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[House Report 106-731]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-731

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

 
               PREPAREDNESS AGAINST TERRORISM ACT OF 2000

                                _______
                                

 July 13, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4210]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 4210) to amend the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act to 
provide for improved Federal efforts to prepare for and respond 
to terrorist attacks, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; REFERENCES.

  (a) Short Title.--This Act may be cited as the ``Preparedness Against 
Terrorism Act of 2000''.
  (b) References.--Except as otherwise specifically provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision of law, the 
reference shall be considered to be made to a section or other 
provision of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.).

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--Congress finds that--
          (1) the President should strengthen Federal interagency 
        emergency planning by the Federal Emergency Management Agency 
        and other appropriate Federal, State, and local agencies for 
        development of a capability for early detection and warning of 
        and response to potential domestic terrorist attacks involving 
        weapons of mass destruction or cybertechnology; and
          (2) Federal efforts to assist State and local emergency 
        preparedness and response personnel in preparation for domestic 
        terrorist attacks should be coordinated so as to eliminate 
        duplicative Federal programs.
  (b) Purposes.--The purposes of this Act include--
          (1) coordinating and making more effective Federal efforts to 
        assist State and local emergency preparedness and response 
        personnel in preparation for domestic terrorist attacks;
          (2) designating a lead entity to coordinate such Federal 
        efforts; and
          (3) updating Federal authorities to reflect the increased 
        risk of terrorist attacks.

SEC. 3. DEFINITION OF MAJOR DISASTER.

  Section 102(2) (42 U.S.C. 5122(2)) is amended to read as follows:
          ``(2) Major disaster.--`Major disaster' means any natural 
        catastrophe (including any hurricane, tornado, storm, high 
        water, winddriven water, tidal wave, tsunami, earthquake, 
        volcanic eruption, landslide, mudslide, snowstorm, snow 
        drought, or drought), or, regardless of cause, any fire, flood, 
        explosion, act of terrorism, or other catastrophic event in any 
        part of the United States, which in the determination of the 
        President causes damage of sufficient severity and magnitude to 
        warrant major disaster assistance under this Act to supplement 
        the efforts and available resources of States, local 
        governments, and disaster relief organizations in alleviating 
        the damage, loss, hardship, or suffering caused thereby.''.

SEC. 4. ADMINISTRATION OF EMERGENCY PREPAREDNESS PROGRAMS BY THE 
                    PRESIDENT.

  Title VI (42 U.S.C. 5195 et seq.) is amended--
          (1) by striking ``Director'' each place it appears (other 
        than in sections 602(a)(7) and 603) and inserting 
        ``President'';
          (2) in section 603 by striking ``Director of the Federal 
        Emergency Management Agency'' and inserting ``President'';
          (3) in section 611(c)--
                  (A) by striking ``With the approval of the President, 
                the'' and inserting ``The''; and
                  (B) by striking ``responsibilities and review'' and 
                inserting ``responsibilities. The President shall 
                review'';
          (4) in section 621(g) by striking the second sentence;
          (5) in section 623--
                  (A) by striking paragraph (1) and redesignating 
                paragraphs (2) and (3) as paragraphs (1) and (2), 
                respectively; and
                  (B) in paragraph (2) (as so redesignated) by striking 
                ``unless'' and all that follows through ``approval of 
                the President,'' and inserting ``unless the 
                President''; and
          (6) in section 624 by striking ``to the President and 
        Congress'' and inserting ``to Congress''.

SEC. 5. DEFINITIONS.

  (a) Hazard.--Section 602(a)(1)(B) (42 U.S.C. 5195a(a)(1)(B)) is 
amended by striking the period at the end and inserting ``, including a 
domestic terrorist attack involving a weapon of mass destruction or 
cybertechnology.''.
  (b) Natural Disaster.--Section 602(a)(2) (42 U.S.C. 5195a(a)(2)) is 
amended to read as follows:
          ``(2) Natural disaster.--The term `natural disaster' means 
        any hurricane, tornado, storm, flood, high water, wind-driven 
        water, tidal wave, tsunami, earthquake, volcanic eruption, 
        landslide, mudslide, snowstorm, snow drought, drought, fire, or 
        other catastrophe in any part of the United States which 
        causes, or which may cause, substantial damage or injury to 
        civilian property or persons.''.
  (c) Emergency Preparedness.--Section 602(a)(3)(A) (42 U.S.C. 
5195a(a)(3)(A)) is amended by inserting ``the predeployment of these 
and other essential resources (including personnel),'' before ``the 
provision of suitable warning systems,''.
  (d) Director.--Section 602(a) (42 U.S.C. 5195a(a)) is amended by 
striking paragraph (7) and redesignating paragraphs (8), (9), and (10) 
as paragraphs (7), (8), and (9), respectively.
  (e) Weapon of Mass Destruction.--Section 602 (42 U.S.C. 5195a) is 
amended by adding at the end the following:
          ``(10) Weapon of mass destruction.--The term `weapon of mass 
        destruction' means any weapon or device that is intended, or 
        has the capability, to cause death or serious bodily injury to 
        a significant number of people through the release, 
        dissemination, or impact of--
                  ``(A) toxic or poisonous chemicals or their 
                precursors;
                  ``(B) a disease organism; or
                  ``(C) radiation or radioactivity.''.

SEC. 6. DETAILED FUNCTIONS OF ADMINISTRATION.

  (a) Federal Emergency Response Plans and Programs.--Section 611(b) 
(42 U.S.C. 5196(b)) is amended--
          (1) by striking ``may prepare'' and inserting ``shall 
        prepare''; and
          (2) by adding at the end the following: ``In accordance with 
        section 313, the President shall ensure that Federal response 
        plans and programs are adequate to respond to the consequences 
        of terrorism directed against a target in the United States, 
        including terrorism involving weapons of mass destruction and 
        terrorism involving cybertechnology.''.
  (b) Emergency Preparedness Measures.--Section 611(e) (42 U.S.C. 
5196(e)) is amended--
          (1) in paragraph (1) by inserting ``preventing and'' before 
        ``treating'';
          (2) in paragraph (2) by striking ``developing shelter 
        designs'' and inserting ``development of shelter designs, 
        equipment, clothing,''; and
          (3) in paragraph (3) by striking ``developing'' and all that 
        follows through ``thereof'' and inserting ``development and 
        standardization of equipment and facilities''.
  (c) Training and Exercise Programs.--Section 611(f) (42 U.S.C. 
5196(f)) is amended--
          (1) in the subsection heading by inserting ``and Exercise'' 
        after ``Training'';
          (2) in paragraph (1)(A) by inserting ``and exercise'' after 
        ``training'';
          (3) by redesignating paragraphs (2) and (3) as paragraphs (3) 
        and (4), respectively; and
          (4) by inserting after paragraph (1) the following:
  ``(2) The President shall establish priorities among training and 
exercise programs for preparedness against terrorist attacks based on 
an assessment of the existing threats, capabilities, and objectives.''.

SEC. 7. REPEALS.

  (a) Use of Funds To Prepare for and Respond to Hazards.--Section 615 
(42 U.S.C. 5196d) is repealed.
  (b) Security Regulations.--Section 622 (42 U.S.C. 5197a) is repealed.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

  Section 626 (42 U.S.C. 5197e) is amended--
          (1) by redesignating subsection (b) as subsection (c); and
          (2) by inserting after subsection (a) the following:
  ``(b) Priorities.--Amounts appropriated pursuant to this section for 
training and exercise programs for preparedness against terrorist 
attacks shall be used in a manner consistent with the priorities 
established under section 611(f)(2).''.

SEC. 9. OFFICE OF TERRORISM PREPAREDNESS.

  (a) In General.--Title VI of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5195 et seq.) is amended by 
adding at the end the following:

             ``Subtitle C--Office of Terrorism Preparedness

``SEC. 651. ESTABLISHMENT OF OFFICE.

  ``(a) In General.--There is established in the Executive Office of 
the President an Office of Terrorism Preparedness (in this subtitle 
referred to as the `Office').
  ``(b) Appointment of Director.--The head of the Office shall be the 
Director of the Office of Terrorism Preparedness (in this subtitle 
referred to as the `Director'), who shall be appointed by the 
President, by and with the advice and consent of the Senate. In making 
the appointment, the President should consult with the Director of the 
Federal Emergency Management Agency, the Attorney General of the United 
States, and the Secretary of Defense.

``SEC. 652. DUTIES OF DIRECTOR.

  ``The Director shall--
          ``(1) establish the policies, objectives, and priorities of 
        the Federal Government for enhancing the capabilities of State 
        and local emergency preparedness and response personnel in 
        early detection and warning of and response to all domestic 
        terrorist attacks, including attacks involving weapons of mass 
        destruction or cybertechnology;
          ``(2) publish a Domestic Terrorism Preparedness Plan and an 
        annual strategy for carrying out the plan in accordance with 
        section 653;
          ``(3) biennially review the terrorist attack preparedness 
        programs of State and local governmental entities and provide 
        recommendations to such entities based on such reviews;
          ``(4) establish voluntary guidelines for the terrorist attack 
        preparedness programs of State and local governmental entities 
        in accordance with section 656;
          ``(5) consult with, and serve as a contact for, State and 
        local governmental entities implementing terrorist attack 
        preparedness programs;
          ``(6) coordinate and oversee the implementation by Federal 
        departments and agencies of the policies, objectives, and 
        priorities established under paragraph (1) and the fulfillment 
        of the responsibilities of such departments and agencies under 
        the Domestic Terrorism Preparedness Plan;
          ``(7) make recommendations to the President and to the 
        National Security Council regarding--
                  ``(A) changes in the organization, management, and 
                budgets of Federal departments and agencies; and
                  ``(B) the allocation of personnel to and within such 
                departments and agencies;
        to implement the policies, priorities, and objectives 
        established under paragraph (1) and the Domestic Terrorism 
        Preparedness Plan; and
          ``(8) notify a Federal department or agency in writing if the 
        Director finds that its policies are not in compliance with its 
        responsibilities under the Domestic Terrorism Preparedness Plan 
        and transmit a copy of such notification to the President.

