188
untary separation incentive payment under this section
and who, within 5 years after the date of the separation
on which the payment is based, accepts any compensated
employment with the Government or works for any agency
of the Government through a personal services contract,
shall be required to pay, prior to the individual’s first day
of employment, the entire amount of the incentive pay-
ment. Such payment shall be made to the covered entity
from which the individual separated or, if made on or after
the transfer date, to the Deputy Secretary or the Under
Secretary for Border and Transportation Security (for
transfer to the appropriate component of the Department
of Homeland Security, if necessary).
(f) EFFECT ON EMPLOYMENT LEVELS.—
(1) INTENDED EFFECT.—Voluntary separations
under this section are not intended to necessarily re-
duce the total number of full-time equivalent posi-
tions in any covered entity.
(2) USE OF VOLUNTARY SEPARATIONS.—A cov-
ered entity may redeploy or use the full-time equiva-
lent positions vacated by voluntary separations
under this section to make other positions available
to more critical locations or more critical occupa-
tions.
189
SEC. 473. AUTHORITY TO CONDUCT A DEMONSTRATION
PROJECT RELATING TO DISCIPLINARY AC-
TION.
(a) IN GENERAL.—The Attorney General and the
Secretary may each, during a period ending not later than
5 years after the date of the enactment of this Act, con-
duct a demonstration project for the purpose of deter-
mining whether one or more changes in the policies or pro-
cedures relating to methods for disciplining employees
would result in improved personnel management.
(b) SCOPE.—A demonstration project under this
section—
(1) may not cover any employees apart from
those employed in or under a covered entity; and
(2) shall not be limited by any provision of
chapter 43, 75, or 77 of title 5, United States Code.
(c) 
PROCEDURES.—Under 
the 
demonstration
project—
(1) the use of alternative means of dispute reso-
lution (as defined in section 571 of title 5, United
States Code) shall be encouraged, whenever appro-
priate; and
(2) each covered entity under the jurisdiction of
the official conducting the project shall be required
to provide for the expeditious, fair, and independent
review of any action to which section 4303 or sub-
190
chapter II of chapter 75 of such title 5 would other-
wise apply (except an action described in section
7512(5) of such title 5).
(d) ACTIONS
INVOLVING
DISCRIMINATION.—Not-
withstanding any other provision of this section, if, in the
case of any matter described in section 7702(a)(1)(B) of
title 5, United States Code, there is no judicially review-
able action under the demonstration project within 120
days after the filing of an appeal or other formal request
for review (referred to in subsection (c)(2)), an employee
shall be entitled to file a civil action to the same extent
and in the same manner as provided in section 7702(e)(1)
of such title 5 (in the matter following subparagraph (C)
thereof).
(e) CERTAIN EMPLOYEES.—Employees shall not be
included within any project under this section if such em-
ployees are—
(1) neither managers nor supervisors; and
(2) within a unit with respect to which a labor
organization is accorded exclusive recognition under
chapter 71 of title 5, United States Code.
Notwithstanding the preceding sentence, an aggrieved em-
ployee within a unit (referred to in paragraph (2)) may
elect to participate in a complaint procedure developed
under the demonstration project in lieu of any negotiated
191
grievance procedure and any statutory procedure (as such
term is used in section 7121 of such title 5).
(f) REPORTS.—The General Accounting Office shall
prepare and submit to the Committees on Government Re-
form and the Judiciary of the House of Representatives
and the Committees on Governmental Affairs and the Ju-
diciary of the Senate periodic reports on any demonstra-
tion project conducted under this section, such reports to
be submitted after the second and fourth years of its oper-
ation. Upon request, the Attorney General or the Sec-
retary shall furnish such information as the General Ac-
counting Office may require to carry out this subsection.
(g) DEFINITION.—In this section, the term ‘‘covered
entity’’ has the meaning given such term in section
472(a)(2).
SEC. 474. SENSE OF CONGRESS.
It is the sense of Congress that—
(1) the missions of the Bureau of Border Secu-
rity and the Bureau of Citizenship and Immigration
Services are equally important and, accordingly, they
each should be adequately funded; and
(2) the functions transferred under this subtitle
should not, after such transfers take effect, operate
at levels below those in effect prior to the enactment
of this Act.
192
SEC. 475. DIRECTOR OF SHARED SERVICES.
(a) IN GENERAL.—Within the Office of Deputy Sec-
retary, there shall be a Director of Shared Services.
(b) FUNCTIONS.—The Director of Shared Services
shall be responsible for the coordination of resources for
the Bureau of Border Security and the Bureau of Citizen-
ship and Immigration Services, including—
(1) information resources management, includ-
ing computer databases and information technology;
(2) records and file management; and
(3) forms management.
SEC. 476. SEPARATION OF FUNDING.
(a) IN GENERAL.—There shall be established sepa-
rate accounts in the Treasury of the United States for
appropriated funds and other deposits available for the
Bureau of Citizenship and Immigration Services and the
Bureau of Border Security.
(b) SEPARATE BUDGETS.—To ensure that the Bu-
reau of Citizenship and Immigration Services and the Bu-
reau of Border Security are funded to the extent necessary
to fully carry out their respective functions, the Director
of the Office of Management and Budget shall separate
the budget requests for each such entity.
(c) FEES.—Fees imposed for a particular service, ap-
plication, or benefit shall be deposited into the account es-
193
tablished under subsection (a) that is for the bureau with
jurisdiction over the function to which the fee relates.
(d) FEES NOT TRANSFERABLE.—No fee may be
transferred between the Bureau of Citizenship and Immi-
gration Services and the Bureau of Border Security for
purposes not authorized by section 286 of the Immigration
and Nationality Act (8 U.S.C. 1356).
SEC. 477. REPORTS AND IMPLEMENTATION PLANS.
