1703 
‘‘SEC. 310. NOTICE OF ACTIONS TAKEN TO COMPLY WITH 
ETHICS AGREEMENTS. 
‘‘(a) In any case in which an individual 
agrees with that individual’s designated agen-
cy ethics official, the Office of Government 
Ethics, or a Senate confirmation committee, 
to take any action to comply with this Act or 
any other law or regulation governing con-
flicts of interest of, or establishing standards 
of conduct applicable with respect to, officers 
or employees of the Government, that indi-
vidual shall notify in writing the designated 
agency ethics official, the Office of Govern-
ment Ethics, or the appropriate committee of 
the Senate, as the case may be, of any action 
taken by the individual pursuant to that 
agreement. Such notification shall be made 
not later than the date specified in the agree-
ment by which action by the individual must 
be taken, or not later than 3 months after the 
date of the agreement, if no date for action is 
so specified. If all actions agreed to have not 
been completed by the date of this notifica-
tion, such notification shall continue on a 
monthly basis thereafter until the individual 
has met the terms of the agreement.
1704 
‘‘(b) If an agreement described in sub-
section (a) requires that the individual recuse 
himself or herself from particular categories 
of agency or other official action, the indi-
vidual shall reduce to writing those subjects 
regarding which the recusal agreement will 
apply and the process by which it will be de-
termined whether the individual must recuse 
himself or herself in a specific instance. An in-
dividual shall be considered to have complied 
with the requirements of subsection (a) with 
respect to such recusal agreement if such in-
dividual files a copy of the document setting 
forth the information described in the pre-
ceding sentence with such individual’s des-
ignated agency ethics official or the Office of 
Government Ethics within the time pre-
scribed in the penultimate sentence of sub-
section (a). 
‘‘SEC. 311. ADMINISTRATION OF PROVISIONS. 
‘‘The Office of Government Ethics shall 
issue regulations, develop forms, and provide 
such guidance as is necessary to implement 
and interpret this title.’’.
1705 
(b) EXEMPTION FROM PUBLIC ACCESS TO FI-
NANCIAL
DISCLOSURES.—Section 105(a)(1) of 
such Act is amended by inserting ‘‘the Office 
of the National Intelligence Director,’’ before 
‘‘the Central Intelligence Agency’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
101(f) of such Act is amended— 
(1) in paragraph (12), by striking the 
period at the end and inserting a semi-
colon; and 
(2) by adding at the end the fol-
lowing: 
‘‘but do not include any officer or employee of 
any department or agency listed in section 
301(e).’’. 
SEC. 5044. REDUCTION OF POSITIONS REQUIRING AP-
POINTMENT WITH SENATE CONFIRMATION. 
(a) DEFINITION.—In this section, the term 
‘‘agency’’ means an Executive agency, as de-
fined under section 105 of title 5, United 
States Code. 
(b) REDUCTION PLAN.— 
(1) IN
GENERAL.—Not later than 180 
days after the date of enactment of this 
Act, the head of each agency shall submit
1706 
a Presidential appointment reduction 
plan to— 
(A) the President; 
(B) the Committee on Govern-
mental Affairs of the Senate; and 
(C) the Committee on Govern-
ment Reform of the House of Rep-
resentatives. 
(2) CONTENT.—The plan under this 
subsection shall provide for the reduc-
tion of— 
(A) the number of positions with-
in that agency that require an ap-
pointment by the President, by and 
with the advice and consent of the 
Senate; and 
(B) the number of levels of such 
positions within that agency. 
SEC. 5045. EFFECTIVE DATES. 
(a) SECTION 5043.— 
(1) IN GENERAL.—Subject to paragraph 
(2), the amendments made by section 
5043 shall take effect on January 1 of the 
year following the year in which occurs 
the date of enactment of this Act.
1707 
(2) LATER DATE.—If this Act is enacted 
on or after July 1 of a year, the amend-
ments made by section 301 shall take ef-
fect on July 1 of the following year. 
(b) SECTION 5044.—Section 5044 shall take 
effect on the date of enactment of this Act. 
CHAPTER 2—FEDERAL BUREAU OF 
INVESTIGATION REVITALIZATION 
SEC. 5051. MANDATORY SEPARATION AGE. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.— 
Section 8335(b) of title 5, United States Code, 
is amended— 
(1) by striking ‘‘(b)’’ and inserting 
‘‘(b)(1)’’; and 
(2) by adding at the end the fol-
lowing: 
‘‘(2) In the case of employees of the Fed-
eral Bureau of Investigation, the second sen-
tence of paragraph (1) shall be applied by sub-
stituting ‘65 years of age’ for ‘60 years of age’. 
The authority to grant exemptions in accord-
ance with the preceding sentence shall cease 
to be available after December 31, 2009.’’.
1708 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYS-
TEM.—Section 8425(b) of title 5, United States 
Code, is amended— 
(1) by striking ‘‘(b)’’ and inserting 
‘‘(b)(1)’’; and 
(2) by adding at the end the fol-
lowing: 
‘‘(2) In the case of employees of the Fed-
eral Bureau of Investigation, the second sen-
tence of paragraph (1) shall be applied by sub-
stituting ‘65 years of age’ for ‘60 years of age’. 
The authority to grant exemptions in accord-
ance with the preceding sentence shall cease 
to be available after December 31, 2009.’’. 
SEC. 5052. RETENTION AND RELOCATION BONUSES. 
(a) IN GENERAL.—Subchapter IV of chapter 
57 of title 5, United States Code, is amended 
by adding at the end the following: 
‘‘§ 5759. Retention and relocation bonuses for the 
Federal Bureau of Investigation 
‘‘(a) AUTHORITY.—The Director of the Fed-
eral Bureau of Investigation, after consulta-
tion with the Director of the Office of Per-
sonnel Management, may pay, on a case-by-
1709 
case basis, a bonus under this section to an 
employee of the Bureau if— 
‘‘(1)(A) the unusually high or unique 
qualifications of the employee or a spe-
cial need of the Bureau for the employ-
ee’s services makes it essential to retain 
the employee; and 
‘‘(B) the Director of the Federal Bu-
reau of Investigation determines that, in 
the absence of such a bonus, the em-
ployee would be likely to leave— 
‘‘(i) the Federal service; or 
‘‘(ii) for a different position in the 
Federal service; or 
‘‘(2) the individual is transferred to a 
different geographic area with a higher 
cost of living (as determined by the Di-
rector of the Federal Bureau of Investiga-
tion). 
‘‘(b) SERVICE AGREEMENT.—Payment of a 
bonus under this section is contingent upon 
the employee entering into a written service 
agreement with the Bureau to complete a pe-
riod of service with the Bureau. Such agree-
ment shall include—
1710 
‘‘(1) the period of service the indi-
vidual shall be required to complete in 
return for the bonus; and 
‘‘(2) the conditions under which the 
agreement may be terminated before the 
agreed-upon service period has been 
completed, and the effect of the termi-
nation. 
‘‘(c) LIMITATION ON AUTHORITY.—A bonus 
paid under this section may not exceed 50 
percent of the employee’s basic pay. 
‘‘(d) IMPACT
ON BASIC PAY.—A retention 
bonus is not part of the basic pay of an em-
ployee for any purpose. 
‘‘(e) TERMINATION OF AUTHORITY.—The au-
thority to grant bonuses under this section 
shall cease to be available after December 31, 
2009.’’. 
(b) CLERICAL AMENDMENT.—The analysis 
for chapter 57 of title 5, United States Code, 
is amended by adding at the end the fol-
lowing: 
‘‘5759. Retention and relocation bonuses for the Federal Bu-
reau of Investigation.’’.
1711 
SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE 
SERVICE. 
(a) IN GENERAL.—Chapter 35 of title 5, 
United States Code, is amended by adding at 
the end the following: 
‘‘SUBCHAPTER VII—RETENTION OF RE-
TIRED SPECIALIZED EMPLOYEES AT 
THE FEDERAL BUREAU OF INVESTIGA-
TION 
‘‘§ 3598. Federal Bureau of Investigation Reserve 
Service 
‘‘(a) ESTABLISHMENT.—The Director of the 
Federal Bureau of Investigation may provide 
for the establishment and training of a Fed-
eral Bureau of Investigation Reserve Service 
(hereinafter in this section referred to as the 
‘FBI Reserve Service’) for temporary reem-
ployment of employees in the Bureau during 
periods of emergency, as determined by the 
Director. 
‘‘(b) MEMBERSHIP.—Membership in the FBI 
Reserve Service shall be limited to individ-
uals who previously served as full-time em-
ployees of the Bureau. 