``SEC. 653. DOMESTIC TERRORISM PREPAREDNESS PLAN AND ANNUAL STRATEGY

  ``(a) Development of Plan.--Not later than 180 days after the date of 
appointment of the Director, the Director shall develop a Domestic 
Terrorism Preparedness Plan and transmit a copy of the plan to the 
President and Congress. The Director, as necessary, may extend the 
deadline established by this subsection, except that any such extension 
may not exceed 90 days.
  ``(b) Contents.--The Domestic Terrorism Preparedness Plan shall 
include--
          ``(1) a statement of the policies, objectives, and priorities 
        established by the Director under section 652(1);
          ``(2) a plan for implementing such policies, objectives, and 
        priorities, which is based on a threat and risk assessment and 
        includes measurable objectives to be achieved in each of the 
        following 5 years for enhancing domestic preparedness against a 
        terrorist attack; and
          ``(3) a description of the specific role of each Federal 
        department and agency, and the roles of State and local 
        governmental entities, under the plan developed under paragraph 
        (2).
  ``(c) Annual Strategy.--
          ``(1) In general.--The Director shall develop and transmit to 
        the President and Congress, on the date of transmittal of the 
        Domestic Terrorism Preparedness Plan and, in each of the 
        succeeding 4 fiscal years, on the date that the President 
        submits an annual budget to Congress in accordance with section 
        1105(a) of title 31, United States Code, an annual strategy for 
        carrying out the Domestic Terrorism Preparedness Plan in the 
        fiscal year following the fiscal year in which the strategy is 
        submitted.
          ``(2) Contents.--The annual strategy for a fiscal year shall 
        include--
                  ``(A) a description of Federal training and exercise 
                programs, grant programs, and other activities 
                conducted in the fiscal year preceding the fiscal year 
                for which the strategy has been developed related to 
                domestic preparedness against a terrorist attack and 
                recommendations concerning whether any of such programs 
                may be duplicative;
                  ``(B) a description of Federal training and exercise 
                programs, grant programs, and other activities to be 
                conducted in the fiscal year for which the strategy has 
                been developed under the Domestic Terrorism 
                Preparedness Plan and measurable objectives to be 
                achieved in such fiscal year for enhancing domestic 
                preparedness against a terrorist attack; and
                  ``(C) a complete assessment of how the budget 
                proposal transmitted for the fiscal year under section 
                654(a) is intended to implement the strategy and 
                whether the funding levels contained in such proposal 
                are sufficient to implement such strategy.
  ``(d) Consultation.--
          ``(1) In general.--In developing the Domestic Terrorism 
        Preparedness Plan and each annual strategy for carrying out the 
        plan, the Director shall consult with--
                  ``(A) the head of each Federal department and agency 
                that will have responsibilities under the Domestic 
                Terrorism Preparedness Plan or annual strategy;
                  ``(B) Congress;
                  ``(C) State and local officials;
                  ``(D) congressionally authorized panels; and
                  ``(E) emergency preparedness organizations with 
                memberships that include State and local emergency 
                responders.
          ``(2) Reports.--At the time the Director submits the Domestic 
        Terrorism Preparedness Plan or an annual strategy to the 
        President and Congress, the Director shall transmit a report to 
        the President and Congress indicating the persons consulted 
        under this subsection.
  ``(e) Transmission of Classified Information.--Any part of the 
Domestic Terrorism Preparedness Plan under subsection (a) or an annual 
strategy under subsection (c) that involves information properly 
classified under criteria established by an Executive order shall be 
presented to Congress separately.
  ``(f) Risk of Terrorist Attacks Against Transportation Facilities.--
          ``(1) In general.--In developing the plan and risk assessment 
        under subsection (b), the Director shall designate an entity to 
        assess the risk of terrorist attacks against transportation 
        facilities, personnel, and passengers.
          ``(2) Contents.--In developing the plan and risk assessment 
        under subsection (b), the Director shall ensure that the 
        following 3 tasks are accomplished:
                  ``(A) An examination of the extent to which 
                transportation facilities, personnel, and passengers 
                have been the target of terrorist attacks and the 
                extent to which such facilities, personnel, and 
                passengers are vulnerable to such attacks.
                  ``(B) An evaluation of Federal and State laws that 
                can be used to combat terrorist attacks against 
                transportation facilities, personnel, and passengers, 
                and the extent to which such laws are enforced.
                  ``(C) An evaluation of available technologies and 
                practices to determine the best means of protecting 
                mass transportation facilities, personnel, and 
                passengers against terrorist attacks.
          ``(3) Consultation.--In developing the plan and risk 
        assessment under subsection (b), the Director shall consult 
        with the Secretary of Transportation, representatives of 
        persons providing transportation, and representatives of 
        employees of such persons.

``SEC. 654. NATIONAL DOMESTIC PREPAREDNESS BUDGET.

  ``(a) Development and Transmission of Budget.--The Director shall 
develop for each fiscal year, with the advice of the program managers 
of departments and agencies with responsibilities under the Domestic 
Terrorism Preparedness Plan and appropriate State and local 
governmental entities, a consolidated budget proposal to implement the 
Domestic Terrorism Preparedness Plan, and shall transmit a copy of the 
budget proposal to the President and Congress.
  ``(b) Budget Submissions by Departments and Agencies.--Each Federal 
Government program manager, agency head, and department head with 
responsibilities under the Domestic Terrorism Preparedness Plan shall 
transmit the budget request of the program, agency, or department 
relating to such responsibilities to the Director at the same time as 
such request is submitted to their superiors (and before submission to 
the Office of Management and Budget) in the preparation of the budget 
of the President submitted to Congress under section 1105(a) of title 
31, United States Code.
  ``(c) Review of Budget Submissions.--The Director shall--
          ``(1) review each budget request transmitted to the Director 
        under subsection (b);
          ``(2) certify in writing as to the adequacy of such request 
        to implement the objectives of the Domestic Terrorism 
        Preparedness Plan for the fiscal year for which the request is 
        submitted; and
          ``(3) notify the program manager, agency head, or department 
        head, as applicable, regarding the Director's certification 
        under paragraph (2).
  ``(d) Reprogramming and Transfer Requests.--
          ``(1) In general.--No Federal department or agency shall 
        submit to Congress a reprogramming or transfer request that is 
        included in the consolidated budget proposal developed under 
        subsection (a) unless such request has been approved by the 
        Director.
          ``(2) Appeals.--The Secretary of a department or the head of 
        an agency may appeal to the President any disapproval by the 
        Director of a reprogramming or transfer request.
          ``(3) Quarterly reports.--The Director shall report to 
        Congress on a quarterly basis regarding the need for any 
        reprogramming or transfer of appropriated funds for activities 
        under the Domestic Terrorism Preparedness Plan.
  ``(e) Records.--The Director shall maintain records regarding 
certifications under subsection (c)(2).
  ``(f) Notice to OMB of Inadequate Requests.--If the Director 
determines under subsection (c)(2) that a budget request is not 
adequate to implement the objectives of the Domestic Terrorism 
Preparedness Plan for the fiscal year for which the request is 
submitted, the Director shall transmit a written statement of such 
determination to the Director of the Office of Management and Budget.
  ``(g) Timely Development and Submission of Budget Requests.--The head 
of each Federal department and agency with responsibilities under the 
Domestic Terrorism Preparedness Plan shall ensure timely development 
and transmittal of budget requests pursuant to subsection (b) in such 
format as may be designated by the Director with the concurrence of the 
Director of the Office of Management and Budget.
  ``(h) Failure of Director To Make Timely Determinations.--With 
respect to the first fiscal year for which budget requests are 
submitted under subsection (b), if the Director does not make a timely 
determination with respect to the adequacy of such a request, the 
program or activity for which the request is being made shall be 
eligible for funding at the same level as the program or activity 
received funding in the preceding fiscal year.

``SEC. 655. CERTIFICATION OF FEDERAL TRAINING AND EXERCISE PROGRAMS.

  ``(a) Certification of Programs.--Not later than 270 days after the 
date of appointment of the Director, the Director shall conduct a 
review of each training and exercise program being conducted by a 
Federal department or agency to enhance the capabilities of State and 
local emergency preparedness and response personnel with respect to 
terrorist attacks. Upon completing the review, the Director shall 
either certify or deny certification for the program based on criteria 
to be developed by the Director. The Director, as necessary, may extend 
the deadline established by this subsection with respect to a training 
or exercise program, except that any such extension may not exceed 180 
days.
  ``(b) Recertification of Programs.--A training or exercise program 
that is certified by the Director under subsection (a) shall be 
reviewed by the Director on or before June 15th of the third fiscal 
year beginning after the date of certification and on or before June 
15th of every third fiscal year thereafter. Upon completing each 
review, the Director shall either recertify or deny recertification for 
the program based on criteria to be developed by the Director.
  ``(c) Effect of Denials.--The Director may not certify a budget 
request transmitted for a fiscal year under section 654 with respect to 
any training or exercise program for which the Director has denied 
certification or recertification for a period including such fiscal 
year under this section.
  ``(d) Development of Certification Criteria.--In developing criteria 
for certifications and recertifications under this section, the 
Director shall seek to eliminate duplicative Federal programs and to 
further Federal efforts toward implementation of the policies, 
objectives, and priorities of the Domestic Terrorism Preparedness Plan.
  ``(e) Establishment of New Programs and Offices.--Before a Federal 
department or agency may establish a new program or office to enhance 
the capabilities of State and local emergency preparedness and response 
personnel with respect to terrorist attacks, the head of the department 
or agency shall consult with the Director to determine whether the new 
program or office is consistent with the Domestic Terrorism 
Preparedness Plan.

``SEC. 656. VOLUNTARY GUIDELINES FOR STATE AND LOCAL PROGRAMS.

  ``The Director shall establish voluntary guidelines for the terrorist 
attack preparedness programs of State and local governmental entities 
for the purpose of providing guidance in the development and 
implementation of such programs. The guidelines shall address 
equipment, exercises, and training.

``SEC. 657. GRANTS TO STATE AND LOCAL ENTITIES.

  ``The Director may make grants to a State or local governmental 
entity to offset the costs of participation by the entity in any 
training or exercise program that has been certified by the Director 
under section 655.

``SEC. 658. POWERS OF DIRECTOR.

  ``In carrying out this subtitle, the Director may--
          ``(1) select, appoint, employ, and fix compensation of such 
        officers and employees as may be necessary to carry out the 
        functions of the Office under this subtitle;
          ``(2) direct, with the concurrence of the Secretary of a 
        department or head of an agency, the temporary reassignment 
        within the Federal Government of personnel employed by such 
        department or agency;
          ``(3) use for administrative purposes, on a reimbursable 
        basis, the available services, equipment, personnel, and 
        facilities of Federal, State, and local agencies;
          ``(4) procure the services of experts and consultants in 
        accordance with section 3109 of title 5, United States Code, 
        relating to appointments in the Federal Service, at rates of 
        compensation for individuals not to exceed the daily equivalent 
        of the rate of pay payable for GS-18 of the General Schedule 
        under section 5332 of title 5, United States Code;
          ``(5) accept and use donations of property from Federal, 
        State, and local government agencies;
          ``(6) use the mails in the same manner as any other 
        department or agency of the executive branch; and
          ``(7) monitor the implementation of the Domestic Terrorism 
        Preparedness Plan, including--
                  ``(A) conducting program and performance audits and 
                evaluations; and
                  ``(B) requesting assistance from the Inspector 
                General of the relevant agency in such audits and 
                evaluations.

``SEC. 659. ROLE OF DIRECTOR IN NATIONAL SECURITY COUNCIL EFFORTS.

  ``The Director may, in the Director's role as principal adviser to 
the National Security Council on Federal efforts to assist State and 
local governmental entities in domestic terrorist attack preparedness 
matters, and subject to the direction of the President, attend and 
participate in meetings of the National Security Council.

``SEC. 660. COORDINATION WITH EXECUTIVE BRANCH DEPARTMENTS AND 
                    AGENCIES.

  ``(a) Requests for Assistance.--The head of each Federal department 
and agency with responsibilities under the Domestic Terrorism 
Preparedness Plan shall cooperate with the Director and, subject to 
laws governing disclosure of information, provide such assistance, 
information, and advice as the Director may request.
  ``(b) Certification of Policy Changes by Director.--
          ``(1) In general.--The head of each Federal department and 
        agency with responsibilities under the Domestic Terrorism 
        Preparedness Plan shall, unless exigent circumstances require 
        otherwise, notify the Director in writing regarding any 
        proposed change in policies relating to the activities of such 
        department or agency under the Domestic Terrorism Preparedness 
        Plan prior to implementation of such change. The Director shall 
        promptly review such proposed change and certify to the 
        department or agency head in writing whether such change is 
        consistent with the Domestic Terrorism Preparedness Plan.
          ``(2) Notice in exigent circumstances.t--If prior notice of a 
        proposed change under paragraph (1) is not possible, the 
        department or agency head shall notify the Director as soon as 
        practicable. The Director shall review such change and certify 
        to the department or agency head in writing whether such change 
        is consistent with the Domestic Terrorism Preparedness Plan.
  ``(c) General Services Administration.--The Administrator of General 
Services shall provide to the Director on a reimbursable basis such 
administrative support services as the Director may request.

