP to submit a revised non-intrusive 
inspection technology plan for acquisition and deployment of 
this technology before releasing any funding for such 
technology, but in no case later than November 1, 2003.
    As CBP proceeds to invest in radiation detection and 
inspection technology, and integrates such technology into its 
operations and programs, it is imperative that it coordinates 
efforts with other agencies within the Department. The 
advantages of this are clear; as many other agencies (TSA, 
Coast Guard, Secret Service) pursue similar ventures, 
coordination will ensure that maximum benefits can be derived 
from the diverse work going on within the homeland security 
community. Such coordination should also be a central function 
of the Department. To facilitate this, the Committee directs 
CBP to actively, and on an ongoing basis, share information 
about its plans and experiences with such technology programs 
with its counterparts at other agencies, as well as with the 
Office of the Secretary, in particular the Chief Information 
Officer.

                          SHARED BORDER ACCORD

    As a result of the Shared Border Accord between the U.S. 
and Canada, there are numerous activities underway or planned 
to meet the 30 action items included in the Accord. These 
include the Fast and Secure Trade (FAST) initiative to address 
cross-border commercial shipments, improved assessment and 
targeting of in-transit cargo, sharing of data between the U.S. 
and Canadian governments, and rail security. The Committee 
understands that 15 importers, 240 carriers, and 4,417 drivers 
at five ports are using the FAST program thus far. In fiscal 
year 2004, CBP plans to add additional Northern Border ports to 
the program, as well as to expand the FAST program to the 
Southern Border.
    Programs such as NEXUS and NEXUS Air help facilitate 
movement of passengers by identifying regular, low-risk 
travelers. Air preclearance operations are in place at seven 
Canadian airports, and consideration is being given to 
additional overseas Immigration Control Officers. The Committee 
understands that approximately 43,300 individuals are currently 
enrolled in the six NEXUS locations, and that an additional six 
sites will be operational in fiscal year 2004.
    One initiative of great interest to the Committee is the 
potential to reduce security risks and speed up processing at 
border bottlenecks through fiscal year the use of ``Integrated 
Border Inspection Areas''. The fiscal year 2003 Omnibus 
Appropriation authorized efforts to explore and establish such 
facilities. The Committee understands that various approaches 
are being considered, and that each border crossing and port of 
entry will have unique logistical, physical, and operational 
needs--so that there is no easy or unique solution to this 
issue. Nevertheless, the Committee urges CBP and the Department 
to work closely with the Canadian government and the State 
Department to pursue creative ways to address the longstanding 
issues of delays and security at key chokepoints along the 
Northern Border.

                            BORDER STAFFING

    The Committee is strongly supportive of providing adequate 
staffing for the nation's ports and borders, and has provided 
significant funding in the past two regular appropriations for 
the Northern and Southern Border, as well as an additional 
$60,000,000 for staffing on Northern Borders and seaports in 
the recent Wartime Supplemental. The Committee approves the 
Administration proposals to add inspectors in conjunction with 
increased deployment of non-intrusive inspection systems, the 
Customs-Trade Partnership Against Terrorism, for additional 
agriculture inspectors, and to expand the numbers of canine 
enforcement officers.
    Given the need to absorb these increases, to consolidate 
personnel from the three agencies joining CBP, and to adjust 
for the movement of staff and functions to the Bureau of 
Immigration and Customs Enforcement, the Committee does not 
recommend specific staffing increases over the President's 
request at this time. However, it strongly urges CBP to finish 
any outstanding organizational plans and to move as rapidly as 
possible in recruiting, training and deploying new inspectors, 
canine officers, Border Patrol agents, and other positions to 
these ports and border areas. The Committee directs CBP to 
provide an updated staffing plan, reflecting its actual on 
board staffing for fiscal year 2003, and projected staffing for 
fiscal year 2004, at all ports of entry and border areas, not 
later than December 1, 2003.

                         RECRUITMENT AND HIRING

    The Department has told the Committee that training centers 
inherited by CBP, particularly the National Hiring Center and 
Customs Quality Recruitment Center, have excellent programs for 
hiring entry level officers. The Committee supports continued 
use of these Centers and directs CBP to report to the Committee 
on whether any changes or expansion of operations are required 
to meet increased CBP or BTS-wide hiring needs.

                                 SENTRI

    The Committee supports the Secure Electronic Network for 
Travelers Rapid Inspection (SENTRI) system, which has operated 
since 1995 at selected Southwest Border ports of entry. SENTRI 
participants must first undergo background and vehicle checks. 
With dedicated commuter lanes and an automated system, SENTRI--
which now serves more than 42,000 motorists--helps ensure 
border security while expediting the movement of legitimate 
traffic and commerce. The Committee understands that backlog in 
SENTRI applications caused by increased demand following the 
September 11 attacks has been significantly reduced by the 
decision to extend enrollment and participation from one to two 
years. The Committee urges CBP to continue efforts to reduce 
the backlog of prospective applicants, and to consider creation 
of pre-inspection, low-risk traveler dedicated commuter lanes 
for pedestrian crossers.

                      AIRPORT INSPECTION STAFFING

    The Committee remains interested in the expeditious 
processing by CBP of arriving international passengers at 
Washington Dulles International Airport.
    Therefore, the Committee directs the Secretary to report on 
a quarterly basis beginning November 1, 2003 on the number of 
inspectors operating the passenger service lanes at Washington 
Dulles International Airport. This report should detail the 
number of inspectors lost and the number of new inspectors 
reporting, as well as the Bureau's plan to expedite the 
processing of international passengers during peak hours.

                          INTERIOR CHECKPOINTS

    The Committee continues bill language making no funds 
available for construction of any permanent Border Patrol 
checkpoint in the Tucson sector, and prohibiting any checkpoint 
in that sector from operating at any one location for more than 
seven consecutive days in any two week period.

            FORWARD DEPLOYMENT OF BORDER PATROL HELICOPTERS

    The Committee directs the Tucson Sector Border Patrol to 
continue to forward deploy its air assets by expanding its air 
operation facility in Sierra Vista, Arizona.

             REIMBURSEMENT FOR EMERGENCY ALIEN MEDICAL CARE

    The 2003 Omnibus Appropriations Act conferees directed the 
INS to provide reimbursement to hospitals in Arizona for 
emergency services to illegal immigrants injured as a result of 
interaction with the Border Patrol, subject to authority in 
sections 562 and 563 of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 (IIRIRA). It also directed 
the INS, in coordination with the Department of Health and 
Human Services, to report by July 1, 2003, with recommendations 
to address this issue. The Committee recognizes the problem 
faced by the States and local governments in providing such 
emergency health care, often at financially strapped 
facilities, with little or no chance of reimbursement. The 
Committee expects the forthcoming July 1 report to detail the 
steps DHS has taken to satisfy the conference report direction, 
and its policy for handling the need for medical treatment for 
illegal aliens in fiscal year 2004.

                          VIGILANTE OPERATIONS

    The Committee is concerned about vigilante operations 
against migrants along the Southwestern border, and in 
particular how such activity may interfere with CBP's mission. 
The Committee supports CBP and Border Patrol outreach 
activities to improve communications with local communities, 
thus enabling citizens to report illegal activity, and thereby 
prevent violations of migrant civil rights. The Committee 
encourages CBP to continue its proactive liaison with border 
communities, in conjunction with increased control levels and 
resources needed to patrol the border effectively, so as to 
prevent vigilantes from finding unsecured areas or sympathetic 
land owners' property to patrol.

                  LABORATORIES AND SCIENTIFIC SERVICES

    The Bureau of Customs and Border Protection laboratories 
conduct forensic and product analysis, including determining 
country of origin of agricultural goods and products. The 
Committee is aware that such analysis has resulted in findings 
of illegal transshipment and dumping of products, and that more 
resources are needed to satisfy demand for investigation of at 
least a dozen products for which country of origin analysis is 
required. It also understands that such analysis both deters 
illegal trade and generates significant antidumping duties, 
although a lack of staff and resources may have prevented the 
assessment of even larger penalties. The Committee directs CBP 
to provide the staffing and resources needed, including 
specialized laboratory equipment and collection and maintenance 
of product reference samples, to the extent such resources can 
be made available without detracting from CBP's ongoing 
homeland security mission.

                       OFFSETTING FEE COLLECTIONS

    The President's request assumes that CBP will receive over 
$800,000,000 from user fees, examinations fees, land border 
inspection fees, enforcement fines, and COBRA fees. Over 
$500,000,000 of this is derived from the Immigration User Fee 
Account to cover base activities. The Committee is concerned by 
recent estimates of shortfalls in collections of the User Fee, 
which is delaying the ability of CBP to hire inspectors 
authorized in the fiscal year 2003 Omnibus Appropriation. In 
addition, the COBRA passenger fee collections are not only 
reduced because of lower travel volume, but must be 
reauthorized for fiscal year 2004 if they are to be available 
for offsetting CBP expenses at airports and to handle 
inspectional workload for cruise ships. Because of the 
uncertainty about the level and timing of collections, the 
Committee does not propose any additional funding within this 
fee account. The Committee directs CBP to ensure that fee 
revenues are used to fully fund base operations and 
adjustments, as presented in the justification materials 
presented to Congress, before undertaking any further 
initiatives. The Committee also directs CBP and DHS to inform 
the Committee in a timely manner of potential short term 
operational or program impacts from reduced fee collections.

                        Automation Modernization


  
 Appropriation, fiscal year 2003.......................      $432,502,000
Budget estimate, fiscal year 2004.....................  ................
Recommended in the bill...............................       493,727,000
Bill compared with:                                     ................
    Appropriation, fiscal year 2003...................       +61,225,000
    Budget estimate, fiscal year 2004.................      +493,727,000
                                MISSION

    The Automation Modernization Account includes funding for 
major information technology projects for the Bureau of Customs 
and Border Protection. Projects included in this request are 
the planned Automated Commercial Environment (ACE) system, 
continued support and transition of the legacy Automated 
Commercial System (ACS), and technology associated with 
integration and connectivity of information technology within 
CBP and the Department.

                             RECOMMENDATION

    The Committee recommends an appropriation of $493,727,000 
for Automation Modernization. This fully funds the President's 
request, and realigns funding that was requested in the CBP 
Salaries and Expenses account. The recommendation includes 
$312,900,000 in base funding for ACE; an increase of $5,790,000 
for the International Trade Data System (ITDS) development and 
implementation; $22,395,000 for the ATLAS connectivity project; 
and $30,210,000 for the homeland security information 
technology transformation and transition reserve.

                 AUTOMATED COMMERCIAL ENVIRONMENT (ACE)

    The Committee continues to support completion and 
deployment of ACE capability as quickly as feasible and 
compatible with ensuring the optimal quality and cost 
effectiveness. Now that ACE is being developed in the context 
of the Department of Homeland Security, the Committee is 
particularly interested in seeing what implications the system 
can have for integrating and supporting common systems, 
interoperability and functionality within the Department. ACE 
may become the linchpin of border information systems, linking 
the Department of Homeland Security, the private commercial 
sector, the Federal Motor Carrier Safety Administration 
(Transportation), and the Center for Food Safety and Applied 
Nutrition. Furthermore, agencies participating in the 
International Trade Data System, a feature of ACE, represent 
eleven cabinet departments and numerous independent agencies. 
The Committee strongly supports the ACE program, and in order 
to ensure that it is kept fully informed of developments in the 
project, directs CBP to provide quarterly reports on progress 
in meeting ACE implementation schedules.

                  IMMIGRATION AND CUSTOMS ENFORCEMENT


             Bureau of Immigration and Customs Enforcement


                         SALARIES AND EXPENSES

  
 Appropriation, fiscal year 2003.......................    $1,855,431,000
Budget estimate, fiscal year 2004.....................     2,063,000,000
Recommended in the bill...............................     2,030,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +174,569,000
    Budget estimate, fiscal year 2004.................       -33,000,000
                                MISSION

    The Bureau of Immigration and Customs Enforcement (ICE) was 
created by joining the investigative, intelligence and 
interdiction capabilities of the Customs Service and the 
Immigration and Naturalization Service along with the 
protective functions of the Federal Protective Service. ICE has 
the lead responsibility in the federal government for enforcing 
immigration and customs laws in the United States, as well as 
investigation into fraud, forced labor, trade agreement 
noncompliance, moneylaundering, smuggling and illegal 
transshipment, export control enforcement, vehicle and cargo 
theft. Enforcement includes the expeditious detention and 
removal of deportable or inadmissible aliens, interdiction of 
smuggled contraband, detection of violations of laws, strategic 
and tactical intelligence and communications. With almost 
14,000 employees, ICE has the second-largest number of criminal 
investigators in the federal government following the FBI. The 
capabilities of ICE to carry out a wide range of homeland 
security and other investigative and enforcement missions, and 
its strong connection to the border enforcement and management 
operations of the Bureau of Customs and Border Protection, help 
ensure a seamless approach to enforcing border security and 
safety.

                             RECOMMENDATION

    The Committee recommends an appropriation of 
$2,030,000,000, $33,000,000 below the President's request. As 
it did for CBP, the Committee recommends realignment of some 
funding. Specifically, funding for the Air and Marine 
Interdiction activities are provided as a separate account, and 
a new account, Automation and Infrastructure Modernization, is 
created for funding the US VISIT system, and similar major 
information technology and infrastructure investments. Included 
in that account are $35,700,000 requested for US VISIT, and 
$17,605,000 requested for the ATLAS information technology 
connectivity project. In addition, the Committee includes 
increases of $8,306,000 to fully fund fiscal year 2003 pay 
adjustments, $4,750,000 to fund textile transshipment 
enforcement authorized in the Trade Act of 2002, and $7,249,000 
to restore unspecified reductions in base funding.

             INTELLECTUAL PROPERTY RIGHTS (IPR) ENFORCEMENT

    The Committee strongly concurs with views expressed by the 
Commissioner for Customs and Border Protection that 
intellectual property theft ``saps the creativity that America 
is built on.'' Whether the theft is of software or takes the 
form of counterfeit or pirated products, the impact on the U.S. 
economy is substantial. According to DHS, U.S. business loses 
around $200-250 billion per year to counterfeiting of products. 
The Committee applauds the efforts of the former Customs 
Service in pursuing such violations, and strongly urges the 
Department and the Bureaus of ICE and CBP to continue and 
strengthen their IPR enforcement and deterrent efforts. In 
addition to its cost to commerce and private industry, there is 
compelling evidence that business in pirated or counterfeit 
products is being used to fund and support terrorist groups. In 
order to determine how the Department is moving to address this 
issue, the Committee directs the Under Secretary for Border and 
Transportation Security to report, not later than September 1, 
2003, on the number of personnel exclusively assigned to IPR 
enforcement; their deployment; and information about numbers 
and value of seizures. The report should also include a 5-year 
plan showing budget, personnel and milestones associated with 
this effort at both CBP and ICE.

                            ASSET FORFEITURE

    The Committee believes that a vigorous and well managed 
asset forfeiture program is an essential part of law 
enforcement and homeland security operations. The Committee 
recognizes that a number of entities within DHS have 
participated in the past in forfeiture funds operated by the 
Department of Justice and the Department of the Treasury, and 
is aware that new arrangements may be developed in the legal or 
administrative structure of such programs. The Committee 
directs the Department, working closely with its component 
agencies, to carefully review its policies and requirements for 
participation in asset forfeiture activity, including the 
activities that will be supported through forfeiture resources 
and the policies for assessing and allocating costs and 
reimbursement.

            FINANCIAL CRIME AND CYBER CENTER INVESTIGATIONS

    The Committee strongly supports the continued engagement of 
ICE in significant efforts to deter, interdict and investigate 
financial crime and cyber crime. Major efforts by the former 
Customs Service and now continued by ICE, such as Operations El 
Dorado and Casablanca, and the Black Market Peso initiative, 
have resulted in substantial gains in the campaign against 
money laundering--upon which organized crime, drug trafficking, 
and terrorism depend. Operation Green Quest has generated 
significant gains in identifying and interdicting the financing 
of terrorist activity, and the Cyber Smuggling Center has 
established itself as a critical asset in pursuing and stopping 
cybercrime, fraud, child pornography and child exploitation. 
The Committee applauds these efforts and encourages ICE and DHS 
to continue their focus on these missions, which are strongly 
aligned with and supportive of the Department's homeland 
security missions.

             DETECTION AND REMOVAL POLICIES AND PROCEDURES

    The Committee is aware of the April 2003 report by the 
Justice Department Inspector General critical of the Justice 
Department and its component agencies, including the former 
Immigration and Naturalization Service (INS), and the use of 
immigration laws to arrest and detain aliens in the New York 
City area in the course of the investigation of the September 
11th attacks. The I.G. report included recommendations for DHS 
with regard to its policies and future actions in executing 
detention and removal policy. The Committee expects that DHS 
and ICE will employ their enforcement authority in a manner 
consistent with the requirements of due process, insofar as 
possible, while supporting their homeland security missions. 
The Committee therefore directs DHS to report no later than 
October 1, 2003 on what steps it has taken to address the 
recommendations of the I.G. report; its goals, policies and 
standards for notification of decisions to detainees; and its 
procedure for informing Congress when emergent conditions might 
require deviation from such policies and standards.

                       OFFSETTING FEE COLLECTIONS

    The President's request assumes that $132,000,000 from 
immigration user fee collections, $116,000,000 in Breached Bond 
fees, and $52,000,000 in COBRA collections will be available to 
offset operations. In addition, the Committee understands that 
rough estimates for the student fees generated by the Student 
and Exchange Visitor Program and corresponding obligations will 
be close to $58,000,000. That estimate is subject to high 
uncertainty about when fee collection will begin, and what 
actual revenue collection experience will be.
    Uncertainty is present in more established fee activities 
as well, as can be seen in lowered re-estimates of the 
availability of funding for such items as housing funded 
through breached bond/detention and removal collections. The 
fiscal year 2003 assumption for obligations was based on 
estimated receipts of $171,000,000 in Breached Bond/Detention 
Fees, on which a detention building program of $50,000,000 was 
based. That program is now being pushed back two more years 
because actual collections were about $60,000,000 less than 
expected. The Committee is thus concerned that such shortfalls 
may adversely affect fiscal year 2004 plans.
    Similar shortfalls in collections to the Immigration User 
Fee Account this year are restricting the ability to hire 
additional inspectors authorized in the fiscal year 2003 
Omnibus Appropriations Act. Because of the potential for fee 
collections to fall below planned obligations, the Committee 
does not propose any additional funding within this fee 
account. The Committee directs ICE to ensure that the fee 
revenues are used to fully fund base operations and adjustments 
as presented in the justification materials submitted to 
Congress before undertaking any further initiatives. The 
Committee also directs ICE and DHS to inform the Committee in a 
timely manner of potential short term operational or program 
impacts from reduced fee collections.

                       Federal Protective Service


                     (INCLUDING TRANSFER OF FUNDS)

  
 Appropriation, fiscal year 2003.......................      $408,031,000
Budget estimate, fiscal year 2004.....................       424,211,000
Recommended in the bill...............................       424,211,000
Bill compared with:
    Appropriation, fiscal year 2003...................       +16,180,000
    Budget estimate, fiscal year 2004.................  ................
                                MISSION

    The Federal Protective Service (FPS) is responsible, 
through its Police Officers and others, for the protection of 
public buildings and other areas under the charge and control 
of the General Services Administration (GSA). They are also 
responsible for the enforcement of laws enacted for the 
protection of persons and property, the prevention of breaches 
of peace, suppression of affrays or unlawful assemblies, and 
enforcement of any rules and regulations made and promulgated 
by the GSA Administrator. This authority can also be extended, 
by agreement, to any area with a significant federal interest. 
Funding for the FPS is provided through a transfer of funds 
from GSA's Federal Buildings Fund.

                             RECOMMENDATION

    The Committee recommends funding the Federal Protective 
Service through a transfer of $424,211,000 from the Federal 
Buildings Fund, the same as the President's request.

              Automation and Infrastructure Modernization


  
 Appropriation, fiscal year 2003.......................  ................
Budget estimate, fiscal year 2004.....................  ................
Recommended in the bill...............................      $367,605,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +367,605,000
    Budget estimate, fiscal year 2004.................      +367,605,000
                                MISSION

    The new Automation Infrastructure Modernization Account is 
established to fund major information technology (IT) projects 
for the Bureau of Immigration and Customs Enforcement, but 
chiefly for the United States Visitor and Immigrant Status 
Indicator Technology (US VISIT) project, which will include 
investments in physical infrastructure as well as IT.

                             RECOMMENDATION

    The Committee recommends an appropriation of $367,605,000 
for Automation and Infrastructure Modernization. This realigns 
funding requested in the CBP and ICE appropriations for both US 
VISIT and the ATLAS connectivity project. The recommendation 
includes a total of $350,000,000 for US VISIT--$130,000,000 
below the President's request. This reduction reflects the fact 
the $375,000,000 in fiscal year 2003 US VISIT funding remains 
available as DHS enters the final quarter of the fiscal year. 
The Department recently delivered its proposed fiscal year 2003 
spending plan, and the Committee looks forward to receiving the 
General Accounting Office's (GAO) review, as required by the 
fiscal year 2003 Omnibus Appropriations Act. Until that review 
has been completed, the Committee cannot judge the appropriate 
level of funding for fiscal year 2004. The Committee is 
prepared to consider reprogramming or transfer requests for 
this activity when the Bureau and the Department provide a 
thorough justification and plan for fiscal year 2004 that has 
been reviewed by GAO.

                          US VISIT TECHNOLOGY

    The Committee is concerned that US VISIT may fast become 
the most complex and overwhelmed investment project in the new 
Department. Estimates are that the final price tag may reach 
$10 billion, and increasingly the Committee sees evidence that 
deadlines may be missed and discipline may be lost as multiple 
interests ``pile on'' to fund or promote different elements of 
the initiative.
    It is essential that development, implementation, 
documentation, and spending plans be developed and made 
available to this Committee and to the General Accounting 
Office to permit adequate time to review and, if necessary, 
amend the plans. The Committee will insist that any funding for 
such an ambitious and pivotal homeland security project will 
only be provided when ICE and the Department proceed in a 
straightforward way, beginning with the laying out of business 
processes, technical architecture, and clear spending plans 
that show what system capabilities and benefits will be 
delivered, by when, and at what cost. They must also have a 
clear plan to ensure that the ``human capital'' associated with 
this massive project is recruited, cultivated and empowered to 
ensure that the proper steps are taken in carrying out a 
complex, large and inherently risky investment.
    Provided that the project is managed according to the best 
practices for development and implementation, the Committee 
directs DHS to support pilot programs that incorporate features 
to meet the technical and functional requirements for biometric 
identifiers, secure travel documents, and similar criteria. 
Such projects shall include the ability to replace or 
streamline processing for articles such as re-entry permits, 
documents, or seaman booklets. Any use of funding for US VISIT 
must be consistent with the stage and requirements of the US 
VISIT planning and implementation process, including being 
subject to spending plans that are approved by the Department, 
OMB, and reviewed by GAO.
    The Committee has a specific concern with regard to the 
machine card reader for the Mexican Border Crossing Card, 
designed to exploit the data storage features of such cards, 
which at present are not being appropriately used. Funding to 
purchase and deploy such readers has previously been made 
available, and a report on the status of plans to deploy card 
readers on the border was due on May 1, 2003, as part of the 
Wartime Supplemental, but has not yet been submitted. The 
Committee directs that this report be completed and delivered 
to the Committee as soon as possible.

                         BIOMETRICS TECHNOLOGY

    The integrity and effective use of biometrics is essential 
to the success of the US VISIT program. While the Committee 
understands the Secretary's need to aggressively begin 
implementation of US VISIT, actions taken within this first 
phase must not preclude DHS from developing a biometric 
infrastructure and automated fingerprint identification system 
(AFIS) that supports NIST biometric standards, is interoperable 
with law enforcement AFIS systems, and that ensures timely and 
efficient search responses. The Department is instructed to 
coordinate with the Department of Justice on ensuring 
interoperability between US VISIT and the FBI IAFIS system. As 
stated in P.L. 108-7, the Committee expects DHS to ensure full 
and open competition with regard to future procurement actions 
for the US VISIT program.

                      Air and Marine Interdiction


  
 Appropriation, fiscal year 2003.......................      $180,647,000
Budget estimate, fiscal year 2004.....................  ................
Recommended in the bill...............................       175,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................        -5,647,000
    Budget estimate, fiscal year 2004.................      +175,000,000
                                MISSION

    The Office of Air and Marine Interdiction (AMI) provides 
integrated and coordinated border interdiction and law 
enforcement support for homeland security missions; provides 
airspace security for high risk areas or national special 
security events; and continues to carry out its traditional 
role in combating the illegal entry of narcotics and other 
items into the United States. As this mission has become 
inseparable from the homeland security mission, it is these 
traditional capabilities of AMI, including their unique 
command, control and surveillance assets, which makes AMI so 
valuable. This appropriation provides all operations, 
maintenance and procurement funding for AMI.

                             RECOMMENDATION

    The Committee recommends an appropriation of $175,000,000 
for Air and Marine Interdiction, the amount requested by the 
President.