‘‘(c) ANNUITANTS.—If an individual receiv-
ing an annuity from the Civil Service Retire-
1712 
ment and Disability Fund on the basis of such 
individual’s service becomes temporarily re-
employed pursuant to this section, such annu-
ity shall not be discontinued thereby. An indi-
vidual so reemployed shall not be considered 
an employee for the purposes of chapter 83 or 
84. 
‘‘(d) NO IMPACT
ON BUREAU PERSONNEL 
CEILING.—FBI Reserve Service members re-
employed on a temporary basis pursuant to 
this section shall not count against any per-
sonnel ceiling applicable to the Bureau. 
‘‘(e) EXPENSES.—The Director may provide 
members of the FBI Reserve Service transpor-
tation and per diem in lieu of subsistence, in 
accordance with applicable provisions of this 
title, for the purpose of participating in any 
training that relates to service as a member 
of the FBI Reserve Service. 
‘‘(f) LIMITATION ON MEMBERSHIP.—Member-
ship of the FBI Reserve Service is not to ex-
ceed 500 members at any given time.’’. 
(b) CLERICAL AMENDMENT.—The analysis 
for chapter 35 of title 5, United States Code,
1713 
is amended by adding at the end the fol-
lowing: 
‘‘SUBCHAPTER VII—RETENTION OF RETIRED SPECIALIZED EMPLOYEES 
AT THE FEDERAL BUREAU OF INVESTIGATION 
‘‘3598. Federal Bureau of Investigation Reserve Service.’’. 
SEC. 5054. CRITICAL POSITIONS IN THE FEDERAL BUREAU 
OF INVESTIGATION INTELLIGENCE DIREC-
TORATE. 
Section 5377(a)(2) of title 5, United States 
Code, is amended— 
(1) by striking ‘‘and’’ at the end of 
subparagraph (E); 
(2) by striking the period at the end 
of subparagraph (F) and inserting ‘‘; and’’; 
and 
(3) by inserting after subparagraph 
(F) the following: 
‘‘(G) a position at the Federal Bu-
reau of Investigation, the primary du-
ties and responsibilities of which re-
late to intelligence functions (as de-
termined by the Director of the Fed-
eral Bureau of Investigation).’’.
1714 
CHAPTER 3—MANAGEMENT AUTHORITY 
SEC. 5061. MANAGEMENT AUTHORITY. 
(a) 
MANAGEMENT
AUTHORITY.—Section 
7103(b)(1)(A) of title 5, United States Code, is 
amended by adding ‘‘homeland security,’’ 
after ‘‘investigative,’’. 
(b) EXCLUSIONARY AUTHORITY.—Section 842 
of the Homeland Security Act (Public Law 
107–296; 6 U.S.C. 412) is repealed. 
Subtitle E—Security Clearance 
Modernization 
SEC. 5071. DEFINITIONS. 
In this subtitle: 
(1) The term ‘‘Director’’ means the Na-
tional Intelligence Director. 
(2) The term ‘‘agency’’ means— 
(A) an executive agency, as de-
fined in section 105 of title 5, United 
States Code; 
(B) a military department, as de-
fined in section 102 of title 5, United 
States Code; and 
(C) elements of the intelligence 
community, as defined in section 3(4)
1715 
of the National Security Act of 1947 
(50 U.S.C. 401a(4)). 
(3) The term ‘‘authorized investiga-
tive agency’’ means an agency authorized 
by law, regulation or direction of the Di-
rector to conduct a counterintelligence 
investigation or investigation of persons 
who are proposed for access to classified 
information to ascertain whether such 
persons satisfy the criteria for obtaining 
and retaining access to such information. 
(4) The term ‘‘authorized adjudicative 
agency’’ means an agency authorized by 
law, regulation or direction of the Direc-
tor to determine eligibility for access to 
classified information in accordance with 
Executive Order 12968. 
(5) The term ‘‘highly sensitive pro-
gram’’ means— 
(A) a government program des-
ignated as a Special Access Program 
(as defined by section 4.1(h) of Execu-
tive Order 12958); and 
(B) a government program that 
applies restrictions required for—
1716 
(i) Restricted Data (as defined 
by section 11 y. of the Atomic En-
ergy 
Act 
of 
1954 
(42 
U.S.C. 
2014(y)); or 
(ii) other information com-
monly referred to as ‘‘Sensitive 
Compartmented Information’’. 
(6) The term ‘‘current investigation 
file’’ means, with respect to a security 
clearance, a file on an investigation or 
adjudication that has been conducted 
during— 
(A) the 5-year period beginning 
on the date the security clearance 
was granted, in the case of a Top Se-
cret Clearance, or the date access was 
granted to a highly sensitive pro-
gram; 
(B) the 10-year period beginning 
on the date the security clearance 
was granted in the case of a Secret 
Clearance; and 
(C) the 15-year period beginning 
on the date the security clearance
1717 
was granted in the case of a Con-
fidential Clearance. 
(7) The term ‘‘personnel security in-
vestigation’’ means any investigation re-
quired for the purpose of determining the 
eligibility of any military, civilian, or gov-
ernment contractor personnel to access 
classified information. 
(8) The term ‘‘periodic reinvestiga-
tions’’ means— 
(A) investigations conducted for 
the purpose of updating a previously 
completed 
background 
investiga-
tion— 
(i) every five years in the case 
of a Top Secret Clearance or ac-
cess to a highly sensitive pro-
gram; 
(ii) every 10 years in the case 
of a Secret Clearance; and 
(iii) every 15 years in the case 
of a Confidential Clearance; 
(B) 
on-going 
investigations 
to 
identify personnel security risks as
1718 
they develop, pursuant to section 
105(c). 
(9) The term ‘‘appropriate committees 
of Congress’’ means— 
(A) the Permanent Select Com-
mittee on Intelligence and the Com-
mittees on Armed Services, Judiciary, 
and Government Reform of the House 
of Representatives; and 
(B) the Select Committee on Intel-
ligence and the Committees on Armed 
Services, 
Judiciary, 
and 
Govern-
mental Affairs of the Senate. 
SEC. 5072. SECURITY CLEARANCE AND INVESTIGATIVE 
PROGRAMS OVERSIGHT AND ADMINISTRA-
TION. 
The Deputy National Intelligence Director 
for Community Management and Resources 
shall have responsibility for the following: 
(1) Directing day-to-day oversight of 
investigations and adjudications for per-
sonnel security clearances to highly sen-
sitive programs throughout the Federal 
Government.
1719 
(2) Developing and implementing uni-
form and consistent policies and proce-
dures to ensure the effective, efficient, 
and timely completion of security clear-
ances and determinations for access to 
highly sensitive programs, including the 
standardization 
of 
security 
question-
naires, financial disclosure requirements 
for security clearance applicants, and 
polygraph policies and procedures. 
(3) Serving as the final authority to 
designate 
an 
authorized 
investigative 
agency or authorized adjudicative agency 
pursuant to section 5074(d). 
(4) Ensuring reciprocal recognition of 
access to classified information among 
agencies, including acting as the final au-
thority to arbitrate and resolve disputes 
involving 
the 
reciprocity 
of 
security 
clearances and access to highly sensitive 
programs. 
(5) Ensuring, to the maximum extent 
practicable, that sufficient resources are 
available in each agency to achieve clear-
ance and investigative program goals.
1720 
(6) Reviewing and coordinating the 
development of tools and techniques for 
enhancing the conduct of investigations 
and granting of clearances. 
SEC. 5073. RECIPROCITY OF SECURITY CLEARANCE AND 
ACCESS DETERMINATIONS. 
(a) REQUIREMENT FOR RECIPROCITY.—(1) All 
security clearance background investigations 
and determinations completed by an author-
ized investigative agency or authorized adju-
dicative agency shall be accepted by all agen-
cies. 
(2) All security clearance background in-
vestigations initiated by an authorized inves-
tigative agency shall be transferable to any 
other authorized investigative agency. 
(b) PROHIBITION
ON ESTABLISHING ADDI-
TIONAL REQUIREMENTS.—(1) An authorized in-
vestigative agency or authorized adjudicative 
agency may not establish additional inves-
tigative or adjudicative requirements (other 
than requirements for the conduct of a poly-
graph examination) that exceed requirements 
specified in Executive Orders establishing se-
1721 
curity requirements for access to classified in-
formation. 
(2) Notwithstanding the paragraph (1), 
the Director may establish additional require-
ments as needed for national security pur-
poses. 