(a) DIVISION OF FUNDS.—The Secretary, not later
than 120 days after the effective date of this Act, shall
submit to the Committees on Appropriations and the Judi-
ciary of the House of Representatives and of the Senate
a report on the proposed division and transfer of funds,
including unexpended funds, appropriations, and fees, be-
tween the Bureau of Citizenship and Immigration Services
and the Bureau of Border Security.
(b) DIVISION OF PERSONNEL.—The Secretary, not
later than 120 days after the effective date of this Act,
shall submit to the Committees on Appropriations and the
Judiciary of the House of Representatives and of the Sen-
ate a report on the proposed division of personnel between
the Bureau of Citizenship and Immigration Services and
the Bureau of Border Security.
(c) IMPLEMENTATION PLAN.—
194
(1) IN
GENERAL.—The Secretary, not later
than 120 days after the effective date of this Act,
and every 6 months thereafter until the termination
of fiscal year 2005, shall submit to the Committees
on Appropriations and the Judiciary of the House of
Representatives and of the Senate an implementa-
tion plan to carry out this Act.
(2) 
CONTENTS.—The 
implementation 
plan
should include details concerning the separation of
the Bureau of Citizenship and Immigration Services
and the Bureau of Border Security, including the
following:
(A) Organizational structure, including the
field structure.
(B) Chain of command.
(C) Procedures for interaction among such
bureaus.
(D) Fraud detection and investigation.
(E) The processing and handling of re-
moval proceedings, including expedited removal
and applications for relief from removal.
(F) 
Recommendations 
for 
conforming
amendments to the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.).
(G) Establishment of a transition team.
195
(H) Methods to phase in the costs of sepa-
rating the administrative support systems of
the Immigration and Naturalization Service in
order to provide for separate administrative
support systems for the Bureau of Citizenship
and Immigration Services and the Bureau of
Border Security.
(d) COMPTROLLER GENERAL STUDIES
AND RE-
PORTS.—
(1) STATUS
REPORTS
ON
TRANSITION.—Not
later than 18 months after the date on which the
transfer of functions specified under section 441
takes effect, and every 6 months thereafter, until
full implementation of this subtitle has been com-
pleted, the Comptroller General of the United States
shall submit to the Committees on Appropriations
and on the Judiciary of the House of Representa-
tives and the Senate a report containing the fol-
lowing:
(A) A determination of whether the trans-
fers of functions made by subtitles D and E
have been completed, and if a transfer of func-
tions has not taken place, identifying the rea-
sons why the transfer has not taken place.
196
(B) If the transfers of functions made by
subtitles D and E have been completed, an
identification of any issues that have arisen due
to the completed transfers.
(C) An identification of any issues that
may arise due to any future transfer of func-
tions.
(2) REPORT ON MANAGEMENT.—Not later than
4 years after the date on which the transfer of func-
tions specified under section 441 takes effect, the
Comptroller General of the United States shall sub-
mit to the Committees on Appropriations and on the
Judiciary of the House of Representatives and the
Senate a report, following a study, containing the
following:
(A) Determinations of whether the transfer
of functions from the Immigration and Natu-
ralization Service to the Bureau of Citizenship
and Immigration Services and the Bureau of
Border Security have improved, with respect to
each function transferred, the following:
(i) Operations.
(ii) Management, including account-
ability and communication.
(iii) Financial administration.
197
(iv) Recordkeeping, including informa-
tion management and technology.
(B) A statement of the reasons for the de-
terminations under subparagraph (A).
(C) Any recommendations for further im-
provements to the Bureau of Citizenship and
Immigration Services and the Bureau of Border
Security.
(3) REPORT ON FEES.—Not later than 1 year
after the date of the enactment of this Act, the
Comptroller General of the United States shall sub-
mit to the Committees on the Judiciary of the
House of Representatives and of the Senate a report
examining whether the Bureau of Citizenship and
Immigration Services is likely to derive sufficient
funds from fees to carry out its functions in the ab-
sence of appropriated funds.
SEC. 478. IMMIGRATION FUNCTIONS.
(a) ANNUAL REPORT.—
(1) IN GENERAL.—One year after the date of
the enactment of this Act, and each year thereafter,
the Secretary shall submit a report to the President,
to the Committees on the Judiciary and Government
Reform of the House of Representatives, and to the
Committees on the Judiciary and Government Af-
198
fairs of the Senate, on the impact the transfers
made by this subtitle has had on immigration func-
tions.
(2) MATTER INCLUDED.—The report shall ad-
dress the following with respect to the period cov-
ered by the report:
(A) The aggregate number of all immigra-
tion applications and petitions received, and
processed, by the Department;
(B) Region-by-region statistics on the ag-
gregate number of immigration applications and
petitions filed by an alien (or filed on behalf of
an alien) and denied, disaggregated by category
of denial and application or petition type.
(C) The quantity of backlogged immigra-
tion applications and petitions that have been
processed, the aggregate number awaiting proc-
essing, and a detailed plan for eliminating the
backlog.
(D) The average processing period for im-
migration 
applications 
and 
petitions,
disaggregated by application or petition type.
(E) The number and types of immigration-
related grievances filed with any official of the
199
Department of Justice, and if those grievances
were resolved.
(F) Plans to address grievances and im-
prove immigration services.
(G) Whether immigration-related fees were
used consistent with legal requirements regard-
ing such use.
(H) Whether immigration-related questions
conveyed by customers to the Department
(whether conveyed in person, by telephone, or
by means of the Internet) were answered effec-
tively and efficiently.
(b) SENSE OF CONGRESS REGARDING IMMIGRATION
SERVICES.—It is the sense of Congress that—
(1) the quality and efficiency of immigration
services rendered by the Federal Government should
be improved after the transfers made by this subtitle
take effect; and
(2) the Secretary should undertake efforts to
guarantee that concerns regarding the quality and
efficiency of immigration services are addressed after
such effective date.
200
TITLE V—EMERGENCY
PREPAREDNESS AND RESPONSE
SEC. 501. UNDER SECRETARY FOR EMERGENCY PREPARED-
NESS AND RESPONSE.