         AIR AND MARINE INTERDICTION PROGRAM MODERNIZATION PLAN

    The Committee knows that the roles and missions of AMI are 
being redefined, as it has become an integral component of DHS. 
With the advent of airspace security missions, and given 
heightened needs to coordinate air and marine operations, as 
well as the need to continue aggressive counterdrug efforts, it 
is essential that AMI modernize. As part of a comprehensive 
review of AMI missions, structures, operations and resources, a 
number of security shortfalls were identified. These included 
the need to establish AMI operations that cover the Northern 
Border, and to provide airspace security for the Capital 
Region. Other priorities include the need to replace AMI's 
aging air and marine assets, and continue interdiction missions 
in the source and transit zones. The Committee has been 
informed that a modernization plan will be completed this 
summer, which will set forth the five-year recapitalization 
goals of AMI.
    The Committee is committed to seeing AMI succeed, but needs 
to know more about the ultimate plan for development, 
modernization and deployment of AMI, including its relationship 
with the Border Patrol and the U.S. Coast Guard. To that end, 
the Committee directs the Under Secretary for Border and 
Transportation Security to report, not later than October 1, 
2003, on the five year plan for AMI missions, structure, 
operations, and resources, including its deployment and its 
command and control requirements, such as the Air and Marine 
Interdiction Coordination Center. The report should also 
address issues of acquiring and basing air assets, in 
particular the P-3 aircraft. Many of these are occupying 
temporary or inadequate hangar space such as at Jacksonville, 
FL. This report should also detail how AMI will use the 
$35,800,000 in base funding that is included in the 
Administration request for continued support of the Western 
Hemisphere Drug Elimination Act.

                     STAFFING AND PERSONNEL ISSUES

    The Committee is concerned that, in the course of being 
realigned from the legacy Customs Service, the President's 
budget request may have underfunded the salaries and expenses 
required to support authorized Air and Marine Interdiction 
activities.
    The Committee therefore directs the Under Secretary to 
report, not later than October 1, 2003, on AMI staffing needs 
and personnel policies affecting the use and assignment of 
personnel, including staffing grades, maintenance and 
operational issues. For example, the Committee understands that 
there is some interest in converting all AMI positions to 
series GS-1811 positions. While such a change might be 
desirable, the Committee expects to see what operational and 
budgetary options are under consideration. The report, covering 
the next five years, should display the numbers and types of 
authorized positions needed to fulfill the mission of AMI; 
their associated personnel and benefits costs; the numbers 
currently on-board; and projections for filling vacant 
positions.

               MONITORING, SURVEILLANCE, AND COORDINATION

    The Air and Marine Interdiction Coordination Center (AMICC) 
monitors surveillance information for AMI, and has received 
support from the Committee in recent years to improve its 
support of monitoring, detection and surveillance of aircraft 
and marine vessels. The capabilities of AMICC were demonstrated 
most recently during the Liberty Shield operation, in 
supporting enhanced and expanded airspace security operations. 
The Committee is aware that AMI has been working on the 
development of a visual computing network (VCN) to allow AMICC 
capabilities to be deployed at all AMI regional facilities, for 
national special security events, and in support of other 
homeland security and law enforcement collaboration. The 
Committee strongly supports efforts to complete and deploy the 
VCN.

                 TRANSPORTATION SECURITY ADMINISTRATION


  
 Appropriation, fiscal year 2003.......................    $5,811,330,000
Budget estimate, fiscal year 2004.....................     4,812,300,000
Recommended in the bill...............................     5,172,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................      -639,330,000
    Budget estimate, fiscal year 2004.................      +359,700,000
                             RECOMMENDATION

    The Committee recommends total funding of $5,172,000,000, 
$359,700,000 above the budget request. The Committee is 
disappointed that the budget omitted several key items critical 
to the long-term success of the Transportation Security 
Administration (TSA) as discussed below.

                          BUDGET PRESENTATION

    The Committee does not believe it prudent, or consistent 
with other agencies within the Department of Homeland Security, 
to provide a single lump-sum appropriation to TSA, as 
requested. Traditionally across the government, budgetary 
requests are divided into separate appropriations, which 
account for important differences in the activities being 
financed, such as operating expenses, capital expenses, 
research and development, and grants to state and local 
entities. In this way, comparisons can be made across agencies, 
and a proper balance can be found between budgetary flexibility 
and oversight. For this reason, the Committee recommends that 
total TSA funding be provided in six separate appropriations: 
Aviation Security; Federal Air Marshals; Maritime and Land 
Security; Intelligence; Research and Development; and 
Administration.

                              TSA STAFFING

    Over the past two years, the Committee has been 
increasingly alarmed that TSA was planning for and hiring a 
workforce larger than necessary. In the rush to meet deadlines 
to federalize an aviation screener workforce by November 19, 
2002, and to screen all checked baggage using explosive 
detection systems by December 31, 2002, the agency was unable 
to take a long-term perspective on what staffing ratio and 
airport configuration schemes made the most sense at each of 
the 429 commercial airports. As a result, TSA hired at least 
6,000 more aviation screeners than necessary. The Committee is 
pleased to see that beginning in May 2003, TSA began downsizing 
the aviation screener workforce to be more in line with travel 
loads in each individual airport. However, the Committee 
believes that more needs to be done in this area. The vast 
majority of the reductions are being taken at large airports 
that handle most of the passenger traffic, while smaller 
airports may continue to be overstaffed. For example, the 
smallest airports (Category IVs) have on average between 10 and 
16 screeners that handle, on average, 53 passengers a day. 
Because the ebb and flow of traffic is greater in these smaller 
airports, it appears that many of these airports may be 
overstaffed as well. As a result, the Committee has slightly 
modified bill language, first included in the fiscal year 2002 
supplemental appropriations bill, which caps the agency's full-
time equivalents (FTEs) at 45,000 screeners. Within these caps, 
TSA is directed to review the appropriate balance among full 
time, part time, and seasonal screeners in an effort to 
accommodate fluctuations in workload at all (small, medium, 
large and Category X) airports. TSA is directed to report the 
findings of this review to the Committee no later than November 
1, 2003.

                           Aviation Security


  
 Appropriation, fiscal year 2003.......................    $5,131,944,000
Budget estimate, fiscal year 2004.....................     4,216,800,000
Recommended in the bill...............................     3,679,200,000
Bill compared with:
    Appropriation, fiscal year 2003...................    -1,452,744,000
    Budget estimate, fiscal year 2004.................      -537,600,000
                                MISSION

    Aviation security is focused on protecting the air 
transportation system against terrorist threats, sabotage, and 
other acts of violence.

                             RECOMMENDATION

    The Committee recommends $3,679,200,000 for aviation 
security activities. After accounting for a proposed transfer 
of federal air marshal activities to a separate appropriation, 
the reduction from the budget estimate is largely due to 
approval of a lower staffing level for screening activities. 
Funds are available until expended, and partially offset by 
offsetting collections, estimated at $2,070,000,000 from 
security user fees. The Committee continues to believe that 
fees paid by aviation travelers and airlines should be invested 
in programs directly benefiting those paying the fees, not 
cross-subsidizing other modes of transportation. A separate 
general provision (section 514) addresses those fees. A 
comparison of the budget estimate to the Committee recommended 
level by budget activity is as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Passenger Screening.............      $1,801,200,000      $1,672,700,000
Baggage Screening...............         943,800,000       1,284,800,000
Security Direction and                 1,471,800,000     721,700,000 \1\
 Enforcement....................
                                 ---------------------------------------
      Total.....................      $4,216,800,000      $3,679,200,000
------------------------------------------------------------------------
\1\ Deletes the Federal Air Marshal program and ancillary equipment from
  the security direction and enforcement category in 2004 and funds
  these efforts in a separate appropriation.

                          PASSENGER SCREENING

    The Committee recommends $1,672,700,000 for passenger 
screening activities. A comparison of the Committee 
recommendation to the budget estimate, by budget activity, is 
as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Contract screening locations (5         $112,000,000        $125,000,000
 airport pilots)................
Personnel, compensation and            1,319,600,000       1,185,400,000
 benefits for passenger
 screeners......................
Passenger screeners-other.......          42,300,000          42,300,000
TSA human resource services.....         153,300,000         153,300,000
Training........................          71,800,000          64,500,000
Checkpoint equipment............          38,200,000          38,200,000
Electronic surveillance.........          14,000,000          14,000,000
CAPPS II........................          35,000,000          35,000,000
Maintenance for leased screening           5,000,000           5,000,000
 equipment......................
Registered traveler program.....           5,000,000           5,000,000
Gate screener initiative........           5,000,000           5,000,000
      Total.....................      $1,801,200,000      $1,672,700,000
------------------------------------------------------------------------

                          PASSENGER SCREENERS

    The Committee recommends $1,185,400,000 for personnel, 
compensation, and benefits for passenger screeners. Included in 
this funding level is $13,000,000 to fully fund the fiscal year 
2003 pay adjustment. This is a reduction of $147,200,000 from 
the budget request, and reflects a reduction of 4,600 screeners 
during fiscal year 2004. The Committee believes that thousands 
of the budgeted positions in the passenger screening workforce 
are unneeded or could be easily eliminated through the use of 
technology. For example, TSA could reduce the number of exit 
lane monitors by installing technology, previously approved by 
the Federal Aviation Administration, that would monitor 
movement in the exit lanes and alert screeners if a violation 
had occurred. Currently, TSA has over 1,300 staff watching for 
improper movement in airport exit lanes. The Committee directs 
TSA to strongly consider the use of part time and seasonal 
screeners at smaller airports, which may have lower salary and 
benefits levels, and to explore the use of technologies such as 
self-closing doors, which would obviate the need for the exit 
lane monitor positions altogether.
    Notwithstanding the provisions of the Aviation and 
Transportation Security Act, the Committee believes that 
significant cost savings may result if TSA could contract out 
for part-time screeners during peak airport traffic times. TSA 
is directed to review this option and report back to the 
Committee by November 1, 2003 about the merits of this 
proposal.

                      PASSENGER SCREENING TRAINING

    The Committee has provided $64,500,000 for passenger 
screening training, a reduction of $7,300,000 from the budget 
request. Because the Committee is recommending a reduction in 
passenger screeners, less funding will be necessary in fiscal 
year 2004 for training these personnel.

                      CONTRACT SCREENING LOCATIONS

    The Aviation and Transportation Security Act allows pilot 
projects at five airports to demonstrate the feasibility of 
using private sector screening firms under contract, rather 
than using federal employees. The Committee has provided 
$125,000,000 for this initiative, $13,000,000 more than 
requested. This increased funding level reflects more recent 
cost estimates for this program. The Committee understands that 
TSA requires the five airports in this pilot program to follow 
virtually identical operating procedures to TSA's own federal 
workforce. For example, these five airports must operate at 
staffing levels, and compensate their personnel using TSA 
policies and procedures, with no latitude for innovation or 
creativity, such as allowing for alternative scheduling or 
staffing models. Using this methodology will not give Congress 
a true comparison of the potential cost and efficiency savings 
at these five airports compared to those with a federalized 
work force. The Committee directs TSA to review this policy, 
and provide the contract screener pilot locations as much 
operational flexibility as possible, while meeting the same 
overall security requirements. Only in this way will the 
contractors be able to demonstrate the advantages and 
disadvantages of the contract screening approach. TSA should 
report to the Committee following this review, no later than 
October 1, 2003.

                  SECURITY SCREENER BACKGROUND CHECKS

    The Committee is very concerned at the continuing effects 
caused by the poor quality of the TSA security background 
checks. Certain airport authorities have discovered that some 
members of their security screener workforce had criminal 
convictions and petitioned TSA for the authority to conduct 
their own background check of the screeners. TSA officials at 
first refused and then approved the requests. Background checks 
by these airports are continuing to identify employees with 
disqualifying convictions. In light of the on-going 
revelations, the Committee urges the TSA to work cooperatively 
with airport authorities that wish to conduct their own 
background checks of their TSA screener workforce.

                           BAGGAGE SCREENING

    The Committee recommends $1,284,800,000 for baggage 
screening, an increase of $341,000,000 above the budget 
estimate. The recommendation largely reflects the Committee's 
decision to accelerate the installation of explosive detection 
machines in line with the baggage handling systems at large and 
medium-sized airports. A comparison of the Committee 
recommendation to the budget estimate, by budget activity, is 
as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Personnel, compensation and              $774,200,000       $780,200,000
 benefits for checked bag
 screeners........................
Checked bag screeners--other......         24,000,000         24,000,000
Baggage screener training contract         45,500,000         45,500,000
EDS purchase......................  .................        100,000,000
EDS installation..................  .................        235,000,000
EDS/ETD maintenance...............        100,000,000        100,000,000
Checked baggage data system.......            100,000            100,000
                                   -------------------------------------
      Total.......................       $943,800,000     $1,284,800,000
------------------------------------------------------------------------

                  PERSONNEL, COMPENSATION AND BENEFITS

    The Committee has included $6,000,000 above the budget 
request to fully fund the fiscal year 2003 pay adjustment.

                EXPLOSIVE DETECTION SYSTEMS PROCUREMENT

    The Committee recommends $100,000,000 for procurement of 
additional explosive detection systems (EDS). The Committee is 
aware that 36 large and medium airports require at least 719 
high-speed in line EDS machines by 2005, the vast majority of 
which is for the most expensive and largest machines. The 
Administration did not request any funding for this 
procurement; the Committee is very disappointed in the 
unrealistic nature of the fiscal year 2004 budget and urges TSA 
not to overlook these critical needs in the future.

                        EDS SYSTEMS INSTALLATION

    The Committee recommends $235,000,000 for the in line 
installation of the additional explosive detection systems 
provided in this Act, and for other modifications to airports 
to better utilize EDS machines. The Committee is very 
disappointed that the budget did not request any funding for 
this critical endeavor. Current estimates to install EDS 
machines in line with the airport's baggage systems range from 
$3-5 billion. To date, $1.2 billion has been appropriated for 
this effort, and not all of this funding has been obligated. 
Even with this additional funding, at best, airports will be 
funded for about half of their installation needs, which means 
that many airports will still have large, bulky EDS machines in 
airport lobbies for the foreseeable future.
    The Committee is disappointed with how long it has taken 
TSA and its contractor to develop plans to deploy EDS systems 
in line. It is unclear whether TSA has developed a 
comprehensive plan to modify all airports and what the 
timetables are to complete this work. The Committee recognizes 
that part of this problem may have occurred because the 
Administration has not yet entered into letters of intent that 
would help fund these multi-year projects, even though Congress 
first provided bill language permitting this type of funding 
mechanism in the fiscal year 2003 Omnibus Appropriations Act. 
The Committee directs TSA to report to the Committee on their 
plan for installing EDS machines in line, the timetable, and 
the cost estimates for each airport beginning on September 1, 
2003, and every quarter thereafter.

               AIRPORT SECURITY DIRECTION AND ENFORCEMENT

    The Committee recommends $721,700,000 for airport security 
direction and enforcement. This budget activity finances the 
costs of Federal Security Directors and their support staff at 
airports, as well as checkpoint law enforcement officers. A 
comparison of the Committee recommendation to the budget 
estimate is as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
State and local enforcement.......       $225,000,000       $160,000,000
Law enforcement case management             2,300,000          2,300,000
 system...........................
Airport management and staff......        403,800,000        353,800,000
Airport rent and furniture........        105,600,000         80,000,000
Airport parking and transit                15,000,000         15,000,000
 benefits.........................
Airport staff information                  50,000,000         60,000,000
 technology.......................
Transportation security                     5,600,000          5,600,000
 coordination center..............
Federal flight deck officer                25,000,000         25,000,000
 program..........................
Air cargo.........................         20,000,000         20,000,000
                                   -------------------------------------
      Total.......................       $871,800,000       $721,700,000
------------------------------------------------------------------------

                      STATE AND LOCAL ENFORCEMENT

    The Committee has provided a total of $160,000,000 for 
state and local enforcement activities instead of $225,000,000 
as requested. Funding under this line item is used to reimburse 
state and local law enforcement officers at checkpoints, when 
necessary. This reduction reflects a change in policy where 
airports are no longer required to have an enforcement presence 
at every checkpoint at all times. This policy change occurred 
after the budget was submitted.

                      AIRPORT MANAGEMENT AND STAFF

    The Committee has provided $353,800,000 for airport 
management and staff instead of $403,800,000 as requested. 
Within this total, the Committee has provided $3,000,000 to 
fully fund the fiscal year 2003 pay adjustment. The reduction 
of $53,000,000 reflects more current funding assumptions, based 
on reprogramming requests submitted by TSA.

                       AIRPORT RENT AND FURNITURE

    The Committee has provided $80,000,000 for airport rent and 
furniture instead of $105,600,000 as requested. The reduction 
is made because of high unobligated balances for this program 
in fiscal year 2003.

                     AIRPORT INFORMATION TECHNOLOGY

    The Committee has provided $60,000,000 for airport staff 
information technology instead of $50,000,000 as requested. 
This funding level is more in line with TSA's current spend 
plan. This funding will be used for cabling and connectivity 
between the Federal Security Directors (FSDs) and staff to 
other TSA staff at baggage screening checkpoints and passenger 
screening checkpoints. In many instances, the FSDs are not 
located at the airport itself so this connectivity is key. Some 
of this funding may also be used for basic information 
technology needs, such as computers and internet connections.

                               AIR CARGO

    The Committee strongly encourages TSA to begin development 
of an air cargo security program for domestic and foreign all-
cargo carriers. The Committee also directs TSA to develop and 
implement a risk-weighted freight screening system that will 
identify pieces of cargo that require closer scrutiny. This 
automated system should include the automated known shipper 
verification system, the automated indirect air carrier 
recertification program and automated cargo profiling systems. 
A total of $20,000,000 has been included for these efforts.

                          Federal Air Marshals


  
 Appropriation, fiscal year 2003.......................  ................
Budget estimate, fiscal year 2004 \1\.................  ................
Recommended in the bill...............................      $634,600,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +634,600,000
    Budget estimate, fiscal year 2004.................     +634,600,000
 \1\ Funding was requested under airport security direction and
  enforcement.

                                MISSION

    The Federal Air Marshal program is focused on protecting 
the air transportation system against terrorist threats, 
sabotage and other acts of violence.

                             RECOMMENDATION

    The Committee has provided a total of $634,600,000 for the 
Federal Air Marshal program instead of $619,500,000 as 
requested under airport security direction and enforcement. A 
comparison of the Committee recommendation to the budget 
estimate is as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Federal air marshals..............       $600,000,000       $615,100,000
K-9 units.........................         17,000,000         17,000,000
Personnel, compensation and                 2,500,000          2,500,000
 benefits for federal law
 enforcement officers.............
                                   -------------------------------------
      Total.......................       $619,500,000       $634,600,000
------------------------------------------------------------------------

    The Committee has recommended a separate program account 
for Federal Air Marshals (FAMs) and its related activities 
instead of continuing to fund these functions under airport 
security direction and enforcement for several reasons. First, 
the Committee is disappointed by recent proposals to use 
critical Federal Air Marshal appropriations to fund other TSA 
shortfalls. Second, the Committee is aware that the Department 
of Homeland Security is considering moving the FAM program out 
of TSA and into the Bureau of Immigration and Customs 
Enforcement (ICE). The Committee looks favorably upon this 
proposal. It will provide Federal Air Marshals and law 
enforcement officers within ICE more diversity in their career 
paths, particularly if cross-trained, and allow for a large 
pool of trained enforcement officers to protect our nation's 
airports and aircraft. However, before this proposal can be 
adopted, the Committee directs the Department to review the pay 
scales, benefits, and retirement plans for the FAMs and ICE law 
enforcement officers and identify any impacts that this 
proposal may have, whether changes are necessary, and the costs 
to implement these changes. In addition, the Committee must 
review any reorganization of the FAM program outside of TSA 
prior to adoption of this proposal.

                  SCHEDULE AND INFORMATION TECHNOLOGY

    An additional $10,000,000 above the budget request for the 
FAM program has been provided. This funding shall be used to 
augment funding for the FAM scheduling system and information 
technology at field offices.

                      AIR-TO-GROUND COMMUNICATIONS

    FAMs have developed a model for deployment of an air-to-
ground communications system (AGCS). The Committee recommends 
that a working group chaired by the FAMs be created to: (1) 
develop a technical implementation plan for AGCS to be utilized 
by FAMs, TSA, DHS, and the Department of Defense (DOD), and (2) 
develop a business/government partnership to fund the 
implementation plan. The working group shall consist of the 
FAMs (chair); Federal Aviation Administration; DHS; DOD; other 
Federal departments as deemed appropriate; commercial air 
carriers; and communications industry providers.

                    FISCAL YEAR 2003 PAY ADJUSTMENT

    The Committee has provided $5,100,000 above the budget 
request for the FAM program to fully fund the fiscal year 2003 
pay adjustment.

                            EXPLOSIVES UNIT

    The Committee understands that the FAM program has 
responsibility for an explosives unit within aviation security. 
The Committee directs TSA to transfer this unit and the 
associated funding to the FAM program expeditiously.

                       Maritime and Land Security


  
 Appropriation, fiscal year 2003.......................      $263,209,000
Budget estimate, fiscal year 2004.....................        85,500,000
Recommended in the bill...............................       231,700,000
Bill compared with:
    Appropriation, fiscal year 2003...................       -31,509,000
    Budget estimate, fiscal year 2004.................      +146,200,000
                                MISSION

    Maritime and land security is responsible for assessing the 
risk of terrorist attacks to all non-aviation transportation 
modes, issuing regulations to improve the security of the 
modes, and enforcing these regulations to ensure the protection 
of the transportation system.

                             RECOMMENDATION

    The Committee recommends $231,700,000 for maritime and land 
transportation security, an increase of $146,200,000 above the 
budget estimate. A comparison of the budget estimate to the 
Committee recommended level by budget activity is as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Port security grants..............  .................       $100,000,000
Credentialing (TWIC)..............         55,000,000         55,000,000
Intercity bus security............  .................         10,000,000
Operation Safe Commerce...........          2,500,000          2,500,000
Highway and trucking security.....  .................         22,000,000
Nuclear detection and monitoring..  .................          4,000,000
Transit security and training.....  .................         10,000,000
Staffing and operations...........         28,000,000         28,200,000
                                   -------------------------------------
      Total.......................        $85,500,000       $231,700,000
------------------------------------------------------------------------

                          PORT SECURITY GRANTS

    A total of $100,000,000 has been provided for port security 
grants. The Coast Guard has estimated that there are 
approximately $1 billion in security requirements currently 
identified as necessary in the near term, and over $4.4 billion 
over a 10-year period. To date, $388,000,000 has been 
appropriated. It is imperative for the Federal Government to 
continue to assist local port authorities in their most 
pressing security needs.

      CREDENTIALING AND TRANSPORTATION WORKER IDENTIFICATION CARD

    The Committee continues to be cautiously optimistic with 
the direction and scope of the credentialing and transportation 
worker identification cards (TWIC) that TSA is currently 
testing at various locations in the Eastern and Western United 
States. The goals of the TWIC program are ambitious, but 
necessary: to create one standardized identification card, 
universally recognized and accepted across the transportation 
system. Given the complexity of the initiative, the Committee 
is very disappointed with the lack of budget justification 
materials for the next phase of the program, perhaps the most 
critical phase to date. Decisions on technology, application, 
enrollment, and guidelines for personalization and issuance 
will all be made in fiscal year 2004. Yet, the Committee has 
very little information with which to work.
    Given the importance of continuity to the successful 
implementation of this endeavor, the Committee nonetheless 
conditionally approves the full requested amount of 
$55,000,000. In doing so, the Committee again emphasizes that 
TSA should not develop new technologies if existing ones, 
already developed by other federal agencies, are good enough. 
One such technology, the optical laser card, has one of the 
greatest capacities for storing biometric information, and is 
currently being utilized by BTS, among others. Within this 
total, funding shall be allocated to four major components: 
access technologies; enrollment centers; databases; and card 
production, personalization, and issuance as well as other 
administrative costs. For work on card production, 
personalization, and issuance, the Committee strongly 
encourages TSA to consider the benefits of consolidating 
regional centers into a centralized location, and the benefits 
of using existing government card issuance centers for these 
activities. While approving funds for this program, the 
Committee directs TSA not to obligate funds for the next phase 
until a spend plan has been developed, and the Committee is 
briefed on the results of the technical evaluation and 
prototypes phases, and agrees that the program should move 
forward.
    The Committee has included new bill language (section 514) 
that grants TSA the authority to charge reasonable fees to 
perform background checks and/or provide credentials for 
transportation workers throughout the transportation system. 
Some examples include background checks on an estimated 3.5 
million commercial truck drivers with hazardous materials 
endorsements as part of their commercial drivers licenses, and 
on approximately 60,000 rail workers with access to explosive 
materials. TSA already has authority to charge aviation workers 
reasonable fees for the costs of performing these background 
checks. Without a similar fee, TSA may face an annual funding 
shortfall that could reach several hundred million dollars per 
year, depending on how many of the estimated 12 to 15 million 
transportation workers will require background checks and 
credentials because of access to unsecured areas of the 
transportation system. TSA is directed to ensure that the fees 
are reasonable, and are restricted to the actual costs incurred 
to perform the services rendered. Moreover, these fees shall 
not be used to supplement other TSA programs.

                         INTERCITY BUS SECURITY

    The Committee recommends $10,000,000 for continued 
improvements in intercity bus security, which is the same level 
as provided in fiscal year 2003.