(c) PROHIBITION ON DUPLICATIVE INVESTIGA-
TIONS.—An authorized investigative agency or 
authorized adjudicative agency may not con-
duct an investigation for purposes of deter-
mining whether to grant a security clearance 
to an individual where a current investiga-
tion or clearance of equal level already exists 
or has been granted by another authorized 
adjudicative agency. 
SEC. 5074. ESTABLISHMENT OF NATIONAL DATABASE . 
(a) ESTABLISHMENT.—Not later than 12 
months after the date of the enactment of this 
Act, the Director of the Office of Personnel 
Management, in cooperation with the Direc-
tor, shall establish, and begin operating and 
maintaining, an integrated, secure, national 
database into which appropriate data rel-
evant to the granting, denial, or revocation of 
a security clearance or access pertaining to
1722 
military, civilian, or government contractor 
personnel shall be entered from all author-
ized investigative and adjudicative agencies. 
(b) INTEGRATION.—The national database 
established under subsection (a) shall func-
tion to integrate information from existing 
Federal clearance tracking systems from 
other authorized investigative and adjudica-
tive agencies into a single consolidated data-
base. 
(c) REQUIREMENT
TO CHECK DATABASE.— 
Each authorized investigative or adjudicative 
agency shall check the national database es-
tablished under subsection (a) to determine 
whether an individual the agency has identi-
fied as requiring a security clearance has al-
ready been granted or denied a security clear-
ance, or has had a security clearance revoked, 
by any other authorized investigative or adju-
dicative agency. 
(d) CERTIFICATION
OF AUTHORIZED INVES-
TIGATIVE AGENCIES OR AUTHORIZED ADJUDICA-
TIVE AGENCIES.—The Director shall evaluate 
the extent to which an agency is submitting 
information to, and requesting information
1723 
from, the national database established under 
subsection (a) as part of a determination of 
whether to certify the agency as an author-
ized investigative agency or authorized adju-
dicative agency. 
(e) EXCLUSION
OF CERTAIN INTELLIGENCE 
OPERATIVES.—The Director may authorize an 
agency to withhold information about certain 
individuals from the database established 
under subsection (a) if the Director deter-
mines it is necessary for national security 
purposes. 
(f) COMPLIANCE.—The Director shall estab-
lish a review procedure by which agencies 
can seek review of actions required under 
section 5073. 
(g) AUTHORIZATION
OF APPROPRIATIONS.— 
There is authorized to be appropriated such 
sums as may be necessary for fiscal year 2005 
and each subsequent fiscal year for the imple-
mentation, maintenance and operation of the 
database established in subsection (a).
1724 
SEC. 5075. USE OF AVAILABLE TECHNOLOGY IN CLEAR-
ANCE INVESTIGATIONS. 
(a) INVESTIGATIONS.—Not later than 12 
months after the date of the enactment of this 
Act, each authorized investigative agency 
that conducts personnel security clearance 
investigations shall use, to the maximum ex-
tent practicable, available information tech-
nology and databases to expedite investiga-
tive processes and to verify standard informa-
tion submitted as part of an application for a 
security clearance. 
(b) INTERIM CLEARANCE.—If the applica-
tion of an applicant for an interim clearance 
has been processed using the technology 
under subsection (a), the interim clearances 
for the applicant at the secret, top secret, and 
special access program levels may be granted 
before the completion of the appropriate in-
vestigation. Any request to process an interim 
clearance shall be given priority, and the au-
thority granting the interim clearance shall 
ensure that final adjudication on the applica-
tion is made within 90 days after the initial 
clearance is granted.
1725 
(c) ON-GOING MONITORING OF INDIVIDUALS 
WITH SECURITY CLEARANCES.—(1) Authorized 
investigative agencies and authorized adju-
dicative agencies shall establish procedures 
for the regular, ongoing verification of per-
sonnel with security clearances in effect for 
continued access to classified information. 
Such procedures shall include the use of 
available technology to detect, on a regularly 
recurring basis, any issues of concern that 
may arise involving such personnel and such 
access. 
(2) Such regularly recurring verification 
may be used as a basis for terminating a secu-
rity clearance or access and shall be used in 
periodic reinvestigations to address emerging 
threats and adverse events associated with in-
dividuals with security clearances in effect to 
the maximum extent practicable. 
(3) If the Director certifies that the na-
tional security of the United States is not 
harmed by the discontinuation of periodic re-
investigations, 
the 
regularly 
recurring 
verification under this section may replace 
periodic reinvestigations.
1726 
SEC. 5076. REDUCTION IN LENGTH OF PERSONNEL SECU-
RITY CLEARANCE PROCESS. 
(a) 60-DAY PERIOD FOR DETERMINATION ON 
CLEARANCES.—Each authorized adjudicative 
agency shall make a determination on an ap-
plication for a personnel security clearance 
within 60 days after the date of receipt of the 
completed application for a security clear-
ance by an authorized investigative agency. 
The 60-day period shall include— 
(1) a period of not longer than 40 
days to complete the investigative phase 
of the clearance review; and 
(2) a period of not longer than 20 
days to complete the adjudicative phase 
of the clearance review. 
(b) EFFECTIVE DATE AND PHASE-IN.— 
(1) EFFECTIVE
DATE.—Subsection (a) 
shall take effect 5 years after the date of 
the enactment of this Act. 
(2) PHASE-IN.—During the period be-
ginning on a date not later than 2 years 
after the date after the enactment of this 
Act and ending on the date on which sub-
section (a) takes effect as specified in 
paragraph (1), each authorized adjudica-
1727 
tive agency shall make a determination 
on an application for a personnel secu-
rity clearance pursuant to this title with-
in 120 days after the date of receipt of the 
application for a security clearance by an 
authorized investigative agency. The 120- 
day period shall include— 
(A) a period of not longer than 90 
days to complete the investigative 
phase of the clearance review; and 
(B) a period of not longer than 30 
days to complete the adjudicative 
phase of the clearance review. 
SEC. 5077. SECURITY CLEARANCES FOR PRESIDENTIAL 
TRANSITION. 
(a) CANDIDATES
FOR NATIONAL SECURITY 
POSITIONS.—(1) The President-elect shall sub-
mit to the Director the names of candidates 
for high-level national security positions, for 
positions at the level of under secretary of ex-
ecutive departments and above, as soon as 
possible after the date of the general elections 
held to determine the electors of President 
and Vice President under section 1 or 2 of 
title 3, United States Code.
1728 
(2) The Director shall be responsible for 
the expeditious completion of the background 
investigations necessary to provide appro-
priate security clearances to the individuals 
who are candidates described under para-
graph (1) before the date of the inauguration 
of the President-elect as President and the in-
auguration of the Vice-President-elect as Vice 
President. 
(b) SECURITY CLEARANCES FOR TRANSITION 
TEAM MEMBERS.—(1) In this section, the term 
‘‘major party’’ has the meaning provided 
under section 9002(6) of the Internal Revenue 
Code of 1986. 
(2) Each major party candidate for Presi-
dent, except a candidate who is the incum-
bent President, shall submit, before the date 
of the general presidential election, requests 
for security clearances for prospective transi-
tion team members who will have a need for 
access to classified information to carry out 
their responsibilities as members of the Presi-
dent-elect’s transition team. 
(3) Necessary background investigations 
and eligibility determinations to permit ap-
1729 
propriate prospective transition team mem-
bers to have access to classified information 
shall be completed, to the fullest extent prac-
ticable, by the day after the date of the gen-
eral presidential election. 
SEC. 5078. REPORTS. 
Not later than February 15, 2006, and an-
nually thereafter through 2016, the Director 
shall submit to the appropriate committees of 
Congress a report on the progress made dur-
ing the preceding year toward meeting the re-
quirements specified in this Act. The report 
shall include— 
(1) the periods of time required by 
the authorized investigative agencies and 
authorized adjudicative agencies during 
the year covered by the report for con-
ducting 
investigations, 
adjudicating 
cases, and granting clearances, from date 
of submission to ultimate disposition and 
notification to the subject and the sub-
ject’s employer; 
(2) a discussion of any impediments 
to the smooth and timely functioning of 
the implementation of this title; and
1730 
(3) such other information or rec-
ommendations as the Deputy Director 
deems appropriate. 
Subtitle F—Emergency Financial 
Preparedness 
SEC. 5081. DELEGATION AUTHORITY OF THE SECRETARY 
OF THE TREASURY. 
Subsection (d) of section 306 of title 31, 
United States Code, is amended by inserting 
‘‘or employee’’ after ‘‘another officer’’. 
SEC. 5082. EXTENSION OF EMERGENCY ORDER AUTHORITY 
OF THE SECURITIES AND EXCHANGE COM-
MISSION. 