There shall be in the Department a Directorate of
Emergency Preparedness and Response headed by an
Under Secretary for Emergency Preparedness and Re-
sponse.
SEC. 502. RESPONSIBILITIES.
The Secretary, acting through the Under Secretary
for Emergency Preparedness and Response, shall
include—
(1) helping to ensure the effectiveness of emer-
gency response providers to terrorist attacks, major
disasters, and other emergencies;
(2) with respect to the Nuclear Incident Re-
sponse Team (regardless of whether it is operating
as an organizational unit of the Department pursu-
ant to this title)—
(A) establishing standards and certifying
when those standards have been met;
(B) conducting joint and other exercises
and training and evaluating performance; and
(C) providing funds to the Department of
Energy and the Environmental Protection
201
Agency, as appropriate, for homeland security
planning, exercises and training, and equip-
ment;
(3) providing the Federal Government’s re-
sponse to terrorist attacks and major disasters,
including—
(A) managing such response;
(B) directing the Domestic Emergency
Support Team, the Strategic National Stock-
pile, the National Disaster Medical System, and
(when operating as an organizational unit of
the Department pursuant to this title) the Nu-
clear Incident Response Team;
(C) overseeing the Metropolitan Medical
Response System; and
(D) coordinating other Federal response
resources in the event of a terrorist attack or
major disaster;
(4) aiding the recovery from terrorist attacks
and major disasters;
(5) building a comprehensive national incident
management system with Federal, State, and local
government personnel, agencies, and authorities, to
respond to such attacks and disasters;
202
(6) consolidating existing Federal Government
emergency response plans into a single, coordinated
national response plan; and
(7) developing comprehensive programs for de-
veloping interoperative communications technology,
and helping to ensure that emergency response pro-
viders acquire such technology.
SEC. 503. FUNCTIONS TRANSFERRED.
In accordance with title XV, there shall be trans-
ferred to the Secretary the functions, personnel, assets,
and liabilities of the following entities:
(1) The Federal Emergency Management Agen-
cy, including the functions of the Director of the
Federal Emergency Management Agency relating
thereto.
(2) The Integrated Hazard Information System
of the National Oceanic and Atmospheric Adminis-
tration, which shall be renamed ‘‘FIRESAT’’.
(3) The National Domestic Preparedness Office
of the Federal Bureau of Investigation, including the
functions of the Attorney General relating thereto.
(4) The Domestic Emergency Support Teams
of the Department of Justice, including the func-
tions of the Attorney General relating thereto.
203
(5) The Office of Emergency Preparedness, the
National Disaster Medical System, and the Metro-
politan Medical Response System of the Department
of Health and Human Services, including the func-
tions of the Secretary of Health and Human Serv-
ices and the Assistant Secretary for Public Health
Emergency Preparedness relating thereto.
(6) The Strategic National Stockpile of the De-
partment of Health and Human Services, including
the functions of the Secretary of Health and Human
Services relating thereto.
SEC. 504. NUCLEAR INCIDENT RESPONSE.
(a) IN GENERAL.—At the direction of the Secretary
(in connection with an actual or threatened terrorist at-
tack, major disaster, or other emergency in the United
States), the Nuclear Incident Response Team shall oper-
ate as an organizational unit of the Department. While
so operating, the Nuclear Incident Response Team shall
be subject to the direction, authority, and control of the
Secretary.
(b) RULE OF CONSTRUCTION.—Nothing in this title
shall be construed to limit the ordinary responsibility of
the Secretary of Energy and the Administrator of the En-
vironmental Protection Agency for organizing, training,
equipping, and utilizing their respective entities in the Nu-
204
clear Incident Response Team, or (subject to the provi-
sions of this title) from exercising direction, authority, and
control over them when they are not operating as a unit
of the Department.
SEC. 505. CONDUCT OF CERTAIN PUBLIC HEALTH-RELATED
ACTIVITIES.
(a) IN GENERAL.—With respect to all public health-
related activities to improve State, local, and hospital pre-
paredness and response to chemical, biological, radio-
logical, and nuclear and other emerging terrorist threats
carried out by the Department of Health and Human
Services (including the Public Health Service), the Sec-
retary of Health and Human Services shall set priorities
and preparedness goals and further develop a coordinated
strategy for such activities in collaboration with the Sec-
retary.
(b) EVALUATION OF PROGRESS.—In carrying out
subsection (a), the Secretary of Health and Human Serv-
ices shall collaborate with the Secretary in developing spe-
cific benchmarks and outcome measurements for evalu-
ating progress toward achieving the priorities and goals
described in such subsection.
SEC. 506. DEFINITION.
In this title, the term ‘‘Nuclear Incident Response
Team’’ means a resource that includes—
205
(1) those entities of the Department of Energy
that perform nuclear or radiological emergency sup-
port functions (including accident response, search
response, advisory, and technical operations func-
tions), radiation exposure functions at the medical
assistance facility known as the Radiation Emer-
gency Assistance Center/Training Site (REAC/TS),
radiological assistance functions, and related func-
tions; and
(2) those entities of the Environmental Protec-
tion Agency that perform such support functions (in-
cluding radiological emergency response functions)
and related functions.
SEC. 507. ROLE OF FEDERAL EMERGENCY MANAGEMENT
AGENCY.
(a) IN GENERAL.—The functions of the Federal
Emergency Management Agency include the following:
(1) All functions and authorities prescribed by
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.).
(2) Carrying out its mission to reduce the loss
of life and property and protect the Nation from all
hazards by leading and supporting the Nation in a
comprehensive, risk-based emergency management
program—
206
(A) of mitigation, by taking sustained ac-
tions to reduce or eliminate long-term risk to
people and property from hazards and their ef-
fects;
(B) of planning for building the emergency
management profession to prepare effectively
for, mitigate against, respond to, and recover
from any hazard;
(C) of response, by conducting emergency
operations to save lives and property through
positioning emergency equipment and supplies,
through evacuating potential victims, through
providing food, water, shelter, and medical care
to those in need, and through restoring critical
public services;
(D) of recovery, by rebuilding communities
so individuals, businesses, and governments can
function on their own, return to normal life,
and protect against future hazards; and
(E) of increased efficiencies, by coordi-
nating efforts relating to mitigation, planning,
response, and recovery.