``SEC. 661. AUTHORIZATION OF APPROPRIATIONS.

  ``There is authorized to be appropriated to carry out this subtitle 
$9,000,000 for fiscal year 2001 and such sums as may be necessary for 
each of fiscal years 2002 through 2005. Such sums shall remain 
available until expended.''.
  (b) Executive Schedule Pay Rates.--Section 5313 of title 5, United 
States Code, is amended by adding at the end the following:
          ``Director, Office of Terrorism Preparedness.''.

                          Purpose and Summary

    H.R. 4210, the ``Preparedness Against Terrorism Act of 
2000,'' amends the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (Stafford Act) to improve the nation's 
ability to prepare for and respond to acts of terrorism in the 
United States. The bill improves federal efforts to assist 
state and local emergency preparedness and response personnel 
in preparation for domestic terrorist attacks and creates an 
Office of Terrorism Preparedness to coordinate federal efforts.

                  Background and Need for Legislation

    The Committee on Transportation and Infrastructure is 
responsible for authorizing and overseeing federal programs 
designed to prepare the nation's communities against a 
terrorist or other type of attack. The Committee's 
responsibility for these programs was strengthened and 
consolidated under Title XXXIV of the National Defense 
Authorization Act for Fiscal Year 1995 which transferred 
authorities in the Civil Defense Act into Title VI of the 
Stafford Act. This consolidation recognized the ``all hazards'' 
approach to preparedness. That is, many of the skills necessary 
to prepare a community for a natural disaster are the same or 
similar to those necessary to prepare a community for a 
premeditated attack. The consolidation of statutory authorities 
for preparedness into the Stafford Act streamlined 
congressional oversight over preparedness programs.
    The occurrence of terrorist incidents in the United States 
and abroad over the last several years, including attacks on 
the World Trade Center in New York City and the Alfred P. 
Murrah federal building in Oklahoma City, raised concerns about 
the vulnerability of our communities to domestic terrorism. In 
response, Congress and the Executive Branch quickly created a 
wide-ranging array of federal programs to assist state and 
local officials in responding to such an incident. The urgency 
of improving on these efforts stems from expert predictions 
that a terrorist incident involving a weapon of mass 
destruction will occur in the United States within the next 
five to ten years.
    Currently, more than 40 federal departments and agencies 
have established terrorism preparedness programs. At the time 
this bill was introduced, the federal government had created 
more than 100 federal terrorism response teams and offered 
close to 100 separate federal terrorism preparedness training 
courses. Fragmentation among these courses has resulted in 12 
states not receiving any federal training. Federal funding for 
counterterrorism programs has increased significantly since 
1996, and budget requests for FY 2001 indicate this trend will 
continue. Since the Office of Management and Budget began 
consolidating the counterterrorism budget at the request of 
Congress in 1998,\1\ funding for counterterrorism programs has 
nearly doubled from a FY 1996 budget of more than $5.7 billion 
\2\ to a FY 2001 request of approximately $11 billion.\3\
---------------------------------------------------------------------------
    \1\ The National Defense Authorization Act for fiscal year 1998 
(P.L. 105-85, Sec. 1051) required that OMB establish a system for 
collecting and reporting information on executive agencies' spending 
and budgets for combating terrorism. This information is included in 
OMB's annual report to Congress as required by the statute.
    \2\ Complete data on terrorism-related spending was not available 
for FYs 1994 or 1995. FY 1996 spending for unclassified terrorism 
related programs and activities totaled $5,737.1 billion. ``Combating 
Terrorism Spending on Governmentwide Programs Requries Better 
Management and Coordination,'' p. 6, December 1997. GAO/NSIAD-98-39.
    \3\ Although OMB's ``Annual Report to Congress on Combating 
Terrorism--Including Defense against Weapons of Mass Destruction/
Domestic Preparedness and Critical Infrastructure Protection'' dated 
May 18, 2000 reports a FY 2001 budget request of $9.3 billion, GAO's 
testimony before a Subcommittee hearing reports that figure is $11.1 
billion. ``Combating Terrorism Issues in Managing Counterterrorist 
Programs,'' p. 7, April 6, 2000. GAO/T-NSIAD-00-145.
---------------------------------------------------------------------------
    Emergency managers nationwide agree that many of the 
problems in the federal effort arise from the lack of a 
coherent national strategy to guide preparedness programs. In 
fact, all of the federal programs were created in the absence 
of a national strategy. Many were created without considering 
existing resources resulting in overlapping subject matter and 
capabilities. The outcome of these independent federal efforts 
is a mass of programs that are described by state and local 
emergency personnel as fragmented, uncoordinated, inefficient 
and confusing.
    In October 1998, recognizing the problems existing within 
the federal structure, the Attorney General created the 
National Domestic Preparedness Office (NDPO), an office within 
the Federal Bureau of Investigation to coordinate federal 
programs and to serve as a resource for state and local 
emergency personnel. While well intentioned, the office was not 
given the authority to influence or coordinate the efforts of 
other agencies. In contrast, H.R. 4210, creates an office which 
is provided with the authority and influence to achieve its 
mission.

                               H.R. 4210

    The Preparedness Against Terrorism Act of 2000 addresses 
many problems in the federal terrorism preparedness effort as 
identified by state and local emergency personnel. These 
problems include: (1) a lack of a national strategy for 
preparedness against terrorist attacks; (2) the absence of a 
defined preparedness level to be achieved, or ``end state,'' 
for emergency responders; \4\ (3) a lack of coordination within 
the federal government resulting in overlapping and fragmented 
programs; (4) the absence of clear leadership for federal 
preparedness and coordination; and (5) the ability to influence 
all federal agencies involved in preparedness efforts.
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    \4\ In an effort to avoid confusion associated with the term 
``first responder,'' specific reference to ``first responders'' is 
avoided in the language of H.R. 4210. Instead, the Committee uses the 
terms ``emergency responder'' and ``emergency personnel'' which are 
used interchangeably to include all individuals who may respond to or 
assist in planning to respond to an incident including police, fire 
service, medical, a state or local emergency manager, or other 
responder.
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    One of the major concerns of emergency responders is the 
lack of clear leadership within the federal government. The 
lack of demonstrated leadership coupled with the absence of a 
national strategy and a structured federal effort results in 
confusion for state and local emergency personnel when seeking 
federal assistance. To address this problem, the bill creates 
an Office of Terrorism Preparedness (OTP) within the Executive 
Office of the President, which provides structured leadership 
and authority for the federal preparedness effort.
    By removing the responsibility for coordination from the 
agencies and placing it in the Executive Branch, program 
decisions will be made independent of parochial factors or an 
agency's self-interest. The OTP will be responsible for 
drafting a five-year national plan and annual strategies to 
achieve the goals of the national plan.
    The Committee does not believe the Attorney General's 
``Five-Year Interagency Counter-Terrorism and Technology Crime 
Plan'' issued on December 30, 1998 meets the criteria necessary 
for a national plan. Therefore, H.R. 4210 lays out specific 
content requirements of the ``Domestic Terrorism Preparedness 
Plan.'' These specific requirements are discussed further in 
the section by section analysis. In general, the Committee 
expects the national plan to include a logical process for 
efficiently providing training, response teams, and other 
support for the nation's communities. This process must include 
the following:
           An assessment of the risk and threat 
        communities currently face.--Determining priorities for 
        training and other preparedness support starts with a 
        risk and threat assessment. The Committee intends this 
        to be an assessment of the expected damage a community 
        faces (a factor combining the probability of an attack 
        and the damage such an attack could cause). Once again, 
        such an assessment may need to be slightly different 
        for determining priorities for training, response, or 
        other services.
           An assessment of the existing and expected 
        capabilities of communities.--Priorities are not solely 
        dependent on the risk of an attack, but also on the 
        existing or expected capabilities of a community. For 
        example, one city may have a relatively greater risk of 
        a terrorist attack. However, because of that city's 
        high level of preparedness for other disasters, such as 
        earthquakes, it may already be highly capable of 
        responding to a WMD event. Thus, this city may require 
        a different level of training than other communities. 
        It is also expected that a capability assessment will 
        be necessary to determine progress toward the desired 
        end-state.
           A defined and measurable desired end-state 
        to be achieved.--The definition of a desired end-state 
        will differ for each aspect of preparedness including 
        training, response, equipment, and other support 
        services. In part, a defined response end-state could 
        include a requirement that every community facing a 
        significantly high risk of attack (to be defined) have 
        a fully staffed WMD response team (also to be defined) 
        on-site within 30 minutes of the identification of a 
        WMD event.
           A plan for using federal programs and other 
        resources to assist communities in achieving the 
        desired end-state.--The primary responsibility of the 
        OTP is to identify the gap between the needs (as 
        determined by the risk/threat assessment and the 
        capability assessment) and the desired end-state and 
        determine how such gaps can be most efficiently closed 
        by the federal programs. This will mean setting out a 
        plan that identifies priorities and desirable funding 
        levels, and coordinates the federal programs such that 
        they fulfill these priorities without duplication.
    The national plan will serve as a basis for measuring the 
effectiveness of each federal program once the OTP has 
completed an inventory of all federal preparedness programs. 
Once the inventory is complete, should the Director determine 
that a program does not comply with the plan or duplicates 
other programs, he may use the certification process provided 
in the bill to encourage improvement in the program. This 
certification process affects both existing and proposed 
programs, and agencies may be called upon to justify the 
content of a particular program.
    The national plan must be based on risk, threat and 
capability assessments. Experts capable of performing these 
analyses exist in the Federal agencies and some may either be 
complete or be in the process of being completed. It is the 
responsibility of the Director of the OTP to ensure that these 
analyses are completed and that they consider the appropriate 
factors to be able to determine priorities for training, 
response, equipment and other preparedness services. The 
Committee also expects the OTP Director to require the 
coordination of intelligence and other efforts and, possibly, 
the collection of new information.

                    Streamlining and Cost Reduction

    Implementation of this legislation will ultimately result 
in making the preparedness programs within the federal 
government more effective. The Committee anticipates that some 
programs will be eliminated or reworked according to the 
national plan. The outcome of this reorganization will result 
in the reduction of costs associated with providing duplicative 
or unnecessary training programs and response teams. 
Ultimately, the Committee believes this legislation will result 
in a more efficient and effective federal effort to prepare the 
nation's emergency personnel against terrorist attacks.

                               Conclusion

    Passage of this legislation will result in an organized and 
effective federal approach to preparing emergency personnel to 
respond to terrorist attacks and supporting our communities 
should such an attack occur. This bill is the culmination of 
numerous discussions with the administration and state and 
local emergency personnel as well as three Subcommittee 
hearings. In an effort to eliminate additional duplication, it 
is the intent of this Committee that the Office of Terrorism 
Preparedness draw upon existing resources in executing its 
duties as identified in the bill. Therefore, the help of 
existing federal, state, local, and non-governmental entities 
will be necessary for the office to accomplish the goals 
established in the legislation. The tools provided in the bill, 
including a federal program inventory and reasoned threat and 
risk assessments, will assist the federal government in 
providing programs that effectively meet the needs of 
communities without costly overlap and duplication.