                  HIGHWAY AND TRUCKING SECURITY GRANTS

    The Committee recommends $22,000,000 for continued 
improvements in highway and trucking security. Of this total, 
$20,000,000 shall be available to continue the Highway Watch 
program, and $2,000,000 shall be provided to train, track, and 
certify hazardous materials shippers.

                    NUCLEAR DETECTION AND MONITORING

    The Committee recommends $4,000,000 to continue evaluation 
and procurement of portable nuclear radiation search tools. 
This is the same level of funding as provided in fiscal year 
2003.

                     TRANSIT SECURITY AND TRAINING

    The Committee has included $10,000,000 for security 
investments and training for our nation's transit providers, 
including bus and commuter rail operators. The Committee 
expects these funds to be awarded competitively.

                    FISCAL YEAR 2003, PAY ADJUSTMENT

    The Committee has provided $200,000 above the budget 
request to fully fund the fiscal year 2003 pay adjustment.

                              Intelligence


  
 Appropriation, fiscal year 2003.......................  ................
Budget estimate, fiscal year 2004.....................       $13,600,000
Recommended in the bill...............................        13,700,000
Bill compared with:
    Appropriation, fiscal year 2003...................       +13,700,000
    Budget estimate, fiscal year 2004.................          +100,000
                                MISSION

    TSA is charged with serving as the primary liaison for 
transportation security to the intelligence and law enforcement 
communities in working to meet its intelligence charter. This 
program will provide current and strategic warnings regarding 
threats to United States transportation modes, identify trends, 
analyze intelligence data, and disseminate information through 
liaison with the intelligence community agencies.

                             RECOMMENDATION

    The Committee has provided a total of $13,700,000 for 
intelligence activities of the TSA, $100,000 above the budget 
request. This additional funding will fully fund the fiscal 
year 2003 pay adjustment. This funding level supports 100 
positions in fiscal year 2004 and the associated program 
support costs, such as training, travel, human resources, and 
information technology.

                        Research and Development


  
 Appropriation, fiscal year 2003.......................      $109,484,000
Budget estimate, fiscal year 2004.....................        75,200,000
Recommended in the bill...............................       125,700,000
    Bill compared with:
    Appropriation, fiscal year 2003...................       +16,216,000
    Budget estimate, fiscal year 2004.................       +50,500,000
                                MISSION

    TSA conducts research and development activities in an 
effort to improve current security technology. This research is 
targeted toward methodologies of detecting potential chemical, 
biological, or similar threats and devices that could be 
released on an aircraft, within an airport or on non-aviation 
transportation modes.

                             RECOMMENDATION

    The Committee recommends $125,700,000 for research and 
development, an increase of $50,500,000 above the budget 
estimate. A comparison of the budget estimate to the Committee 
recommended level by budget activity is as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Research and development at the           $55,200,000        $55,700,000
 Tech Center......................
Next generation EDS and ETD.......         10,000,000         40,000,000
Air cargo.........................         10,000,000         30,000,000
                                   -------------------------------------
      Total.......................        $75,200,000       $125,700,000
------------------------------------------------------------------------

                      NEXT GENERATION EDS AND ETD

    The Committee has provided a total of $40,000,000 for 
research into the next generation of EDS and explosive trace 
detection (ETD) machines, which is $30,000,000 more than 
requested. Without a healthy research program in this area, 
airports may not be able to acquire less expensive and faster 
EDS and ETD machines in the near future. Within the funds 
provided, TSA should consider a variety of technologies 
including the quadruple resonance explosive and weapon 
detection systems, explosive detection boarding pass 
technology, trace explosive detection portals, and shoe 
scanners.

                               AIR CARGO

    The Committee has provided a total of $30,000,000 for 
research and development activities for state-of-the-art 
detection technologies that will screen cargo either carried 
onboard passenger aircraft or in cargo aircraft that may 
require closer scrutiny. This funding is $20,000,000 above the 
budget request. Included in this total is funding for the air 
cargo pilot program that will support research and development 
of new performance methodologies in detecting threats to air 
cargo. Additional funding has also been provided to address how 
existing devices and procedures can be best applied to air 
cargo, and to investigate new air security technologies, 
including advanced sensors, that may be effective in screening 
cargo.

                               PAY PARITY

    The Committee has provided $500,000 above the budget 
request for research and development staff located at the 
Technical Center to fully fund the fiscal year 2003 pay 
adjustment.

                           TSA Administration


  
 Appropriation, fiscal year 2003.......................      $306,693,000
Budget estimate, fiscal year 2004.....................       421,200,000
Recommended in the bill...............................       487,100,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +180,407,000
    Budget estimate, fiscal year 2004.................       +65,900,000
                                MISSION

    This account supports TSA's administrative activities 
including financial and human resources support; information 
technology support; policy development and oversight; 
performance management and e-government; communications; public 
information and legislative affairs; training and quality 
performance; internal conduct and audit; legal advice; and 
overall headquarters administration.

                             RECOMMENDATION

    The Committee recommends $487,100,000 for administrative 
activities in support of TSA missions. A comparison of the 
budget estimate to the Committee recommended level by budget 
activity is as follows:

------------------------------------------------------------------------
                                         Estimate         Recommended
------------------------------------------------------------------------
Headquarters administration:
    Headquarters staff............       $141,100,000       $162,000,000
    Headquarters rent.............         21,800,000         21,800,000
    Headquarters furniture........          3,700,000          3,700,000
    Transit benefits and parking..          1,100,000          1,100,000
Field Administration: Mission              40,000,000         45,200,000
 support centers..................
Information technology:
    Information technology core...        145,200,000        185,000,000
    Time and attendance...........         15,000,000         15,000,000
    Performance management system.          5,000,000          5,000,000
    E-government management system          5,000,000          5,000,000
    Planet asset database.........          5,000,000          5,000,000
    TSA call center...............          1,900,000          1,900,000
    CFO/personnel systems.........         21,000,000         21,000,000
Training:
    Computer-based/Web-based                1,000,000          1,000,000
     training.....................
    Training evaluation program...            200,000            200,000
    Leadership training...........          4,000,000          4,000,000
    Tuition assistance program....          1,000,000          1,000,000
    Quality systems...............          2,500,000          2,500,000
    Workforce planning............            300,000            300,000
    Regulatory training division..          3,200,000          3,200,000
    Training evaluation and                 1,700,000          1,700,000
     standards....................
    Learning management system              1,500,000          1,500,000
     support......................
                                   -------------------------------------
      Total.......................       $421,200,000       $487,100,000
------------------------------------------------------------------------

                           HEADQUARTERS STAFF

    An additional $20,900,000 has been provided above the 
budget request to accommodate the growing administrative 
workload in TSA, for employee background investigations, and to 
fully fund the fiscal year 2003 pay adjustment. This funding is 
more in line with TSA's current spend plan.

                        MISSION SUPPORT CENTERS

    An additional $5,200,000 has been provided above the budget 
request to accommodate the growing workload in field centers, 
particularly administrative in nature and employee background 
investigations, and to fully fund the fiscal year 2003 pay 
adjustment. This funding is more in line with TSA's current 
spend plan.

                         INFORMATION TECHNOLOGY

    The Committee has provided $185,000,000 for information 
technology, $39,800,000 above the budget request. This funding 
will be used for a variety of information technology 
infrastructure needs that have become apparent since the budget 
was originally submitted, including connectivity between TSA 
headquarters and the 429 commercial airports. The recommended 
level is more in line with TSA's current spend plan.

                               DIVERSITY

    The Committee believes it is critical that TSA continue its 
efforts to improve airport security procedures, and to have the 
means to understand diverse passenger and employee behaviors, 
so that they can be incorporated into security protocols. The 
Committee encourages TSA to support the development of computer 
models that could take into account behavioral elements and 
help adapt security procedures accordingly.

                         REPORTING REQUIREMENT

    The Committee directs TSA to report on the progress made in 
reviewing any application for liability protection described in 
Division I of House Report 108-10.

                FEDERAL LAW ENFORCEMENT TRAINING CENTER


                         Salaries and Expenses


  
 Appropriation, fiscal year 2003.......................      $134,122,000
Budget estimate, fiscal year 2004.....................       122,379,000
Recommended in the bill...............................       136,629,000
Bill compared with:
    Appropriation, fiscal year 2003...................        +2,507,000
    Budget estimate, fiscal year 2004.................       +14,250,000
                                MISSION

    The Federal Law Enforcement Training Center (FLETC) 
provides the necessary facilities, equipment, and support 
services to conduct basic, advanced, specialized, and refresher 
training for Federal law enforcement personnel. This 
appropriation is for operating expenses of the Center, for 
research in law enforcement training methods, and curriculum 
content. In addition, the Center has a reimbursable program to 
accommodate the training requirements of various Federal 
agencies. As funds are available, law enforcement training is 
provided to certain State and local law enforcement, and in 
some cases, foreign government and private sector security 
personnel, on a space-available and usually reimbursable basis.

                             RECOMMENDATION

    The Committee recommends an appropriation of $136,629,000 
for the Federal Law Enforcement Training Center, $14,250,000 
above the budget request.

                             STAFFING NEEDS

    The Committee has provided $13,016,000 above the budget 
request to annualize 130 rehired annuitants that FLETC 
currently has onboard. These annuitants make up 35 percent of 
FLETC's workforce. Since submission of the budget request, 
FLETC conducted its semi-annual verification of training 
projections. They found that the projections for fiscal year 
2004 training had grown by over 61,000 students from what was 
projected in the budget request. Without this increase in 
funding, FLETC will be unable to meet a large portion of the 
requested basic training as well as the new projections. In 
addition, the Committee has provided $234,000 above the request 
to fully fund the fiscal year 2003 pay adjustment for all FLETC 
employees, including the rehired annuitants.

                        STATE AND LOCAL PROGRAMS

    The Committee has continued funding for the delivery of 
tuition-free training to small town and rural law enforcement 
agencies under FLETC's state and local programs (+$1,000,000).

                   TRAINING NEEDS OF FEDERAL AGENCIES

    The expanded training requirements of federal agencies 
since the September 11th attacks have imposed tremendous 
strains on FLETC facilities, requiring six-day workweeks and, 
in some cases, housing students some distance away. The 
Committee is fully committed to the principle of consolidated 
law enforcement training, and supports FLETC as the provider of 
basic training for federal law enforcement officials. However, 
the Committee recognizes the demands upon FLETC for more 
specialized or advanced training, and that FLETC capacity is a 
major constraint in providing such training at its campuses. In 
such cases, particularly for new training related to homeland 
security, the Committee directs FLETC to work with other 
federal agencies to identify and make maximum use of existing 
training facilities, such as the TSA's center in New Jersey and 
FAA's center in Oklahoma, consistent with meeting agencies' 
training needs, and where it represents the most cost effective 
use of government resources.

         UTILIZATION OF BASIC AND ADVANCED TRAINING FACILITIES

    The Committee has included new bill language (Section 513) 
that authorizes FLETC to determine the optimum utilization for 
both federal basic and advanced training at all locations under 
its control to ensure that the best level of operating capacity 
is achieved. This language is necessary because FLETC is now 
experiencing unprecedented increases in training requests. 
Currently, 75 agencies are voluntarily participating in 
consolidated training at FLETC centers and further agency 
participation is expected. FLETC presently has three centers 
that have modern facilities exclusively developed for the 
special requirements of law enforcement training, and another 
opening shortly. FLETC is often faced with responding to the 
preferences and competing interests of the agencies for 
scheduling and training in specific geographic locations. This 
has resulted from time-to-time in the inefficient use of 
FLETC's available training capacity, often overtaxing some 
centers and underutilizing others.

     Acquisition, Construction, Improvements, and Related Expenses


  
 Appropriation, fiscal year 2003.......................       $35,766,000
Budget estimate, fiscal year 2004.....................        23,679,000
Recommended in the bill...............................        32,323,000
Bill compared with:
    Appropriation, fiscal year 2003...................        -3,443,000
    Budget estimate, fiscal year 2004.................        +8,644,000
                                MISSION

    This account provides for the acquisition, construction, 
improvements, equipment, furnishings and related costs for 
expansion and maintenance of facilities of the Federal Law 
Enforcement Training Center.

                             RECOMMENDATION

    The Committee recommends an appropriation of $32,323,000 
for FLETC Acquisition, Construction, Improvements, and Related 
Expenses, $8,644,000 above the budget request. The additional 
funding shall be provided to continue the rehabilitation of the 
Cheltenham, Maryland facility, including upgrades to the 
electrical, water, and sewage systems, roads, and to renovate 
partner organization offices such as Building 50.

                    Office for Domestic Preparedness


                         DOMESTIC PREPAREDNESS

  
 Appropriation, fiscal year 2003.......................    $3,235,884,000
Budget estimate, fiscal year 2004.....................     3,558,000,000
Recommended in the bill...............................     3,503,000,000
Bill compared with:
  Appropriation, fiscal year 2003.....................      +267,116,000
  Budget estimate, fiscal year 2004...................       -55,000,000
                                MISSION

    The Office for Domestic Preparedness appropriation supports 
first responder grants, including basic formula grants, 
protection of critical infrastructure grants, and high-density, 
high-threat urban area grants. Firefighter Assistance Grants 
and Emergency Management Performance Grants are funded within 
the Emergency Preparedness and Response Directorate. State and 
local responders are first to arrive on scene when a terrorist 
attack occurs and must be prepared to protect life and 
property. This function is inherently non-Federal, although 
Federal resources and expertise are needed to manage the 
crisis, and provide support to State and local assets when an 
attack overwhelms their resources. Federal support can be in 
the form of planning, exercises, technical assistance, or 
grants. Several grant programs exist to ensure funds are 
distributed to the proper levels of government in a timely 
manner.

                             RECOMMENDATION

    The Committee recommends $3,503,000,000 for Domestic 
Preparedness. With this funding, $20,800,000,000 has been made 
available for assistance to State and local governments for 
terrorism prevention and preparedness, general law enforcement, 
firefighter assistance, airport security, seaport security, and 
public health preparedness since fiscal year 2002. Of that 
amount, a total of $7,384,000,000 has been provided to first 
responders through the Office for Domestic Preparedness (ODP), 
and $1,860,000,000 has been provided directly to firefighters. 
The additional amounts provided by the Committee for fiscal 
year 2004 demonstrate the continued support for first 
responders. The Committee believes that ODP must continue its 
vital and successful program for assisting State and local 
response agencies to ensure first responders are prepared to 
respond in the event of a terrorist attack. Reductions to the 
ODP budget request reflect the realignment of funds for 
Firefighter Assistance Grants and Emergency Management 
Performance Grants (EMPGs) to the Emergency Preparedness and 
Response Directorate.
    The Committee recommends the following amounts for fiscal 
year 2004:

                                                                  Amount
Basic Formula Grants....................................  $1,900,000,000
State and Local Law Enforcement Terrorism Prevention....     500,000,000
Critical Infrastructure.................................     200,000,000
High-Threat, High-Density Urban Areas...................     500,000,000
Citizen Corps...........................................      45,000,000
Grant Administration and Planning.......................      32,000,000
National Domestic Preparedness Consortium...............     125,000,000
Centers for Emergency Preparedness......................      35,000,000
Technical Assistance....................................      67,000,000
National Exercise Program...............................      50,000,000
Standards and Testing...................................      12,000,000
Pre-positioned Equipment Caches.........................       5,000,000
Management and Administration...........................      21,000,000
Contractor Support......................................      11,000,000
                    --------------------------------------------------------
                    ____________________________________________________
  Total.................................................   3,503,000,000

                          BASIC FORMULA GRANTS

    The Committee recommends $1,900,000,000 for grants to 
States based on their approved, updated homeland security 
strategies for the purposes of training, procuring equipment, 
and conducting exercises. These funds are available to all 
States on a formula basis, as authorized by section 1014 of the 
USA PATRIOT Act, (Public Law 107-56). The Committee expects 
these funds will be made available to States within 30 days 
after enactment of this Act, that States will have 30 days to 
apply after the grant is announced, and ODP will act on an 
application within 15 days of its receipt. The Committee also 
agrees that no less than 80 percent of these funds shall be 
passed by the State to local units of government within 60 days 
of the State receiving funds. None of these funds may be used 
for construction or overtime.

          STATE AND LOCAL LAW ENFORCEMENT TERRORISM PREVENTION

    The Committee recommends $500,000,000 for State and local 
law enforcement terrorism preparedness and prevention 
activities, including equipment and training. These funds are 
available to all States on a formula basis, as authorized by 
section 1014 of the USA PATRIOT Act (Public Law 107-56). The 
Committee expects these funds will be made available to States 
within 30 days after enactment of this Act, that States will 
have 30 days to apply after the grant is announced, and ODP 
will act on an application within 15 days of its receipt. The 
Committee also agrees that no less than 80 percent of these 
funds shall be passed by the State to local units of government 
within 60 days of the State receiving funds. None of these 
funds may be used for construction or overtime.

                        CRITICAL INFRASTRUCTURE

    The Committee recommends $200,000,000 for grants to protect 
critical infrastructure. These funds are available to all 
States on a formula basis, as authorized by section 1014 of the 
USA PATRIOT Act (Public Law 107-56). The Committee expects 
these funds will be made available to States within 30 days 
after enactment of this Act, that States will have 30 days to 
apply after the grant is announced, and ODP will act on an 
application within 15 days of its receipt. The Committee also 
agrees that no less than 80 percent of these funds shall be 
passed by the State to local units of government within 60 days 
of the State receiving funds. None of these funds may be used 
for construction.

                 HIGH-THREAT, HIGH-DENSITY URBAN AREAS

    The Committee recommends $500,000,000 for discretionary 
grants to high-threat, high-density urban areas. The Committee 
urges the Secretary to take into account credible threat, 
presence of critical infrastructure, population, vulnerability, 
and the identified needs of public agencies when determining 
the allocation of these funds. The Committee agrees that no 
less than 80 percent of these funds which are made available to 
the States, shall be passed by the State to local units of 
government within 60 days of the State receiving funds. The 
Committee is encouraged by the Department's progress in 
including multiple jurisdiction locations for grant 
consideration and urges the Department to continue those 
efforts. None of these funds may be used for construction.

                             CITIZEN CORPS

    The Committee recommends $45,000,000 for the Citizen Corps 
program, previously funded under the Emergency Preparedness and 
Response Directorate of the Department. This program relies on 
the skills and interests of individuals to assist communities 
in preventing and responding to disasters, whether natural or 
terror related. The Committee understands that the Emergency 
Preparedness and Response Directorate will continue to 
administer the Community Emergency Response Team (CERT) program 
of Citizen Corps with funding provided by ODP. Of the funds 
provided under this heading, $20,000,000 will be for this 
purpose.

                   GRANT ADMINISTRATION AND PLANNING

    The Committee recommends $32,000,000 for grants to States 
for the administration and planning of grants. The budget 
proposed $150,000,000, which included a base amount of 
$118,000,000 transferred from the Emergency Preparedness and 
Response Directorate for Emergency Management Performance 
Grants (EMPGs) to ODP. Without an official proposal from the 
Department of Homeland Security on the new Office of State and 
Local Coordination and Preparedness structure, the Committee 
recommends that EMPGs remain in the Emergency Preparedness and 
Response Directorate where they have a proven track record and 
the focus remains an all-hazards approach. The Committee 
understands the remaining $32,000,000 will be provided to 
States and local entities to assist in the administration and 
planning of the various grant programs that are available.

               NATIONAL DOMESTIC PREPAREDNESS CONSORTIUM

    The Committee recommends $125,000,000 for the National 
Domestic Preparedness Consortium, of which $45,000,000 is 
available for the Center for Domestic Preparedness. ODP 
identifies, develops, tests, and delivers training to State and 
local emergency responders via the National Domestic 
Preparedness Consortium. Each member provides a unique set of 
assets and abilities in the training of first responders.
    ODP is directed to work with the Science and Technology 
Directorate to leverage the Consortium's capability for 
research and development and test and evaluation activities 
that could be conducted at these facilities. The Committee also 
wants to ensure that training programs conducted by ODP are 
coordinated with the university centers of excellence managed 
by the Science and Technology Directorate.
    The Committee has received numerous requests for inclusion 
in the National Domestic Preparedness Consortium. Because the 
Committee believes the Consortium maximizes training resources 
for first responders, the Committee directs the Department to 
provide a report no later than 120 days after enactment of this 
Act on the expansion of the Consortium. The Committee expects 
the Department to review other qualified university, 
government, commercial, and not-for-profit institutes to 
determine complementary training efforts not already addressed 
by the Consortium. The report shall include an evaluation of 
the institutes reviewed, existing training deficiencies, and 
how the recommended institute can address those deficiencies.

                   CENTERS FOR EMERGENCY PREPAREDNESS

    The Committee recommends $35,000,000 for a new competitive 
training grant program. The Committee has received numerous 
requests for funding for first responder and emergency training 
centers. These projects include, but are not limited to, 
terrorism prevention and response, specific disaster response 
such as railroad and nuclear power plant disasters, as well as 
distance learning training projects and regional training 
centers. The Committee expects the Department to identify areas 
of importance for continuing and emerging first responder and 
emergency training programs, and to issue competitive 
solicitations to provide additional opportunities for 
participation by a wide variety of interested participants. ODP 
shall select and designate Centers for Emergency Preparedness 
after preparing the competitive grant application process in 
accordance with public rule making procedures.
    The Committee expects the Department to coordinate the 
university activities conducted by ODP with the university 
centers of excellence authorized in the Science and Technology 
Directorate. The Department should report to the Committee on 
how these university programs will be coordinated within the 
Department to prevent duplication, leverage existing academic 
resources, and provide maximum benefit to meet homeland 
security needs.

                         STANDARDS AND TESTING

    The Committee recommends $12,000,000 for performance and 
field testing. The budget proposed $27,000,000, which included 
$15,000,000 for standards development. The Committee is 
concerned about the proliferation of research and development 
and standards development funds across various agencies within 
the Department with no central control or oversight. Therefore, 
the Committee transfers $15,000,000 for standards development 
from ODP to the Standards/State and Local Program of the 
Science and Technology Directorate.

            LOCAL GOVERNMENT PARTICIPATION IN STATE PLANNING

    The Committee believes that the strong participation of 
local governments, including those of midsize and rural 
communities and counties and multi-county regional 
cooperatives, is essential to the development of sound homeland 
security plans within each State. Therefore, the Committee 
directs the Department, through the Office for State and Local 
Government Coordination, to formalize a process for States to 
incorporate local governments, including those of midsize and 
rural communities and counties and multi-county regional 
cooperatives, in the development and review of State homeland 
security plans, and to submit a report on the implementation no 
later than October 1, 2003.

                  EMERGENCY MEDICAL SERVICE PROVIDERS

    The Committee is aware of the critical role that state and 
local emergency medical service (EMS) providers and officials 
play in the event of a disaster. Accordingly, the Committee 
wishes to make clear its intention that both public and private 
EMS units which participate in State or local emergency 
planning processes are eligible recipients for grants under the 
ODP State Homeland Security Grant Program. Because these EMS 
units represent an integral part of the first responder 
community, the Committee directs ODP to ensure that EMS 
equipment and training requirements, particularly in rural 
areas, are accorded proper attention by State and local 
governments.

            INFORMATION SHARING BY LAW ENFORCEMENT AGENCIES

    The Committee supports the development of technologies to 
facilitate electronic information sharing among law enforcement 
agencies. Technologies that link commercial and public 
databases from multiple states and correlate current and 
historical data can assist critical law enforcement functions. 
The Committee encourages ODP to pursue technologies to provide 
an integrated law enforcement database that will facilitate 
data sharing among States and assist first responders in the 
fight against terrorism and a wide spectrum of crimes.

                         SERVICEABLE EQUIPMENT

    The Committee is aware that when funds are provided to 
procure new first responder and firefighter equipment, the old 
equipment is sometimes discarded. Usually, this equipment is 
still serviceable, yet it is not handed down to other 
jurisdictions or departments for fear of civil liability 
lawsuits. In some instances, however, the discarded equipment 
is in better condition then the current equipment of other 
jurisdictions or departments. Therefore, the Committee directs 
the Department to provide a report within six months of 
enactment of this Act on the feasibility of allowing first 
responder and firefighter grant equipment to be passed to other 
jurisdictions or departments without the risk of liability 
lawsuits. The report shall include the benefits from such a 
program, and any necessary legislative proposals.

                      INTEROPERABLE COMMUNICATIONS

    The Committee is aware of numerous federal programs 
addressing communications interoperability through planning, 
building, upgrading, replacing, maintaining, managing, or 
training personnel to use public safety communication systems. 
To better coordinate the government's efforts, the Committee 
encourages these programs to use the guidelines outlined by the 
SAFECOM program in the Science and Technology Directorate. 
However, the Committee directs that all programs within the 
Department of Homeland Security that issue grants for the above 
listed purposes incorporate the SAFECOM grant guidance, and 
coordinate with the SAFECOM program when awarding funding.

             TITLE III--EMERGENCY PREPAREDNESS AND RESPONSE


                 Administrative and Regional Operations


  
 Appropriation, fiscal year 2003.......................  ................
Budget estimate, fiscal year 2004.....................      $165,267,000
Recommended in the bill...............................       168,589,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +168,589,000
    Budget estimate, fiscal year 2004.................        +3,322,000
                                MISSION

    This activity encompasses the salaries and expenses 
required to provide executive direction and administrative 
staff support for all agency programs in both the headquarters 
and field offices. The account funds both program support and 
executive direction activities.