(a) EXTENSION OF AUTHORITY.—Paragraph 
(2) of section 12(k) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78l(k)(2)) is amended to 
read as follows: 
‘‘(2) 
EMERGENCY
ORDERS.—(A) 
The 
Commission, in an emergency, may by 
order summarily take such action to 
alter, supplement, suspend, or impose re-
quirements or restrictions with respect to 
any matter or action subject to regula-
tion by the Commission or a self-regu-
latory organization under the securities
1731 
laws, as the Commission determines is 
necessary in the public interest and for 
the protection of investors— 
‘‘(i) to maintain or restore fair 
and orderly securities markets (other 
than markets in exempted securities); 
‘‘(ii) to ensure prompt, accurate, 
and safe clearance and settlement of 
transactions in securities (other than 
exempted securities); or 
‘‘(iii) to reduce, eliminate, or pre-
vent the substantial disruption by the 
emergency of (I) securities markets 
(other than markets in exempted se-
curities), investment companies, or 
any other significant portion or seg-
ment of such markets, or (II) the 
transmission or processing of securi-
ties transactions (other than trans-
actions in exempted securities). 
‘‘(B) An order of the Commission 
under this paragraph (2) shall continue 
in effect for the period specified by the 
Commission, and may be extended. Ex-
cept as provided in subparagraph (C), the
1732 
Commission’s action may not continue in 
effect for more than 30 business days, in-
cluding extensions. 
‘‘(C) An order of the Commission 
under this paragraph (2) may be ex-
tended to continue in effect for more 
than 30 business days if, at the time of 
the extension, the Commission finds that 
the emergency still exists and determines 
that the continuation of the order beyond 
30 business days is necessary in the pub-
lic interest and for the protection of in-
vestors to attain an objective described 
in clause (i), (ii), or (iii) of subparagraph 
(A). In no event shall an order of the 
Commission under this paragraph (2) 
continue in effect for more than 90 cal-
endar days. 
‘‘(D) If the actions described in sub-
paragraph (A) involve a security futures 
product, the Commission shall consult 
with and consider the views of the Com-
modity Futures Trading Commission. In 
exercising its authority under this para-
graph, the Commission shall not be re-
1733 
quired to comply with the provisions of 
section 553 of title 5, United States Code, 
or with the provisions of section 19(c) of 
this title. 
‘‘(E) Notwithstanding the exclusion of 
exempted securities (and markets there-
in) 
from 
the 
Commission’s 
authority 
under subparagraph (A), the Commission 
may use such authority to take action to 
alter, supplement, suspend, or impose re-
quirements or restrictions with respect to 
clearing agencies for transactions in such 
exempted securities. In taking any action 
under this subparagraph, the Commis-
sion shall consult with and consider the 
views of the Secretary of the Treasury.’’. 
(b) CONSULTATION; DEFINITION
OF EMER-
GENCY.—Section 12(k) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78l(k)) is further 
amended by striking paragraph (6) and in-
serting the following: 
‘‘(6) CONSULTATION.—Prior to taking 
any action described in paragraph (1)(B), 
the Commission shall consult with and 
consider the views of the Secretary of the
1734 
Treasury, Board of Governors of the Fed-
eral Reserve System, and the Commodity 
Futures Trading Commission, unless such 
consultation is impracticable in light of 
the emergency. 
‘‘(7) DEFINITIONS.— 
‘‘(A) EMERGENCY.—For purposes of 
this subsection, the term ‘emergency’ 
means— 
‘‘(i) a major market disturb-
ance characterized by or consti-
tuting— 
‘‘(I) sudden and excessive 
fluctuations 
of 
securities 
prices generally, or a substan-
tial 
threat 
thereof, 
that 
threaten fair and orderly mar-
kets; or 
‘‘(II) a substantial disrup-
tion of the safe or efficient op-
eration of the national system 
for clearance and settlement 
of transactions in securities, 
or a substantial threat there-
of; or
1735 
‘‘(ii) a major disturbance that 
substantially disrupts, or threat-
ens to substantially disrupt— 
‘‘(I) the functioning of se-
curities markets, investment 
companies, or any other sig-
nificant portion or segment of 
the securities markets; or 
‘‘(II) the transmission or 
processing of securities trans-
actions. 
‘‘(B) SECURITIES
LAWS.—Notwith-
standing section 3(a)(47), for pur-
poses of this subsection, the term ‘se-
curities laws’ does not include the 
Public Utility Holding Company Act 
of 1935 (15 U.S.C. 79a et seq.).’’. 
SEC. 5083. PARALLEL AUTHORITY OF THE SECRETARY OF 
THE TREASURY WITH RESPECT TO GOVERN-
MENT SECURITIES. 
Section 15C of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o–5) is amended by 
adding at the end the following new sub-
section:
1736 
‘‘(h) EMERGENCY
AUTHORITY.—The Sec-
retary may by order take any action with re-
spect to a matter or action subject to regula-
tion by the Secretary under this section, or 
the rules of the Secretary thereunder, involv-
ing a government security or a market there-
in (or significant portion or segment of that 
market), that the Commission may take under 
section 12(k)(2) of this title with respect to 
transactions in securities (other than exempt-
ed securities) or a market therein (or signifi-
cant portion or segment of that market).’’. 
Subtitle G—Other Matters 
CHAPTER 1—PRIVACY MATTERS 
SEC. 5091. REQUIREMENT THAT AGENCY RULEMAKING 
TAKE INTO CONSIDERATION IMPACTS ON IN-
DIVIDUAL PRIVACY. 
(a) SHORT TITLE.—This section may be 
cited as the ‘‘Federal Agency Protection of 
Privacy Act of 2004’’. 
(b) IN GENERAL.—Title 5, United States 
Code, is amended by adding after section 553 
the following new section: 
‘‘§ 553a. Privacy impact assessment in rulemaking 
‘‘(a) INITIAL PRIVACY IMPACT ASSESSMENT.—
1737 
‘‘(1) IN GENERAL.—Whenever an agen-
cy is required by section 553 of this title, 
or any other law, to publish a general no-
tice of proposed rulemaking for a pro-
posed rule, or publishes a notice of pro-
posed rulemaking for an interpretative 
rule involving the internal revenue laws 
of the United States, and such rule or 
proposed rulemaking pertains to the col-
lection, maintenance, use, or disclosure 
of personally identifiable information 
from 10 or more individuals, other than 
agencies, instrumentalities, or employees 
of the Federal government, the agency 
shall prepare and make available for pub-
lic comment an initial privacy impact as-
sessment that describes the impact of the 
proposed rule on the privacy of individ-
uals. Such assessment or a summary 
thereof shall be signed by the senior 
agency official with primary responsi-
bility for privacy policy and be published 
in the Federal Register at the time of the 
publication of a general notice of pro-
posed rulemaking for the rule.
1738 
‘‘(2) CONTENTS.—Each initial privacy 
impact assessment required under this 
subsection shall contain the following: 
‘‘(A) A description and analysis of 
the extent to which the proposed rule 
will impact the privacy interests of 
individuals, including the extent to 
which the proposed rule— 
‘‘(i) provides notice of the col-
lection of personally identifiable 
information, and specifies what 
personally identifiable informa-
tion is to be collected and how it 
is to be collected, maintained, 
used, and disclosed; 
‘‘(ii) allows access to such in-
formation by the person to whom 
the personally identifiable infor-
mation pertains and provides an 
opportunity to correct inaccura-
cies; 
‘‘(iii) prevents such informa-
tion, which is collected for one 
purpose, from being used for an-
other purpose; and
1739 
‘‘(iv) 
provides 
security 
for 
such information. 
‘‘(B) A description of any signifi-
cant alternatives to the proposed rule 
which accomplish the stated objec-
tives of applicable statutes and which 
minimize any significant privacy im-
pact of the proposed rule on individ-
uals. 
‘‘(b) FINAL PRIVACY IMPACT ASSESSMENT.— 
‘‘(1) IN GENERAL.—Whenever an agen-
cy promulgates a final rule under section 
553 of this title, after being required by 
that section or any other law to publish a 
general notice of proposed rulemaking, 
or promulgates a final interpretative rule 
involving the internal revenue laws of 
the United States, and such rule or pro-
posed rulemaking pertains to the collec-
tion, maintenance, use, or disclosure of 
personally identifiable information from 
10 or more individuals, other than agen-
cies, instrumentalities, or employees of 
the Federal government, the agency shall 
prepare a final privacy impact assess-
1740 
ment, signed by the senior agency official 
with primary responsibility for privacy 
policy. 