                      Section-by-Section Analysis

Section 1. Short title; references

    The short title of this Act is the ``Preparedness Against 
Terrorism Act of 2000.'' All amendments or repeals contained in 
this Act are made to the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.).

Section 2. Findings and purposes

    Describes findings and purposes applicable to the Act.
    Subsection (a) makes two findings: (1) that federal 
interagency planning for early detection, warning and response 
to potential domestic terrorist attacks involving weapons of 
mass destruction and cybertechnology is inadequate and should 
be strengthened; (2) that duplication exists in federal 
programs to assist state and local emergency preparedness and 
response personnel and coordination among federal agencies and 
departments will eliminate this duplication. Since the bombings 
of the World Trade Center in 1993 and the Alfred P. Murrah 
federal building in 1995, Congress has directed the creation of 
numerous programs to address preparedness of emergency 
responders against terrorist attacks. Although the agencies 
have created high quality programs, many operate independently 
of each other. The result is an uncoordinated effort created in 
the absence of a national strategy without a defined end-state 
for preparedness. In addition, there is currently no complete 
inventory of federal preparedness programs. As a result, we do 
not accurately know how many federal programs exist or the 
capabilities of emergency responders.
    Subsection (b) states the purpose of the Act. The purpose 
is to (1) coordinate and make more effective federal efforts to 
assist state and local emergency responders; (2) designate a 
lead entity to coordinate federal efforts; and (3) update 
federal authorities to reflect increased risk of terrorist 
attacks.

Section 3. Definition of major disaster

    Amends subsection 102(2) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (Stafford Act) to expand 
the current definition of ``major disaster'' as defined in 
subsection 102(2). This includes, regardless of cause, acts of 
terrorism and other catastrophic events. The current definition 
does not include the release of a chemical or biological agent 
released in a manner other than an explosion. Expanding the 
definition in this manner reflects current and emerging 
threats.

Section 4. Administration of emergency preparedness programs by the 
        President

    Title VI is the only title of the Stafford Act that must be 
specifically implemented by the Director of the Federal 
Emergency Management Agency. This section replaces references 
to the ``Director'' with the ``President'', thereby making 
title VI consistent with the rest of the Act. In addition, this 
change more accurately reflects the current practices of the 
Executive Branch. At this time, other agencies in addition to 
FEMA are involved in the preparedness activities included in 
title VI.

Section 5. Definitions

    Amends and adds definitions contained in section 602(a). 
The definition of the term ``hazard'' is amended to include a 
domestic terrorist attack involving a weapon of mass 
destruction or cybertechnology. The definition of the term 
``emergency preparedness'' is expanded to allow for the 
predeployment of personnel and other resources for major 
events. The definition of the term ``natural hazard'' is 
expanded to include snow drought. Finally, the Defense 
Authorization Act of FY 1998 definition of the term ``weapon of 
mass destruction'' is inserted into section 602. The Committee 
selected this definition of weapon of mass destruction because 
of its narrow scope. The Stafford Act already covers [incidents 
resulting from] the use of high yield explosives through the 
definition of a major disaster as defined in subsection 102(2).

Section 6. Detailed functions of administration

    Subsection (a) expands existing duties under the Stafford 
Act for emergency response plans and programs. In effect, the 
bill requires the President to ensure that the Federal Response 
Plan is adequate to respond to acts of terrorism.
    Subsection (b) expands the study and development of 
emergency preparedness measures to include prevention of 
hazards, and the development of shelter designs, clothing and 
equipment. This subsection is not meant to alter the existing 
responsibilities of any non-governmental entity under the 
Federal Response Plan and affects only the study and 
development of the listed items.
    Subsection (c) expands existing section 611(f), which 
covers training programs to also include exercises. An 
additional section requires the President to base training and 
exercise program content and priorities on a reasoned 
assessment of existing threats, capabilities and objectives so 
that emergency responders are adequately prepared against 
terrorist attacks.

Section 7. Repeals

    Repeals two outdated sections of the Stafford Act, sections 
615 and 622. Section 615 contains language that enables funds 
to be used for natural hazards. Other provisions of title VI 
address all hazards, both natural and man-caused, therefore, 
section 615 is superfluous. Section 622 establishes detailed 
security requirements. These requirements, first set out in 
1950 in the Civil Defense Act, are outdated, and are now 
inconsistent with standards established in subsequent Executive 
Orders and OPM regulations.

Section 8. Authorization of appropriations

    This section amends Title VI authorization of 
appropriations to require that training and exercise programs 
established under Title VI are consistent with the priorities 
established under section 611(f)(2) as established under 
Section 8 of this bill.

Section 9. Office of Terrorism Preparedness

    Amends Title VI of the Stafford Act creating new sections 
651 through 661 to create an Office of Terrorism Preparedness 
within the Executive Office of the President that has the 
authority to coordinate the efforts of the federal agencies and 
departments with terrorism preparedness programs.
            New section 651. Establishment of office
    Subsection (a) establishes the Office of Terrorism 
Preparedness within the Executive Office of the President. The 
Committee emphasizes that this Office cannot be successful in 
its mission to coordinate federal efforts without proper 
authority to affect the programs of the involved agencies. 
Several advisory groups \5\ have stressed the need for the 
Office to be established independent of existing agencies. By 
placing this Office in the Executive Office of the President, 
it can more effectively oversee federal programs and accomplish 
its goals without being involved in the day-to-day management 
of any single agency.
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    \5\ These advisory groups include the Congressionally authorized 
``Advisory Panel to Assess Domestic Response Capabilities for Terrorism 
Involving Weapons of Mass Destruction'', the National Emergency 
Managers Association, the International Association of Fire Chiefs, and 
the National League of Cities.
---------------------------------------------------------------------------
    Subsection (b) sets out the appointment process for the 
Director of this office. The Director is appointed by the 
President. The President should consult with the Director of 
FEMA, the Secretary of Defense and the Attorney General in 
making this appointment. Once selected, the nominee is then 
subject to confirmation by the Senate.
            New section 652. Duties of Director
    Under this section, the Director is required to: (1) 
establish the Federal government's policies, objectives and 
priorities for enhancing state and local response to all 
domestic terrorist attacks; (2) create a five-year national 
plan (the Domestic Preparedness Plan) with annual strategies to 
achieve the goals of the national plan; (3) biennially review 
state and local preparedness programs; (4) create voluntary 
guidelines for state and local preparedness programs; (5) 
consult with and serve as a contact for state and local 
entities implementing terrorist attack preparedness programs; 
(6) coordinate and oversee Federal efforts to ensure compliance 
with established policies; (7) make recommendations to the 
President and National Security Council regarding allocation of 
personnel within departments and agencies, and organization, 
management, and budgets of federal agencies and departments; 
(8) notify an agency or department in writing if they are not 
in compliance with their responsibilities under the national 
plan.
    This legislation addresses the lack of coordination and 
communication between agencies involved in federal preparedness 
efforts. This section addresses some of the major problem areas 
within the federal programs. The goal of this Act is not to 
create or eliminate specific programs, but to provide a 
structure for identifying where overlap exists and what 
specific steps should be taken to improve these programs. The 
Director is tasked with assessing existing programs to 
determine the value and function of each including how each 
fits into the national strategy.
    Due to the large number of existing resources, the Director 
is required to draw upon those existing resources and 
capabilities in executing his duties. Specifically, in drafting 
the Domestic Preparedness Plan, the Director must consider 
existing plans. These existing plans include planning 
documents, equipment lists, and program inventories. In 
addition, in completing his duties, the Director must, when 
appropriate, consult with and utilize existing interagency 
boards and committees, existing government entities, and other 
sources including non-governmental organizations with existing 
capabilities.
    There is additional concern that current funding provided 
to the individual states is not based on established standards 
or policies. Therefore, the Director should create state 
funding policies based on several factors including potential 
risk and threat, response capabilities, and ability to achieve 
the defined end-state for preparedness. Also, the Director 
should address the establishment of a standardized incident 
command within the identified objectives.
    The Director is also strongly encouraged to establish a 
``State and Local Advisory Group'' (SLAG) composed of 
individuals involved in state and local emergency preparedness 
and response to terrorist attacks. This group should serve as a 
resource for establishing the voluntary guidelines, providing 
input on issues that should be addressed in the national 
strategy, and keeping the Director informed of the issues 
affecting state and local responders, including the need for 
creating a plan to address information sharing from the federal 
level to state and local officials.
            New section 653. Domestic Terrorism Preparedness Plan and 
                    annual strategy
    Subsection (a) requires the Director to draft the Domestic 
Terrorism Preparedness Plan (``national plan'' or ``plan'') 
within 180 days of appointment.The Director must transmit a 
copy of the plan to the President and to Congress upon completion.
    Subsection (b) requires the plan to include: (1) the 
statement of policies, objectives and priorities as established 
in Sec. 652(1); (2) a plan for implementing these policies, 
objectives and priorities including measurable objectives for 
each year of the five-year strategy; (3) a detailed description 
of the role of each federal agency or department and state and 
local governmental entities under the strategy.
    Under paragraph (b)(3) the plan must include an evaluation 
of each federal response team and the assistance each team 
offers to state and local emergency personnel during response 
to a terrorist attack. This evaluation should include an 
assessment of how the team will assist state and local 
emergency personnel once they have achieved the desired end-
state for preparedness. A detailed recommendation for expanding 
these teams, including the Department of Defense's Weapons of 
Mass Destruction--Civil Support Teams (WMD-CST), to each state, 
territory, and the District of Columbia should accompany this 
evaluation.
    In developing ways to enhance domestic preparedness against 
a terrorist attack, the Director should consider the need for 
additional terrorism preparedness training facilities. These 
facilities should be located at a college or university that 
already maintains agreements with law enforcement agencies to 
provide continuous skills education focusing on providing 
training to law enforcement and emergency responders geared to 
the specific needs of preparing rural communities in the event 
of a terrorist attack.
    Additionally, the Director shall consider the possible 
roles and relationship between existing and proposed national 
training sites including, but not limited to, sites at Fort 
McClellan, Alabama, the Nevada Test Site near Las Vegas, 
Nevada, and the National Fire Academy in Emmitsburg, Maryland.
    Subsection (c) establishes the requirements for the annual 
strategies, which lay out the steps that must be achieved to 
meet the requirements as set out in the national plan. Each 
annual strategy shall be transmitted to Congress and the 
President at the same time the President's budget request is 
submitted to Congress.
    Subsection (d) lists the individuals and entities the 
Director must consult when drafting the national plan and 
annual updates. These individuals and organizations will be 
listed in the report to Congress and the President provided 
that they were involved in consultation with the OTP.
    Groups to be consulted include: (1) the head of each 
federal department or agency that will have responsibilities 
under the national or annual strategy. This subsection is also 
meant to include all entities, governmental or non-
governmental, with responsibilities under the Federal Response 
Plan (FRP). This group includes the Red Cross in its 
specifically authorized responsibilities under the FRP. 
Additional entities include (2) Congress; (3) State and local 
officials; (4) Congressionally authorized panels; (5) emergency 
preparedness organizations with memberships that include state 
and local emergency responders. The term ``emergency 
responders'' is meant to include emergency managers as well as 
those typically defined as emergency responders. Therefore, 
subparagraph (E) includes associations such as the National 
Emergency Management Association (NEMA), the National 
Governor's Association (NGA), the National League of Cities 
(NLC), and the International Association of Fire Chiefs (IAFC).
    Subsection (f) requires the Director to include in the risk 
and threat assessment an evaluation of those risks and threats 
affecting mass transportation facilities including its 
employees and passengers. In developing the annual preparedness 
plan and risk assessment strategy, the entity designated to 
perform the assessment shall ensure that the risks of terrorist 
attacks against transportation personnel, passengers, and 
facilities are included in the assessment. In part, the risk 
assessment plan and strategy will help create safer transit by 
making it safer for passengers and transit employees.
    In developing the plan, both Federal and state laws to 
combat terrorism should be examined. Consultation with 
representatives of transportation service providers and 
representatives of employees of such persons shall occur in the 
development of the annual plan.
            New section 654. National domestic preparedness budget
    Subsection (a) requires the Director to develop an annual 
consolidated budget proposal to implement the national plan. In 
drafting this budget, the Director must work with agency 
program staff and state and local government entities to ensure 
that each program's budget is consistent with the annual 
consolidated budget proposal. Once completed, the budget 
proposal is transmitted to the President and to Congress.
    Subsection (b) requires the appropriate agency official 
with responsibilities under the strategy to submit the program 
budget request to the Director of the Office at the same time 
the budget is submitted to the official's superior. This 
subsection enables the Director to be involved in the program 
budget at the beginning of the process. By requiring the agency 
to submit the budget to the Director before it has been 
approved through agency management and prior to OMB submission, 
the Director has a greater opportunity to influence the budget 
process and ensure agency compliance with the strategy.
    Subsection (c) requires the Director of the Office to 
review the budget requests submitted under subsection (b); 
provide a written certification for eachbudget request that 
details the adequacy of the request for the upcoming fiscal year; and 
provide notification to the individual who submitted the budget to the 
Office regarding the Director's certification. Subsection (e) requires 
the Director to keep records regarding the certification of each 
program's budget.
    Subsection (d) establishes the procedure for an agency to 
reprogram or transfer funds. If an agency is given the freedom 
to reprogram or transfer funds without the input or knowledge 
of the OTP Director, that agency could use those funds in a 
manner inconsistent with the national plan. By requiring an 
agency to consult with the Director and seek his approval in 
all reprogramming or transfer of funds requests, the Director 
may ensure that all funds are spent according to the national 
plan. This section also provides that an agency may appeal the 
Director's decision to the President if the agency is not 
satisfied with the determination of the Director. In addition, 
the Director is required to report to Congress on a quarterly 
basis regarding reprogramming or transfer for activities under 
the national plan.
    The budget portion of this bill closely tracks the 
authorization language of the Office of National Control Policy 
(ONDCP). While there are some differences and enhancements, 
both processes specifically include the Office of Management 
and Budget (OMB) in the budget process. For example, subsection 
(f) requires the Director to notify the Director of the OMB if 
he determines that an agency's budget is not adequate to 
conform with the national plan. In addition, subsection (g) 
requires agencies to comply with the bill's budget structure in 
a timely fashion, and in a format agreed upon by the Directors 
of OTP and the OMB. However, in the event that the OTP Director 
is not able to complete the budget process during the OTP's 
first year of existence, subsection (h) provides that existing 
programs are eligible for funding at the previous fiscal year's 
level.
            New section 655. Certification of federal training and 
                    exercise programs
    The Director is required to oversee all elements of the 
federal agencies' terrorism preparedness programs. This section 
requires the Director to review each program and either certify 
or deny certification for each program. The Director may not 
certify a budget request for a program that has been denied 
certification. Should a program be included in the President's 
budget request that has not been certified by the Director, a 
copy of the Director's denial of certification will accompany 
the budget request when it is submitted to Congress. 
Certification through this process ensures that each program is 
consistent with the goals of the national plan.
    In effect, this section ensures that duplication and 
fragmentation will be eliminated through the certification 
process because the Director's certification criteria must seek 
to eliminate duplicative programs. In addition, this section 
requires an agency to consult with the Director in the creation 
of a new office or program to ensure from the outset that the 
new program is consistent with the national strategy. As the 
plan progresses, and the nation becomes more prepared, the 
programs are reevaluated and re-certified on a three year 
schedule.
    This initial detailed analysis of each federal program will 
also assist the creation of the national plan. In order to 
complete the certification task, it will be necessary for the 
Director to keep an inventory of each program that includes a 
detailed description.
            New section 656. Voluntary guidelines for State and local 
                    programs
    The Director is required to establish voluntary guidelines 
for equipment, exercises and training for the terrorist attack 
preparedness programs of state and local government entities. 
This section establishes a desired threshold level of 
preparedness for state and local emergency responders. These 
guidelines should serve as a roadmap for state and local 
responders to assist in achievement of the desired level of 
preparedness. This section is not intended to be a mandate.
            New section 657. Grants to State and local entities
    The Director may award grants to state and local entities 
to lessen the financial burden of attending training and 
exercise programs that have been certified by the Director. 
These grants are specifically limited to attendees of federal 
programs that are certified by the Director as being consistent 
with the goals of the national strategy.
            New section 658. Powers of Director
    This section enables the Director to hire staff, request 
detailees, hire experts or consultants and to execute other 
administrative functions. In addition, this section provides 
the Director with the authority to conduct program and 
performance evaluations and audits using agencies Inspectors 
General to perform these audits.
            New section 659. Role of Director in National Security 
                    Council efforts
    In his role as the principal adviser to the National 
Security Council (NSC) regarding terrorist attack preparedness 
matters, at the direction of the President, the Director may 
participate in meetings of the NSC. This section enables the 
Director to participate in the NSC's current working group 
structure as established under Presidential Decision Directive 
62.
            New section 660. Coordination with executive branch 
                    departments and agencies
    This section requires the agencies with responsibilities 
under the national strategy to cooperate with the Director by 
providing assistance, information and advice at the request of 
the Director. Each agency is also required to give written 
notification to the Director of any proposed change in policy 
prior toimplementing the change so that the Director may 
determine whether the proposed change is consistent with the national 
strategy.
            New section 661. Authorization of appropriations
    The OTP is provided with $9 million for fiscal year 2001 
and such sums as may be necessary through 2005. The position of 
OTP Director is designated as ES-II.