                             RECOMMENDATION

    The Committee recommends $168,589,000 for administrative 
and regional operations, an increase of $3,322,000 from the 
budget request. Of these amounts, the Committee directs the 
Emergency Preparedness and Response Directorate to provide 
$4,000,000 to complete its effort to archive key agency 
documents by digitization to optical disks, including related 
activities. The recommendation includes $322,000 for the impact 
of the fiscal year 2003 pay raise, and $3,000,000 for the full 
time equivalents directed in Public Law 108-7, but not included 
in the budget request.

            Preparedness, Mitigation, Response, and Recovery


  
 Appropriation, fiscal year 2003.......................  ................
Budget estimate, fiscal year 2004.....................      $163,000,000
Recommended in the bill...............................       363,339,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +363,339,000
    Budget estimate, fiscal year 2004.................      +200,339,000
                                MISSION

    This activity provides for the development and maintenance 
of an integrated, nationwide operational capability to prepare 
for, mitigate against, respond to, and recover from the 
consequences of disasters and emergencies, regardless of their 
cause, in partnership with other Federal agencies, State and 
local governments, volunteer organizations, and the private 
sector.

                             RECOMMENDATION

    The Committee recommends $363,339,000 for preparedness, 
mitigation, response and recovery activities, an increase of 
$200,339,000 from the budget request. The recommendation 
includes $339,000 for the impact of the fiscal year 2003 pay 
raise, $3,000,000 for the full time equivalents directed in 
Public Law 108-7 but not included in the budget request, and 
$4,000,000 for the administration of grants, which the 
Committee recommends stay in the Emergency Preparedness and 
Response Directorate.

            EMERGENCY MANAGEMENT PERFORMANCE GRANTS (EMPGS)

    The budget request proposed that the EMPGs be transferred 
to the Office for Domestic Preparedness in an effort to 
consolidate grants to States and local entities under a new 
Office of State and Local Coordination and Preparedness. 
Without an official proposal from the Department of Homeland 
Security on the new Office of State and Local Coordination and 
Preparedness structure, the Committee recommends that the 
program remain in the Emergency Preparedness and Recovery 
Directorate, where it has a proven track record and the focus 
remains an all-hazards approach. Further, the Committee is 
concerned that the Department's proposal for EMPGs did not 
allow State and local governments to fund personnel expenses. 
State and local emergency managers rely on these funds for a 
variety expenses, but predominately for personnel who plan, 
train, coordinate, and conduct exercises and other functions 
essential to effective preparedness, mitigation, response, and 
recovery efforts. Therefore, the Committee recommends that of 
the funds provided, $168,000,000 be available for EMPGs within 
the Emergency Preparedness and Response Directorate. Further, 
these funds shall be available for personnel and other 
emergency management related expenses.

                      EMERGENCY OPERATIONS CENTERS

    The Committee understands that emergency operation centers 
are vital to the State and local government responses in a 
disaster, whether natural or manmade. The Committee includes 
$25,000,000 as a new program for competitive emergency 
operations centers grants. These funds are available to equip, 
modify, renovate, or repair existing emergency operations 
centers, but are not available for new construction.

                          WEB-BASED TECHNOLOGY

    The Committee is aware of the Emergency Preparedness and 
Response Directorate's efforts to use web-based technology to 
update, expand, and improve a library of best practices in 
emergency preparedness for use by all levels of government. The 
Committee encourages the continuation and expansion of these 
efforts to integrate cross-agency processes, and enable 
decision-making, promoting collaboration and coordination 
within the emergency management and first responder community.

                      INTEROPERABLE COMMUNICATIONS

    The Committee is concerned that first responders may 
purchase new equipment for the purpose of interoperability 
without looking at mechanisms that may make existing equipment 
interoperable. For instance, the Committee is aware of efforts 
between Federal, State, and local governments and private 
industry that enable groups operating on different frequencies 
to communicate directly through interoperability switching 
equipment. The Committee directs the Department to evaluate and 
support such projects within the funding provided for the 
Emergency Preparedness and Response Directorate.
    The Committee is aware of numerous federal programs 
addressing communications interoperability through planning, 
building, upgrading, replacing, maintaining, managing, or 
training personnel to use public safety communication systems. 
To better coordinate the government's efforts, the Committee 
encourages these programs to use the guidelines outlined by the 
SAFECOM program in the Science and Technology Directorate. 
However, the Committee directs that all programs within the 
Department of Homeland Security that issue grants for the above 
listed purposes incorporate the SAFECOM grant guidance, and 
coordinate with the SAFECOM program when awarding funding.

                       RURAL FIREFIGHTER TRAINING

    The Committee is concerned that rural firefighters lack 
needed training due to their remote locations and distance from 
training courses. Therefore, the Committee directs the 
Department to consider funding a rural firefighter training 
demonstration program that could use innovative technologies 
and a multimedia approach to develop a means to keep the level 
of training of these critical first responders similar to those 
in urban locations.

                       MITIGATION OF FIRE HAZARDS

    The Committee urges the Emergency Preparedness and Response 
Directorate to continue to work with the State of California 
Office of Emergency Services to eliminate an extremely 
dangerous forest fire condition around the San Bernardino 
National Forest caused by drought and bark beetle infestation.

         MINORITY EMERGENCY PREPAREDNESS DEMONSTRATION PROGRAM

    The Committee is very concerned that the Emergency 
Preparedness and Response Directorate has not kept it informed 
with respect to actions taken to implement the minority 
emergency preparedness demonstration program during fiscal year 
2003, as directed by the Committee in Public Law 108-7. The 
Committee therefore directs the Department to submit an action 
plan and progress report regarding this program by November 20, 
2003.

                         Public Health Programs


  
 Appropriation, fiscal year 2003.......................      $497,744,000
Budget estimate, fiscal year 2004.....................       434,000,000
Recommended in the bill...............................       484,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................       -13,744,000
    Budget estimate, fiscal year 2004.................       +50,000,000
                                MISSION

    This activity provides for the countermeasures needed to 
treat diseases caused by biological and chemical agents, as 
well as medical and support personnel designed to provide 
emergency medical care during a disaster or other unusual 
event.

                             RECOMMENDATION

    The Committee recommends $484,000,000 for public health 
programs, an increase of $50,000,000 from the budget request. 
Of the amounts appropriated, $400,000,000 is provided for the 
Strategic National Stockpile, including smallpox vaccine, 
$50,000,000 is provided for the Metropolitan Medical Response 
System, and $34,000,000 is provided for the National Disaster 
Medical System. The Committee is concerned that the budget 
request did not include funding for the Metropolitan Medical 
Response System, and urges the Department and the Office of 
Management and Budget to fully fund this program in the future.

                       Biodefense Countermeasures


  
 Appropriation, fiscal year 2003.......................  ................
Budget estimate, fiscal year 2004.....................      $890,000,000
Recommended in the bill...............................     5,593,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................    +5,593,000,000
    Budget estimate, fiscal year 2004.................    +4,703,000,000
                                MISSION

    This activity will allow the Department to secure medical 
countermeasures to strengthen the Nation's preparedness against 
bioterror attacks by promoting the removal of barriers to 
development and production processes, and pre-purchasing 
critically needed vaccines or medication for biodefense.

                             RECOMMENDATION

    The Committee recommends advance appropriations of 
$5,593,000,000, to remain available until fiscal year 2013. 
This amount is an increase of $4,703,000,000 from the budget 
request. Of the funds appropriated, no more than $3,418,000,000 
may be obligated in fiscal years 2004 through 2008, of which no 
more than $890,000,000 may be obligated during fiscal year 
2004.
    The Committee believes that by providing these funds in an 
advance appropriation, a market place is created for those 
manufacturers who would otherwise not undertake the lengthy and 
expensive process to produce needed countermeasures as 
identified by the Secretary.

                             Grant Programs


                     (INCLUDING TRANSFER OF FUNDS)

  
 Appropriation, fiscal year 2003.......................      $168,895,000
Budget estimate, fiscal year 2004.....................       300,000,000
Recommended in the bill...............................       200,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................       +31,105,000
    Budget estimate, fiscal year 2004.................      -100,000,000
                                MISSION

    These funds are available to reduce the risk of future 
damage in hazard areas and to ultimately reduce needs for 
Federal disaster assistance by encouraging the building of an 
environment increasingly resistant to the effects of natural 
hazards. This program also addresses repetitive loss properties 
within the National Flood Insurance Program, offering removal 
or elevation of structures.

                             RECOMMENDATION

    The Committee recommends $180,000,000 for the Pre-Disaster 
Mitigation Fund, a decrease of $100,000,000 from the budget 
request. The Committee directs the Emergency Preparedness and 
Response Directorate to provide $250,000 per year to each 
State, the District of Columbia, Puerto Rico, the Virgin 
Islands, Guam, and American Samoa. The Committee also 
recommends $20,000,000 for the National Flood Mitigation Fund, 
to be derived by transfer from the National Flood Insurance 
Program.

                     HURRICANE MITIGATION RESEARCH

    The Committee understands that Florida International 
University submitted a proposal to the Emergency Preparedness 
and Response Directorate in April of 2003, drawing on the 
expertise of 8 of the 11 public universities in Florida, to 
fulfill the requirement in the fiscal year 2003 Omnibus 
Appropriations Act (Public Law 108-7). The Committee encourages 
the Emergency Preparedness and Response Directorate to review 
the proposal, and work with the State University System of 
Florida on comprehensive hurricane mitigation research as 
directed in Public Law 108-7.

                       Emergency Food and Shelter


  
 Appropriation, fiscal year 2003.......................      $152,005,000
Budget estimate, fiscal year 2004.....................       153,000,000
Recommended in the bill...............................       153,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................          +995,000
    Budget estimate, fiscal year 2004.................  ................
                                MISSION

    The Emergency Food and Shelter Program within the Emergency 
Preparedness and Response Directorate originated in the 1983 
Emergency Jobs legislation. Minor modifications were 
incorporated in the McKinney-Vento Homeless Assistance Act. The 
program is designed to help address the problems of the hungry 
and homeless. Appropriated funds are awarded to a National 
Board to carry out programs for sheltering and feeding the 
needy. This program is nationwide in scope, and provides such 
assistance through local private voluntary organizations and 
units of government selected by local boards in areas 
designated by the National Board as being in highest need.

                             RECOMMENDATION

    The Committee recommends $153,000,000 for the Emergency 
Food and Shelter Program, the same as the budget request.
    The budget proposed that this program be transferred to the 
Department of Housing and Urban Development in an effort to 
consolidate homeless programs. Pending enactment of legislation 
moving this program, the Committee has fully funded it in 
fiscal year 2004.
    Bill language is included which limits administrative costs 
to 3.5 percent for fiscal year 2004.

                     Firefighter Assistance Grants


                     (INCLUDING TRANSFER OF FUNDS)

  
 Appropriation, fiscal year 2003.......................      $745,125,000
Budget estimate, fiscal year 2004.....................  ................
Recommended in the bill...............................       750,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................        +4,875,000
    Budget estimate, fiscal year 2004.................      +750,000,000
                                MISSION

    This activity supports a grant program of assistance to 
local fire departments for the purpose of protecting the health 
and safety of the public and fire fighting personnel, including 
volunteers and emergency medical service personnel, against 
fire and fire-related hazards.

                             RECOMMENDATION

    The Committee recommends $750,000,000 for Firefighter 
Assistance Grants, an increase of $750,000,000 from the budget 
request.
    The budget request proposed to transfer these grants to the 
Office for Domestic Preparedness (ODP). The request identified 
$500,000,000 of the ODP basic grants as a set aside for 
Firefighter Assistance Grants. The Committee, however, 
recommends the program remain in the Emergency Preparedness and 
Response Directorate in a separate appropriation so there is no 
doubt as to its importance, and to protect this program from 
being lost in the first responders grant programs.

                            Disaster Relief


                     (INCLUDING TRANSFER OF FUNDS)

  
 Appropriation, fiscal year 2003.......................      $776,420,000
Budget estimate, fiscal year 2004.....................     1,956,000,000
Recommended in the bill...............................     1,800,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................    +1,023,580,000
    Budget estimate, fiscal year 2004.................      -156,000,000
                                MISSION

    The Emergency Preparedness and Response Directorate has 
responsibility for administering disaster assistance programs 
and coordinating the Federal response in Presidential disaster 
declarations. Major activities under the disaster assistance 
program are human services, which provides aid to families and 
individuals; infrastructure, which supports the efforts of 
State and local governments to take emergency protective 
measures, clear debris and repair infrastructure damage; hazard 
mitigation, which sponsors projects to diminish effects of 
future disasters; and disaster management, such as disaster 
field office staff and automated data processing support.

                             RECOMMENDATION

    The Committee recommends $1,800,000,000, a decrease of 
$156,000,000 from the budget request. Of this amount, up to 
$22,000,000 shall be transferred to the Office of Inspector 
General. The Committee takes this reduction to the budget 
request without prejudice, and expects to fully fund all 
disaster relief expenses in fiscal year 2004.

                        POST-DISASTER MITIGATION

    The budget request included a proposal to discontinue the 
section 404 post-disaster hazard mitigation grants program, and 
rely solely on a competitive pre-disaster mitigation grant 
program for mitigation activities. The Committee maintains that 
the section 404 post-disaster hazard mitigation grant program 
is an effective mechanism to ensure mitigation activities are 
undertaken when the need is most apparent, which is immediately 
after a disaster strikes. When used in conjunction with the 
pre-disaster mitigation grant program, a comprehensive 
mitigation strategy can be accomplished. The Committee 
therefore continues the post-disaster hazard mitigation grant 
program, and recommends that the set-aside remain at 7.5 
percent.

                      Flood Map Modernization Fund


  
 Appropriation, fiscal year 2003.......................      $149,025,000
Budget estimate, fiscal year 2004.....................       200,000,000
Recommended in the bill...............................       200,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................       +50,975,000
    Budget estimate, fiscal year 2004.................  ................
                                MISSION

    This program provides funds to modernize and digitize the 
Emergency Preparedness and Response Directorate's inventory of 
over 100,000 flood maps. These flood maps are used to determine 
appropriate risk-based premium rates for the National Flood 
Insurance Program, complete hazard determinations required for 
the Nation's lending institutions, and to develop appropriate 
disaster response plans for Federal, State, and local emergency 
management personnel.

                             RECOMMENDATION

    The Committee recommends $200,000,000 for Flood Map 
Modernization, the same as the budget request.

                         FLOOD MAPPING PROJECTS

    The Kentucky counties of Bell, Knox, Whitley, Laurel, and 
Harlan have historically been prone to flooding. Flood control 
projects undertaken by the Corps of Engineers are complete, yet 
the flood maps have yet to be updated, creating an undue 
economic burden on these communities. The Committee therefore 
directs the Emergency Preparedness and Response Directorate to 
update the flood maps for these counties within the funds 
provided under this heading. Further, the Committee directs the 
Emergency Preparedness and Response Directorate to continue 
funding ongoing flood mapping projects at those levels 
identified in Public Law 108-7.
    The Committee directs the Emergency Preparedness and 
Response Directorate to provide funding to study the flood 
plains in Abilene, Texas, especially the highest priority 
stream segment, which impacts Dyess Air Force Base, and to 
utilize a high resolution digital elevation model in Minnesota.
    The Committee recognizes that State and local governments, 
especially those in high-risk areas, routinely contribute 
resources to flood map modernization programs. When allocating 
Federal flood mapping modernization funds, the Emergency 
Preparedness and Response Directorate includes as a criterion 
these contributions of State and local governments. This 
criterion allows the Department to better leverage Federal 
resources in conjunction with non-Federal contributions. The 
Committee encourages the Department to continue these efforts.

                     National Flood Insurance Fund


                     (INCLUDING TRANSFER OF FUNDS)

  
 Appropriations, fiscal year 2003......................      $109,343,000
Budget estimate, fiscal year 2004.....................       110,472,000
Recommended in the bill...............................       110,570,000
Bill compared with:
    Appropriations, fiscal year 2003..................        +1,227,000
    Budget estimate, fiscal year 2004.................           +98,000
                                MISSION

    The Flood Disaster Protection Act of 1973 requires the 
purchase of insurance in communities where it is available as a 
condition for receiving various forms of Federal financial 
assistance for acquisition and construction of buildings or 
projects within special flood hazard areas identified by the 
Emergency Preparedness and Response Directorate. All existing 
buildings and their contents in communities where flood 
insurance is available, through either the emergency or regular 
program, are eligible for a first layer of coverage of 
subsidized premium rates.
    Full risk actuarial rates are charged for new construction 
or substantial improvements commenced in identified special 
flood hazard areas after December 31, 1974, or after the 
effective date of the flood insurance rate map issued to the 
community, whichever is later. For communities in the regular 
program, a second layer of flood insurance coverage is 
available at actuarial rates on all properties, and actuarial 
rates for both layers apply to all new construction or 
substantial improvements located in special flood hazard areas. 
The program operations are financed with premium income 
augmented by Treasury borrowings.

                             RECOMMENDATION

    The Committee has included bill language proposed in the 
budget request for salaries and expenses to administer the 
fund, not to exceed $32,761,000, and for mitigation activities, 
not to exceed $77,809,000. Also included is a limitation of 
$20,000,000 for expenses under Section 1366 of the National 
Flood Insurance Act of 1968, as amended, which shall be 
available for transfer to the National Flood Mitigation Fund.

            Disaster Assistance Direct Loan Program Account


                        ADMINISTRATIVE EXPENSES

  
 Appropriation, fiscal year 2003.......................          $553,000
Budget estimate, fiscal year 2004.....................           557,000
Recommended in the bill...............................           558,000
Bill compared with:
    Appropriation, fiscal year 2003...................            +5,000
    Budget estimate, fiscal year 2004.................            +1,000
                       LIMITATION ON DIRECT LOANS

  
 Obligations Limitation, fiscal year 2003..............       $24,837,000
Budget estimate, fiscal year 2004.....................        25,000,000
Recommended in the bill...............................        25,000,000
Bill compared with:
    Obligations Limitations, fiscal year 2003.........          +163,000
    Budget estimate, fiscal year 2004.................  ................
                                MISSION

    Beginning in 1992, loans made to States under the cost 
sharing provisions of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act were funded in accordance with the 
Federal Credit Reform Act of 1990. The Disaster Assistance 
Direct Loan Program Account, which was established as a result 
of the Federal Credit Reform Act, records the subsidy costs 
associated with the direct loans obligated beginning in 1992 to 
the present, as well as administrative expenses of this 
program.

                             RECOMMENDATION

    The Committee recommends $25,000,000 for the limitation on 
direct loans pursuant to Section 319 of the Stafford Act, the 
same as the budget request, as well as $558,000 for 
administrative expenses of the program, an increase of $1,000 
from the budget request.

                TITLE IV--OTHER DEPARTMENTAL ACTIVITIES


                  CITIZENSHIP AND IMMIGRATION SERVICES


                           Operating Expenses


  
 Appropriation, fiscal year 2003.......................      $695,148,000
Budget estimate, fiscal year 2004.....................       235,000,000
Recommended in the bill...............................       248,500,000
Bill compared with:
    Appropriation, fiscal year 2003...................      -446,648,000
    Budget estimate, fiscal year 2004.................       +13,500,000
                                MISSION

    The Bureau of Citizenship and Immigration Services (BCIS) 
is charged with providing the highest quality services in a 
manner that is timely, efficient, and fair. BCIS manages the 
asylum process, something that must be done with care to deter 
possible abuse of the system while supporting those with 
legitimate claims; carries out immigration and naturalization 
processes and services; and is a source of information for 
employers, benefit providers and others with appropriate 
requirements for information about immigration and alien 
status. This activity must both provide quality and supportive 
service to the public, while maintaining the integrity and 
security of a system that grants citizenship and residency 
status and privileges. While essentially a service 
organization, BCIS maintains substantial records and data that 
are relevant to both the individuals whose immigration status 
may depend on them, as well as for law enforcement and other 
Homeland Security purposes.

                             RECOMMENDATION

    The Committee recommends an appropriation of $248,500,000 
for Citizenship and Immigration Services, an increase of 
$13,500,000 above the President's request. The increase 
consists of $12,000,000 to restore unspecified administrative 
reductions to finance Departmental operations, as well as 
$1,500,000 to fully fund the fiscal year 2003 pay adjustment. 
This funding would be in addition to the estimated 
$1,564,485,000 in collections that would bring total resources 
for BCIS to $1,812,985,000.
    BCIS operations are heavily dependent on a variety of fees 
to offset their operations, particularly the Immigration 
Examination Fee. The fluctuation of these fees can adversely 
affect operations if allowances are not made for prioritizing 
spending. The Committee therefore directs BCIS to ensure that 
it fully funds current, ongoing base operations that are fee-
supported before undertaking new initiatives.

                           BACKLOG REDUCTION

    In response to the rapidly growing workload for BCIS--from 
5.4 million to 7 million applications between 1999 and 2002--
the President initiated a five-year, $500,000,000 plan to 
achieve a six month processing backlog level. The Committee 
continues to wait for submission of the revised backlog 
elimination plan. In the meantime, it appears that initial 
progress in reducing average backlog has been slowed due to 
increased security requirements, including Interagency Border 
Identification System (IBIS) and FBI checks. While there seems 
to have been some improvement since the beginning of the 
program, the most recent statistical reports from the 
Department suggest that pending cases for immigration services 
are growing in excess of 5 million cases and that 
naturalization case backlogs seem to be holding steady. The 
Committee directs BCIS and the Department to expedite the 
completion of the plan and to report on it as soon as possible 
to the Committee, but not later than September 1, 2003. The 
report should, in addition to showing the specific timeframes 
and goals to achieve the targeted reductions, specify 
assumptions about funding requirements, availability, and 
projections that must be met in order to meet the plan goals.

                            OFFSETTING FEES

    Current estimates of examination fee collections, which 
constitute the majority of BCIS offsetting resources, are 
$1,564,485,000. These would support the adjudication of 
applications for immigration benefits and be derived from fees 
collected from persons applying for immigration benefits. The 
Committee assumes that $20,000,000 of this will be applied to 
the backlog reduction initiative. Within the fees collected, 
the Committee directs BCIS to provide not less than $43,000,000 
for support telephone customer service center operations. No 
less than $20,400,000 shall be made available to the efforts 
under way for the Microfilm Rescue Project, the Naturalization 
Certificate and Other Old Certificate Rescue Project, and the 
Flex-O-Line project to convert millions of alien and 
immigration records that survive on old microfilm and other 
micrographic records, as well as paper punch cards and similar 
deteriorating media, into digitized, accessible and searchable 
forms of data storage.

                       IMMIGRATION OFFICER TRAVEL

    The Committee is concerned that limits on travel of 
immigration officers have resulted in a significant decline in 
the processing and resettlement of refugees to the United 
States. The Committee directs DHS to develop a plan to address 
this issue, in consultation with the State Department, and to 
report on the plan within 90 days of enactment of this Act.

                       UNITED STATES COAST GUARD


                           Operating Expenses


  
 Appropriation, fiscal year 2003.......................    $4,503,152,000
Budget estimate, fiscal year 2004.....................     4,838,000,000
Recommended in the bill...............................     4,703,530,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +200,378,000
    Budget estimate, fiscal year 2004.................      -134,470,000
                                MISSION

    This appropriation provides funding for the operation and 
maintenance of multipurpose vessels, aircraft, and shore units 
strategically located along the coasts and inland waterways of 
the United States, and in selected areas overseas. This is the 
primary appropriation financing operational activities of the 
Coast Guard.

                             RECOMMENDATION

    Including $1,300,000,000 for national security activities, 
the Committee recommends a total of $4,703,530,000 for 
operating activities of the Coast Guard in fiscal year 2004, 
$134,470,000 below the budget request. This reduction largely 
reflects the denial of placing two budget categories--
environmental compliance and restoration and reserve training--
into the operating expenses account. These activities are 
funded in separate appropriation accounts. Other small 
adjustments made to the budget include a reduction in travel 
expenditures from a requested 19 percent increase to a 10 
percent increase (-$8,077,000); a reduction for new homeland 
security facilities (-$1,000,000) which shall not be applied to 
security improvements or costs to accommodate child care 
facilities within existing locations; an increase of $4,099,000 
to fully fund the fiscal year 2003 pay adjustment for civilian 
employees; and $1,184,000 for the self-locating datum marker 
buoy.
    The following table highlights the recommended level by 
program, project and activity:
                                                             Recommended
Personnel resources:
    Military pay and allowances.........................  $1,993,713,000
    Civilian pay and benefits...........................     381,246,000
    Military health care................................     464,890,000
    Permanent change of stations........................     105,184,000
    Training and education..............................     110,638,000
    Recruiting..........................................      20,702,000
    FECA/UCX............................................       4,420,000
Operating funds and unit level maintenance:
    Atlantic command....................................     145,714,000
    Pacific command.....................................     161,540,000
    1st District........................................      38,708,000
    7th District........................................      54,498,000
    8th District........................................      39,150,000
    9th District........................................      20,860,000
    13th District.......................................      16,050,000
    14th District.......................................      11,522,000
    17th District.......................................      21,052,000
    Headquarters offices................................     414,913,000
    Headquarters managed units..........................     111,310,000
    Other activities....................................       2,290,000
    DHS administrative services.........................     -23,000,000
    Travel..............................................      -8,077,000
    Pay parity for civilians............................      +4,099,000
    Portable radiation search tools.....................      +3,000,000
    Search and rescue...................................      +2,000,000
Intermediate and depot level maintenance:
    Aircraft maintenance................................     218,771,000
    Electronic maintenance..............................      89,889,000
    Ocean engineering and shore facilities maintenance..     152,048,000
    Vessel maintenance..................................     146,400,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................  $4,703,530,000

    Additional adjustments to the budget estimate are discussed 
below.