‘‘(2) CONTENTS.—Each final privacy 
impact assessment required under this 
subsection shall contain the following: 
‘‘(A) A description and analysis of 
the extent to which the final rule will 
impact the privacy interests of indi-
viduals, including the extent to which 
such rule— 
‘‘(i) provides notice of the col-
lection of personally identifiable 
information, and specifies what 
personally identifiable informa-
tion is to be collected and how it 
is to be collected, maintained, 
used, and disclosed; 
‘‘(ii) allows access to such in-
formation by the person to whom 
the personally identifiable infor-
mation pertains and provides an 
opportunity to correct inaccura-
cies;
1741 
‘‘(iii) prevents such informa-
tion, which is collected for one 
purpose, from being used for an-
other purpose; and 
‘‘(iv) 
provides 
security 
for 
such information. 
‘‘(B) A summary of any significant 
issues raised by the public comments 
in response to the initial privacy im-
pact assessment, a summary of the 
analysis of the agency of such issues, 
and a statement of any changes made 
in such rule as a result of such issues. 
‘‘(C) A description of the steps the 
agency has taken to minimize the sig-
nificant privacy impact on individ-
uals consistent with the stated objec-
tives of applicable statutes, including 
a statement of the factual, policy, and 
legal reasons for selecting the alter-
native adopted in the final rule and 
why each one of the other significant 
alternatives to the rule considered by 
the agency which affect the privacy 
interests of individuals was rejected.
1742 
‘‘(3) 
AVAILABILITY
TO
PUBLIC.—The 
agency shall make copies of the final pri-
vacy 
impact 
assessment 
available 
to 
members of the public and shall publish 
in the Federal Register such assessment 
or a summary thereof. 
‘‘(c) WAIVERS.— 
‘‘(1) EMERGENCIES.—An agency head 
may waive or delay the completion of 
some or all of the requirements of sub-
sections (a) and (b) to the same extent as 
the agency head may, under section 608, 
waive or delay the completion of some or 
all of the requirements of sections 603 
and 604, respectively. 
‘‘(2) NATIONAL
SECURITY.—An agency 
head may, for national security reasons, 
or to protect from disclosure classified 
information, confidential commercial in-
formation, or information the disclosure 
of which may adversely affect a law en-
forcement effort, waive or delay the com-
pletion of some or all of the following re-
quirements:
1743 
‘‘(A) The requirement of sub-
section (a)(1) to make an assessment 
available for public comment. 
‘‘(B) The requirement of sub-
section (a)(1) to have an assessment 
or summary thereof published in the 
Federal Register. 
‘‘(C) The requirements of sub-
section (b)(3). 
‘‘(d) PROCEDURES
FOR
GATHERING
COM-
MENTS.—When any rule is promulgated which 
may have a significant privacy impact on in-
dividuals, or a privacy impact on a substan-
tial number of individuals, the head of the 
agency promulgating the rule or the official of 
the agency with statutory responsibility for 
the promulgation of the rule shall assure that 
individuals have been given an opportunity to 
participate in the rulemaking for the rule 
through techniques such as— 
‘‘(1) the inclusion in an advance no-
tice of proposed rulemaking, if issued, of 
a statement that the proposed rule may 
have a significant privacy impact on indi-
1744 
viduals, or a privacy impact on a substan-
tial number of individuals; 
‘‘(2) the publication of a general no-
tice of proposed rulemaking in publica-
tions of national circulation likely to be 
obtained by individuals; 
‘‘(3) the direct notification of inter-
ested individuals; 
‘‘(4) the conduct of open conferences 
or public hearings concerning the rule 
for individuals, including soliciting and 
receiving comments over computer net-
works; and 
‘‘(5) the adoption or modification of 
agency procedural rules to reduce the 
cost or complexity of participation in the 
rulemaking by individuals. 
‘‘(e) PERIODIC REVIEW OF RULES.— 
‘‘(1) IN
GENERAL.—Each agency shall 
carry out a periodic review of the rules 
promulgated by the agency that have a 
significant privacy impact on individuals, 
or a privacy impact on a substantial num-
ber of individuals. Under such periodic 
review, the agency shall determine, for
1745 
each such rule, whether the rule can be 
amended or rescinded in a manner that 
minimizes any such impact while remain-
ing in accordance with applicable stat-
utes. For each such determination, the 
agency shall consider the following fac-
tors: 
‘‘(A) The continued need for the 
rule. 
‘‘(B) The nature of complaints or 
comments received from the public 
concerning the rule. 
‘‘(C) The complexity of the rule. 
‘‘(D) The extent to which the rule 
overlaps, duplicates, or conflicts with 
other Federal rules, and, to the extent 
feasible, with State and local govern-
mental rules. 
‘‘(E) The length of time since the 
rule was last reviewed under this 
subsection. 
‘‘(F) The degree to which tech-
nology, economic conditions, or other 
factors have changed in the area af-
1746 
fected by the rule since the rule was 
last reviewed under this subsection. 
‘‘(2) PLAN
REQUIRED.—Each agency 
shall carry out the periodic review re-
quired by paragraph (1) in accordance 
with a plan published by such agency in 
the Federal Register. Each such plan 
shall provide for the review under this 
subsection of each rule promulgated by 
the agency not later than 10 years after 
the date on which such rule was pub-
lished as the final rule and, thereafter, 
not later than 10 years after the date on 
which such rule was last reviewed under 
this subsection. The agency may amend 
such plan at any time by publishing the 
revision in the Federal Register. 
‘‘(3) ANNUAL PUBLICATION.—Each year, 
each agency shall publish in the Federal 
Register a list of the rules to be reviewed 
by such agency under this subsection 
during the following year. The list shall 
include a brief description of each such 
rule and the need for and legal basis of 
such rule and shall invite public com-
1747 
ment upon the determination to be made 
under this subsection with respect to 
such rule. 
‘‘(f) JUDICIAL REVIEW.— 
‘‘(1) IN GENERAL.—For any rule subject 
to this section, an individual who is ad-
versely affected or aggrieved by final 
agency action is entitled to judicial re-
view of agency compliance with the re-
quirements of subsections (b) and (c) in 
accordance with chapter 7. Agency com-
pliance with subsection (d) shall be judi-
cially reviewable in connection with judi-
cial review of subsection (b). 
‘‘(2) JURISDICTION.—Each court having 
jurisdiction to review such rule for com-
pliance with section 553, or under any 
other provision of law, shall have juris-
diction to review any claims of non-
compliance with subsections (b) and (c) 
in accordance with chapter 7. Agency 
compliance with subsection (d) shall be 
judicially reviewable in connection with 
judicial review of subsection (b). 
‘‘(3) LIMITATIONS.—
1748 
‘‘(A) An individual may seek such 
review during the period beginning 
on the date of final agency action and 
ending 1 year later, except that 
where a provision of law requires 
that an action challenging a final 
agency action be commenced before 
the expiration of 1 year, such lesser 
period shall apply to an action for ju-
dicial review under this subsection. 
‘‘(B) In the case where an agency 
delays the issuance of a final privacy 
impact assessment pursuant to sub-
section (c), an action for judicial re-
view under this section shall be filed 
not later than— 
‘‘(i) 1 year after the date the 
assessment is made available to 
the public; or 
‘‘(ii) where a provision of law 
requires 
that 
an 
action 
chal-
lenging a final agency regulation 
be commenced before the expira-
tion of the 1-year period, the 
number of days specified in such
1749 
provision of law that is after the 
date 
the 
assessment 
is 
made 
available to the public. 
‘‘(4) RELIEF.—In granting any relief in 
an action under this subsection, the court 
shall order the agency to take corrective 
action consistent with this section and 
chapter 7, including, but not limited to— 
‘‘(A) remanding the rule to the 
agency; and 
‘‘(B) deferring the enforcement of 
the rule against individuals, unless 
the court finds that continued en-
forcement of the rule is in the public 
interest. 
‘‘(5) RULE OF CONSTRUCTION.—Nothing 
in this subsection shall be construed to 
limit the authority of any court to stay 
the effective date of any rule or provision 
thereof under any other provision of law 
or to grant any other relief in addition to 
the requirements of this subsection. 
‘‘(6) RECORD OF AGENCY ACTION.—In an 
action for the judicial review of a rule, 
the privacy impact assessment for such
1750 
rule, including an assessment prepared 
or corrected pursuant to paragraph (4), 
shall constitute part of the entire record 
of agency action in connection with such 
review. 
‘‘(7) EXCLUSIVITY.—Compliance or non-
compliance by an agency with the provi-
sions of this section shall be subject to ju-
dicial review only in accordance with 
this subsection. 