(b) FEDERAL RESPONSE PLAN.—
(1) ROLE
OF
FEMA.—Notwithstanding any
other provision of this Act, the Federal Emergency
207
Management Agency shall remain the lead agency
for the Federal Response Plan established under Ex-
ecutive Order 12148 (44 Fed. Reg. 43239) and Ex-
ecutive Order 12656 (53 Fed. Reg. 47491).
(2) REVISION OF RESPONSE PLAN.—Not later
than 60 days after the date of enactment of this
Act, the Director of the Federal Emergency Man-
agement Agency shall revise the Federal Response
Plan to reflect the establishment of and incorporate
the Department.
SEC. 508. USE OF NATIONAL PRIVATE SECTOR NETWORKS
IN EMERGENCY RESPONSE.
To the maximum extent practicable, the Secretary
shall use national private sector networks and infrastruc-
ture for emergency response to chemical, biological, radio-
logical, nuclear, or explosive disasters, and other major
disasters.
SEC. 509. USE OF COMMERCIALLY AVAILABLE TECH-
NOLOGY, GOODS, AND SERVICES.
It is the sense of Congress that—
(1) the Secretary should, to the maximum ex-
tent possible, use off-the-shelf commercially devel-
oped technologies to ensure that the Department’s
information technology systems allow the Depart-
ment to collect, manage, share, analyze, and dissemi-
208
nate information securely over multiple channels of
communication; and
(2) in order to further the policy of the United
States to avoid competing commercially with the pri-
vate sector, the Secretary should rely on commercial
sources to supply the goods and services needed by
the Department.
TITLE 
VI—TREATMENT 
OF
CHARITABLE 
TRUSTS 
FOR
MEMBERS 
OF 
THE 
ARMED
FORCES 
OF 
THE 
UNITED
STATES AND OTHER GOVERN-
MENTAL ORGANIZATIONS
SEC. 601. TREATMENT OF CHARITABLE TRUSTS FOR MEM-
BERS OF THE ARMED FORCES OF THE
UNITED 
STATES 
AND 
OTHER 
GOVERN-
MENTAL ORGANIZATIONS.
(a) FINDINGS.—Congress finds the following:
(1) Members of the Armed Forces of the
United States defend the freedom and security of
our Nation.
(2) Members of the Armed Forces of the
United States have lost their lives while battling the
evils of terrorism around the world.
209
(3) Personnel of the Central Intelligence Agen-
cy (CIA) charged with the responsibility of covert
observation of terrorists around the world are often
put in harm’s way during their service to the United
States.
(4) Personnel of the Central Intelligence Agen-
cy have also lost their lives while battling the evils
of terrorism around the world.
(5) Employees of the Federal Bureau of Inves-
tigation (FBI) and other Federal agencies charged
with domestic protection of the United States put
their lives at risk on a daily basis for the freedom
and security of our Nation.
(6) United States military personnel, CIA per-
sonnel, FBI personnel, and other Federal agents in
the service of the United States are patriots of the
highest order.
(7) CIA officer Johnny Micheal Spann became
the first American to give his life for his country in
the War on Terrorism declared by President George
W. Bush following the terrorist attacks of Sep-
tember 11, 2001.
(8) Johnny Micheal Spann left behind a wife
and children who are very proud of the heroic ac-
tions of their patriot father.
210
(9) Surviving dependents of members of the
Armed Forces of the United States who lose their
lives as a result of terrorist attacks or military oper-
ations abroad receive a $6,000 death benefit, plus a
small monthly benefit.
(10) The current system of compensating
spouses and children of American patriots is inequi-
table and needs improvement.
(b) DESIGNATION OF JOHNNY MICHEAL SPANN PA-
TRIOT TRUSTS.—Any charitable corporation, fund, foun-
dation, or trust (or separate fund or account thereof)
which otherwise meets all applicable requirements under
law with respect to charitable entities and meets the re-
quirements described in subsection (c) shall be eligible to
characterize itself as a ‘‘Johnny Micheal Spann Patriot
Trust’’.
(c) REQUIREMENTS
FOR
THE
DESIGNATION
OF
JOHNNY MICHEAL SPANN PATRIOT TRUSTS.—The re-
quirements described in this subsection are as follows:
(1) Not taking into account funds or donations
reasonably necessary to establish a trust, at least 85
percent of all funds or donations (including any
earnings on the investment of such funds or dona-
tions) received or collected by any Johnny Micheal
Spann Patriot Trust must be distributed to (or, if
211
placed in a private foundation, held in trust for) sur-
viving spouses, children, or dependent parents,
grandparents, or siblings of 1 or more of the fol-
lowing:
(A) members of the Armed Forces of the
United States;
(B) personnel, including contractors, of
elements of the intelligence community, as de-
fined in section 3(4) of the National Security
Act of 1947;
(C) employees of the Federal Bureau of
Investigation; and
(D) officers, employees, or contract em-
ployees of the United States Government,
whose deaths occur in the line of duty and arise out
of terrorist attacks, military operations, intelligence
operations, or law enforcement operations or acci-
dents connected with activities occurring after Sep-
tember 11, 2001, and related to domestic or foreign
efforts to curb international terrorism, including the
Authorization for Use of Military Force (Public Law
107–40; 115 Stat. 224).
(2) Other than funds or donations reasonably
necessary to establish a trust, not more than 15 per-
cent of all funds or donations (or 15 percent of an-
212
nual earnings on funds invested in a private founda-
tion) may be used for administrative purposes.