                           SEARCH AND RESCUE

    The Committee continues to remain concerned about the 
quantity and quality of personnel and equipment at small boat 
stations, command centers, and other field locations that are 
used for search and rescue operations. Repeated Inspector 
General investigations have pointed to longstanding staffing 
shortages, lack of training, and equipment problems. While the 
Committee is pleased that the Coast Guard is increasing its 
request for search and rescue operations in fiscal year 2004 by 
$10,314,000, more funding is necessary. As such, the Committee 
has provided an additional $2,000,000 to continue to improve 
the search and rescue program in headquarters, Atlantic 
command, Pacific command, and district offices. With this 
funding, the Coast Guard should consider: (1) expanding the 
Boatswain Mate-A as well as motorboat and utility boat 
Coxswain-C school programs to accommodate additional staff each 
year; (2) expanding advanced training programs to reduce on-
the-job training workload at its small boat stations; (3) 
procuring additional personnel protection equipment; (4) 
recapitalizing Coast Guard housing to correct inadequacies in 
terms of size, condition, or mix of sleeping quarters; (5) 
alleviating over billeting of staff at certain small boat 
stations; and/or (6) continuing other activities initially 
funded with the fiscal year 2003 increase for search and rescue 
activities. The Committee recognizes that some of this funding 
may need to be transferred to the acquisition, construction and 
improvement account for shore facilities and specific boat 
station repairs.
    In addition to the increased funding for search and rescue 
operations, the Committee recommends that oversight procedures 
be established for use by the commanding officers or officers-
in-charge of Coast Guard stations to improve the safety of 
Coast Guard routine small boat operations, including the 
institution of in-depth pre-departure briefings, thorough 
preparedness checks of boats, monitoring of coxswain 
performance, and thorough post patrol briefings. The Committee 
believes that these oversight procedures are necessary based on 
findings of the National Transportation Safety Board following 
investigations into accidents in Buffalo, New York and Biscayne 
Bay, Florida. In both of these accidents, young coxswains went 
out into waters that were too rough (as in Buffalo) or went too 
fast in their boats (as in Biscayne Bay). The results, all too 
often, are ``unplanned departures from the boat'', injury, and 
sometimes death. The National Transportation Safety Board 
recommended, and the Committee concurs, that a more formal 
process at stations beforehand, including a pre-departure 
checklist and briefing with station authorities, may, if done 
correctly, make a life saving difference.

                              ICE BREAKING

    The Committee continues to be concerned about the level of 
funding the Coast Guard provides for ice breaking activities, 
particularly in the Antarctic region. The Coast Guard has a 
Memorandum of Agreement (MOA) with the National Science 
Foundation for the use of three icebreakers to support 
scientific and operational programs in the polar regions. The 
most recent MOA was signed on May 25, 1999, and will remain in 
effect until terminated or modified by either agency. Under the 
MOA, the National Science Foundation reimburses the Coast Guard 
for the following expenditures: fuel costs in transiting to and 
from the operation area and while in the designated operating 
area; vessel maintenance for each day the icebreakers are in 
the operation area and for transit time to and from the 
icebreaker's normal homeport; maintenance for helicopters 
aboard the icebreaker for each day the icebreaker is in the 
operation area and for each day spent in straight line transit 
to and from the icebreaker's normal homeport; and for the 
liaison billet in Antarctica. On average, the National Science 
Foundation reimburses less than half of the costs of these 
operations (e.g. 35 percent of maintenance costs, 60 percent of 
helicopter costs). The Coast Guard has told the Committee that 
this is because the Coast Guard could be pulled off of 
icebreaking activities in the polar region to support other 
traditional functions, such as oil spill clean up or search and 
rescue. In the case of the Artic, the Committee believes that 
this is true. However, this argument has less validity in the 
case of the Antarctic region. The Coast Guard was not able to 
clearly identify instances in the Antarctic region where it was 
required to stop breaking ice and function in a more 
traditional role. As a result, the Committee directs the Coast 
Guard to begin renegotiating the MOA with the National Science 
Foundation, with particular emphasis on gaining higher 
reimbursements for the Antarctic region. A reduction of 
$2,500,000 for ice breaking activities has been applied to the 
budget request. The Committee expects the National Science 
Foundation to make up this shortfall.

                    PORTABLE RADIATION SEARCH TOOLS

    A total of $3,000,000 has been provided to continue the 
evaluation and procurement of portable radiation search tools 
currently undergoing field trials. These trials will help 
verify the operational practicality of unique equipment that 
shows great promise as one of several countermeasures against 
nuclear smuggling. The Committee encourages the Coast Guard to 
continue these tests, with a particular emphasis on use of 
these applications by boarding teams.

                                LORAN C

    The Committee understands that the interagency agreement 
between the Coast Guard and the Federal Aviation Administration 
(FAA), permitting modernization of the Loran navigation 
infrastructure, remains in full force. The Committee supports 
this collaborative work because it offers the potential for 
important marine security and safety benefits, along with 
substantially reduced system operations and maintenance costs. 
There is also strong support for the recapitalization 
initiative from marine and other users who utilize Loran since 
it is the most compatible and only other available multimodal 
backup navigation system for satellite technology. In view of 
the significant progress and improvements that have been 
accomplished to date, the Committee believes the Coast Guard 
should advance efforts to expedite the Loran modernization 
effort as an important priority.

                         BALLAST WATER PROGRAM

    The National Invasive Species Act directed the Coast Guard 
to implement national guidelines to prevent the introduction of 
aquatic nuisance species into waters of the United States via 
the ballast water of ships. The Coast Guard has issued these 
guidelines. Because invasive species spread readily once 
established in U.S. waters, this prevention program is of 
critical importance to all states with water resources, 
regardless of their proximity to commercial ports. A total of 
$4,000,000 has been provided within operating expenses to 
implement and enforce the national ballast water program and 
ballast water information clearinghouse.

                         DUAL USE TECHNOLOGIES

    The Committee continues to be interested in technology that 
would aid the Coast Guard with its dual mission in counter-drug 
and counter-terrorism operations. The Committee is aware that 
technology, widely deployed in other counter-terrorism and 
counter-drug operations, is able to detect minute quantities of 
narcotics and explosive materials on individuals, baggage, 
vehicles, cargo, and documents. These dual-use devices can 
reduce Coast Guard manpower and maintenance costs, and provide 
synergies between these two missions. The Committee directs the 
Coast Guard to undertake a pilot study of this technology by 
deploying dual use technology equipment on Coast Guard 
operations to evaluate its efficacy and value in real world 
mission scenarios. The Coast Guard shall provide results of 
this evaluation to the Committee on Appropriations no later 
than March 30, 2004.

                       DEFENSE-RELATED ACTIVITIES

    The bill specifies that $1,300,000,000 of the total amount 
provided is for national security-related activities, 
$960,000,000 above the budget estimate. Following September 
11th, the Coast Guard has undertaken additional 
responsibilities for protecting our homeland, both at home and 
abroad. Funding included in this category will permit the Coast 
Guard to maintain a state of readiness to function as a 
specialized service in the Navy in the time of war, as required 
by Title 14; to better protect the navigation infrastructure in 
our 14 commercial and 3 military ammunition ports designed as 
strategic seaports; and to support new operating initiatives, 
such as secure communications and interoperability, port 
security units, and marine safety and security teams, to 
support DOD requirements.

                Environmental Compliance and Restoration


  
 Appropriation, fiscal year 2003.......................       $16,889,000
Budget estimate, fiscal year 2004 \1\.................  ................
Recommended in the bill...............................        17,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................          +111,000
    Budget estmate, fiscal year 2004..................      +17,000,000
 \1\ The budget requested $17,000,000 for these activities under
  Operating Expenses.

                                MISSION

    This appropriation assists in bringing Coast Guard 
facilities into compliance with applicable federal, state and 
environmental regulations; conducting facilities response 
plans; developing pollution and hazardous waste minimization 
strategies; conducting environmental assessments; and 
conducting necessary program support. These funds permit the 
continuation of a service-wide program to correct environmental 
problems, such as major improvements of storage tanks 
containing petroleum and regulated substances. The program 
focuses mainly on Coast Guard facilities, but also includes 
third party sites where Coast Guard activities have contributed 
to environmental problems.

                             RECOMMENDATION

    The Committee recommends $17,000,000. The Committee has 
denied funding this program under operating expenses as 
requested. It is unclear how activities under this account are 
operating in nature and, in combining these activities under 
operating expenses, less emphasis could be placed on correcting 
key environmental problems.

                            Reserve Training


------------------------------------------------------------------------
 ------------------------------------------------------------------------
Appropriation, fiscal year 2003.......................       $85,933,000
Budget estimate, fiscal year 2004 \1\.................  ................
Recommended in the bill...............................        94,051,000
Bill compared with:
    Appropriation, fiscal year 2003...................        +8,118,000
    Budget estimate, fiscal year 2004.................      +94,051,000
------------------------------------------------------------------------
\1\ The budget requested funding for reserve training under Operating
  Expenses. No amount was specified in bill language.


                                MISSION

    This appropriation provides for the training of qualified 
individuals who are available for active duty in time of war or 
national emergency, or to augment regular Coast Guard forces in 
the performance of peacetime missions. Program activities fall 
into the following categories:
    Initial training.--The direct costs of initial training for 
three categories of non-prior service trainees.
    Continued training.--The training of officer and enlisted 
personnel.
    Operation and maintenance of training facilities.--The day-
to-day operation and maintenance of reserve training 
facilities.
    Administration.--All administrative costs of the reserve 
forces program.

                             RECOMMENDATION

    The bill includes $94,051,000 for reserve training. The 
budget requested that this funding be included in the operating 
expenses account. This request is denied. In the past, the 
Committee has had a number of concerns about how the Coast 
Guard utilized its funding for reserve training. For many 
years, bill language was included that limited the amount of 
reserve training funds that could be transferred to operating 
expenses because the Coast Guard had used this source of 
funding for a variety of questionably related activities, 
including active duty and administrative budgets. By combining 
the reserve training account into operating expenses, it is 
possible that the reserves may receive less funding than 
necessary to continue their critical functions. The Committee 
will monitor this situation to ensure that the reserves are not 
assessed excessive chargebacks to the Coast Guard operating 
budget over the coming year.
    Included in the total is $51,000 to fully fund the fiscal 
year 2003 pay adjustment for civilian personnel. Military 
personnel in the Coast Guard received a 4.1 percent pay raise 
in fiscal year 2003. As such, this adjustment is not required 
for the vast majority of the Coast Guard personnel.

                           SELECTED RESERVES

    The budget requested an increase in funding for reserve 
personnel, to support a Selected Reserve level of 10,000, which 
is 1,000 (11 percent) above the level estimated for fiscal year 
2003. Currently, the Coast Guard has a Selected Reserve level 
of 7,841. On average, the attrition rate for the reserve 
program is about 12 percent. Even with a surge in summer 
recruits, both in 2003 and 2004, the Committee does not believe 
it is possible for the Coast Guard to reach a Selected Reserve 
level of 10,000 by the end of fiscal year 2004. Thus, funding 
has been provided to support 9,000 Selected Reserves. The Coast 
Guard should not in any way interpret the denial as a 
diminution of support for this program. The reserves have 
proven to be a force multiplier within the Coast Guard, 
augmenting the efficient delivery of Coast Guard service to the 
public, not only in homeland security and national security 
missions, but also in support of routine duties. The Committee 
continues to strongly support the Coast Guard Reserve.

       VESSEL TRAFFIC SAFETY FAIRWAY, SANTA BARBARA/SAN FRANCISCO

    The bill continues language (Section 510) that would 
prohibit the use funds to plan, finalize, or implement 
regulations that would establish a vessel traffic safety 
fairway less than five miles wide between the Santa Barbara 
traffic separation scheme and the San Francisco traffic 
separation scheme. On April 27, 1989, the Department of 
Transportation published a notice of proposed rulemaking that 
would narrow the originally proposed five-mile-wide fairway to 
two one-mile-wide fairways separated by a two-mile-wide area 
where offshore oil rigs could be built if Lease Sale 119 goes 
forward. Under this revised proposal, vessels would be routed 
in close proximity to oil rigs because the two-mile-wide non-
fairway corridor could contain drilling rigs at the edge of the 
fairways. The Committee is concerned that this rule, if 
implemented, could increase the threat of offshore oil 
accidents off the California coast. Accordingly, the bill 
continues the language of previous appropriations bills 
prohibiting the implementation of this regulation.

              Acquisition, Construction, and Improvements


  
 Appropriation, fiscal year 2003.......................      $737,277,000
Budget estimate, fiscal year 2004 \1\.................       797,000,000
Recommended in the bill...............................       805,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................       +67,723,000
    Budget estimate, fiscal year 2004.................       +8,000,000
 \1\ Requested a new budget category--capital acquisitions--that included
  both acquisition, construction, and improvements and research,
  development, test, and evaluation.

                                MISSION

    This capital appropriation finances the acquisition of new 
capital assets, construction of new facilities, and physical 
improvements to existing facilities and assets. The 
appropriation covers Coast Guard-owned and operated vessels, 
aircraft, shore facilities, and other equipment such as 
computer systems, as well as the personnel needed to manage 
acquisition activities.

                             RECOMMENDATION

    The Committee recommends $805,000,000 for this 
appropriation, including $530,000,000 for the Integrated 
Deepwater Systems (``deepwater'') program. The bill also fully 
funds the high priority Rescue 21. Funding is not provided for 
research, development, test, and evaluation under this 
category. Instead, the Committee has funded these activities in 
the traditional manner, in a separate research, development, 
test, and evaluation account.
    Consistent with past practice, the bill includes language 
distributing the total appropriation by budget activity, and 
providing separate obligation availabilities appropriate for 
the type of activity being performed. The Committee continues 
to believe that these obligation availabilities provide fiscal 
discipline and reduce long-term unobligated balances.
    The following table compares the fiscal year 2003 enacted 
level, the fiscal year 2004 estimate, and the recommended level 
by program, project and activity:

----------------------------------------------------------------------------------------------------------------
                                                               FY 2003 Enacted      Estimate       Recommended
----------------------------------------------------------------------------------------------------------------
Vessels:                                                            25,600,000       66,500,000       66,500,000
    Great Lakes Icebreaker (GLIB) replacement................                         2,000,000        2,000,000
    41 foot UTB and NSB replacement project..................                        12,000,000       12,000,000
    9 additional costal patrol boats to enforce security                             52,500,000       52,500,000
     zones...................................................
Deepwater:                                                         478,000,000      500,000,000      530,000,000
    Aircraft.................................................                        67,700,000       97,700,000
    Surface ships............................................                       230,400,000      230,400,000
    C4ISR....................................................                        80,400,000       80,400,000
    Logistics................................................                        45,400,000       45,400,000
    Systems engineering and integration......................                        42,100,000       42,100,000
    Government program management............................                        34,000,000       34,000,000
Aircraft.....................................................        4,000,000                0                0
Other equipment:                                                   121,300,000      138,500,000      138,500,000
    Defense messaging system (DMS) implementation............                         4,500,000        4,500,000
    National distress & response system modernization project                       134,000,000      134,000,000
Shore facilities and aids to navigation......................       50,200,000                0                0
Personnel and related support:...............................       63,000,000       70,000,000       70,000,000
    Core acquisition costs...................................                           500,000          500,000
    Direct personnel cost....................................                        69,500,000       69,500,000
----------------------------------------------------------------------------------------------------------------

                  INTEGRATED DEEPWATER SYSTEMS PROGRAM

    The Committee recommends $530,000,000 for the Integrated 
Deepwater Systems program, $30,000,000 above the budget 
estimate. The additional funding shall be used to design, test, 
and evaluate the Eagle Eye unmanned aerial vehicle (UAV). Under 
the current Deepwater program, delivery of the first 8 UAVs is 
scheduled for 2006; however, limited funding has been provided 
for this effort to date.

                          COLLISION AVOIDANCE

    The Committee directs the Coast Guard to evaluate collision 
avoidance technology, and the costs to install such technology 
on helicopters. As part of this evaluation, the Coast Guard 
should report to the Committee on the number of incidents and 
accidents that might have been avoided if such a system were 
installed in Coast Guard helicopters.

                        CAPITAL INVESTMENT PLAN

    The bill maintains the requirement for the Coast Guard to 
submit a five-year capital investment plan with initial 
submission of the President's budget request. This 
Congressional requirement was first established in fiscal year 
2002.

                       DISPOSAL OF REAL PROPERTY

    The bill maintains the provision enacted in fiscal year 
2002 crediting to this appropriation proceeds from the sale or 
lease of the Coast Guard's surplus real property, and providing 
that such receipts are available for obligation in fiscal year 
2004 only for the Rescue 21 project.

                         Alteration of Bridges


  
 Appropriation, fiscal year 2003.......................       $17,088,000
Budget estimate, fiscal year 2004.....................  ................
Recommended in the bill...............................        19,500,000
Bill compared with:
    Appropriation, fiscal year 2003...................        +2,412,000
    Budget estimate, fiscal year 2004.................       +19,500,000
                                MISSION

    This account funds the alteration of bridges deemed a 
hazard to marine navigation pursuant to the Truman-Hobbs Act. 
The purpose of altering these bridges is to improve the safety 
of marine navigation under the bridge, not to improve surface 
transportation on the bridge itself.

                             RECOMMENDATION

    The Committee recommends $19,500,000 for Alteration of 
Bridges. The Committee directs that, of the funds provided, 
$3,500,000 shall be allocated to the Fourteen Mile Bridge over 
the Mobile River in Mobile, Alabama; $4,000,000 shall be 
allocated to the Burlington Northern Santa Fe Bridge in 
Burlington, Iowa; $1,500,000 shall be allocated to the Canadian 
Pacific Railroad Bridge in LaCrosse, Wisconsin; $2,000,000 
shall be allocated to the Chelsea Street Bridge in Chelsea, 
Massachusetts; and $8,500,000 shall be allocated to the Florida 
Avenue railroad/highway combination bridge in New Orleans, 
Louisiana. With this funding, the commitment to the Florida 
Avenue Bridge will be completed.

              Research, Development, Test, and Evaluation


  
 Appropriation, fiscal year 2003.......................       $21,857,000
Budget estimate, fiscal year 2004 \1\.................  ................
Recommended in the bill...............................        22,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................          +143,000
    Budget estimate, fiscal year 2004.................      +22,000,000
\1\ Budget requested $22,000,000 under a new capital acquisitions
  category.

                                MISSION

    This appropriation provides funds for applied scientific 
research and development, test and evaluation projects 
necessary to maintain and expand the technology required for 
the Coast Guard's operational and regulatory missions.

                             RECOMMENDATION

    The Committee recommends $22,000,000 for research, 
development, test, and evaluation activities. Of the total 
amount, $3,500,000 is to be derived from the oil spill 
liability trust fund. The Committee anticipates that funding 
will be allocated as follows: $1,885,000 for marine safety; 
$1,013,000 for maritime mobility; $1,545,000 for protection of 
natural resources; $6,241,000 for homeland security; $5,571,000 
for technology investments; and $5,745,000 for research and 
development support and operations.

                COASTAL OCEAN DYNAMICS APPLICATION RADAR

    The Coast Guard is currently developing models in coastal 
regions, out to 100 nautical miles from shore, to measure high-
resolution hourly maps of coastal ocean surface currents for 
various purposes using the coastal ocean dynamics application 
radar (CODAR). Funding is included in fiscal year 2004 for this 
effort because it will be particularly useful in aiding search 
and rescue missions. The Coast Guard is encouraged to continue 
its work in this area and should consider expanding research 
efforts with the CODAR system to include homeland security 
measures. For example, CODAR could be used to track high-
interest vessels in conjunction with other ocean observing 
systems, such as one operational in the Gulf of Maine.

                              Retired Pay


Appropriation, fiscal year 2003.......................      $889,000,000
Budget estimate, fiscal year 2004.....................     1,020,000,000
Recommended in the bill...............................     1,020,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +131,000,000
    Budget estimate, fiscal year 2004.................  ................

                                MISSION

    This appropriation provides for the retired pay of military 
personnel of the Coast Guard and the Coast Guard Reserve, 
including career status bonuses for active duty personnel. Also 
included are payments to members of the former Lighthouse 
Service and beneficiaries pursuant to the retired serviceman's 
family protection plan and survivor benefit plan, as well as 
payments for medical care of retired personnel and their 
dependents under the Dependents Medical Care Act.

                             RECOMMENDATION

    The bill provides $1,020,000,000, the same as the budget 
estimate. This is scored as a mandatory appropriation in the 
Congressional budget process.

           INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION


                           Operating Expenses


Appropriation, fiscal year 2003.......................      $185,149,000
Budget estimate, fiscal year 2004.....................       829,000,000
Recommended in the bill...............................       776,000,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +590,851,000
    Budget estimate, fiscal year 2004.................       -53,000,000

                                MISSION

    The Information Analysis and Infrastructure Protection 
(IAIP) program will coordinate the national effort to protect 
critical infrastructures and key assets from terrorist attack. 
The program analyzes information on threats, vulnerabilities, 
and consequences to develop national-level risk assessments, 
and then develops, coordinates, and implements appropriate 
protective actions. This involves developing timely, 
integrated, and accurate assessments of terrorist threats 
facing the United States; issuing advisories and alerts to 
senior leaders in government, infrastructure owners and 
operators, and the general public; and developing a critical 
infrastructure protection program that catalogues national 
critical infrastructure and key assets, assesses infrastructure 
vulnerabilities and interdependencies, and examines those 
vulnerabilities in both the physical and cyber dimensions.

                             RECOMMENDATION

    The Committee recommends an appropriation of $776,000,000 
for Information Analysis and Infrastructure Protection, a 
decrease of $53,000,000 from the budget request. Funds shall 
remain available for obligation until September 30, 2005. A 
detailed funding table is included at the end of this section.

              INFORMATION SHARING AND SECURITY CLEARANCES

    The Committee continues to hear that state and local 
officials are denied access to key information due to their 
lack of security clearances. While lack of security clearances 
is just one aspect of the communication and information sharing 
problems that exist between federal, state, and local agencies, 
it is one that should be addressed promptly. Lack of security 
clearances also impacts the private sector entities that own 
and operate 85 percent of the nation's critical infrastructure 
and key assets, and the workload and timeliness of the 
Department's intelligence warning and advisory system since all 
information must be reviewed and declassified before being 
distributed to the appropriate entities. The Committee directs 
the Department to review the current regulations governing 
security clearances; explore administrative and legislative 
actions to facilitate the clearance process; determine whether 
the Department of Homeland Security needs the ability to issue 
security clearances for state and local public safety officials 
and private sector entities, and identify the number of state, 
local, and private sector individuals who would need 
appropriate security clearances to receive classified 
information. This report should be submitted to the Committee 
by ten days after enactment of this Act.

                        SPECIAL HIRING AUTHORITY

    Recruiting and hiring personnel for the IAIP programs may 
be particularly difficult due to the specialized nature and 
specific expertise required for many of the positions. The 
shortage of experienced intelligence analysts and information 
assurance and cyber security specialists is a particular 
concern. The Department is toreport to the Committee by August 
1, 2003, on any special hiring authority that may be needed to address 
this issue.

                  THREAT DETERMINATION AND ASSESSMENT

    The Committee recommends $28,400,000, a reduction of 
$3,600,000 from the budget request, for the Threat 
Determination and Assessment program. This program will support 
efforts to detect and identify threats of terrorism against the 
United States; assess the nature and scope of terrorist 
threats; and understand terrorist threats in light of actual 
potential vulnerabilities within critical infrastructures and/
or key assets. Funding of $3,600,000 for the salaries and 
expenses of federal employees has been transferred to a 
separate account.
    The Committee is concerned that the current arrangement 
that established the Terrorist Threat Integration Center (TTIC) 
as the focus for information sharing and intelligence regarding 
domestic terrorism will not fully meet the needs of the 
Department. While the Department will have an intelligence 
analysis function, it will not have access to the intelligence 
community's raw data. The TTIC will be staffed mostly with FBI 
and CIA analysts who may not talk to the front line DHS 
agencies such as Customs, Border Patrol, and the Coast Guard to 
fully understand the information that DHS needs.
    Another concern is the way in which the information is to 
be shared with state, local, and private sector entities. While 
the TTIC will share information through the FBI offices to the 
local law enforcement agencies, the Department also has to 
share information with the state and local public safety 
agencies as well as private sector entities responsible for 
protecting much of the nation's infrastructure. The Department 
is to provide to the Committee, by January 15, 2004, an 
analysis of whether the TTIC is fully meeting the Department's 
intelligence needs, and a determination as to the adequacy of 
the process for information sharing among federal, state and 
local, and private sector entities.