‘‘(8) SAVINGS CLAUSE.—Nothing in this 
subsection bars judicial review of any 
other impact statement or similar assess-
ment required by any other law if judi-
cial review of such statement or assess-
ment is otherwise permitted by law. 
‘‘(g) DEFINITION.—For purposes of this sec-
tion, the term ‘personally identifiable infor-
mation’ means information that can be used 
to identify an individual, including such indi-
vidual’s name, address, telephone number, 
photograph, social security number or other 
identifying information. It includes informa-
tion about such individual’s medical or finan-
cial condition.’’.
1751 
(c) PERIODIC REVIEW TRANSITION PROVI-
SIONS.— 
(1) INITIAL
PLAN.—For each agency, 
the plan required by subsection (e) of sec-
tion 553a of title 5, United States Code (as 
added by subsection (a)), shall be pub-
lished not later than 180 days after the 
date of the enactment of this Act. 
(2) In the case of a rule promulgated 
by an agency before the date of the enact-
ment of this Act, such plan shall provide 
for the periodic review of such rule be-
fore the expiration of the 10-year period 
beginning on the date of the enactment of 
this Act. For any such rule, the head of 
the agency may provide for a 1-year ex-
tension of such period if the head of the 
agency, before the expiration of the pe-
riod, certifies in a statement published in 
the Federal Register that reviewing such 
rule before the expiration of the period is 
not feasible. The head of the agency may 
provide for additional 1-year extensions 
of the period pursuant to the preceding
1752 
sentence, but in no event may the period 
exceed 15 years. 
(d) 
CONGRESSIONAL
REVIEW.—Section 
801(a)(1)(B) of title 5, United States Code, is 
amended— 
(1) by redesignating clauses (iii) and 
(iv) as clauses (iv) and (v), respectively; 
and 
(2) by inserting after clause (ii) the 
following new clause: 
‘‘(iii) the agency’s actions relevant to 
section 553a;’’. 
(e) CLERICAL AMENDMENT.—The table of 
sections at the beginning of chapter 5 of title 
5, United States Code, is amended by adding 
after the item relating to section 553 the fol-
lowing new item: 
‘‘553a. Privacy impact assessment in rulemaking.’’. 
SEC. 5092. CHIEF PRIVACY OFFICERS FOR AGENCIES WITH 
LAW ENFORCEMENT OR ANTI-TERRORISM 
FUNCTIONS. 
(a) IN GENERAL.—There shall be within 
each Federal agency with law enforcement or 
anti-terrorism functions a chief privacy offi-
cer, who shall have primary responsibility 
within that agency for privacy policy. The
1753 
agency chief privacy officer shall be des-
ignated by the head of the agency. 
(b) 
RESPONSIBILITIES.—The 
responsibil-
ities of each agency chief privacy officer shall 
include— 
(1) ensuring that the use of tech-
nologies sustains, and does not erode, pri-
vacy protections relating to the use, col-
lection, and disclosure of personally iden-
tifiable information; 
(2) ensuring that personally identifi-
able information contained in systems of 
records is handled in full compliance 
with fair information practices as set out 
in section 552a of title 5, United States 
Code; 
(3) evaluating legislative and regu-
latory proposals involving collection, use, 
and disclosure of personally identifiable 
information by the Federal Government; 
(4) conducting a privacy impact as-
sessment of proposed rules of the agency 
on the privacy of personally identifiable 
information, including the type of person-
1754 
ally identifiable information collected 
and the number of people affected; 
(5) preparing and submitting a report 
to Congress on an annual basis on activi-
ties of the agency that affect privacy, in-
cluding complaints of privacy violations, 
implementation of section 552a of title 5, 
United States Code, internal controls, 
and other relevant matters; 
(6) ensuring that the agency protects 
personally identifiable information and 
information systems from unauthorized 
access, use, disclosure, disruption, modi-
fication, or destruction in order to pro-
vide— 
(A) integrity, which means guard-
ing 
against 
improper 
information 
modification or destruction, and in-
cludes 
ensuring 
information 
non-
repudiation and authenticity; 
(B) confidentially, which means 
preserving authorized restrictions on 
access 
and 
disclosure, 
including 
means for protecting personal pri-
vacy and proprietary information;
1755 
(C) availability, which means en-
suring timely and reliable access to 
and use of that information; and 
(D) authentication, which means 
utilizing digital credentials to assure 
the identity of users and validate 
their access; and 
(7) advising the head of the agency 
and the Director of the Office of Manage-
ment and Budget on information security 
and privacy issues pertaining to Federal 
Government information systems. 
CHAPTER 2—MUTUAL AID AND 
LITIGATION MANAGEMENT 
SEC. 5101. SHORT TITLE. 
This chapter may be cited as the ‘‘Mutual 
Aid and Litigation Management Authoriza-
tion Act of 2004’’. 
SEC. 5102. MUTUAL AID AUTHORIZED. 
(a) AUTHORIZATION TO ENTER INTO AGREE-
MENTS.— 
(1) IN GENERAL.—The authorized rep-
resentative of a State, locality, or the 
Federal Government may enter into an 
interstate mutual aid agreement or a mu-
1756 
tual aid agreement with the Federal Gov-
ernment on behalf of the State, locality, 
or Federal Government under which, at 
the request of any party to the agree-
ment, the other party to the agreement 
may— 
(A) provide law enforcement, fire, 
rescue, emergency health and med-
ical services, transportation, commu-
nications, public works and engineer-
ing, mass care, and resource support 
in an emergency or public service 
event occurring in the jurisdiction of 
the requesting party; 
(B) provide other services to pre-
pare for, mitigate, manage, respond 
to, or recover from an emergency or 
public service event occurring in the 
jurisdiction of the requesting party; 
and 
(C) participate in training events 
occurring in the jurisdiction of the 
requesting party. 
(b) LIABILITY AND ACTIONS AT LAW.—
1757 
(1) LIABILITY.—A responding party or 
its officers or employees shall be liable on 
account of any act or omission occurring 
while providing assistance or partici-
pating in a training event in the jurisdic-
tion of a requesting party under a mutual 
aid agreement (including any act or omis-
sion arising from the maintenance or use 
of any equipment, facilities, or supplies 
in connection therewith), but only to the 
extent permitted under and in accord-
ance with the laws and procedures of the 
State of the responding party and subject 
to this chapter. 
(2) JURISDICTION OF COURTS.— 
(A) IN
GENERAL.—Subject to sub-
paragraph (B) and section 3, any ac-
tion brought against a responding 
party or its officers or employees on 
account of an act or omission de-
scribed in subsection (b)(1) may be 
brought only under the laws and pro-
cedures of the State of the respond-
ing party and only in the State courts
1758 
or United States District Courts lo-
cated therein. 
(B) UNITED
STATES
AS
PARTY.—If 
the United States is the party against 
whom an action described in para-
graph (1) is brought, the action may 
be brought only in a United States 
District Court. 
(c) WORKERS’ COMPENSATION
AND DEATH 
BENEFITS.— 
(1) PAYMENT OF BENEFITS.—A respond-
ing party shall provide for the payment 
of workers’ compensation and death ben-
efits with respect to officers or employees 
of the party who sustain injuries or are 
killed while providing assistance or par-
ticipating in a training event under a mu-
tual aid agreement in the same manner 
and on the same terms as if the injury or 
death were sustained within the jurisdic-
tion of the responding party. 
(2) LIABILITY FOR BENEFITS.—No party 
shall be liable under the law of any State 
other than its own (or, in the case of the 
Federal Government, under any law
1759 
other than Federal law) for the payment 
of workers’ compensation and death ben-
efits with respect to injured officers or 
employees of the party who sustain inju-
ries or are killed while providing assist-
ance or participating in a training event 
under a mutual aid agreement. 
(d) LICENSES AND PERMITS.—Whenever any 
person holds a license, certificate, or other 
permit issued by any responding party evi-
dencing the meeting of qualifications for pro-
fessional, mechanical, or other skills, such 
person will be deemed licensed, certified, or 
permitted by the requesting party to provide 
assistance involving such skill under a mu-
tual aid agreement. 
(e) SCOPE.—Except to the extent provided 
in this section, the rights and responsibilities 
of the parties to a mutual aid agreement shall 
be as described in the mutual aid agreement. 
(f) EFFECT ON OTHER AGREEMENTS.—Noth-
ing in this section precludes any party from 
entering into supplementary mutual aid 
agreements with fewer than all the parties, or 
with another, or affects any other agreements
1760 
already in force among any parties to such an 
agreement, including the Emergency Manage-
ment Assistance Compact (EMAC) under Pub-
lic Law 104–321. 