(3) No part of the net earnings of any Johnny
Micheal Spann Patriot Trust may inure to the ben-
efit of any individual based solely on the position of
such individual as a shareholder, an officer or em-
ployee of such Trust.
(4) None of the activities of any Johnny
Micheal Spann Patriot Trust shall be conducted in
a manner inconsistent with any law that prohibits
attempting to influence legislation.
(5) No Johnny Micheal Spann Patriot Trust
may participate in or intervene in any political cam-
paign on behalf of (or in opposition to) any can-
didate for public office, including by publication or
distribution of statements.
(6) Each Johnny Micheal Spann Patriot Trust
shall comply with the instructions and directions of
the Director of Central Intelligence, the Attorney
General, or the Secretary of Defense relating to the
protection of intelligence sources and methods, sen-
sitive law enforcement information, or other sensitive
national security information, including methods for
confidentially disbursing funds.
213
(7) Each Johnny Micheal Spann Patriot Trust
that receives annual contributions totaling more
than $1,000,000 must be audited annually by an
independent certified public accounting firm. Such
audits shall be filed with the Internal Revenue Serv-
ice, and shall be open to public inspection, except
that the conduct, filing, and availability of the audit
shall be consistent with the protection of intelligence
sources and methods, of sensitive law enforcement
information, and of other sensitive national security
information.
(8) Each Johnny Micheal Spann Patriot Trust
shall make distributions to beneficiaries described in
paragraph (1) at least once every calendar year, be-
ginning not later than 12 months after the forma-
tion of such Trust, and all funds and donations re-
ceived and earnings not placed in a private founda-
tion dedicated to such beneficiaries must be distrib-
uted within 36 months after the end of the fiscal
year in which such funds, donations, and earnings
are received.
(9)(A) When determining the amount of a dis-
tribution to any beneficiary described in paragraph
(1), a Johnny Micheal Spann Patriot Trust should
take into account the amount of any collateral
214
source compensation that the beneficiary has re-
ceived or is entitled to receive as a result of the
death of an individual described in paragraph (1).
(B) Collateral source compensation includes all
compensation from collateral sources, including life
insurance, pension funds, death benefit programs,
and payments by Federal, State, or local govern-
ments related to the death of an individual described
in paragraph (1).
(d) TREATMENT OF JOHNNY MICHEAL SPANN PA-
TRIOT TRUSTS.—Each Johnny Micheal Spann Patriot
Trust shall refrain from conducting the activities de-
scribed in clauses (i) and (ii) of section 301(20)(A) of the
Federal Election Campaign Act of 1971 so that a general
solicitation of funds by an individual described in para-
graph (1) of section 323(e) of such Act will be permissible
if such solicitation meets the requirements of paragraph
(4)(A) of such section.
(e) NOTIFICATION OF TRUST BENEFICIARIES.—Not-
withstanding any other provision of law, and in a manner
consistent with the protection of intelligence sources and
methods and sensitive law enforcement information, and
other sensitive national security information, the Sec-
retary of Defense, the Director of the Federal Bureau of
Investigation, or the Director of Central Intelligence, or
215
their designees, as applicable, may forward information re-
ceived from an executor, administrator, or other legal rep-
resentative of the estate of a decedent described in sub-
paragraph (A), (B), (C), or (D) of subsection (c)(1), to
a Johnny Micheal Spann Patriot Trust on how to contact
individuals eligible for a distribution under subsection
(c)(1) for the purpose of providing assistance from such
Trust; provided that, neither forwarding nor failing to for-
ward any information under this subsection shall create
any cause of action against any Federal department, agen-
cy, officer, agent, or employee.
(f) REGULATIONS.—Not later than 90 days after the
date of enactment of this Act, the Secretary of Defense,
in coordination with the Attorney General, the Director
of the Federal Bureau of Investigation, and the Director
of Central Intelligence, shall prescribe regulations to carry
out this section.
TITLE VII—MANAGEMENT
SEC. 701. UNDER SECRETARY FOR MANAGEMENT.
(a) IN GENERAL.—The Secretary, acting through the
Under Secretary for Management, shall be responsible for
the management and administration of the Department,
including the following:
(1) The budget, appropriations, expenditures of
funds, accounting, and finance.
216
(2) Procurement.
(3) Human resources and personnel.
(4) Information technology and communications
systems.
(5) Facilities, property, equipment, and other
material resources.
(6) Security for personnel, information tech-
nology and communications systems, facilities, prop-
erty, equipment, and other material resources.
(7) Identification and tracking of performance
measures relating to the responsibilities of the De-
partment.
(8) Grants and other assistance management
programs.
(9) The transition and reorganization process,
to ensure an efficient and orderly transfer of func-
tions and personnel to the Department, including
the development of a transition plan.
(10) The conduct of internal audits and man-
agement analyses of the programs and activities of
the Department.
(11) Any other management duties that the
Secretary may designate.
(b) IMMIGRATION.—
217
(1) IN GENERAL.—In addition to the respon-
sibilities described in subsection (a), the Under Sec-
retary for Management shall be responsible for the
following:
(A) Maintenance of all immigration statis-
tical information of the Bureau of Border Secu-
rity and the Bureau of Citizenship and Immi-
gration Services. Such statistical information
shall include information and statistics of the
type contained in the publication entitled ‘‘Sta-
tistical Yearbook of the Immigration and Natu-
ralization Service’’ prepared by the Immigration
and Naturalization Service (as in effect imme-
diately before the date on which the transfer of
functions specified under section 441 takes ef-
fect), including region-by-region statistics on
the aggregate number of applications and peti-
tions filed by an alien (or filed on behalf of an
alien) and denied by such bureau, and the rea-
sons for such denials, disaggregated by category
of denial and application or petition type.
(B) Establishment of standards of reli-
ability and validity for immigration statistics
collected by such bureaus.