                   INFORMATION AND WARNING ADVISORIES

    The Committee recommends $47,300,000, a reduction of 
$22,400,000 from the budget request of $69,700,000, for the 
Information and Warning Advisories program. One of the most 
visible aspects of the Department is the Information and 
Warning Advisories program which provides for management and 
administration of the Homeland Security Advisory System, 
communication of threat alert status to the general public, and 
continuous monitoring of potential terrorist threats. Funding 
of $22,400,000 for the salaries and expenses of federal 
employees has been transferred to a separate account.
    The Committee has been disappointed in the lack of advance 
Congressional notification when the threat alert status is 
changed. This same concern has been expressed by state and 
local entities that need to respond to the new alert status. 
The Department should report to the Committee, by October 15, 
2003, on steps that will be taken to ensure that the 
appropriate Congressional Committees are notified on a timely 
basis when there is a proposed alert status change.
    The Committee is aware of the capabilities of the National 
Oceanic and Atomospheric Administration (NOAA) nationwide radio 
network. Managed by the National Weather Service, the weather 
radio network covers 95 percent of the population, operates in 
50 states, and is linked to the emergency alert system where 
alerts of impending hazards are broadcast over commercial radio 
and television on a voluntary basis. It appears this system 
could be used by the Department as a warning system to 
communicate with the general public during threat alerts. The 
Department should report to the Committee by December 15, 2003, 
on the potential of using the NOAA weather radio network as a 
key component of the warning system.

            INFRASTRUCTURE VULNERABILITY AND RISK ASSESSMENT

    The Committee recommends $84,200,000, a reduction of 
$10,800,000 from the budget request of $95,000,000, for the 
Infrastructure Vulnerability and Risk Assessment program. In 
conducting comprehensive assessments of the vulnerabilities of 
the critical infrastructure and key assets of the United 
States, IAIP will serve as the focal point for coordination 
between the federal government, critical infrastructure owners 
and operators, and state and local government for sharing 
information and planning for response to crisis events 
affecting infrastructures. The program will also develop 
comprehensive risk analyses on a national scale that will be 
cross-sector in nature and focus on problems affecting multiple 
infrastructures. Funding of $10,800,000 for the salaries and 
expenses of federal employees has been transferred to a 
separate account.
    The Committee directs the Department to provide a detailed 
program plan outlining the proposed scope, total estimated 
cost, and schedule for completing the comprehensive risk 
analysis and assessments of vulnerabilities of the critical 
infrastructure. This plan is to be provided to the Committee by 
December 15, 2003.

                   REMEDIATION AND PROTECTIVE ACTIONS

    The Committee recommends $311,600,000, a decrease of 
$72,300,000 from the budget request of $383,900,000, for the 
Remediation and Protective Actions program. The Remediation and 
Protective Actions program seeks to identify the best and most-
cost-effective protective strategies for ``at risk'' 
infrastructure and facilities. An essential first step is a 
national program focused on identifying critical infrastructure 
and assets and assessing potential risks to those assets. 
Funding will also be targeted to conduct and coordinate 
specialized vulnerability field assessments for the highest 
priority critical infrastructure and assets. This program also 
includes security efforts to protect infrastructure and assets 
from cyber attacks.
    Many of the agencies transferred to the Department of 
Homeland Security have been involved in the critical 
infrastructure program for several years, but there still 
appears to be no adequate catalogue of critical infrastructure 
and assets. The Committee expects the Department to identify 
the critical infrastructure and assets, document the baseline 
security standard, and determine the appropriate security level 
based on the threat assessments. The next step will be to 
identify any gaps between the baseline and the appropriate 
level of security and determine how to address it on a national 
basis. The Committee directs the Department to provide a 
detailed program plan outlining the proposed scope, total 
estimated cost, cost by year, and schedule with significant 
milestones for completing these activities. This plan is to be 
provided to the Committee by December 15, 2003.
    The Department plans to conduct several critical 
infrastructure vulnerability field assessments during fiscal 
year 2004. The Committee directs the Department to provide a 
detailed program plan outlining the proposed scope, total 
estimated cost, cost by year, and schedule with significant 
milestones for completing these vulnerability field 
assessments. This plan is to be provided to the Committee by 
December 15, 2003.
    The funding reduction of $72,300,000 reflects the reduction 
of $38,000,000 that was fully funded in the fiscal year 2003 
Supplemental Appropriation and $34,300,000 for the salaries and 
expenses of federal employees that has been transferred to a 
separate account.

                     NATIONAL COMMUNICATIONS SYSTEM

    The Committee recommends $141,000,000, a reduction of 
$14,000,000 from the budget request of $155,000,000, for the 
National Communications System to support the national security 
and emergency preparedness communications of the federal 
government, state and local governments, and private industry. 
Funding of $14,000,000 for the salaries and expenses of federal 
employees has been transferred to a separate account.

                  COMPETITIVE ANALYSIS AND EVALUATION

    The Committee recommends $18,900,000, a reduction of 
$1,100,000 from the budget request of $20,000,000, for the 
Competitive Analysis and Evaluation program. This program will 
fund an independent analysis and evaluation of the risk 
assessments and other products developed by the IAIP program 
and provide for ``red teaming'' and tabletop exercises to 
validate risk assessments for critical infrastructure. Funding 
of $1,100,000 for the salaries and expenses of federal 
employees has been transferred to a separate account.

                     NATIONAL PLANS AND STRATEGIES

    The Committee recommends $3,500,000, a reduction of 
$1,500,000 from the budget request of $5,000,000, for National 
Plans and Strategies. Funds are provided to update, coordinate 
the development, and monitor the implementation of three major 
national strategy documents: The President's National Strategy 
for Homeland Security, the National Strategy for Cyberspace 
Security, and the National Strategy for Physical Protection of 
Critical Infrastructure and Key Assets. Funding of $1,500,000 
for the salaries and expenses of federal employees has been 
transferred to a separate account.

                       OUTREACH AND PARTNERSHIPS

    The Committee recommends $40,900,000, a reduction of 
$19,100,000 from the budget request of $60,000,000, for 
Outreach and Partnerships with state and local governments, the 
private sector, the international community, and academia. The 
broad nature of the Department's mission requires interactions 
with a wide array of stakeholders, each with unique interests 
and equities--the intelligence community, private industry, 
state and local governments. Also, the private sector and state 
and local governments own and operate more than 90 percent of 
the nation's critical infrastructure and key assets. The 
Committee has reduced program funding by $15,000,000 due to 
insufficient information on proposed expenditures in fiscal 
year 2004. Funding of $4,100,000 for the salaries and expenses 
of federal employees has been transferred to a separate 
account.

                     Office of the Under Secretary

    Funding of $8,400,000 requested for the Office of the 
Undersecretary for IAIP has been transferred to the salaries 
and expenses account.

                         SALARIES AND EXPENSES

    The Committee recommends $100,200,000 for salaries and 
associated expenses for the federal employees funded in the 
Information Analysis and Infrastructure Protection program. 
This includes $91,800,000 transferred from the individual 
program accounts and $8,400,000 transferred from the Office of 
the Under Secretary for IAIP. The budget request incorporated 
funds for salaries and expenses within each program area, but 
the Committee prefers to maintain a separate account for these 
expenses. These funds will be used to support 692 full-time 
federal employees.
    The Committee does not believe that IAIP is hiring enough 
intelligence analysts responsible for terrorist assessment, 
cybersecurity threat analysis, and biowarfare threat 
assessment. This is not due to lack of authorized positions or 
full funding for salaries and expenses that is provided in this 
bill. The Committee wants to ensure that all available 
positions are used to meet this critical intelligence need and 
directs the Department to report to the Committee by August 30, 
2003, with a manpower plan showing the current number of 
intelligence analysts in IAIP, those assigned to the Terrorist 
Threat Integration Center, and those assigned to the individual 
DHS components. The report should also include the estimated 
number of intelligence analysts in each category at the end of 
fiscal years 2003 and 2004, and a schedule for hiring 
intelligence analysts in IAIP.

           INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION
------------------------------------------------------------------------
                                     Budget estimate     Recommendation
------------------------------------------------------------------------
Operating Expenses................  .................  .................
Threat Determination and                   32,000,000         28,400,000
 Assessment.......................
Information and Warning Advisories         69,700,000         47,300,000
Infrastructure Vulnerability and           95,000,000         84,200,000
 Risk Assessment..................
Remediation and Protective Actions        383,900,000        311,600,000
National Communications System....        155,000,000        141,000,000
Competitive Analysis and                   20,000,000         18,900,000
 Evaluation.......................
National Planning and Strategies..          5,000,000          3,500,000
Outreach and Partnerships.........         60,000,000         40,900,000
Under Secretary for IAIP..........          8,400,000  .................
Salaries and Expenses.............  .................        100,200,000
                                   -------------------------------------
      Total, Information Analysis         829,000,000        776,000,000
       and Infrastructure
       Protection.................
------------------------------------------------------------------------

                         SCIENCE AND TECHNOLOGY


           Research, Development, Acquisition, and Operations


Appropriation, fiscal year 2003.......................      $551,925,000
Budget estimate, fiscal year 2004.....................       803,360,000
Recommended in the bill...............................       900,360,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +348,435,000
    Budget estimate, fiscal year 2004.................       +97,000,000

                                MISSION

    The mission of Science and Technology is to develop and 
deploy cutting edge technologies and new capabilities to secure 
our homeland. The program will conduct, stimulate and enable 
research, development, test, evaluation, and timely transition 
of homeland security capabilities to federal, state, and local 
operational end-users. This includes investments in both 
evolutionary and revolutionary capabilities with high payoff 
potential, early deployment of off-the-shelf technologies to 
provide initial defense capability and near-term utilization of 
emerging technologies to counter today's terrorist threats, and 
development of new capabilities to thwart future and emerging 
threats.
    As part of the Science and Technology program, the Homeland 
Security Advanced Research Projects Agency (HSARPA) will have 
an essential role in engaging the private sector, the academic 
community, and others in innovative technology development, 
rapid prototyping, and prototype systems engineering and 
development of new homeland security technologies. A Homeland 
Security Institute will also be established for studies and 
analysis.

                             RECOMMENDATION

    The Committee recommends an appropriation of $900,360,000 
for Science and Technology, an increase of $97,000,000 over the 
budget request. The Committee has provided funding for several 
additional projects described below. Funds shall remain 
available for obligation until September 30, 2006. A detailed 
funding table is included at the end of this section.

             DEPLOYMENT OF RADIATION DETECTION TECHNOLOGIES

    The Committee applauds the fact that the Department is 
proceeding with a number of deployments of radiation detection 
technologies. These include monitors at the borders, issuance 
of radiation pagers to federal agents, grants to state and 
local agencies for portal monitors and radiation pagers, and 
testbed activities with the Port Authority of New York and New 
Jersey. There is concern, however, that insufficient attention 
has been paid to the systems engineering associated with these 
technologies at each diverse operational, pilot, and test 
location, and that inconsistencies may occur as these 
technologies are deployed in various settings. The Homeland 
Security Act clearly vests the Under Secretary of Science and 
Technology with the responsibility for directing, funding, and 
conducting national research, development, test and evaluation, 
and procurement of technology and systems for radiation 
detection technology, for the development of standards for 
these technologies, for maintaining the systems engineering 
expertise needed to deploy these technologies in a cost 
effective manner, and for transferring these technologies to 
the user. Thus, the Committee directs that no funds be 
obligated or expended for the purpose of procurement and/or 
deployment of these technologies to federal, state, and local 
agencies without certification from the Under Secretary of 
Science and Technology (or designee within the Science and 
Technology Directorate) that: (1) well-defined protocols have 
been defined for management of alarms from these technologies 
at each setting, and that these be as consistently applied as 
is practical; (2) appropriate training in their use has been 
conducted, and adequate training standards have been defined 
and implemented; (3) extant standards for these technologies 
have been adhered to; (4) technologies appropriate to the 
setting have been procured and system engineering discipline 
has been consistently applied to their deployment at each site; 
and (5) the data from these deployments is systematically and 
collectively analyzed by the Science and Technology Directorate 
for lessons learned, and for guiding subsequent research, 
development, standards-setting, procurement, and deployment 
activities. The Committee further directs the Under Secretary 
for Science and Technology to develop or enhance (as 
appropriate) and issue, as expeditiously as is practical, 
standards for these technologies and for training in their use.

               INTEROPERABLE PUBLIC SAFETY COMMUNICATIONS

    There are approximately 53,000 state and local public 
safety agencies and 100 federal law enforcement agencies that 
depend on interoperable wireless communications. The Office of 
Management and Budget recently launched 24 electronic 
government initiatives directed at improving government 
services. The Wireless Public SAFEty Interoperability 
COMmunications (SAFECOM) Program, considered one of the top 
three electronic government initiatives, is the umbrella 
initiative to coordinate all federal, state, local, and tribal 
users to achieve national wireless communications 
interoperability. It has a dual mission: federal-to-federal 
interoperability and improvements to state and local 
interoperability, with ultimate connectivity between state and 
federal agencies.
    While interoperable communications systems are a top 
priority for federal, state, and local public safety and 
wireless users, the current manner in which federal grants and 
procurements are awarded continues to support incompatible 
communication systems. The recent placement of the SAFECOM 
program in the Office of Science and Technology provides it 
access to the full range of expertise and resources needed to 
help the nation achieve true public safety interoperability. 
The Committee directs the Office of Science and Technology to 
provide a report to the Committee by December 15, 2003, on the 
current state of the government's response to federal, state, 
and local interoperability efforts, including the current total 
estimated cost, scope, and schedule of the SAFECOM program and 
to outline the necessary steps to improve response and 
coordination.
    Additionally, when Congress directed federal law 
enforcement agencies to adopt ``narrowbanding'' as a key 
strategy in increasing the usefulness of existing public safety 
spectrum, the technologies that then existed made that a 
logical choice. However, technology has advanced so much since 
then that the rationale supporting that narrowbanding mandate 
may no longer be relevant. The Committee therefore directs the 
Office of Science and Technology to conduct a review and report 
to the Committee, no later than one year from the date of 
enactment of this Act, on whether narrowbanding is still a 
necessary, viable, or best use of existing federal spectrum.
    The Committee is aware of numerous federal programs 
addressing interoperability through planning, building, 
upgrading, replacing, maintaining, managing, or training 
personnel to use public safety communication systems. To better 
coordinate the government's efforts, the Committee encourages 
these programs to use the guidelines outlined by SAFECOM. 
However, the Committee directs that all programs within the 
Department of Homeland Security that issue grants for the above 
listed purposes incorporate the SAFECOM grant guidance and 
coordinate with the SAFECOM program when awarding funding.

                   SCIENCE AND TECHNOLOGY ACTIVITIES

    The Department is directed to provide a report to the 
Committee by December 15, 2003, identifying all research, 
development, test and evaluation, and standards development 
work being performed by Departmental elements other than the 
Office of Science and Technology. The report should provide a 
brief description of the work being performed, the total 
estimated cost, the annual cost, the schedule for completion; 
and an explanation of why this work is not being funded in the 
Science and Technology program.

               PUBLIC SAFETY TECHNOLOGY TRANSFER CENTERS

    The Committee is aware that a critical mission of the 
Office of Science and Technology is to identify, research, 
develop, test and evaluate, and facilitate the transfer of 
technologies to enhance the nation's security. To accomplish 
this, Science and Technology will establish a number of centers 
and institutes to provide these services. The Committee is also 
aware there are numerous organizations, agencies, universities, 
and others that have the capability to provide a variety of 
these services. The Committee encourages Science and Technology 
to work with a public safety institute with experience in 
establishing and working with public safety-oriented technology 
centers to serve as a ``hub'' for this network and to assist 
the Department in establishing the architecture and 
coordination of the Department's network of centers.

                COORDINATION WITH OTHER FEDERAL AGENCIES

    The Science and Technology program funds nuclear, chemical, 
and biological countermeasures, but most of the funding for 
research and development in these areas is appropriated to 
other federal agencies. The Homeland Security Act requires the 
Department to ``collaborate and coordinate'' with other federal 
agencies that have funding for nuclear, chemical, and 
biological research that is important to homeland security, but 
gives the Department no direct control over any of the other 
agencies' spending to ensure essential research meets homeland 
security needs. Achieving balance among competing agency 
research and development priorities presents unique challenges. 
The Committee expects the Department to ensure that 
collaboration among federal agencies occurs; other agencies 
focus research and development efforts on critical homeland 
security needs; and unmet needs are identified on a timely 
basis.

                       BIOLOGICAL COUNTERMEASURES

    The Committee recommends $293,235,000, a decrease of 
$71,500,000 from the budget request of $364,735,000, for 
Biological Countermeasures. The Biological Countermeasures 
program develops and implements an integrated systems approach 
to reducing the probability and potential consequences of a 
biological attack on this nation's civilian population, 
infrastructure, or agricultural system.
    Funding for biological countermeasures includes an increase 
of $15,000,000 to the urban monitoring program to continue to 
develop and deploy operational ``detect-to-warn'' capability 
for aerosolized bio-threats for several large metropolitan 
areas (also referred to as the ``Biowatch'' program). Program 
funding also includes a reduction of $68,000,000 for prior year 
unobligated funds that will remain available for use in fiscal 
year 2004, and the transfer of $18,500,000 for the salaries and 
expenses of federal employees to a separate account.
    With the increased focus on the possibility of agricultural 
terrorism, the Committee expects the Office of Science and 
Technology to work with the U.S. Department of Agriculture 
(USDA) to identify high-priority research opportunities. The 
Department's budget request includes $14,000,000 within the 
biological countermeasures program for agro-terrorism research. 
To ensure appropriate coordination and collaboration between 
the two agencies, the Department is directed to work with USDA 
to prepare a comprehensive strategy for combating agro-
terrorism. The report should identify ongoing research being 
conducted by USDA, and any gaps in the current research 
portfolio that could be funded by the Department. This report 
is due to the Committee by January 15, 2004.
    Funding of $90,000,000, the same as the budget request, is 
provided to initiate construction of a National Biodefense 
Analysis and Countermeasures Center that is to be the principal 
DHS component of the Fort Detrick Interagency Biodefense Campus 
in Maryland.

                NUCLEAR AND RADIOLOGICAL COUNTERMEASURES

    The Committee recommends $129,625,000, a reduction of 
$7,000,000 from the budget request of $136,625,000, for Nuclear 
and Radiological Countermeasures. The Nuclear and Radiological 
Countermeasures program will focus on providing appropriate and 
effective detection and interdiction technologies to prohibit 
the importation or transportation and subsequent detonation of 
a nuclear or radiological device in the United States. Funding 
of $7,000,000 for the salaries and expenses of federal 
employees has been transferred to a separate account.

              CHEMICAL AND HIGH EXPLOSIVES COUNTERMEASURES

    The Committee recommends $52,000,000 for Chemical 
Countermeasures, a reduction of $3,000,000 from the budget 
request of $55,000,000, and $9,500,000 for High Explosives 
Countermeasures, a reduction of $500,000, from the budget 
request of $10,000,000. The Chemical and High Explosives 
Countermeasures programs are responsible for developing an 
integrated systems approach to reducing the nation's 
vulnerability to chemical attacks on the civilian population 
and infrastructure. These programs will address chemical 
warfare agents, toxic industrial chemicals, and high 
explosives. Funding of $3,000,000 from Chemical Countermeasures 
and $500,000 from High Explosives Countermeasures for the 
salaries and expenses of federal employees has been transferred 
to a separate account.

            THREAT AND VULNERABILITY, TESTING AND ASSESSMENT

    The Committee recommends $85,500,000, a reduction of 
$4,500,000 from the budget request of $90,000,000, for the 
Threat and Vulnerability, Testing and Assessment program. This 
program creates advanced modeling, information, and analysis 
capabilities that will be used to enhance the Department's 
ability to evaluate extensive amounts of data and information 
from diverse sources. Funding of $4,500,000 for the salaries 
and expenses of federal employees has been transferred to a 
separate account.

           CONVENTIONAL MISSIONS IN SUPPORT OF THE DEPARTMENT

    The Committee recommends $112,000,000, an increase of 
$57,000,000 over the budget request of $55,000,000, for 
Conventional Missions in Support of the Department of Homeland 
Security. Funding of $3,000,000 for the salaries and expenses 
of federal employees has been transferred to a separate 
account.
    Additional funding of $60,000,000 has been provided for 
research, development, testing, and evaluation of an 
antimissile device for commercial aircraft consistent with the 
program plan submitted by the Department at the request of 
Congress. The Department will solicit industry to design, 
develop, and demonstrate a prototype antimissile device, as 
well as prepare a detailed operating and support procedures and 
costs plan. Contingent on the analytic, design and development 
efforts conducted in fiscal year 2004, fiscal year 2005 
activities could include completion of the test articles and 
integration onto a single airframe type to validate performance 
assumptions.
    The Committee is aware that enhanced X-ray and scanning 
technology holds the potential to improve screening 
capabilities in a variety of settings and to limit the use of 
more invasive protocols, and therefore encourages Science and 
Technology to support such research on next generation X-ray 
technology.

       RAPID PROTOTYPING PROGRAM/TECHNICAL SUPPORT WORKING GROUP

    The Committee recommends $80,000,000, an increase of 
$50,000,000 over the budget request of $30,000,000, for the 
Rapid Prototyping Program. Working in partnership with the 
Technical Support Working Group, the Department will access the 
capabilities of private industry for rapid development and 
prototyping of technologies. The Committee strongly supports 
this effort and has provided an additional $50,000,000 to 
encourage and support innovative solutions to enhance homeland 
security and engage the private sector in rapid prototyping of 
homeland security technologies.
    The Committee has received numerous requests for funding 
homeland security research projects and technologies proposed 
by universities, national laboratories, not-for-profit 
institutions, and private companies. The Committee expects the 
Department to identify areas of importance for new homeland 
security products and technologies and issue competitive 
solicitations to provide additional opportunities for 
participation by a wide variety of interested participants.
    The Committee believes that distance learning technologies 
can be of great benefit to local first responders, especially 
rural communities that may otherwise have difficulties 
receiving important information and training. The Committee is 
aware that the department is already using distance learning 
technologies in its agency field offices and encourages the 
Department to use this important tool.

                   STANDARDS/STATE AND LOCAL PROGRAM

    The Committee recommends $39,000,000, an increase of 
$14,000,000 over the budget request of $25,000,000, for the 
Standards/State and Local Program. This program will develop 
standards for homeland security related equipment and systems 
in collaboration with operational end-users. Working with the 
private sector, the program will also establish a network of 
homeland security certification laboratories to provide a 
consistent level of assurance in the effectiveness of detection 
and other operational equipment. Funding of $1,000,000 for the 
salaries and expenses of federal employees has been transferred 
to a separate account.
    The recommendation includes the transfer of $15,000,000 
from the budget request of the Office for Domestic Preparedness 
for development of standards. The Committee expects all 
standards development to be done by the Office of Science and 
Technology.
    The Committee recognizes that search and rescue efforts 
following catastrophic events are often hampered by limited 
access and potential human interaction with hazardous 
materials. To address this issue, the Committee encourages the 
Department to develop standards and criteria for search and 
rescue robotics certification and to support efforts to develop 
and deploy long endurance robotics for search and rescue.

                            EMERGING THREATS

    The Committee recommends $21,000,000, a reduction of 
$1,000,000 from the budget request of $22,000,000, for the 
Emerging Threat program to explore innovative, cross-cutting, 
out-of-the-box approaches for anticipating and responding to 
new and emerging threats. It will also establish and support 
studies and analyses to be conducted by the new Homeland 
Security Institute. Funding of $1,000,000 for the salaries and 
expenses of federal employees has been transferred to a 
separate account.

                   CRITICAL INFRASTRUCTURE PROTECTION

    The Committee recommends $4,500,000, a reduction of 
$500,000 from the budget request of $5,000,000, for the 
Critical Infrastructure Protection program. A systems modeling, 
simulation, and analysis approach will be used to conduct 
vulnerability, consequence, and risk analysis to allow 
priorities to be established based on a rational process and 
resources to be invested with the highest payoff in terms of 
risk reduction and damage mitigation. Funding of $500,000 for 
the salaries and expenses of federal employees has been 
transferred to a separate account.

                UNIVERSITY PROGRAMS/FELLOWSHIP PROGRAMS

    The Committee recommends $35,000,000, an increase of 
$25,000,000 over the budget request, for University Program/
Fellowship Programs. The Committee has provided an additional 
$25,000,000 for university-based centers of excellence. There 
has been intense interest from universities with proposals to 
perform homeland security activities. This additional funding 
will allow the Department to evaluate and fund more university 
proposals in fiscal year 2004. In addition to this program, 
universities will also have access to specific project funding 
in each of the other program areas on a competitive basis.
    Not all funding for universities is included in this 
account. Funding for the National Domestic Preparedness 
Consortium and the Centers for Emergency Preparedness is 
provided in the Office for Domestic Preparedness. The Committee 
expects the Department to coordinate the university activities 
conducted by the Office for Domestic Preparedness with the 
university centers of excellence in the Science and Technology 
program. The Department should report to the Committee on how 
these university programs will be coordinated within the 
Department to prevent duplication, leverage existing academic 
resources, and provide maximum benefit to meet homeland 
security needs.

                         SALARIES AND EXPENSES

    The Committee recommends $39,000,000 for salaries and 
expenses for the federal employees funded in the Science and 
Technology program. The budget request incorporated funds for 
salaries and expenses within each program area, but the 
Committee prefers to maintain a separate account for these 
expenses. These funds will be used to support 140 full-time 
federal employees.