                                Hearings

    The Subcommittee on Oversight, Investigations, and 
Emergency Management held three hearings on domestic 
preparedness against terrorist attacks. During the first 
hearing, held on June 9, 1999, witnesses identified the lack of 
coordination within the federal government regarding 
preparedness against terrorist attacks. Witnesses at this 
hearing included Administration officials from FEMA, DOD, and 
DOJ as well as representatives of the National League of Cities 
(NLC) and the International Association of Fire Chiefs (IAFC). 
In addition, testimony from the General Accounting Office (GAO) 
identified instances of overlap within the framework of federal 
programs, specifically the duplication of subject matter within 
the Department of Defense (DOD) training programs and the 
Department of Justice and FEMA training programs.
    According to GAO, DOD's Domestic Preparedness Program (DPP) 
was developed without the input from other federal agencies 
with existing training programs. At the time of the hearing, 
the DOD training programs covered only 22 percent of the 
population. Furthermore, the combined training programs of DOD, 
DOJ and FEMA were offered in 38 states, leaving 12 states 
without federal training assistance. Witnesses also testified 
that duplication and fragmentation in federal programs causes 
confusion for state and local responders.
    The Subcommittee's second hearing, held on April 6, 2000, 
focused on the findings of the first report of the 
congressionally authorized ``Advisory Panel to Assess Domestic 
Response Capabilities for Terrorism Involving Weapons of Mass 
Destruction'' (the Panel) chaired by Virginia Governor James 
Gilmore. Witnesses at this hearing included the Vice-Chairman 
of the Panel General James Clapper, GAO, and local emergency 
response officials from several areas around the nation. In 
addition to identifying ways to improve government-wide 
coordination, witnesses discussed their confusion and 
frustration when dealing with the myriad of federal 
preparedness programs. The entity created to coordinate these 
programs, the FBI's National Domestic Preparedness Office 
(NDPO), has not met the expectations of the response community.
    During the April 6 hearing, Panel Vice-Chairman General 
James Clapper, former Director of the Defense Intelligence 
Agency, identified five ``attributes'' that a coordinating 
entity must possess in order to be effective. According to the 
Panel, this entity (1) must be autonomous and independent of 
any agency; (2) it must have appropriate full-time professional 
representation from the state and local responder community; 
(3) it must have full-time dedicated staff from cabinet 
departments and agencies; (4) it must have genuine visibility 
over the commitment of money, programs and resources; and (5) 
it must be appropriately resourced in terms of staff, money and 
facilities.
    The Panel believes an autonomous coordinating entity will 
eliminate the current ``turf battles'' between the stakeholder 
agencies, promote communication between these agencies, and 
serve to streamline the preparedness effort. The Panel also 
indicated that although progress has been made on the federal 
level, there is still work to be done. In addition, the Panel 
asserts that eliminating fragmentation within federal response 
teams and creating a national strategy should help to minimize 
the duplication of federal efforts. Without a coordinating 
element to organize and prioritize these federal programs and 
response teams, we will continue to encounter conflicting 
federal priorities and confusion among local responders.
    Panel Vice Chairman Clapper submitted additional testimony 
to the April 6 hearing record which indicated that the OTP, 
established in H.R. 4210, fulfils all of the attributes 
identified by the Panel for a coordinating entity.
    On May 4, 2000, the Subcommittee held a legislative hearing 
on H.R. 4210. The Subcommittee received testimony from senior 
Administration officials from FEMA, DOD and DOJ and 
representatives of the NLC, IAFC and National Emergency 
Management Association (NEMA). Testimony from witnesses 
representing the NLC, IAFC and NEMA identified the need for 
creating the OTP and expressed support for H.R. 4210.

                        Committee Consideration

    Testimony from Subcommittee hearings compelled the 
Committee to draft a bill creating the Office of Terrorism 
Preparedness. Once drafted, the bill was released for public 
comment and was revised to reflect comments received by the 
Subcommittee. H.R. 4210 was introduced on April 6, 2000 by 
Congresswoman Tillie K. Fowler, and Congressmen James A. 
Traficant, Herbert H. Bateman, Floyd Spence, Saxby Chambliss, 
Johnny Isakson, Bill McCollum, Christopher Shays, Lee Terry and 
J.C. Watts, Jr. On May 25, 2000 the Subcommittee on Oversight, 
Investigations, and Emergency Management favorably reported the 
bill with a technical amendment to the Full Committee by 
unanimous voice vote, a quorum being present.
    On June 21, 2000, the Full Committee met in open session 
and ordered reported H.R. 4210, as amended, unanimously by 
voice vote, a quorum being present. A manager's amendment 
requiring the Director of the Office of Terrorism Preparedness 
to assess terrorist threats against mass transportation 
facilities and making minor changes and technical corrections 
to the bill was passed by voice vote.

                             Rollcall Votes

    Clause 3(b) of rule XIII requires each committee report to 
include the total number of votes cast for and against on each 
rollcall vote on a motion to report and onany amendment offered 
to the measure or matter, and the names of those members voting for and 
against. There were no recorded votes taken in connection with ordering 
H.R. 4210 reported. A motion by Mrs. Tillie K. Fowler to order H.R. 
4210 reported to the House, with amendments, was unanimously agreed to 
by voice vote, a quorum being present.