218
(2) TRANSFER OF FUNCTIONS.—In accordance
with title XV, there shall be transferred to the
Under Secretary for Management all functions per-
formed immediately before such transfer occurs by
the Statistics Branch of the Office of Policy and
Planning of the Immigration and Naturalization
Service with respect to the following programs:
(A) The Border Patrol program.
(B) The detention and removal program.
(C) The intelligence program.
(D) The investigations program.
(E) The inspections program.
(F) Adjudication of immigrant visa peti-
tions.
(G) Adjudication of naturalization peti-
tions.
(H) Adjudication of asylum and refugee
applications.
(I) Adjudications performed at service cen-
ters.
(J) All other adjudications performed by
the Immigration and Naturalization Service.
219
SEC. 702. CHIEF FINANCIAL OFFICER.
The Chief Financial Officer shall report to the Sec-
retary, or to another official of the Department, as the
Secretary may direct.
SEC. 703. CHIEF INFORMATION OFFICER.
The Chief Information Officer shall report to the Sec-
retary, or to another official of the Department, as the
Secretary may direct.
SEC. 704. CHIEF HUMAN CAPITAL OFFICER.
The Chief Human Capital Officer shall report to the
Secretary, or to another official of the Department, as the
Secretary may direct and shall ensure that all employees
of the Department are informed of their rights and rem-
edies under chapters 12 and 23 of title 5, United States
Code, by—
(1) participating in the 2302(c) Certification
Program of the Office of Special Counsel;
(2) achieving certification from the Office of
Special Counsel of the Department’s compliance
with section 2302(c) of title 5, United States Code;
and
(3) informing Congress of such certification not
later than 24 months after the date of enactment of
this Act.
220
SEC. 705. ESTABLISHMENT OF OFFICER FOR CIVIL RIGHTS
AND CIVIL LIBERTIES.
(a) IN GENERAL.—The Secretary shall appoint in the
Department an Officer for Civil Rights and Civil Liberties,
who shall—
(1) review and assess information alleging
abuses of civil rights, civil liberties, and racial and
ethnic profiling by employees and officials of the De-
partment; and
(2) make public through the Internet, radio, tel-
evision, or newspaper advertisements information on
the responsibilities and functions of, and how to con-
tact, the Officer.
(b) REPORT.—The Secretary shall submit to
the President of the Senate, the Speaker of the
House of Representatives, and the appropriate com-
mittees and subcommittees of Congress on an an-
nual basis a report on the implementation of this
section, including the use of funds appropriated to
carry out this section, and detailing any allegations
of abuses described under subsection (a)(1) and any
actions taken by the Department in response to such
allegations.
221
SEC. 706. CONSOLIDATION AND CO-LOCATION OF OFFICES.
Not later than 1 year after the date of the enactment
of this Act, the Secretary shall develop and submit to Con-
gress a plan for consolidating and co-locating—
(1) any regional offices or field offices of agen-
cies that are transferred to the Department under
this Act, if such officers are located in the same mu-
nicipality; and
(2) portions of regional and field offices of
other Federal agencies, to the extent such offices
perform functions that are transferred to the Sec-
retary under this Act.
TITLE 
VIII—COORDINATION
WITH 
NON-FEDERAL 
ENTI-
TIES; INSPECTOR GENERAL;
UNITED 
STATES 
SECRET
SERVICE; 
COAST 
GUARD;
GENERAL PROVISIONS
Subtitle A—Coordination with
Non-Federal Entities
SEC. 801. OFFICE FOR STATE AND LOCAL GOVERNMENT
COORDINATION.
(a) ESTABLISHMENT.—There is established within
the Office of the Secretary the Office for State and Local
Government Coordination, to oversee and coordinate de-
222
partmental programs for and relationships with State and
local governments.
(b) 
RESPONSIBILITIES.—The 
Office 
established
under subsection (a) shall—
(1) coordinate the activities of the Department
relating to State and local government;
(2) assess, and advocate for, the resources
needed by State and local government to implement
the national strategy for combating terrorism;
(3) provide State and local government with
regular information, research, and technical support
to assist local efforts at securing the homeland; and
(4) develop a process for receiving meaningful
input from State and local government to assist the
development of the national strategy for combating
terrorism and other homeland security activities.
Subtitle B—Inspector General
SEC. 811. AUTHORITY OF THE SECRETARY.
(a) IN GENERAL.—Notwithstanding the last two sen-
tences of section 3(a) of the Inspector General Act of
1978, the Inspector General shall be under the authority,
direction, and control of the Secretary with respect to au-
dits or investigations, or the issuance of subpoenas, that
require access to sensitive information concerning—
223
(1) 
intelligence, 
counterintelligence, 
or
counterterrorism matters;
(2) ongoing criminal investigations or pro-
ceedings;
(3) undercover operations;
(4) the identity of confidential sources, includ-
ing protected witnesses;
(5) other matters the disclosure of which would,
in the Secretary’s judgment, constitute a serious
threat to the protection of any person or property
authorized protection by section 3056 of title 18,
United States Code, section 202 of title 3 of such
Code, or any provision of the Presidential Protection
Assistance Act of 1976; or
(6) other matters the disclosure of which would,
in the Secretary’s judgment, constitute a serious
threat to national security.
(b) PROHIBITION OF CERTAIN INVESTIGATIONS.—
With respect to the information described in subsection
(a), the Secretary may prohibit the Inspector General
from carrying out or completing any audit or investiga-
tion, or from issuing any subpoena, after such Inspector
General has decided to initiate, carry out, or complete
such audit or investigation or to issue such subpoena, if
the Secretary determines that such prohibition is nec-
224
essary to prevent the disclosure of any information de-
scribed in subsection (a), to preserve the national security,
or to prevent a significant impairment to the interests of
the United States.
(c) NOTIFICATION REQUIRED.—If the Secretary ex-
ercises any power under subsection (a) or (b), the Sec-
retary shall notify the Inspector General of the Depart-
ment in writing stating the reasons for such exercise.