                         SCIENCE AND TECHNOLOGY
------------------------------------------------------------------------
                                     Budget estimate     Recommendation
------------------------------------------------------------------------
Research, Development,              .................  .................
 Acquisition, and Operations......
Biological Countermeasures........        364,735,000        293,235,000
Nuclear and Radiological                  136,625,000        129,625,000
 Countermeasures..................
Chemical Countermeasures..........         55,000,000         52,000,000
High Explosives Countermeasures...         10,000,000          9,500,000
Threat and Vulnerability Testing           90,000,000         85,500,000
 and Assessments..................
Conventional Missions in Support           55,000,000        112,000,000
 of DHS...........................
Rapid Prototyping Program/                 30,000,000         80,000,000
 Technical Support Working Group..
Standards/ State and Local Program         25,000,000         39,000,000
Emerging Threats..................         22,000,000         21,000,000
Critical Infrastructure Protection          5,000,000          4,500,000
University Programs/Homeland               10,000,000         35,000,000
 Security Fellowship Program......
Salaries and Expenses.............  .................         39,000,000
                                   -------------------------------------
      Total, Science and                  803,360,000        911,360,000
       Technology.................
------------------------------------------------------------------------

                      UNITED STATES SECRET SERVICE


                         Salaries and Expenses


Appropriation, fiscal year 2003.......................    $1,045,506,000
Budget estimate, fiscal year 2004.....................     1,120,372,000
Recommended in the bill...............................     1,148,700,000
Bill compared with:
    Appropriation, fiscal year 2003...................      +103,194,000
    Budget estimate, fiscal year 2004.................       +28,328,000

                                MISSION

    The Secret Service is responsible for the security of the 
President, the Vice President, and other dignitaries and 
designated individuals; for enforcement of laws relating to 
obligations and securities of the United States and financial 
crimes such as financial institution fraud and other fraud; and 
for protection of the White House and other buildings within 
the Washington DC area. It also has responsibility to direct 
the security planning for National Special Security Events, as 
designated by the President.

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,148,700,000 
for the U.S. Secret Service, $28,328,000 above the President's 
request. The change from the President's request includes an 
increase of $15,824,000 to restore unspecified administrative 
savings cuts; $10,730,000 to annualize hiring and pay 
increases; and an increase of $1,774,000 for the National 
Center for Missing and Exploited Children.

                      WHITE HOUSE MAIL PROCESSING

    Included in the President's request is $33,000,000 to 
sustain off-site mail processing operations for the White House 
complex to support research and development aimed at producing 
a generic full-scale mail screening capability, and begin 
defining requirements for an ultimate full-scale facility. The 
funding will also support research and analysis of mail 
screening needs of other high-risk government agencies. The 
Committee supports this endeavor and urges the Department to 
sustain this effort, but also to look at what the future role 
of the Secret Service should be in this project.

                      UNIFORMED DIVISION STAFFING

    The Committee continues to be concerned that Uniformed 
Division (UD) staffing levels are not commensurate with their 
expanded responsibilities related to the protection of the 
White House complex, the United States Naval Observatory, and 
Foreign Missions in the Washington, DC area. The Committee 
supports staffing levels that will enable the UD to fulfill its 
protective mission without relying on continuously high rates 
of overtime that negatively impact the quality of life of UD 
personnel and can contribute to high rates of attrition. The 
Committee directs the Secret Service to provide, no later than 
September 30, 2003, a detailed, multi-year hiring plan for UD 
that describes: (1) what has changed, in terms of security 
requirements, that would justify increases in UD staffing, (2) 
the numbers and types of positions needed to achieve necessary 
staffing levels, (3) the associated costs, by fiscal year, and 
(4) what steps would be taken to recruit, hire, and train new 
UD officers should such funds be made available.

             ELECTRONIC AND FINANCIAL CRIMES INVESTIGATIONS

    The Committee strongly encourages the Secret Service to 
continue to apply adequate attention and resources to all of 
its non-homeland security missions, particularly the expansion 
of the Electronic Crime Task Force initiative to cities and 
regions across the country, as mandated by the USA PATRIOT Act. 
The Committee fully expects the Secret Service to continue its 
unique mission of partnering with local law enforcement, the 
private sector and academia to investigate electronic and 
financial crimes, and to work in a partnership approach to 
safeguard our financial and critical infrastructures. The 
Committee believes that the Secret Service's Electronic Crimes 
Special Agent Program (ECSAP) will continue to be the 
cornerstone of these efforts, as is evidenced by the heavy 
demands placed on the Secret Service to make available its 
ECSAP agents and related forensic resources. The Committee 
directs the Secret Service to provide, no later than January 
31, 2004, a detailed report on the status of ECSAP that 
addresses staffing, training, and resource issues, to include 
plans for maintaining and refining the program.

                        OVERSEAS COUNTERFEITING

    The Committee continues to be pleased with the results of 
the Secret Service's anti-counterfeiting efforts overseas, 
particularly in South America. Given the ongoing threat posed 
by counterfeiting operations run by organized criminal 
enterprises in Colombia, the risk of increased counterfeiting 
in recently ``dollarized'' countries such as Ecuador and 
Panama, as well as the possibility that counterfeiting could be 
used to finance terrorist organizations, the Committee believes 
that there may be a need for an increased presence of Secret 
Service personnel in the region. The Committee therefore 
directs the Secret Service to provide, no later than September 
30, 2003, a detailed report on its recommendations for staffing 
its foreign offices in the region to investigate and shut down 
such counterfeiting operations.

     Acquisition, Construction, Improvements, and Related Expenses


Appropriation, fiscal year 2003.......................        $3,496,000
Budget estimate, fiscal year 2004.....................         3,579,000
Recommended in the bill...............................         3,579,000
Bill compared with:
    Appropriation, fiscal year 2003...................           +83,000
    Budget estimate, fiscal year 2004.................  ................

                                MISSION

    This account supports the acquisition, construction, 
improvement, equipment, furnishing and related cost for 
maintenance and support of Secret Service facilities, including 
the Secret Service Headquarters Building and the James J. 
Rowley Training Center.

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,579,000 for 
Acquisition, Construction, Improvements, and Related Expenses, 
the same as the President's request.

                    JAMES J. ROWLEY TRAINING CENTER

    The Committee is concerned that because of a lack of 
emphasis on long-term planning, the Secret Service is not 
achieving the maximum possible benefit from its James J. Rowley 
Training Center (JJRTC) in Beltsville, Maryland. Accordingly, 
the Committee directs the Secret Service to provide, no later 
than January 31, 2004, a five-year master plan for the JJRTC 
that includes a detailed assessment of current needs and 
challenges, and specific proposals for enhancing the curriculum 
and facilities to meet future training requirements.

                 TITLE V--GENERAL PROVISIONS--THIS ACT

    Section 501. The Committee includes a provision limiting 
the expenditure of funds to the current year unless expressly 
provided in this Act.

                   (TRANSFERS OF UNEXPENDED BALANCES)

    Section 502. The Committee includes a provision allowing 
the transfer of unexpended balances of prior appropriations to 
appropriation accounts for such activities established pursuant 
to this Act, subject to the reprogramming and transfer 
guidelines.

                     (INCLUDING TRANSFER OF FUNDS)

    Section 503. The Committee includes a provision requiring 
the Department of Homeland Security to promptly and fully 
inform the House and Senate Committees on Appropriations when a 
change in program execution and funding is required during the 
fiscal year. The following guidance is provided for 
reprogrammings and transfers during fiscal year 2004.
    A reprogramming shall be submitted for any action that (1) 
creates a new program; (2) eliminates a program, project, or 
activity; (3) increases funds for any program, project, or 
activity for which funds have been denied or restricted by 
Congress; or (4) proposes to use funds directed for a specific 
activity in an appropriations Act or accompanying reports of 
the House and Senate Committees on Appropriations, or 
accompanying conference reports and joint explanatory 
statements of the committee of conference, for a different 
purpose.
    A reprogramming shall be submitted when any Departmental 
action results in the movement of funds to or from any program, 
project, or activity in excess of $5,000,000 or 10 percent, 
whichever is less, that: (1) augments existing programs, 
projects, or activities; (2) reduces by 10 percent funding for 
any existing program, project, or activity, or numbers of 
personnel by 10 percent as approved by Congress; or (3) results 
from any general savings from a reduction in personnel which 
would result in a change in existing programs, projects, or 
activities, as approved by Congress.
    Transfers of not to exceed 5 percent of any appropriation 
made available for the current fiscal year to the Department of 
Homeland Security may be transferred between appropriations, 
but no such appropriation, except as otherwise specifically 
provided, may be increased by more than 10 percent by any such 
transfers.
    The Department must notify the House and Senate Committees 
on Appropriations 15 days in advance of such reprogrammings or 
transfers. The Department must also notify the Committees at 
the end of each quarter during the fiscal year of all 
reprogramming actions that have been completed during that 
quarter involving less than $5,000,000 or 10 percent.
    Clearly stated and detailed documentation presenting 
justification for the reprogramming or transfer shall accompany 
each request. Additionally, each request shall include a 
declaration that, as of the date of the request, none of the 
funds included in the request have been obligated, and none 
will be obligated, until the Committees on Appropriations have 
approved the request.
    For purposes of this section, the term ``program, project, 
and activity'' shall mean any item for which a dollar amount is 
contained in an appropriations Act (including joint resolutions 
providing continuing appropriations) or accompanying reports of 
the House and Senate Committees on Appropriations, or 
accompanying conference reports and joint explanatory 
statements of the committee of conference.
    Section 504. The Committee includes a provision providing 
that fifty percent of unobligated balances may remain available 
for certain purposes.
    Section 505. The Committee includes a provision permitting 
the hire and purchase of motor vehicles.
    Section 506. The Committee includes a provision converting 
the Federal Emergency Management Agency ``Working Capital 
Fund'' to the ``Department of Homeland Security Working Capital 
Fund.''
    Section 507. The Committee includes a provision converting 
the Federal Emergency Management Agency ``Bequests and Gifts'' 
account to the ``Department of Homeland Security, Gifts and 
Donations'' account.
    Section 508. The Committee includes a provision providing 
that funds for intelligence activities in the Act are deemed to 
be specifically authorized until the enactment of the 
Intelligence Authorization Act for fiscal year 2004.
    Section 509. The Committee includes a provision directing 
the Federal Law Enforcement Training Center to establish an 
accrediting body to establish standards for assessing federal 
law enforcement training programs, facilities, and instructors.
    Section 510. The Committee includes a provision prohibiting 
the use of funds to establish a vessel traffic safety fairway 
less than five miles wide between the Santa Barbara Traffic 
Separation Scheme and the San Francisco Traffic Separation 
Scheme.
    Section 511. The Committee includes a provision requiring 
notification of the Committees on Appropriations three days 
before any grant allocation, discretionary grant award, or 
letter of intent totaling $1,000,000 or more is announced by 
the Department.
    Section 512. The Committee includes a provision providing 
that no agency shall purchase, construct, or lease any 
additional facilities to be used to conduct federal law 
enforcement training without advance approval of the Committees 
on Appropriations, except that the Federal Law Enforcement 
Training Center is authorized to obtain temporary use of 
additional facilities for training which cannot be accommodated 
in existing Center facilities.
    Section 513. The Committee includes a provision directing 
the Federal Law Enforcement Training Center to ensure that all 
training centers under its control are operated at their 
highest potential capacity efficiency throughout the fiscal 
year.
    Section 514. The Committee includes a provision permitting 
the Transportation Security Administration to impose reasonable 
fees and charges to cover the cost of a variety of non-aviation 
security checks and services.
    Section 515. The Committee includes a provision providing 
that none of the funds may be used to produce custom 
declarations that do not inquire whether a passenger has been 
in the proximity of livestock.
    Section 516. The Committee includes a provision providing 
that none of the funds may be used for any activity or to pay 
the salary of any government employee if it would result in a 
policy that would prohibit enforcement of section 307 of the 
Tariff Act of 1930.
    Section 517. The Committee includes a provision providing 
that none of the funds may be used to import goods produced by 
forced or indentured child labor.
    Section 518. The Committee includes a provision allowing 
the purchase of insurance for official motor vehicles operated 
in foreign countries; the purchase of motor vehicles without 
regard to the general purchase price limitations for vehicles 
purchased and used overseas; and the provision of health and 
medical services for employees in foreign countries.
    Section 519. The Committee includes a provision providing 
that none of the funds may be used for expenses of any 
construction, repair, alteration, and acquisition project for 
which a prospectus, if required by the Public Buildings Act of 
1959, as amended, has not been approved, except that necessary 
funds may be expended for each project for required expenses 
for the development of a proposed prospectus.
    Section 520. The Committee includes a provision providing 
that none of the funds may be used to pursue or adopt 
guidelines or regulations requiring airport sponsors to provide 
the Transportation Security Administration without cost 
building construction, maintenance, utilities and expenses, or 
space in airport sponsor-owned buildings for services relating 
to aviation security.
    Section 521. The Committee includes a provision amending 
section 835 of the Homeland Security Act of 2002 to clarify the 
prohibition on contracting with foreign incorporated entities.
    Section 522. The Committee includes a provision providing 
that none of the funds may be obligated for testing (other than 
simulations), deployment, or implementation of CAPPS2, the 
Computer Assisted Passenger Prescreening System that the 
Transportation Security Administration plans to use a screen 
aviation passengers, until the General Accounting Office 
reports to the Committee on several issues pertaining to the 
system.

    Appropriations Can Be Used Only for the Purposes for Which Made

    Title 31 of the United States Code makes clear that 
appropriations can be used only for the purposes for which they 
were appropriated as follows:
    Section 1301. Application.
    (a) Appropriations shall be applied only to the objects for 
which the appropriations were made except as otherwise provided 
by law.

              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives.

                           Transfer of Funds

    Pursuant to clause 3(f)(2), rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    The table shows, by title, department and agency, the 
appropriations affected by such transfers:

            Appropriation Transfers Recommended in the Bill


                                 APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL
----------------------------------------------------------------------------------------------------------------
                                                                 Account from which transfer is to
     Account to which transfer is to be made         Amount                   be made                  Amount
----------------------------------------------------------------------------------------------------------------
Title I:
Office of the Inspector General.................   $22,000,000  Emergency Preparedness and           $22,000,000
                                                                 Response Disaster Relief Fund.
Title II:
Bureau of Customs and Border Protection,             3,000,000  Harbor Maintenance Trust Fund.....     3,000,000
 Salaries and Expenses.
Federal Protective Service......................   424,211,000  General Services Administration,     424,211,000
                                                                 Federal Building Fund.
Title III:
Preparedness, Mitigation, Response, and Recovery         (\1\)  Firefighter Assistance Grants.....         (\1\)
Grant Programs..................................    20,000,000  National Flood Insurance Fund.....    20,000,000
----------------------------------------------------------------------------------------------------------------
\1\ Up to 5 percent of Firefighter Assistance Grants.

                          Rescission of Funds

    In compliance with clause 3(f)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that it 
recommends no rescissions in the bill.

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          ``Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.''

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America that 
states:

          ``No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *''

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  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 (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

              SECTION 114 OF TITLE 49, UNITED STATES CODE

Sec. 114. Transportation Security Administration

  (a) * * *

           *       *       *       *       *       *       *

  (t) Fee Authority for Transportation Credentials.--
          (1) Subject to the provisions of this subsection, the 
        Secretary of Homeland Security may impose reasonable 
        fees and charges on an individual or an individual's 
        employer, where such an individual requires a 
        credential or background records check under Federal 
        law for an activity in the field of transportation, to 
        cover the costs of providing the credential or 
        performing the backgrounds records check, including--
                  (A) conducting or obtaining a criminal 
                history records check and a review of available 
                law enforcement databases and records of other 
                governmental and international agencies;
                  (B) review and adjudication of requests for 
                waivers and appeals of agency decisions with 
                respect to providing the credential, performing 
                the background records check, and denials of 
                requests for waiver and appeals; and
                  (C) any other costs of the Transportation 
                Security Administration related to providing 
                the credential or performing the backgrounds 
                records check.
          (2) The Secretary shall ensure that the fees are 
        reasonably related to the costs of the Transportation 
        Security Administration for providing services 
        rendered. The amount of costs imposed under this 
        subsection shall be determined by the Secretary and 
        shall not be subject to judicial review.
          (3) Notwithstanding section 9701 of title 31 and the 
        procedural requirements of section 553 of title 5, the 
        Secretary may impose a fee under this subsection 
        through the publication of notice in the Federal 
        Register.
          (4) Notwithstanding section 3302 of title 31, any fee 
        collected under this section--
                  (A) shall be credited as an offsetting 
                collection to the account in the Treasury from 
                which the expenses were incurred and are 
                available to the Secretary for these expenses; 
                and
                  (B) shall remain available until expended.
                              ----------                              


            SECTION 835 OF THE HOMELAND SECURITY ACT OF 2002

SEC. 835. PROHIBITION ON CONTRACTS WITH CORPORATE EXPATRIATES.

  (a) In General.--The Secretary may not enter into any 
contract with a foreign incorporated entity which is treated as 
an inverted domestic corporation under subsection (b), or any 
subsidiary of such an entity.
  (b) Inverted Domestic Corporation.--For purposes of this 
section, a foreign incorporated entity shall be treated as an 
inverted domestic corporation if, pursuant to a plan (or a 
series of related transactions)--
          (1) the entity completes before, on, or after the 
        date of enactment of this Act, the direct or indirect 
        acquisition of substantially all of the properties held 
        directly or indirectly by a domestic corporation or 
        substantially all of the properties constituting a 
        trade or business of a domestic partnership;

           *       *       *       *       *       *       *

  (c) Definitions and Special Rules.--
          (1) Rules for application of subsection (b).--In 
        applying subsection (b) for purposes of subsection (a), 
        the following rules shall apply:
                  (A) * * *
                  (B) Plan deemed in certain cases.--If a 
                foreign incorporated entity acquires directly 
                or indirectly substantially all of the 
                properties of a domestic corporation or 
                partnership during the 4-year period beginning 
                on the date [which is after the date of 
                enactment of this Act and] which is 2 years 
                before the ownership requirements of subsection 
                (b)(2) are met, such actions shall be treated 
                as pursuant to a plan.

           *       *       *       *       *       *       *

  (d) Waivers.--The Secretary shall waive subsection (a) with 
respect to any specific contract if the Secretary determines 
that the waiver is required in the interest of [homeland] 
national security.

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the financial assistance to state and local 
governments is as follows:

FY 2004 new budget authority............................           5,356
2004 outlays resulting therefrom........................           1,582

                   Comparison With Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how the authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation. This information 
follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      302(b) allocation                     This bill
                                             -------------------------------------------------------------------
                                                   Budget                            Budget
                                                 authority         Outlays         authority         Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...............................           29,411           30,506           29,411           30,506
Mandatory...................................              831              847              831              847
----------------------------------------------------------------------------------------------------------------

    Note.--Pursuant to section 404 of H. Con. Res. 95, 
increases to the Committee's section 302(a) allocation are 
authorized for funding in the reported bill for Biodefense 
Countermeasures. After the bill is reported to the House, the 
Chairman of the Committee on the Budget will provide an 
increased section 302(a) allocation consistent with the funding 
provided in the bill.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following table contains five-year projections 
associated with the budget authority provided in the 
accompanying bill:
                                                                Millions
Outlays:
    Fiscal year 2004....................................          18,588
    Fiscal year 2005....................................           6,518
    Fiscal year 2006....................................           2,977
    Fiscal year 2007....................................           1,203
    Fiscal year 2008 and future years...................             743

               Compliance With Rule XIII, Clause 3(f)(1)

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has inserted at the 
appropriate place in the report a description of the effects of 
provisions proposed in the accompanying bill which may be 
considered, under certain circumstances, to change the 
application of existing law, either directly or indirectly.
    The bill provides, in some instances, for funding of 
agencies and activities where legislation has not yet been 
finalized. In addition, the bill carries language, in some 
instances, permitting activities not authorized by law. 
Additionally, the Committee includes a number of general 
provisions.

            TITLE I--DEPARTMENTAL MANAGEMENT AND OPERATIONS


                      Departmental Administration

    The Committee includes language providing funds for 
unforeseen emergencies of a confidential nature and for 
reception and representation expenses.

                         COUNTERTERRORISM FUND

    The Committee includes language to authorize the Secretary 
of Homeland Security to reimburse Federal agencies for the 
costs of providing support to counter, investigate, or 
prosecute unexpected threats or acts of terrorism, including 
payment of rewards in connection with these activities.

                 DEPARTMENT-WIDE TECHNOLOGY INVESTMENTS

    The Committee includes language providing funds for the 
development and acquisition of information technology 
equipment, software, services and related activities and 
prohibits the use of funds to augment other automated systems.

                    Office of the Inspector General

    The Committee includes language providing funds for 
unforeseen emergencies.

              TITLE II--BORDER AND TRANSPORTATION SECURITY


                     Customs and Border Protection


                         SALARIES AND EXPENSES

    The Committee includes language making funds available for 
border security, immigration, customs, and agricultural 
inspections and regulatory activities; planning, construction, 
and related activities of building, and facilities; official 
representation allowances; the procurement of inspection 
technology; uniforms; Harbor Maintenance Fee collections; and 
contractual or reimbursable agreements with state and local law 
enforcement. The Committee also includes a provision 
establishing an average overtime limitation.

                        Automation Modernization

    The Committee includes language making funds available 
until expended for automated systems and includes language 
requiring the submission of an expenditure plan prior to the 
obligation of funds.

                  Immigration and Customs Enforcement


                         Salaries and Expenses

    The Committee includes language making funds available for 
enforcement of immigration and customs laws, detention and 
removals of deportable aliens, investigations; planning, 
construction, and necessary related activities of buildings; 
official representation allowances and uniforms. The Committee 
includes a provision establishing an average overtime 
limitation.

                       Federal Protective Service

    The Committee includes language making funds available for 
the operations of the Federal Protective Service, and provides 
that such funds shall be transferred from revenues and 
collections in the Federal Buildings Fund.

              AUTOMATION AND INFRASTRUCTURE MODERNIZATION

    The Committee includes language making funds available 
until expended for automated systems and includes language 
requiring the submission of an expenditure plan prior to the 
obligation of funds.

                      Air and Marine Interdiction

    The Committee includes language making funds available for 
the operation, maintenance and procurement of marine vessels 
and other equipment; travel; rental payments for facilities; 
and assistance to other law enforcement agencies and 
humanitarian efforts. The Committee includes language 
prohibiting the transfer of aircraft and related equipment out 
of the Bureau of Customs and Immigration Enforcement unless 
certain conditions are met.

                 Transportation Security Administration


                           AVIATION SECURITY

    The Committee includes language making funds available 
until expended for civil aviation security; establishing 
conditions under which security fees are collected and 
credited. The Committee includes language establishing a 
staffing level for full time equivalents and makes funds 
available for both the installation and procurement of checked 
baggage explosive systems. The Committee also includes language 
on reception and representation expenses.

                       MARITIME AND LAND SECURITY

    The Committee includes language making funds available for 
port security grants.

                Federal Law Enforcement Training Center


                         SALARIES AND EXPENSES

    The Committee includes language making funds available for 
official representation expenses; purchase of police type 
pursuit vehicles; student athletic and related recreational 
activities; conducting and participating in firearms matches; 
public awareness and community support; marketing; room and 
board; short term medical services; travel expenses; services 
authorized by 5 U.S.C. 3109; law enforcement accreditation; 
reimbursements for certain cell phone expenses. The Committee 
includes language authorizing the training of certain law 
enforcement personnel; authorizes the use of appropriations and 
reimbursements for such training and establishes a cap on total 
obligations. The Committee also includes language authorizing 
the acceptance of gifts; the harvesting of timber, including 
proceeds from timber sales; and establishes conditions for 
student housing.

     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

    The Committee includes language making funds available 
until expended for real property and facilities and authorizes 
reimbursement from government agencies requesting construction 
of special use facilities. The Committee also includes language 
providing that all facilities remain under the control of the 
Federal Law Enforcement Training Center.

                    Office for Domestic Preparedness

    The Committee includes a provision identifying the amount 
of funds available for basic formula grants, law enforcement 
terrorism prevention grants, critical infrastructure grants, 
high-density, high-threat urban area grants, and grants for 
Centers for Emergency Preparedness. The Committee also includes 
language specifying the conditions under which both 
applications and grants are made and prohibits the application 
of Section 1014(c)(3) of Public Law 107-56 to certain grants 
made in the Act.

             TITLE III--EMERGENCY PREPAREDNESS AND RESPONSE


                 Administrative and Regional Operations

    The Committee includes language making funds available for 
official representation expenses.

            PREPAREDNESS, MITIGATION, RESPONSE AND RECOVERY

    The Committee includes a provision regarding charges 
assessed for the radiological emergency preparedness program, 
including conditions and methodology for the assessment and 
collection of fees, and a provision identifying the amount of 
funds available for emergency operations centers grants.

                         PUBLIC HEALTH PROGRAMS

    The Committee includes a provision identifying the amount 
of funds available for the Strategic National Stockpile.

                       BIODEFENSE COUNTERMEASURES

    The Committee includes a provision specifying the terms of 
availability of funds and establishes a limit on obligation of 
funds for fiscal years 2004 through 2008.

                             GRANT PROGRAMS

    The Committee includes language specifying conditions for 
grant awards.