                        Cost of the Legislation

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report. The Committee notes that the CBO 
estimate explicitly omits significant benefits of the 
legislation because CBO was unable to quantify these benefits.

                    Compliance With House Rule XIII

    1. Pursuant to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, oversight findings and 
recommendations have been made by the Committee as reflected in 
this report.
    2. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office (CBO) 
included below.
    3. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform on the 
subject of H.R. 4210.
    4. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
4210 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 28, 2000.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4210, a bill to 
amend the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act to provide for improved federal efforts to 
prepare for and respond to terrorist attacks, and for other 
purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Applebaum.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               congressional budget office cost estimate

H.R. 4210--A bill to amend the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act to provide for improved federal 
        efforts to prepare for and respond to terrorist attacks, and 
        for other purposes

    Summary: H.R. 4210 would create an Office of Terrorism 
Preparedness within the Executive Office of the President. The 
new office would oversee and coordinate all federal programs 
which help state and local governments prepare for a terrorist 
attack. The responsibilities of this office would include 
establishing a comprehensive strategy for assisting state and 
local governments, evaluating federal programs which are 
designed to help state and local governments, providing grants 
to help state and local governments participate in federal 
programs, and coordinating the President's budget request for 
antiterrorism.
    H.R. 4210 would authorize the appropriation of $9 million 
in fiscal year 2001 for the Office of Terrorism Preparedness, 
and the bill would authorize such as may be necessary for 
fiscal years 2002 through 2005. CBO estimates that implementing 
H.R. 4210 would cost $47 million over the 2001-2005 period, 
assuming the necessary amounts are provided.
    H.R. 4210 would authorize the new office to accept and 
spend donations which would affect both governmental receipts 
and direct spending; hence, pay-as-you-go procedures would 
apply. CBO estimates that neither the receipts nor the spending 
would exceed $500,000.
    H.R. 4210 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and could benefit state and local governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4210 is shown in the following table. 
The costs of this legislation fall within budget function 450 
(community and regional development). The estimate assumes that 
spending would occur at the same rates as observed for similar 
programs.

----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year in millions of dollars--
                                                           -----------------------------------------------------
                                                              2000     2001     2002     2003     2004     2005
----------------------------------------------------------------------------------------------------------------
Estimated authorization level.............................        0        9        9       10       10       10
Estimated outlays.........................................        0        4       13       10       10       10
----------------------------------------------------------------------------------------------------------------
\1\ By allowing the new Office of Terrorism Preparedness to accept and spend donations: the bill also would
  effect receipts and direct spending. CBO estimates that those changes would be negligible each year.
\2\ This estimate of spending for the Office of Terrorism preparedness assumes annual adjustments for
  anticipated inflation. CBO estimates that spending for the office would cost about $44 million over the 2001-
  2005 period without such adjustments.

    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. These 
procedures would apply to H.R. 4210 because it could affect 
direct spending and receipts, but CBO estimates that the annual 
amount of such changes would not be significant.
    Estimated impact on State, local, and tribal governments: 
H.R. 4210 contains no intergovernmental or private-sector 
mandates as defined in UMRA and could benefit state and local 
antiterrorism efforts. The bill would require the director of 
the new office to provide voluntary minimum standards, 
recommendations, assessments, and consulting services to state 
and local governments to improve antiterrorism preparedness. 
The bill also would authorize the director to make grants to 
state and local governments to offset specific costs. Tribal 
governments would not be affected by the bill.
    Estimate prepared by: Federal costs: Rachel Applebaum; 
impact on State, local, and tribal governments: Shelly 
Finlayson; impact on the private sector: Natilie Tawil.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, committee reports 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 measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (P.L. 104-4).

                      Advisory Committee Statement

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

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (P.L. 104-1).

         Changes in Existing Law Made by the Bill, as Reported

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

THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT

           *       *       *       *       *       *       *

TITLE I--FINDINGS, DECLARATIONS, AND DEFINITIONS

           *       *       *       *       *       *       *

                              definitions

  Sec. 102. As used in this Act--
          (1) * * *
          [(2) Major disaster.--``Major disaster'' means any 
        natural catastrophe (including any hurricane, tornado, 
        storm, high water, winddriven water, tidal wave, 
        tsunami, earthquake, volcanic eruption, landslide, 
        mudslide, snowstorm, or drought), or, regardless of 
        cause, any fire, flood, or explosion, in any part of 
        the United States, which in the determination of the 
        President causes damage of sufficient severity and 
        magnitude to warrant major disaster assistance under 
        this Act to supplement the efforts and available 
        resources of States, local governments, and disaster 
        relief organizations in alleviating the damage, loss, 
        hardship, or suffering caused thereby.]
          (2) Major disaster.--``Major disaster'' means any 
        natural catastrophe (including any hurricane, tornado, 
        storm, high water, winddriven water, tidal wave, 
        tsunami, earthquake, volcanic eruption, landslide, 
        mudslide, snowstorm, snow drought, or drought), or, 
        regardless of cause, any fire, flood, explosion, act of 
        terrorism, or other catastrophic event in any part of 
        the United States, which in the determination of the 
        President causes damage of sufficient severity and 
        magnitude to warrant major disaster assistance under 
        this Act to supplement the efforts and available 
        resources of States, local governments, and disaster 
        relief organizations in alleviating the damage, loss, 
        hardship, or suffering caused thereby.

           *       *       *       *       *       *       *

TITLE VI--EMERGENCY PREPAREDNESS

           *       *       *       *       *       *       *

SEC. 602. DEFINITIONS.

  (a) Definitions.--For purposes of this title only:
          (1) Hazard.--The term ``hazard'' means an emergency 
        or disaster resulting from--
                  (A) a natural disaster; or
                  (B) an accidental or man-caused event[.], 
                including a domestic terrorist attack involving 
                a weapon of mass destruction or 
                cybertechnology.
          [(2) Natural disaster.--The term ``natural disaster'' 
        means any hurricane, tornado, storm, flood, high water, 
        wind-driven water, tidal wave, tsunami, earthquake, 
        volcanic eruption, landslide, mudslide, snowstorm, 
        drought, fire, or other catastrophe in any part of the 
        United States which causes, or which may cause, 
        substantial damage or injury to civilian property or 
        persons.]
          (2) Natural disaster.--The term ``natural disaster'' 
        means any hurricane, tornado, storm, flood, high water, 
        wind-driven water, tidal wave, tsunami, earthquake, 
        volcanic eruption, landslide, mudslide, snowstorm, snow 
        drought, drought, fire, or other catastrophe in any 
        part of the United States which causes, or which may 
        cause, substantial damage or injury to civilian 
        property or persons.
          (3) Emergency preparedness.--The term ``emergency 
        preparedness'' means all those activities and measures 
        designed or undertaken to prepare for or minimize the 
        effects of a hazard upon the civilian population, to 
        deal with the immediate emergency conditions which 
        would be created by the hazard, and to effectuate 
        emergency repairs to, or the emergency restoration of, 
        vital utilities and facilities destroyed or damaged by 
        the hazard. Such term includes the following:
                  (A) Measures to be undertaken in preparation 
                for anticipated hazards (including the 
                establishment of appropriate organizations, 
                operational plans, and supporting agreements, 
                the recruitment and training of personnel, the 
                conduct of research, the procurement and 
                stockpiling of necessary materials and 
                supplies, the predeployment of these and other 
                essential resources (including personnel), the 
                provision of suitable warning systems, the 
                construction or preparation of shelters, 
                shelter areas, and control centers, and, when 
                appropriate, the non-military evacuation of the 
                civilian population).

           *       *       *       *       *       *       *

          (4) Organizational equipment.--The term 
        ``organizational equipment'' means equipment determined 
        by the [Director] President to be necessary to an 
        emergency preparedness organization, as distinguished 
        from personal equipment, and of such a type or nature 
        as to require it to be financed in whole or in part by 
        the Federal Government. Such term does not include 
        those items which the local community normally uses in 
        combating local disasters, except when required in 
        unusual quantities dictated by the requirements of the 
        emergency preparedness plans.

           *       *       *       *       *       *       *

          [(7) Director.--The term ``Director'' means the 
        Director of the Federal Emergency Management Agency.]
          [(8)] (7) Neighboring countries.--The term 
        ``neighboring countries'' includes Canada and Mexico.
          [(9)] (8) United states and states.--The terms 
        ``United States'' and ``States'' includes the several 
        States, the District of Columbia, and territories and 
        possessions of the United States.
          [(10)] (9) State.--The term ``State'' includes 
        interstate emergency preparedness authorities 
        established under section 611(h).
          (10) Weapon of mass destruction.--The term ``weapon 
        of mass destruction'' means any weapon or device that 
        is intended, or has the capability, to cause death or 
        serious bodily injury to a significant number of people 
        through the release, dissemination, or impact of--
                  (A) toxic or poisonous chemicals or their 
                precursors;
                  (B) a disease organism; or
                  (C) radiation or radioactivity.

           *       *       *       *       *       *       *

SEC. 603. ADMINISTRATION OF TITLE.

  This title shall be carried out by the [Director of the 
Federal Emergency Management Agency] President.

                     Subtitle A--Powers and Duties

SEC. 611. DETAILED FUNCTIONS OF ADMINISTRATION.

  (a) In General.--In order to carry out the policy described 
in section 601, the [Director] President shall have the 
authorities provided in this section.
  (b) Federal Emergency Response Plans and Programs.--The 
[Director may] President shall prepare Federal response plans 
and programs for the emergency preparedness of the United 
States and sponsor and direct such plans and programs. To 
prepare such plans and programs and coordinate such plans and 
programs with State efforts, the [Director] President may 
request such reports on State plans and operations for 
emergency preparedness as may be necessary to keep the 
President, Congress, and the States advised of the status of 
emergency preparedness in the United States. In accordance with 
section 313, the President shall ensure that Federal response 
plans and programs are adequate to respond to the consequences 
of terrorism directed against a target in the United States, 
including terrorism involving weapons of mass destruction and 
terrorism involving cybertechnology.
  (c) Delegation of Emergency Preparedness Responsibilities.--
[With the approval of the President, the] The [Director] 
President may delegate to other departments and agencies of the 
Federal Government appropriate emergency preparedness 
[responsibilities and review] responsibilities. The President 
shall review and coordinate the emergency preparedness 
activities of the departments and agencies with each other and 
with the activities of the States and neighboring countries.

           *       *       *       *       *       *       *

  (e) Emergency Preparedness Measures.--The [Director] 
President may study and develop emergency preparedness measures 
designed to afford adequate protection of life and property, 
including--
          (1) research and studies as to the best methods of 
        preventing and treating the effects of hazards;
          (2) [developing shelter designs] development of 
        shelter designs, equipment, clothing, and materials for 
        protective covering or construction; and
          (3) [developing equipment or facilities and effecting 
        the standardization thereof] development and 
        standardization of equipment and facilities to meet 
        emergency preparedness requirements.
  (f) Training and Exercise Programs.--(1) The [Director] 
President may--
          (A) conduct or arrange, by contract or otherwise, for 
        training and exercise programs for the instruction of 
        emergency preparedness officials and other persons in 
        the organization, operation, and techniques of 
        emergency preparedness;

           *       *       *       *       *       *       *

  (2) The President shall establish priorities among training 
and exercise programs for preparedness against terrorist 
attacks based on an assessment of the existing threats, 
capabilities, and objectives.
  [(2)] (3) The terms prescribed by the [Director] President 
for the payment of travel expenses and per diem allowances 
authorized by this subsection shall include a provision that 
such payment shall not exceed one-half of the total cost of 
such expenses.
  [(3)] (4) The [Director] President may lease real property 
required for the purpose of carrying out this subsection, but 
may not acquire fee title to property unless specifically 
authorized by law.