(g) FEDERAL
GOVERNMENT.—Nothing in 
this section may be construed to limit any 
other expressed or implied authority of any 
entity of the Federal Government to enter 
into mutual aid agreements. 
(h) CONSISTENCY
WITH
STATE
LAW.—A 
party may enter into a mutual aid agreement 
under this chapter only insofar as the agree-
ment is in accord with State law. 
SEC. 5103. LITIGATION MANAGEMENT AGREEMENTS. 
(a) AUTHORIZATION TO ENTER INTO LITIGA-
TION MANAGEMENT AGREEMENTS.—The author-
ized representative of a State or locality may 
enter into a litigation management agreement 
on behalf of the State or locality. Such litiga-
tion management agreements may provide 
that all claims against such Emergency Re-
sponse Providers arising out of, relating to, or 
resulting from an act of terrorism when Emer-
gency Response Providers from more than 1 
State have acted in defense against, in re-
1761 
sponse to, or recovery from such act shall be 
governed by the following provisions. 
(b) FEDERAL CAUSE OF ACTION.— 
(1) IN
GENERAL.—There shall exist a 
Federal cause of action for claims against 
Emergency Response Providers arising 
out of, relating to, or resulting from an 
act of terrorism when Emergency Re-
sponse Providers from more than 1 State 
have acted in defense against, in re-
sponse to, or recovery from such act. As 
determined by the parties to a litigation 
management agreement, the substantive 
law for decision in any such action shall 
be— 
(A) derived from the law, includ-
ing choice of law principles, of the 
State in which such acts of terrorism 
occurred, unless such law is incon-
sistent with or preempted by Federal 
law; or 
(B) derived from the choice of law 
principles agreed to by the parties to 
a litigation management agreement 
as described in the litigation manage-
1762 
ment agreement, unless such prin-
ciples are inconsistent with or pre-
empted by Federal law. 
(2) JURISDICTION.—Such appropriate 
district court of the United States shall 
have original and exclusive jurisdiction 
over all actions for any claim against 
Emergency Response Providers for loss 
of property, personal injury, or death 
arising out of, relating to, or resulting 
from an act of terrorism when Emer-
gency Response Providers from more 
than 1 State have acted in defense 
against, in response to, or recovery from 
an act of terrorism. 
(3) 
SPECIAL
RULES.—In 
an 
action 
brought for damages that is governed by 
a litigation management agreement, the 
following provisions apply: 
(A) PUNITIVE
DAMAGES.—No puni-
tive damages intended to punish or 
deter, exemplary damages, or other 
damages not intended to compensate 
a plaintiff for actual losses may be
1763 
awarded, nor shall any party be liable 
for interest prior to the judgment. 
(B) COLLATERAL SOURCES.—Any re-
covery by a plaintiff in an action gov-
erned by a litigation management 
agreement shall be reduced by the 
amount of collateral source com-
pensation, if any, that the plaintiff 
has received or is entitled to receive 
as a result of such acts of terrorism. 
(4) EXCLUSIONS.—Nothing in this sec-
tion shall in any way limit the ability of 
any person to seek any form of recovery 
from any person, government, or other 
entity that— 
(A) attempts to commit, know-
ingly participates in, aids and abets, 
or commits any act of terrorism, or 
any criminal act related to or result-
ing from such act of terrorism; or 
(B) participates in a conspiracy to 
commit any such act of terrorism or 
any such criminal act.
1764 
SEC. 5104. ADDITIONAL PROVISIONS. 
(a) NO
ABROGATION
OF
OTHER
IMMUNI-
TIES.—Nothing in this chapter shall abrogate 
any other immunities from liability that any 
party may have under any other State or Fed-
eral law. 
(b) EXCEPTION FOR CERTAIN FEDERAL LAW 
ENFORCEMENT
ACTIVITIES.—A 
mutual 
aid 
agreement or a litigation management agree-
ment may not apply to law enforcement secu-
rity operations at special events of national 
significance under section 3056(e) of title 18, 
United States Code, or to other law enforce-
ment functions of the United States Secret 
Service. 
(c) SECRET SERVICE.—Section 3056 of title 
18, United States Code, is amended by adding 
at the end the following new subsection: 
‘‘(g) The Secret Service shall be main-
tained as a distinct entity within the Depart-
ment of Homeland Security and shall not be 
merged with any other department function. 
All personnel and operational elements of the 
United States Secret Service shall report to 
the Director of the Secret Service, who shall 
report directly to the Secretary of Homeland
1765 
Security without being required to report 
through any other official of the Depart-
ment.’’. 
SEC. 5105. DEFINITIONS. 
For purposes of this chapter, the fol-
lowing definitions apply: 
(1) AUTHORIZED REPRESENTATIVE.—The 
term 
‘‘authorized 
representative’’ 
means— 
(A) in the case of the Federal Gov-
ernment, any individual designated 
by the President with respect to the 
executive branch, the Chief Justice of 
the United States with respect to the 
judicial branch, or the President pro 
Tempore of the Senate and Speaker 
of the House of Representatives with 
respect to the Congress, or their des-
ignees, to enter into a mutual aid 
agreement; 
(B) in the case of a locality, the of-
ficial designated by law to declare an 
emergency in and for the locality, or 
the official’s designee;
1766 
(C) in the case of a State, the Gov-
ernor or the Governor’s designee. 
(2) 
EMERGENCY.—The 
term 
‘‘emer-
gency’’ means a major disaster or emer-
gency declared by the President, or a 
State of Emergency declared by an au-
thorized representative of a State or lo-
cality, in response to which assistance 
may be provided under a mutual aid 
agreement. 
(3) EMERGENCY RESPONSE PROVIDER.— 
The term ‘‘Emergency Response Pro-
vider’’ means State or local emergency 
public safety, law enforcement, emer-
gency response, emergency medical (in-
cluding hospital emergency facilities), 
and related personnel, agencies, and au-
thorities that are a party to a litigation 
management agreement. 
(4) EMPLOYEE.—The term ‘‘employee’’ 
means, with respect to a party to a mu-
tual aid agreement, the employees of the 
party, including its agents or authorized 
volunteers, who are committed to provide 
assistance under the agreement.
1767 
(5) LITIGATION
MANAGEMENT
AGREE-
MENT.—The term ‘‘litigation management 
agreement’’ means an agreement entered 
into pursuant to the authority granted 
under section 5103. 
(6) 
LOCALITY.—The 
term 
‘‘locality’’ 
means a county, city, or town. 
(7) MUTUAL AID AGREEMENT.—The term 
‘‘mutual aid agreement’’ means an agree-
ment entered into pursuant to the au-
thority granted under section 5102. 
(8) PUBLIC SERVICE EVENT.—The term 
‘‘public 
service 
event’’ 
means 
any 
undeclared emergency, incident, or situa-
tion in preparation for or response to 
which assistance may be provided under 
a mutual aid agreement. 
(9) REQUESTING PARTY.—The term ‘‘re-
questing party’’ means, with respect to a 
mutual aid agreement, the party in whose 
jurisdiction assistance is provided, or a 
training event is held, under the agree-
ment. 
(10) RESPONDING
PARTY.—The term 
‘‘responding party’’ means, with respect
1768 
to a mutual aid agreement, the party pro-
viding assistance, or participating in a 
training event, under the agreement, but 
does not include the requesting party. 
(11) STATE.—The term ‘‘State’’ in-
cludes each of the several States of the 
United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern 
Mariana Islands, and any other territory 
or possession of the United States, and 
any political subdivision of any such 
place. 
(12) 
TRAINING
EVENT.—The 
term 
‘‘training event’’ means an emergency 
and public service event-related exercise, 
test, or other activity using equipment 
and personnel to prepare for or simulate 
performance of any aspect of the giving 
or receiving of assistance during emer-
gencies or public service events, but does 
not include an actual emergency or pub-
lic service event.
1769 
CHAPTER 3—MISCELLANEOUS MATTERS 
SEC. 5131. ENHANCEMENT OF PUBLIC SAFETY COMMU-
NICATIONS INTEROPERABILITY. 