                       EMERGENCY FOOD AND SHELTER

    The Committee includes a provision regarding administrative 
costs.

                     FIREFIGHTER ASSISTANCE GRANTS

    The Committee includes a provision authorizing the transfer 
of funds for program administration.

                            DISASTER RELIEF

    The Committee includes a provision authorizing the transfer 
of funds to the Office of Inspector General.

                      FLOOD MAP MODERNIZATION FUND

    The Committee includes language for non-Federal sums for 
cost-shared mapping activities.

                    NATIONAL FLOOD INSURANCE PROGRAM

    The Committee includes a provision authorizing the transfer 
of funds for flood mitigation, and a provision on limitations 
of operating expenses, agents' commission and taxes, and for 
interest on Treasury borrowings.

            DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

    The Committee includes a provision limiting gross 
obligations for direct loans; includes a provision regarding 
the cost of modifying loans; and provides for administrative 
expenses of the direct loan program.

                TITLE IV--OTHER DEPARTMENTAL ACTIVITIES


                  Citizenship and Immigration Services


                           OPERATING EXPENSES

    The Committee includes language making funds available for 
citizenship and immigration services, including international 
services.

                       United States Coast Guard


                           OPERATING EXPENSES

    The Committee includes a provision regarding passenger 
motor vehicles; prohibits the use of funds for certain 
administrative expenses; and prohibits the use of funds for 
yacht documentation except under certain circumstances. The 
Committee also includes language on reception and 
representation expenses.

                ENVIRONMENTAL COMPLIANCE AND RESTORATION

    The Committee includes language providing funds for 
environmental compliance and restoration for the Coast Guard.

                            RESERVE TRAINING

    The Committee includes language providing funds for the 
Coast Guard reserve, including training, maintenance and 
operation of facilities, supplies, equipment and services.

              ACQUISITIONS, CONSTRUCTION, AND IMPROVEMENTS

    The Committee includes a provision authorizing the disposal 
of surplus real property under certain conditions.

                         ALTERATION OF BRIDGES

    The Committee includes a provision specifying certain 
conditions for the availability of funds for bridge alteration 
projects.

              RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

    The Committee includes a provision authorizing certain 
funds to be credited to this account.

                              RETIRED PAY

    The Committee includes language providing funds for retired 
pay and medical care for the Coast Guard's retired personnel 
and their dependents.

           Information Analysis and Infrastructure Protection


                           OPERATING EXPENSES

    The Committee includes a provision making funds available 
until September 30, 2005.

                         Science and Technology


           RESEARCH, DEVELOPMENT, ACQUISITION, AND OPERATIONS

    The Committee includes a provision making funds available 
until September 30, 2006.

                      United States Secret Service


                         SALARIES AND EXPENSES

    The Committee includes language that provides funds for the 
purchase and replacement of vehicles; the hire of aircraft; 
purchase of motorcycles; services of expert witnesses; rental 
of certain buildings; improvements to buildings as may be 
necessary for protective missions; per diem and subsistence 
allowances; firearms matches; presentation of awards; 
protective travel; research and development; grants for 
behavioral research; official reception and representation 
expenses; technical assistance and equipment to foreign law 
enforcement organizations; advance payment for commercial 
accommodations; and uniforms. The Committee includes language 
making funds available for investigations of missing and 
exploited children, including grants; provides for two year 
availability of funds for protective travel; and authorizes law 
enforcement training for the US Postal Service, federal 
officers, State and local officers and private sector security. 
The Committee also authorizes the obligation of funds in 
anticipation of reimbursements for training, under certain 
conditions and authorizes short term medical services for 
students undergoing training.

     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

    The Committee includes language providing funds for the 
acquisition, construction, improvement, and related expenses of 
Secret Service facilities.

                      TITLE V--GENERAL PROVISIONS

    Section 501. The Committee includes a provision limiting 
the expenditure of funds to the current year unless expressly 
provided in this Act.
    Section 502. The Committee includes a provision allowing 
the transfer of unexpended balances of prior appropriations to 
appropriation accounts for such activities established pursuant 
to this Act, subject to the reprogramming and transfer 
guidelines.
    Section 503. The Committee includes a provision requiring 
the Department of Homeland Security to promptly and fully 
inform the House and Senate Committees on Appropriations when a 
change in program execution and funding is required during the 
fiscal year and provides guidance for reprogrammings and 
transfers during fiscal year 2004.
    Section 504. The Committee includes a provision providing 
that fifty percent of unobligated balances may remain available 
for certain purposes.
    Section 505. The Committee includes a provision permitting 
the hire and purchase of motor vehicles.
    Section 506. The Committee includes a provision converting 
the Federal Emergency Management Agency ``Working Capital 
Fund'' to the ``Department of Homeland Security Working Capital 
Fund.''
    Section 507. The Committee includes a provision converting 
the Federal Emergency Management Agency ``Bequests and Gifts'' 
account to the ``Department of Homeland Security, Gifts and 
Donations'' account.
    Section 508. The Committee includes a provision providing 
that funds for intelligence activities in the Act are deemed to 
be specifically authorized until the enactment of the 
Intelligence Authorization Act for fiscal year 2004.
    Section 509. The Committee includes a provision directing 
the Federal Law Enforcement Training Center to establish an 
accrediting body to establish standards for assessing federal 
law enforcement training programs, facilities, and instructors.
    Section 510. The Committee includes a provision prohibiting 
the use of funds to establish a vessel traffic safety fairway 
less than five miles wide between the Santa Barbara Traffic 
Separation Scheme and the San Francisco Traffic Separation 
Scheme.
    Section 511. The Committee includes a provision requiring 
notification of the Committees on Appropriations three days 
before any grant allocation, discretionary grant award, or 
letter of intent totaling $1,000,000 or more is announced by 
the Department.
    Section 512. The Committee includes a provision providing 
that no agency shall purchase, construct, or lease any 
additional facilities to be used to conduct federal law 
enforcement training without advance approval of the Committee 
on Appropriations, except that the Federal Law Enforcement 
Training Center is authorized to obtain temporary use of 
additional facilities for training which cannot be accommodated 
in existing Center facilities.
    Section 513. The Committee includes a provision directing 
the Federal Law Enforcement Training Center to ensure that all 
training centers under its control are operated at their 
highest potential capacity efficiency throughout the fiscal 
year.
    Section 514. The Committee includes a provision permitting 
the Transportation Security Administration to impose reasonable 
fees and charges to cover the cost of a variety of non-aviation 
security checks and services.
    Section 515. The Committee includes a provision providing 
that none of the funds may be used to produce custom 
declarations that do not inquire whether a passenger has been 
in the proximity of livestock.
    Section 516. The Committee includes a provision providing 
that none of the funds may be used for any activity or to pay 
the salary of any government employee if it would result in a 
policy that would prohibit enforcement of section 307 of the 
Tariff Act of 1930.
    Section 517. The Committee includes a provision providing 
that none of the funds may be used to import goods produced by 
forced or indentured child labor.
    Section 518. The Committee includes a provision allowing 
the purchase of insurance for official motor vehicles operated 
in foreign countries; the purchase of motor vehicles without 
regard to the general purchase price limitations for vehicles 
purchased and used overseas; and the provision of health and 
medical services for employees in foreign countries.
    Section 519. The Committee includes a provision providing 
that none of the funds may be used for expenses of any 
construction, repair, alteration, and acquisition project for 
which a prospectus, if required by the Public Buildings Act of 
1959, as amended, has not been approved, except that necessary 
funds may be expended for each project for required expenses 
for the development of a proposed prospectus.
    Section 520. The Committee includes a provision providing 
that none of the funds may be used to pursue or adopt 
guidelines or regulations requiring airport sponsors to provide 
the Transportation Security Administration, without cost, 
building construction, maintenance, utilities and expenses, or 
space in airport sponsor-owned buildings for services relating 
to aviation security.
    Section 521. The Committee includes a provision clarifying 
section 835 of the Homeland Security Act of 2002 regarding 
contracting with foreign incorporated entities.
    Section 522. The Committee includes a provision prohibiting 
obligation of funds for CAPPS2, the Computer Assisted Passenger 
Prescreening System, until the General Accounting Office 
reports to the Committee on several issues pertaining to the 
system.

                    Detailed Explanations in Report

    It should be emphasized again that a more detailed 
statement describing the effect of the above provisions 
inserted by the Committee which directly or indirectly change 
the application of existing law may be found at the appropriate 
place in this report.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill that are not authorized by law:

                                      APPROPRIATIONS NOT AUTHORIZED BY LAW
                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                  Appropriations
                                                   Last year of    Authorization   in last year   Appropriations
                 Agency/program                    authorization       level            of         in this bill
                                                                                   authorization
----------------------------------------------------------------------------------------------------------------
Departmental Administration.....................              NA              NA              NA        $221,493
Counterterrorism Fund...........................              NA              NA              NA          20,000
Department Wide Technology Investments..........              NA              NA              NA         206,000
Office of the Inspector General.................              NA              NA              NA          80,118
Bureau of Customs and Border Protection,                \1\ 2003      $2,739,695  \2\ $3,195,094       4,587,600
 Salaries and Expenses..........................
Bureau of Customs and Border Protection,                \3\ 2002          (\15\)         730,710       4,587,600
 Salaries and Expenses..........................
Bureau of Immigration and Customs Enforcement,          \4\ 2003       2,739,695   \5\ 3,032,094       2,030,000
 Salaries and Expenses..........................
Bureau of Immigration and Customs Enforcement,          \6\ 2003       2,739,695     \7\ 380,000         367,605
 Automation and Infrastructure Modernization....
Grant Programs, Pre-Disaster Mitigation.........        \8\ 2004              NA         200,000         200,000
Flood Map Modernization.........................        \8\ 2004              NA         200,000         200,000
National Flood Insurance Program (limitation on         \8\ 2004              NA         110,570         110,570
 expenses)......................................
Preparedness, Mitigation, Response and Recovery.        \9\ 2003      \9\ 50,000      \9\ 39,984         363,339
Preparedness, Mitigation, Response and Recovery.       \10\ 2003     \10\ 21,585     \10\ 16,778         363,339
Bureau of Citizenship and Immigration Services..       \11\ 2002         631,745    \12\ 707,392         238,500
US Coast Guard, Operating Expenses..............            2003       4,327,456  \13\ 4,503,152       4,703,530
US Coast Guard, Environmental Compliance and                2003          17,000          17,000          17,000
 Restoration....................................
US Coast Guard, Reserve Training................            2003         \14\ NA          86,495          94,051
US Coast Guard, Acquisitions, Construction and              2003         725,000         742,100         805,000
 Improvements...................................
US Coast Guard, Alteration of Bridges...........            2003          18,000          17,200          19,500
US Coast Guard, Research, Development, Test and             2003          22,000          22,000          22,000
 Evaluation.....................................
US Coast Guard Retired Pay......................            2003         889,000         889,000       1,020,000
Information Analysis and Infrastructure                       NA              NA              NA         776,000
 Protection, Operating Expenses.................
Science and Technology, Research, Development,              2003          (\16\)              NA         900,360
 Acquisitions, and Operations...................
----------------------------------------------------------------------------------------------------------------
\1\ Immigration and Naturalization Service--inspection, investigations, Border Patrol, detention and deportation
  only.
\2\ Includes $2,862,094,000 from the FY 2003 INS Salaries and Expenses appropriation, and $333,000,000 included
  in the FY 2003 Wartime Supplemental Appropriations Act, PL 108-11.
\3\ Agriculture Plant and Health Inspection Service only.
\4\ Immigration and Naturalization Service--inspection, investigations, Border Patrol, detention and deportation
  only.
\5\ Includes $2,862,094,000 from the FY 2003 INS Salaries and Expenses appropriation, and $170,000,000 included
  in the FY 2003 Wartime Supplemental Appropriations Act, PL 108-11.
\6\ Immigration and Naturalization Service--inspection, investigations, Border Patrol, detention and deportation
  only.
\7\ For Entry-Exit system.
\8\ Authorized through December 31, 2003.
\9\ Fire preparedness only.
\10\ Earthquake mitigation only.
\11\ INS Citizenship Services.
\12\ Includes $704,392,000 from FY 2003 INS Citizenship Service appropriations and $3,000,000 in the FY 2003
  Wartime Supplemental Appropriations Act, PL 108-11.
\13\ Includes funding of $228,000,000 in the Wartime Supplemental Appropriations Act, 2003.
\14\ Reserve level is authorized under the National Defense Authorization Act; however, no appropriations level
  has been specified for reserve training.
\15\ Such sums.
\16\ Such sums as necessary for research, development, demonstrations, testing and evaluation.

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XII of 
the House of Representatives, the results of each rollcall vote 
on an amendment or on the motion to report, together with the 
names of those voting for and those voting against, are printed 
below:

                             ROLLCALL NO. 1

    Date: June 17, 2003.
    Measure: Department of Homeland Security Appropriations 
Bill, FY 2004.
    Motion by: Mr. Obey.
    Description of motion: To increase funding for port 
security, border security, aviation security, maritime security 
and infrastructure security; increases are offset by a 
reduction to tax cuts for certain income groups.
    Results: Rejected 25 yeas to 33 nays.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Aderholt
Mr. Bishop                          Mr. Bonilla
Mr. Boyd                            Mr. Crenshaw
Ms. DeLauro                         Mr. Culberson
Mr. Dicks                           Mr. Cunningham
Mr. Edwards                         Mr. Doolittle
Mr. Farr                            Mrs. Emerson
Mr. Fattah                          Mr. Frelinghuysen
Mr. Hinchey                         Mr. Goode
Mr. Hoyer                           Ms. Granger
Mr. Jackson                         Mr. Hobson
Ms. Kaptur                          Mr. Istook
Mr. Kennedy                         Mr. Kingston
Mrs. Lowey                          Mr. Kirk
Mr. Mollohan                        Mr. Knollenberg
Mr. Moran                           Mr. Kolbe
Mr. Obey                            Mr. LaHood
Mr. Olver                           Mr. Lewis
Mr. Pastor                          Mrs. Northup
Mr. Price                           Mr. Peterson
Mr. Rothman                         Mr. Regula
Ms. Roybal-Allard                   Mr. Rogers
Mr. Sabo                            Mr. Sherwood
Mr. Serrano                         Mr. Simpson
Mr. Visclosky                       Mr. Sweeney
                                    Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Wamp
                                    Mr. Weldon
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                                    
                                    

          ADDITIONAL VIEWS OF DAVID OBEY AND MARTIN OLAV SABO

    Experts are in almost universal agreement that the United 
States continues to be a target for terrorist attacks that may 
be more devastating than the attacks of September 11, 2001.
    It is for that reason that the Congress passed legislation 
last year creating a Department of Homeland Security. Moving 
the bureaucratic boxes on a sheet of paper, however, will not 
make the American people safer.
    Our skies, ports, borders and infrastructure will only be 
safe if we apply careful planning and the resources necessary 
to implement those plans. The legislation accompanying this 
report is supposed to do that. Unfortunately it represents a 
stark failure to move forward in any meaningful way toward the 
challenge of reducing the terrorist threat.

              INFORMATION GAPS INHIBIT LEGISLATIVE EFFORTS

    The legislation fails in large part because of the failure 
of the executive branch to provide necessary information.
     Budget justifications for many important 
activities within the Department were not submitted for months 
after the President's budget was released.
      Hearings could not even be arranged for four of 
the largest and most important of the Department's eleven major 
agencies. Those four agencies constitute $9 billion or 31% of 
the Department's total budget.
      Witnesses that did appear before the committee 
were sometimes unprepared and unable to discuss major 
activities within their jurisdiction.
      Budget numbers that were transmitted to the 
committee were presented based on comparisons with the 
President's fiscal year 2003 request rather than the levels 
actually appropriated for fiscal year 2003. The Department to 
date has failed to respond to the Committee's request for 
comparisons based on actual 2003 appropriated levels. As a 
result, a complete understanding of the resources now being 
used for specific activities within the Department or the 
amounts that would be needed to reach specific goals is not 
possible.
    In short, no subcommittee could have put together a 
responsible allocation of resources based on the huge 
information gaps that existed at the time the bill was 
reported. Standard budget documents, like those provided in 
2003, required for making sensible decisions on any agency 
budget were not used in preparing this legislation.
    Beyond that, the Department has failed to develop a useful 
roadmap of the security goals that the Department deems 
important; a time frame in which it hopes to achieve such goals 
or the cost associated in meeting a specific goal within a 
specific time frame. If anyone at the Department has a strategy 
for objectives such as securing the northern border, tracking 
all vessels entering American waters or insuring that airline 
cargo is effectively screened, no one has been willing to share 
that information with the relevantcommittees of the Congress 
and in particular, the subcommittee charged with writing the 
Department's budget.
    As a result, many of the windows of opportunity for 
terrorist organizations such as al Qaeda are nearly as widely 
open today as they were a year and a half ago and we seem to be 
stalled in terms of putting in place a program that will close 
those windows.

                           STANDSTILL BUDGET

    Overall this bill provides $29.4 billion in discretionary 
funding for fiscal year 2004. That is only about 1.8% above the 
overall funding level provided to agencies and activities 
within the Department for fiscal year 2003. CBO forecasts that 
prices will increase during the current fiscal year by 2.3%. As 
a result the bill actually provides funding for the coming year 
that in real dollar terms is about $150 million below current 
levels.
    Because of the lack of comparable budget information for 
most activities within the Department it is hard to state 
exactly what priorities this proposed level of funding is 
sacrificing. We have attempted to make a few extrapolations 
based on the scarce information that is available to address a 
few of these issues.

        MISSING THE PATRIOT ACT GOAL ON NORTHERN BORDER STAFFING

    When the Patriot Act was passed in the fall of 2001, it 
called for the tripling of staffing on the northern border. The 
risks posed by that border are not merely a matter of 
conjecture. Al Qaeda operatives have crossed the border 
carrying explosives. It is 5500 miles in length and until early 
2002 it was protected at some border crossings only with 
traffic cones when agents were available to operate at crossing 
positions.
    Tripling would require that the level of staff be increased 
from roughly 2300 on the border in the fall of 2001 to 6900 by 
the end of 2004. Thus far the Department has refused to provide 
the Committee with an operating plan for using funds provided 
in the FY03 omnibus and the FY03 supplemental for expanding 
staff and activities on the northern border. It has indicated, 
however, that it expects 4183 staff to be in place by September 
30th and 5000 by the end of Fiscal 2004. That would mean that 
the Department will be about 10% behind its staffing goal for 
the northern border by this September and 28% behind by the end 
of the fiscal year for which this legislation provides funding.
    Also disturbing is the fact that it appears that the 
Department may actually be deliberately slowing down the 
recruitment and hiring of agents at the present time in order 
to save funds to meet the anticipated plan for hiring next 
year. The overall spending level for Immigration and 
Naturalization Officers, Customs Agents and Agriculture 
Inspectors in this bill is only 0.3% higher than the amounts we 
provided these activities for the current fiscal year. 
Therefore, any increase in these activities in FY 2004 is 
likely to come from monies unspent and carried forward from FY 
2003.
    While the administration has failed to openly address 
whether or not it deems the goal of 6900 agents on the northern 
border is reasonable it has clearly decided it does not wish to 
spend the money to meet that goal within the time frame 
established under the act. At the recruitment rate proposed in 
the budget and recommended in the Committee's bill we will not 
have 6900 inspectors on the northern border until early in 
fiscal 2007.

                TWENTY YEARS BEFORE WE SECURE OUR PORTS?

    Another example of the failure of this bill to move forward 
in closing security gaps is the funds made available for port 
security. There are several discrete aspects to port security. 
One is controlling maritime traffic into and within the port 
area. Another is the inspection of people and cargo coming 
through the port. There is no evidence that the funds contained 
in this bill will bring about improvements in either of those 
activities. Neither the bill nor the request provided any 
initiatives for improved tracking of vessels, or interdiction 
of vessels that may pose a threat to life or property. There is 
also no increase in funds for personnel or equipment to 
increase the current portion of containers inspected or our 
capacity to target such inspections.
    The Committee did provide $100 million in funds not 
requested by the President for a third aspect of port security, 
securing and protecting the docks and dockside storage areas of 
our nation's ports. The Coast Guard has estimated that the 
overall cost of providing the fencing, cameras and other 
security measures to keep terrorists from gaining easy access 
to these areas is about $4.4 billion. So far we have provided 
about $450 million or 10% of the amount needed. If the federal 
government were to split the cost of securing these facilities 
with the local port authorities (although there is no evidence 
that the port authorities have the capacity to generate the 
revenue required to pay the other half) it would cost each $2 
billion. If the Congress sustains the funding level contained 
in the Committee bill it will require exactly 20 years to 
secure all docks and dockside storage areas.
    These are only two examples where federal actions to 
improve security have all but stalled and where terrorists will 
find that America presents a fatter target than our plans and 
rhetoric after September 11th would have permitted. There can 
be little doubt that whatever the Administration and the 
majority party in Congress may profess about the priority that 
they attach to homeland security, it is clearly taking a back 
seat to their tax policy.
    Just this year, legislation has been signed into law giving 
$330 billion in new tax breaks. The 200,000 most well off 
taxpayers in the country, people whose annual income exceeds 
$1,000,000 will get $88,000 each this year as a result of those 
tax cuts. That adds up to more than $17 billion in lost revenue 
just for the tax cuts going to those 200,000 taxpayers. Only a 
small fraction of that money could make a world of difference 
in the speed at which we close security gaps on our borders and 
in our ports.

                           A MODEST AMENDMENT

    In Committee we offered an amendment that would have scaled 
back the tax cut going to those high-income individuals by 
$5000 for one year. That means their tax break would have been 
$83,000 instead of $88,000. That produced $1 billion in revenue 
that we proposed to use to make the country and coincidently 
the property of these high-income taxpayers safer. Additional 
funds were provided in the following areas:

Secure port facilities

    The amendment would have provided an additional $500 
million above the $100 million included in the bill for port 
security grants. The Coast Guard estimates that $4.4 billion is 
needed for port facility security improvements. The amendment 
would bring to 25% the Federal contribution to port facility 
security needs--a modest one compared to the impact of an 
attack at one of our ports. If we were to stay with the $100 
million contained in the bill, it would take close to 20 years 
to make half of the port facility security improvements the 
Coast Guard says are needed.
    The amendment would also have provided $100 million for the 
Coast Guard to effectively implement the Maritime 
Transportation Security Act (MTSA) passed last November. That 
Act calls for the Coast Guard to improve and analyze vessel 
threat information, to develop and implement a long-range 
automated vessel tracking system, and to determine if foreign 
ports maintain effective antiterrorism measures.
    The Coast Guard has acknowledged substantial requirements 
for personnel and funding in fiscal years 2003 and 2004 to 
fully implement the new MTSA responsibilities. The Committee 
bill includes no additional funding for this purpose.

Develop comprehensive plan to secure our northern border

    The amendment would have provided an additional $200 
million to improve northern border security. These funds could 
be used in either of two ways or in some combination of both. 
The additional $200 million would allow the administration to 
reach the Patriot Act goal of staffing the northern border with 
6900 agents by the end of fiscal 2004. As stated earlier the 
Administration currently has no means to monitor long, 
unguarded stretches of the 5,500-mile northern border.
    Many experts believe that air and marine interdiction 
operations should be a high priority for improving the security 
of that border. During Operation Liberty Shield, when the 
northern border was patrolled by air for 30 days, 10 aircraft 
came across the border without clearance. Any one of these 
could have been carrying weapons of mass destruction. Possible 
cost of year-round air and marine interdiction would be in the 
neighborhood of $200 million.

End sabotage threat of overseas aircraft and secure the backsides of 
        airports

    The amendment would also have provided $150 million for 
aviation security improvements--for problems identified in the 
past but not addressed in this legislationbecause of the 
Transportation Security Administration's focus on screening. These 
items include grants to airports to improve perimeter security and TSA 
funding to secure overseas maintenance facilities for U.S. aircraft.

Secure critical infrastructure

    Finally, the amendment would have increased funding to the 
Information Analysis and Infrastructure Protection (IAIP) 
program by $50 million, restoring the reduction below the 
President's request that is contained in the Committee bill. 
The Department must work as quickly as possible to perform 
vulnerability assessments of our nation's high-risk critical 
assets and make needed security improvements. Funding should be 
added for this purpose, not reduced.

                               CONCLUSION

    It is highly unfortunate that the Committee elected to 
proceed with legislation for funding this Department in the 
absence of adequate information showing the unmet security 
needs facing the country or how the amounts that would be 
available either under the President's request or the 
Committee's proposed appropriation level compared to current 
year spending levels for specific programs. It would probably 
be in the best interest of the country if action on this 
legislation were withheld until those questions could be 
answered.
    It is also difficult to know what funds should be provided 
the Department based on continuing evidence of bureaucratic 
chaos and mismanagement. Based on the best information the 
committee has been able to obtain, the Department still does 
not have a printed phone directory and appears to lack many of 
the other tools that mark a functioning organization. As a 
result, a number of areas where more resources might be 
desirable in the interest of national security are areas where 
there is no assurance that the funds could be used in a wise or 
effective manner.
    The items contained in the amendment discussed above are 
all things that we feel could be accomplished despite the 
current chaos troubling the Department. They are certainly the 
very minimum that we should be doing, given events taking place 
throughout the world today.
                                   Dave Obey.
                                   Martin Olav Sabo.