           *       *       *       *       *       *       *

[SEC. 615. USE OF FUNDS TO PREPARE FOR AND RESPOND TO HAZARDS.

  [Funds made available to the States under this title may be 
used by the States for the purposes of preparing for hazards 
and providing emergency assistance in response to hazards. 
Regulations prescribed to carry out this section shall 
authorize the use of emergency preparedness personnel, 
materials, and facilities supported in whole or in part through 
contributions under this title for emergency preparedness 
activities and measures related to hazards.]

           *       *       *       *       *       *       *

Subtitle B--General Provisions

           *       *       *       *       *       *       *

SEC. 621. ADMINISTRATIVE AUTHORITY.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Rules and Regulations.--The [Director] President may 
prescribe such rules and regulations as may be necessary and 
proper to carry out any of the provisions of this title and 
perform any of the powers and duties provided by this title. 
[The Director may perform any of the powers and duties provided 
by this title throughor with the aid of such officials of the 
Federal Emergency Management Agency as the Director may designate.]

           *       *       *       *       *       *       *

[SEC. 622. SECURITY REGULATIONS.

  [(a) Establishment.--The Director shall establish such 
security requirements and safeguards, including restrictions 
with respect to access to information and property as the 
Director considers necessary.
  [(b) Limitations on Employee Access to Information.--No 
employee of the Federal Emergency Management Agency shall be 
permitted to have access to information or property with 
respect to which access restrictions have been established 
under this section, until it shall have been determined that no 
information is contained in the files of the Federal Bureau of 
Investigation or any other investigative agency of the 
Government indicating that such employee is of questionable 
loyalty or reliability for security purposes, or if any such 
information is so disclosed, until the Federal Bureau of 
Investigation shall have conducted a full field investigation 
concerning such person and a report thereon shall have been 
evaluated in writing by the Director.
  [(c) National Security Positions.--No employee of the Federal 
Emergency Management Agency shall occupy any position 
determined by the Director to be of critical importance from 
the standpoint of national security until a full field 
investigation concerning such employee shall have been 
conducted by the Director of the Office of Personnel Management 
and a report thereon shall have been evaluated in writing by 
the Director of the Federal Emergency Management Agency. In the 
event such full field investigation by the Director of the 
Office of Personnel Management develops any data reflecting 
that such applicant for a position of critical importance is of 
questionable loyalty or reliability for security purposes, or 
if the Director of the Federal Emergency Management Agency for 
any other reason considers it to be advisable, such 
investigation shall be discontinued and a report thereon shall 
be referred to the Director of the Federal Emergency Management 
Agency for evaluation in writing. Thereafter, the Director of 
the Federal Emergency Management Agency may refer the matter to 
the Federal Bureau of Investigation for the conduct of a full 
field investigation by such Bureau. The result of such latter 
investigation by such Bureau shall be furnished to the Director 
of the Federal Emergency Management Agency for action.
  [(d) Employee Oaths.--Each Federal employee of the Federal 
Emergency Management Agency acting under the authority of this 
title, except the subjects of the United Kingdom and citizens 
of Canada specified in section 621(b), shall execute the 
loyalty oath or appointment affidavits prescribed by the 
Director of the Office of Personnel Management. Each person 
other than a Federal employee who is appointed to serve in a 
State or local organization for emergency preparedness shall 
before entering upon duties, take an oath in writing before a 
person authorized to administer oaths, which oath shall be 
substantially as follows:
          [ ``I, __________, do solemnly swear (or affirm) that 
        I will support and defend the Constitution of the 
        United States against all enemies, foreign and 
        domestic; that I will bear true faith and allegiance to 
        the same; that I take this obligation freely, without 
        any mental reservation or purpose of evasion; and that 
        I will well and faithfully discharge the duties upon 
        which I am about to enter.
          [ ``And I do further swear (or affirm) that I do not 
        advocate, nor am I a member or an affiliate of any 
        organization, group, or combination of persons that 
        advocates the overthrow of the Government of the United 
        States by force or violence; and that during such time 
        as I am a member of __________ (name of emergency 
        preparedness organization), I will not advocate nor 
        become a member or an affiliate of any organization, 
        group, or combination of persons that advocates the 
        overthrow of the Government of the United States by 
        force or violence.''
[After appointment and qualification for office, the director 
of emergency preparedness of any State, and any subordinate 
emergency preparedness officer within such State designated by 
the director in writing, shall be qualified to administer any 
such oath within such State under such regulations as the 
director shall prescribe. Any person who shall be found guilty 
of having falsely taken such oath shall be punished as provided 
in section 1621 of title 18, United States Code.]

SEC. 623. USE OF EXISTING FACILITIES.

  In performing duties under this title, the [Director] 
President--
          [(1) shall cooperate with the various departments and 
        agencies of the Federal Government;]
          [(2)] (1) shall use, to the maximum extent, the 
        existing facilities and resources of the Federal 
        Government and, with their consent, the facilities and 
        resources of the States and political subdivisions 
        thereof, and of other organizations and agencies; and
          [(3)] (2) shall refrain from engaging in any form of 
        activity which would duplicate or parallel activity of 
        any other Federal department or agency [unless the 
        Director, with the written approval of the President,] 
        unless the President shall determine that such 
        duplication is necessary to accomplish the purposes of 
        this title.

SEC. 624. ANNUAL REPORT TO CONGRESS.

  The [Director] President shall annually submit a written 
report [to the President and Congress] to Congress covering 
expenditures, contributions, work, and accomplishments of the 
Federal Emergency Management Agency pursuant to this title, 
accompanied by such recommendations as the [Director] President 
considers appropriate.

           *       *       *       *       *       *       *

SEC. 626. AUTHORIZATION OF APPROPRIATIONS AND TRANSFERS OF FUNDS.

  (a) * * *
  (b) Priorities.--Amounts appropriated pursuant to this 
section for training and exercise programs for preparedness 
againstterrorist attacks shall be used in a manner consistent 
with the priorities established under section 611(f)(2).
  [(b)] (c) Transfer Authority.--Funds made available for the 
purposes of this title may be allocated or transferred for any 
of the purposes of this title, with the approval of the 
[Director] President of the Office of Management and Budget, to 
any agency or government corporation designated to assist in 
carrying out this title. Each such allocation or transfer shall 
be reported in full detail to the Congress within 30 days after 
such allocation or transfer.

           *       *       *       *       *       *       *

              Subtitle C--Office of Terrorism Preparedness

SEC. 651. ESTABLISHMENT OF OFFICE.

  (a) In General.--There is established in the Executive Office 
of the President an Office of Terrorism Preparedness (in this 
subtitle referred to as the ``Office'').
  (b) Appointment of Director.--The head of the Office shall be 
the Director of the Office of Terrorism Preparedness (in this 
subtitle referred to as the ``Director''), who shall be 
appointed by the President, by and with the advice and consent 
of the Senate. In making the appointment, the President should 
consult with the Director of the Federal Emergency Management 
Agency, the Attorney General of the United States, and the 
Secretary of Defense.

SEC. 652. DUTIES OF DIRECTOR.

  The Director shall--
          (1) establish the policies, objectives, and 
        priorities of the Federal Government for enhancing the 
        capabilities of State and local emergency preparedness 
        and response personnel in early detection and warning 
        of and response to all domestic terrorist attacks, 
        including attacks involving weapons of mass destruction 
        or cybertechnology;
          (2) publish a Domestic Terrorism Preparedness Plan 
        and an annual strategy for carrying out the plan in 
        accordance with section 653;
          (3) biennially review the terrorist attack 
        preparedness programs of State and local governmental 
        entities and provide recommendations to such entities 
        based on such reviews;
          (4) establish voluntary guidelines for the terrorist 
        attack preparedness programs of State and local 
        governmental entities in accordance with section 656;
          (5) consult with, and serve as a contact for, State 
        and local governmental entities implementing terrorist 
        attack preparedness programs;
          (6) coordinate and oversee the implementation by 
        Federal departments and agencies of the policies, 
        objectives, and priorities established under paragraph 
        (1) and the fulfillment of the responsibilities of such 
        departments and agencies under the Domestic Terrorism 
        Preparedness Plan;
          (7) make recommendations to the President and to the 
        National Security Council regarding--
                  (A) changes in the organization, management, 
                and budgets of Federal departments and 
                agencies; and
                  (B) the allocation of personnel to and within 
                such departments and agencies;
        to implement the policies, priorities, and objectives 
        established under paragraph (1) and the Domestic 
        Terrorism Preparedness Plan; and
          (8) notify a Federal department or agency in writing 
        if the Director finds that its policies are not in 
        compliance with its responsibilities under the Domestic 
        Terrorism Preparedness Plan and transmit a copy of such 
        notification to the President.