(a) COORDINATION OF PUBLIC SAFETY INTER-
OPERABLE COMMUNICATIONS PROGRAMS.— 
(1) 
PROGRAM.—The 
Secretary 
of 
Homeland Security, in consultation with 
the Secretary of Commerce and the 
Chairman of the Federal Communica-
tions Commission, shall establish a pro-
gram to enhance public safety interoper-
able communications at all levels of gov-
ernment. Such program shall— 
(A) establish a comprehensive na-
tional approach to achieving public 
safety interoperable communications; 
(B) coordinate with other Federal 
agencies in carrying out subpara-
graph (A); 
(C) develop, in consultation with 
other appropriate Federal agencies 
and State and local authorities, ap-
propriate minimum capabilities for 
communications interoperability for
1770 
Federal, State, and local public safety 
agencies; 
(D) accelerate, in consultation 
with other Federal agencies, includ-
ing the National Institute of Stand-
ards and Technology, the private sec-
tor, and nationally recognized stand-
ards organizations as appropriate, 
the 
development 
of 
national 
vol-
untary consensus standards for pub-
lic safety interoperable communica-
tions; 
(E) encourage the development 
and implementation of flexible and 
open architectures, with appropriate 
levels of security, for short-term and 
long-term solutions to public safety 
communications interoperability; 
(F) assist other Federal agencies 
in identifying priorities for research, 
development, and testing and evalua-
tion with regard to public safety 
interoperable communications; 
(G) identify priorities within the 
Department of Homeland Security for
1771 
research, development, and testing 
and evaluation with regard to public 
safety interoperable communications; 
(H) establish coordinated guid-
ance for Federal grant programs for 
public safety interoperable commu-
nications; 
(I) provide technical assistance to 
State and local public safety agencies 
regarding planning, acquisition strat-
egies, interoperability architectures, 
training, and other functions nec-
essary to achieve public safety com-
munications interoperability; 
(J) develop and disseminate best 
practices to improve public safety 
communications interoperability; and 
(K) develop appropriate perform-
ance measures and milestones to sys-
tematically 
measure 
the 
Nation’s 
progress towards achieving public 
safety 
communications 
interoper-
ability, including the development of 
national voluntary consensus stand-
ards.
1772 
(2) OFFICE FOR INTEROPERABILITY AND 
COMPATIBILITY.— 
(A) ESTABLISHMENT
OF
OFFICE.— 
The Secretary may establish an Office 
for 
Interoperability 
and 
Compat-
ibility to carry out this subsection. 
(B) FUNCTIONS.—If the Secretary 
establishes such office, the Secretary 
shall, through such office— 
(i) carry out Department of 
Homeland Security responsibil-
ities and authorities relating to 
the SAFECOM Program; and 
(ii) carry out subsection (c) 
(relating to rapid interoperable 
communications capabilities for 
high risk jurisdictions). 
(3) APPLICABILITY
OF
FEDERAL
ADVI-
SORY COMMITTEE ACT.—The Federal Advi-
sory Committee Act (5 U.S.C. App.) shall 
not apply to advisory groups established 
and maintained by the Secretary for pur-
poses of carrying out this subsection. 
(b) REPORT.—Not later than 120 days after 
the date of the enactment of this Act, the Sec-
1773 
retary shall report to the Congress on Depart-
ment of Homeland Security plans for accel-
erating the development of national vol-
untary consensus standards for public safety 
interoperable communications, a schedule of 
milestones 
for 
such 
development, 
and 
achievements of such development. 
(c) RAPID INTEROPERABLE COMMUNICATIONS 
CAPABILITIES FOR HIGH RISK JURISDICTIONS.— 
The Secretary, in consultation with other rel-
evant Federal, State, and local government 
agencies, shall provide technical, training, 
and other assistance as appropriate to sup-
port the rapid establishment of consistent, se-
cure, and effective interoperable communica-
tions capabilities for emergency response pro-
viders in jurisdictions determined by the Sec-
retary to be at consistently high levels of risk 
of terrorist attack. 
(d) DEFINITIONS.—In this section: 
(1) INTEROPERABLE COMMUNICATIONS.— 
The 
term 
‘‘interoperable 
communica-
tions’’ means the ability of emergency re-
sponse providers and relevant Federal, 
State, and local government agencies to
1774 
communicate with each other as nec-
essary, through a dedicated public safety 
network utilizing information technology 
systems and radio communications sys-
tems, and to exchange voice, data, or 
video with one another on demand, in 
real time, as necessary. 
(2) EMERGENCY RESPONSE PROVIDERS.— 
The 
term 
‘‘emergency 
response 
pro-
viders’’ has the meaning that term has 
under section 2 of the Homeland Security 
Act of 2002 (6 U.S.C. 101) 
(e) CLARIFICATION OF RESPONSIBILITY FOR 
INTEROPERABLE COMMUNICATIONS.— 
(1) UNDER SECRETARY FOR EMERGENCY 
PREPAREDNESS
AND
RESPONSE.—Section 
502(7) of the Homeland Security Act of 
2002 (6 U.S.C. 312(7)) is amended— 
(A) by striking ‘‘developing com-
prehensive programs for developing 
interoperative communications tech-
nology, and’’; and 
(B) by striking ‘‘such’’ and insert-
ing ‘‘interoperable communications’’.
1775 
(2) OFFICE
FOR
DOMESTIC
PREPARED-
NESS.—Section 430(c) of such Act (6 U.S.C. 
238(c)) is amended— 
(A) in paragraph (7) by striking 
‘‘and’’ after the semicolon; 
(B) in paragraph (8) by striking 
the period and inserting ‘‘; and’’; and 
(C) by adding at the end the fol-
lowing: 
‘‘(9) helping to ensure the acquisition 
of interoperable communication tech-
nology by State and local governments 
and emergency response providers.’’. 
SEC. 5132. SENSE OF CONGRESS REGARDING THE INCI-
DENT COMMAND SYSTEM. 
(a) FINDINGS.—The Congress finds that— 
(1) in Homeland Security Presidential 
Directive-5, the President directed the 
Secretary of Homeland Security to de-
velop an incident command system to be 
known as the National Incident Manage-
ment System (NIMS), and directed all 
Federal agencies to make the adoption of 
NIMS a condition for the receipt of Fed-
eral emergency preparedness assistance
1776 
by States, territories, tribes, and local 
governments beginning in fiscal year 
2005; 
(2) in March 2004, the Secretary of 
Homeland Security established NIMS, 
which 
provides 
a 
unified 
structural 
framework for Federal, State, territorial, 
tribal, and local governments to ensure 
coordination of command, operations, 
planning, logistics, finance, and adminis-
tration 
during 
emergencies 
involving 
multiple jurisdictions or agencies; and 
(3) the National Commission on Ter-
rorist Attacks Upon the United States 
strongly supports the adoption of NIMS 
by emergency response agencies nation-
wide, and the decision by the President 
to condition Federal emergency pre-
paredness assistance upon the adoption 
of NIMS. 
(b) SENSE OF CONGRESS.—It is the sense of 
the Congress that all levels of government 
should adopt NIMS, and that the regular use 
of and training in NIMS by States, territories, 
tribes, and local governments should be a con-
1777 
dition for receiving Federal preparedness as-
sistance. 
SEC. 5133. SENSE OF CONGRESS REGARDING UNITED 
STATES NORTHERN COMMAND PLANS AND 
STRATEGIES. 
It is the sense of Congress that the Sec-
retary of Defense should regularly assess the 
adequacy of United States Northern Com-
mand’s plans and strategies with a view to en-
suring that the United States Northern Com-
mand is prepared to respond effectively to all 
military and paramilitary threats within the 
United States.
Union Calendar No. 453 
108TH CONGRESS 
2D SESSION 
H. R. 10 
[Report No. 108–724, Parts I, II, III, IV, and V] 
A BILL 
To provide for reform of the intelligence commu-
nity, terrorism prevention and prosecution, bor-
der security, and international cooperation and 
coordination, and for other purposes. 
OCTOBER 4, 2004 
Reported from the Permanent Select Committee on Intel-
ligence with an amendment; Reported from the Com-
mittee on Armed Services with amendments; Reported 
from the Committee on Financial Services with an 
amendment; Referral to the Committees on Education 
and the Workforce, Energy and Commerce, Govern-
ment Reform, International Relations, the Judiciary, 
Rules, Science, Transportation and Infrastructure, 
Ways and Means, and the Select Committee on Home-
land Security extended for a period ending not later 
than October 5, 2004 
OCTOBER 5, 2004 
Reported from the Committee on Government Reform 
with an amendment; Reported from the Committee on 
the Judiciary with an amendment; Committees on 
Education and the Workforce, Energy and Commerce, 
International Relations, Rules, Science, Transportation 
and Infrastructure, Ways and Means, and the Select 
Committee on Homeland Security discharged; com-
mitted to the Committee of the Whole House on the 
State of the Union and ordered to be printed