Within 30 days after receipt of any such notice, the In-
spector General shall transmit a copy of such notice and
a written response thereto that includes—
(1) a statement as to whether the Inspector
General agrees or disagrees with such exercise; and
(2) the reasons for any disagreement, to the
President of the Senate and the Speaker of the
House of Representatives and to appropriate com-
mittees and subcommittees of Congress.
(d) ACCESS TO INFORMATION BY CONGRESS.—The
exercise of authority by the Secretary described in sub-
section (b) should not be construed as limiting the right
of Congress or any committee of Congress to access any
information it seeks.
(e) OVERSIGHT
RESPONSIBILITY—The Inspector
General Act of 1978 (5 U.S.C. App.) is amended by insert-
ing after section 8I the following:
225
‘‘SPECIAL PROVISIONS CONCERNING THE DEPARTMENT
OF HOMELAND SECURITY
‘‘SEC. 8J. Notwithstanding any other provision of
law, in carrying out the duties and responsibilities speci-
fied in this Act, the Inspector General of the Department
of Homeland Security shall have oversight responsibility
for the internal investigations performed by the Office of
Internal Affairs of the United States Customs Service and
the Office of Inspections of the United States Secret Serv-
ice. The head of each such office shall promptly report
to the Inspector General the significant activities being
carried out by such office.’’.
SEC. 812. LAW ENFORCEMENT POWERS OF INSPECTOR
GENERAL AGENTS.
(a) IN GENERAL.—Section 6 of the Inspector General
Act of 1978 (5 U.S.C. App.) is amended by adding at the
end the following:
‘‘(e)(1) In addition to the authority otherwise pro-
vided by this Act, each Inspector General appointed under
section 3, any Assistant Inspector General for Investiga-
tions under such an Inspector General, and any special
agent supervised by such an Assistant Inspector General
may be authorized by the Attorney General to—
226
‘‘(A) carry a firearm while engaged in official
duties as authorized under this Act or other statute,
or as expressly authorized by the Attorney General;
‘‘(B) make an arrest without a warrant while
engaged in official duties as authorized under this
Act or other statute, or as expressly authorized by
the Attorney General, for any offense against the
United States committed in the presence of such In-
spector General, Assistant Inspector General, or
agent, or for any felony cognizable under the laws
of the United States if such Inspector General, As-
sistant Inspector General, or agent has reasonable
grounds to believe that the person to be arrested has
committed or is committing such felony; and
‘‘(C) seek and execute warrants for arrest,
search of a premises, or seizure of evidence issued
under the authority of the United States upon prob-
able cause to believe that a violation has been com-
mitted.
‘‘(2) The Attorney General may authorize exercise of
the powers under this subsection only upon an initial de-
termination that—
‘‘(A) the affected Office of Inspector General is
significantly hampered in the performance of respon-
227
sibilities established by this Act as a result of the
lack of such powers;
‘‘(B) available assistance from other law en-
forcement agencies is insufficient to meet the need
for such powers; and
‘‘(C) adequate internal safeguards and manage-
ment procedures exist to ensure proper exercise of
such powers.
‘‘(3) The Inspector General offices of the Department
of Commerce, Department of Education, Department of
Energy, Department of Health and Human Services, De-
partment of Homeland Security, Department of Housing
and Urban Development, Department of the Interior, De-
partment of Justice, Department of Labor, Department
of State, Department of Transportation, Department of
the Treasury, Department of Veterans Affairs, Agency for
International Development, Environmental Protection
Agency, Federal Deposit Insurance Corporation, Federal
Emergency Management Agency, General Services Admin-
istration, National Aeronautics and Space Administration,
Nuclear Regulatory Commission, Office of Personnel Man-
agement, Railroad Retirement Board, Small Business Ad-
ministration, Social Security Administration, and the Ten-
nessee Valley Authority are exempt from the requirement
228
of paragraph (2) of an initial determination of eligibility
by the Attorney General.
‘‘(4) The Attorney General shall promulgate, and re-
vise as appropriate, guidelines which shall govern the exer-
cise of the law enforcement powers established under para-
graph (1).
‘‘(5)(A) Powers authorized for an Office of Inspector
General under paragraph (1) may be rescinded or sus-
pended upon a determination by the Attorney General that
any of the requirements under paragraph (2) is no longer
satisfied or that the exercise of authorized powers by that
Office of Inspector General has not complied with the
guidelines promulgated by the Attorney General under
paragraph (4).
‘‘(B) Powers authorized to be exercised by any indi-
vidual under paragraph (1) may be rescinded or suspended
with respect to that individual upon a determination by
the Attorney General that such individual has not com-
plied with guidelines promulgated by the Attorney General
under paragraph (4).
‘‘(6) A determination by the Attorney General under
paragraph (2) or (5) shall not be reviewable in or by any
court.
‘‘(7) To ensure the proper exercise of the law enforce-
ment powers authorized by this subsection, the Offices of
229
Inspector General described under paragraph (3) shall,
not later than 180 days after the date of enactment of
this subsection, collectively enter into a memorandum of
understanding to establish an external review process for
ensuring that adequate internal safeguards and manage-
ment procedures continue to exist within each Office and
within any Office that later receives an authorization
under paragraph (2). The review process shall be estab-
lished in consultation with the Attorney General, who shall
be provided with a copy of the memorandum of under-
standing that establishes the review process. Under the
review process, the exercise of the law enforcement powers
by each Office of Inspector General shall be reviewed peri-
odically by another Office of Inspector General or by a
committee of Inspectors General. The results of each re-
view shall be communicated in writing to the applicable
Inspector General and to the Attorney General.
‘‘(8) No provision of this subsection shall limit the
exercise of law enforcement powers established under any
other statutory authority, including United States Mar-
shals Service special deputation.’’.