SEC. 653. DOMESTIC TERRORISM PREPAREDNESS PLAN AND ANNUAL STRATEGY

  (a) Development of Plan.--Not later than 180 days after the 
date of appointment of the Director, the Director shall develop 
a Domestic Terrorism Preparedness Plan and transmit a copy of 
the plan to the President and Congress. The Director, as 
necessary, may extend the deadline established by this 
subsection, except that any such extension may not exceed 90 
days.
  (b) Contents.--The Domestic Terrorism Preparedness Plan shall 
include--
          (1) a statement of the policies, objectives, and 
        priorities established by the Director under section 
        652(1);
          (2) a plan for implementing such policies, 
        objectives, and priorities, which is based on a threat 
        and risk assessment and includes measurable objectives 
        to be achieved in each of the following 5 years for 
        enhancing domestic preparedness against a terrorist 
        attack; and
          (3) a description of the specific role of each 
        Federal department and agency, and the roles of State 
        and local governmental entities, under the plan 
        developed under paragraph (2).
  (c) Annual Strategy.--
          (1) In general.--The Director shall develop and 
        transmit to the President and Congress, on the date of 
        transmittal of the Domestic Terrorism Preparedness Plan 
        and, in each of the succeeding 4 fiscal years, on the 
        date that the President submits an annual budget to 
        Congress in accordance with section 1105(a) of title 
        31, United States Code, an annual strategy for carrying 
        out the Domestic Terrorism Preparedness Plan in the 
        fiscal year following the fiscal year in which the 
        strategy is submitted.
          (2) Contents.--The annual strategy for a fiscal year 
        shall include--
                  (A) a description of Federal training and 
                exercise programs, grant programs, and other 
                activities conducted in the fiscal year 
                preceding the fiscal year for which the 
                strategy has been developed related to domestic 
                preparedness against a terrorist attack and 
                recommendations concerning whether any of such 
                programs may be duplicative;
                  (B) a description of Federal training and 
                exercise programs, grant programs, and other 
                activities to be conducted in the fiscal year 
                for which the strategy has been developed under 
                the Domestic Terrorism Preparedness Plan and 
                measurable objectives to be achieved in such 
                fiscal year for enhancing domestic preparedness 
                against a terrorist attack; and
                  (C) a complete assessment of how the budget 
                proposal transmitted for the fiscal year under 
                section 654(a) is intended to implement the 
                strategy and whether the funding levels 
                contained in such proposal are sufficient to 
                implement such strategy.
  (d) Consultation.--
          (1) In general.--In developing the Domestic Terrorism 
        Preparedness Plan and each annual strategy for carrying 
        out the plan, the Director shall consult with--
                  (A) the head of each Federal department and 
                agency that will have responsibilities under 
                the Domestic Terrorism Preparedness Plan or 
                annual strategy;
                  (B) Congress;
                  (C) State and local officials;
                  (D) congressionally authorized panels; and
                  (E) emergency preparedness organizations with 
                memberships that include State and local 
                emergency responders.
          (2) Reports.--At the time the Director submits the 
        Domestic Terrorism Preparedness Plan or an annual 
        strategy to the President and Congress, the Director 
        shall transmit a report to the President and Congress 
        indicating the persons consulted under this subsection.
  (e) Transmission of Classified Information.--Any part of the 
Domestic Terrorism Preparedness Plan under subsection (a) or an 
annual strategy under subsection (c) that involves information 
properly classified under criteria established by an Executive 
order shall be presented to Congress separately.
  (f) Risk of Terrorist Attacks Against Transportation 
Facilities.--
          (1) In general.--In developing the plan and risk 
        assessment under subsection (b), the Director shall 
        designate an entity to assess the risk of terrorist 
        attacks against transportation facilities, personnel, 
        and passengers.
          (2) Contents.--In developing the plan and risk 
        assessment under subsection (b), the Director shall 
        ensure that the following 3 tasks are accomplished:
                  (A) An examination of the extent to which 
                transportation facilities, personnel, and 
                passengers have been the target of terrorist 
                attacks and the extent to which such 
                facilities, personnel, and passengers are 
                vulnerable to such attacks.
                  (B) An evaluation of Federal and State laws 
                that can be used to combat terrorist attacks 
                against transportation facilities, personnel, 
                and passengers, and the extent to which such 
                laws are enforced.
                  (C) An evaluation of available technologies 
                and practices to determine the best means of 
                protecting mass transportation facilities, 
                personnel, and passengers against terrorist 
                attacks.
          (3) Consultation.--In developing the plan and risk 
        assessment under subsection (b), the Director shall 
        consult with the Secretary of Transportation, 
        representatives of personsproviding transportation, and 
representatives of employees of such persons.

SEC. 654. NATIONAL DOMESTIC PREPAREDNESS BUDGET.

  (a) Development and Transmission of Budget.--The Director 
shall develop for each fiscal year, with the advice of the 
program managers of departments and agencies with 
responsibilities under the Domestic Terrorism Preparedness Plan 
and appropriate State and local governmental entities, a 
consolidated budget proposal to implement the Domestic 
Terrorism Preparedness Plan, and shall transmit a copy of the 
budget proposal to the President and Congress.
  (b) Budget Submissions by Departments and Agencies.--Each 
Federal Government program manager, agency head, and department 
head with responsibilities under the Domestic Terrorism 
Preparedness Plan shall transmit the budget request of the 
program, agency, or department relating to such 
responsibilities to the Director at the same time as such 
request is submitted to their superiors (and before submission 
to the Office of Management and Budget) in the preparation of 
the budget of the President submitted to Congress under section 
1105(a) of title 31, United States Code.
  (c) Review of Budget Submissions.--The Director shall--
          (1) review each budget request transmitted to the 
        Director under subsection (b);
          (2) certify in writing as to the adequacy of such 
        request to implement the objectives of the Domestic 
        Terrorism Preparedness Plan for the fiscal year for 
        which the request is submitted; and
          (3) notify the program manager, agency head, or 
        department head, as applicable, regarding the 
        Director's certification under paragraph (2).
  (d) Reprogramming and Transfer Requests.--
          (1) In general.--No Federal department or agency 
        shall submit to Congress a reprogramming or transfer 
        request that is included in the consolidated budget 
        proposal developed under subsection (a) unless such 
        request has been approved by the Director.
          (2) Appeals.--The Secretary of a department or the 
        head of an agency may appeal to the President any 
        disapproval by the Director of a reprogramming or 
        transfer request.
          (3) Quarterly reports.--The Director shall report to 
        Congress on a quarterly basis regarding the need for 
        any reprogramming or transfer of appropriated funds for 
        activities under the Domestic Terrorism Preparedness 
        Plan.
  (e) Records.--The Director shall maintain records regarding 
certifications under subsection (c)(2).
  (f) Notice to OMB of Inadequate Requests.--If the Director 
determines under subsection (c)(2) that a budget request is not 
adequate to implement the objectives of the Domestic Terrorism 
Preparedness Plan for the fiscal year for which the request is 
submitted, the Director shall transmit a written statement of 
such determination to the Director of the Office of Management 
and Budget.
  (g) Timely Development and Submission of Budget Requests.--
The head of each Federal department and agency with 
responsibilities under the Domestic Terrorism Preparedness Plan 
shall ensure timely development and transmittal of budget 
requests pursuant to subsection (b) in such format as may be 
designated by the Director with the concurrence of the Director 
of the Office of Management and Budget.
  (h) Failure of Director To Make Timely Determinations.--With 
respect to the first fiscal year for which budget requests are 
submitted under subsection (b), if the Director does not make a 
timely determination with respect to the adequacy of such a 
request, the program or activity for which the request is being 
made shall be eligible for funding at the same level as the 
program or activity received funding in the preceding fiscal 
year.

SEC. 655. CERTIFICATION OF FEDERAL TRAINING AND EXERCISE PROGRAMS.

  (a) Certification of Programs.--Not later than 270 days after 
the date of appointment of the Director, the Director shall 
conduct a review of each training and exercise program being 
conducted by a Federal department or agency to enhance the 
capabilities of State and local emergency preparedness and 
response personnel with respect to terrorist attacks. Upon 
completing the review, the Director shall either certify or 
deny certification for the program based on criteria to be 
developed by the Director. The Director, as necessary, may 
extend the deadline established by this subsection with respect 
to a training or exercise program, except that any such 
extension may not exceed 180 days.
  (b) Recertification of Programs.--A training or exercise 
program that is certified by the Director under subsection (a) 
shall be reviewed by the Director on or before June 15th of the 
third fiscal year beginning after the date of certification and 
on or before June 15th of every third fiscal year thereafter. 
Upon completing each review, the Director shall either 
recertify or deny recertification for the program based on 
criteria to be developed by the Director.
  (c) Effect of Denials.--The Director may not certify a budget 
request transmitted for a fiscal year under section 654 with 
respect to any training or exercise program for which the 
Director has denied certification or recertification for a 
period including such fiscal year under this section.
  (d) Development of Certification Criteria.--In developing 
criteria for certifications and recertifications under this 
section, the Director shall seek to eliminate duplicative 
Federal programs and to further Federal efforts toward 
implementation of the policies, objectives, and priorities of 
the Domestic Terrorism Preparedness Plan.
  (e) Establishment of New Programs and Offices.--Before a 
Federal department or agency may establish a new program or 
office to enhance the capabilities of State and local emergency 
preparedness and response personnel with respect to terrorist 
attacks, the head of the department or agency shall consult 
with the Director to determine whether the new program or 
office is consistent with the Domestic Terrorism Preparedness 
Plan.

SEC. 656. VOLUNTARY GUIDELINES FOR STATE AND LOCAL PROGRAMS.

  The Director shall establish voluntary guidelines for the 
terrorist attack preparedness programs of State and local 
governmentalentities for the purpose of providing guidance in 
the development and implementation of such programs. The guidelines 
shall address equipment, exercises, and training.

SEC. 657. GRANTS TO STATE AND LOCAL ENTITIES.

  The Director may make grants to a State or local governmental 
entity to offset the costs of participation by the entity in 
any training or exercise program that has been certified by the 
Director under section 655.

SEC. 658. POWERS OF DIRECTOR.

  In carrying out this subtitle, the Director may--
          (1) select, appoint, employ, and fix compensation of 
        such officers and employees as may be necessary to 
        carry out the functions of the Office under this 
        subtitle;
          (2) direct, with the concurrence of the Secretary of 
        a department or head of an agency, the temporary 
        reassignment within the Federal Government of personnel 
        employed by such department or agency;
          (3) use for administrative purposes, on a 
        reimbursable basis, the available services, equipment, 
        personnel, and facilities of Federal, State, and local 
        agencies;
          (4) procure the services of experts and consultants 
        in accordance with section 3109 of title 5, United 
        States Code, relating to appointments in the Federal 
        Service, at rates of compensation for individuals not 
        to exceed the daily equivalent of the rate of pay 
        payable for GS-18 of the General Schedule under section 
        5332 of title 5, United States Code;
          (5) accept and use donations of property from 
        Federal, State, and local government agencies;
          (6) use the mails in the same manner as any other 
        department or agency of the executive branch; and
          (7) monitor the implementation of the Domestic 
        Terrorism Preparedness Plan, including--
                  (A) conducting program and performance audits 
                and evaluations; and
                  (B) requesting assistance from the Inspector 
                General of the relevant agency in such audits 
                and evaluations.

SEC. 659. ROLE OF DIRECTOR IN NATIONAL SECURITY COUNCIL EFFORTS.

  The Director may, in the Director's role as principal adviser 
to the National Security Council on Federal efforts to assist 
State and local governmental entities in domestic terrorist 
attack preparedness matters, and subject to the direction of 
the President, attend and participate in meetings of the 
National Security Council.

SEC. 660. COORDINATION WITH EXECUTIVE BRANCH DEPARTMENTS AND AGENCIES.

  (a) Requests for Assistance.--The head of each Federal 
department and agency with responsibilities under the Domestic 
Terrorism Preparedness Plan shall cooperate with the Director 
and, subject to laws governing disclosure of information, 
provide such assistance, information, and advice as the 
Director may request.
  (b) Certification of Policy Changes by Director.--
          (1) In general.--The head of each Federal department 
        and agency with responsibilities under the Domestic 
        Terrorism Preparedness Plan shall, unless exigent 
        circumstances require otherwise, notify the Director in 
        writing regarding any proposed change in policies 
        relating to the activities of such department or agency 
        under the Domestic Terrorism Preparedness Plan prior to 
        implementation of such change. The Director shall 
        promptly review such proposed change and certify to the 
        department or agency head in writing whether such 
        change is consistent with the Domestic Terrorism 
        Preparedness Plan.
          (2) Notice in exigent circumstances.--If prior notice 
        of a proposed change under paragraph (1) is not 
        possible, the department or agency head shall notify 
        the Director as soon as practicable. The Director shall 
        review such change and certify to the department or 
        agency head in writing whether such change is 
        consistent with the Domestic Terrorism Preparedness 
        Plan.
  (c) General Services Administration.--The Administrator of 
General Services shall provide to the Director on a 
reimbursable basis such administrative support services as the 
Director may request.

SEC. 661. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated to carry out this 
subtitle $9,000,000 for fiscal year 2001 and such sums as may 
be necessary for each of fiscal years 2002 through 2005. Such 
sums shall remain available until expended.
                              ----------                              

              SECTION 5315 OF TITLE 5, UNITED STATES CODE

Sec. 5313. Positions at level II

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

           *       *       *       *       *       *       *

          Director, Office of Terrorism Preparedness.

                                
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