(b) PROMULGATION OF INITIAL GUIDELINES.—
(1) DEFINITION.—In this subsection, the term
‘‘memoranda of understanding’’ means the agree-
ments between the Department of Justice and the
230
Inspector General offices described under section
6(e)(3) of the Inspector General Act of 1978 (5
U.S.C. App) (as added by subsection (a) of this sec-
tion) that—
(A) are in effect on the date of enactment
of this Act; and
(B) authorize such offices to exercise au-
thority that is the same or similar to the au-
thority under section 6(e)(1) of such Act.
(2) IN
GENERAL.—Not later than 180 days
after the date of enactment of this Act, the Attorney
General shall promulgate guidelines under section
6(e)(4) of the Inspector General Act of 1978 (5
U.S.C. App) (as added by subsection (a) of this sec-
tion) applicable to the Inspector General offices de-
scribed under section 6(e)(3) of that Act.
(3) MINIMUM REQUIREMENTS.—The guidelines
promulgated under this subsection shall include, at
a minimum, the operational and training require-
ments in the memoranda of understanding.
(4) NO
LAPSE
OF
AUTHORITY.—The memo-
randa of understanding in effect on the date of en-
actment of this Act shall remain in effect until the
guidelines promulgated under this subsection take
effect.
231
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Subsection (a) shall take ef-
fect 180 days after the date of enactment of this
Act.
(2) INITIAL GUIDELINES.—Subsection (b) shall
take effect on the date of enactment of this Act.
Subtitle C—United States Secret
Service
SEC. 821. FUNCTIONS TRANSFERRED.
In accordance with title XV, there shall be trans-
ferred to the Secretary the functions, personnel, assets,
and obligations of the United States Secret Service, which
shall be maintained as a distinct entity within the Depart-
ment, including the functions of the Secretary of the
Treasury relating thereto.
Subtitle D—Acquisitions
SEC. 831. RESEARCH AND DEVELOPMENT PROJECTS.
(a) AUTHORITY.—During the 5-year period following
the effective date of this Act, the Secretary may carry out
a pilot program under which the Secretary may exercise
the following authorities:
(1) IN GENERAL.—When the Secretary carries
out basic, applied, and advanced research and devel-
opment projects, including the expenditure of funds
for such projects, the Secretary may exercise the
232
same authority (subject to the same limitations and
conditions) with respect to such research and
projects as the Secretary of Defense may exercise
under section 2371 of title 10, United States Code
(except for subsections (b) and (f)), after making a
determination that the use of a contract, grant, or
cooperative agreement for such project is not fea-
sible or appropriate. The annual report required
under subsection (b) of this section, as applied to
the Secretary by this paragraph, shall be submitted
to the President of the Senate and the Speaker of
the House of Representatives.
(2) PROTOTYPE
PROJECTS.—The Secretary
may, under the authority of paragraph (1), carry out
prototype projects in accordance with the require-
ments and conditions provided for carrying out pro-
totype projects under section 845 of the National
Defense Authorization Act for Fiscal Year 1994
(Public Law 103–160). In applying the authorities
of that section 845, subsection (c) of that section
shall apply with respect to prototype projects under
this paragraph, and the Secretary shall perform the
functions of the Secretary of Defense under sub-
section (d) thereof.
233
(b) REPORT.—Not later than 2 years after the effec-
tive date of this Act, and annually thereafter, the Comp-
troller General shall report to the Committee on Govern-
ment Reform of the House of Representatives and the
Committee on Governmental Affairs of the Senate on—
(1) whether use of the authorities described in
subsection (a) attracts nontraditional Government
contractors and results in the acquisition of needed
technologies; and
(2) if such authorities were to be made perma-
nent, whether additional safeguards are needed with
respect to the use of such authorities.
(c) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Secretary may—
(1) procure the temporary or intermittent serv-
ices of experts or consultants (or organizations
thereof) in accordance with section 3109(b) of title
5, United States Code; and
(2) whenever necessary due to an urgent home-
land security need, procure temporary (not to exceed
1 year) or intermittent personal services, including
the services of experts or consultants (or organiza-
tions thereof), without regard to the pay limitations
of such section 3109.
234
(d) DEFINITION OF NONTRADITIONAL GOVERNMENT
CONTRACTOR.—In this section, the term ‘‘nontraditional
Government contractor’’ has the same meaning as the
term ‘‘nontraditional defense contractor’’ as defined in
section 845(e) of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C.
2371 note).
SEC. 832. PERSONAL SERVICES.
The Secretary—
(1) may procure the temporary or intermittent
services of experts or consultants (or organizations
thereof) in accordance with section 3109 of title 5,
United States Code; and
(2) may, whenever necessary due to an urgent
homeland security need, procure temporary (not to
exceed 1 year) or intermittent personal services, in-
cluding the services of experts or consultants (or or-
ganizations thereof), without regard to the pay limi-
tations of such section 3109.
SEC. 833. SPECIAL STREAMLINED ACQUISITION AUTHOR-
ITY.
(a) AUTHORITY.—
(1) IN GENERAL.—The Secretary may use the
authorities set forth in this section with respect to
any procurement made during the period beginning
235
on the effective date of this Act and ending Sep-
tember 30, 2007, if the Secretary determines in
writing that the mission of the Department (as de-
scribed in section 101) would be seriously impaired
without the use of such authorities.
(2) DELEGATION.—The authority to make the
determination described in paragraph (1) may not
be delegated by the Secretary to an officer of the
Department who is not appointed by the President
with the advice and consent of the Senate.
(3) NOTIFICATION.—Not later than the date
that is 7 days after the date of any determination
under paragraph (1), the Secretary shall submit to
the Committee on Government Reform of the House
of Representatives and the Committee on Govern-
mental Affairs of the Senate—
(A) notification of such determination; and
(B) the justification for such determination.
(b) INCREASED MICRO-PURCHASE THRESHOLD FOR
CERTAIN PROCUREMENTS.—
(1) IN
GENERAL.—The Secretary may des-
ignate certain employees of the Department to make
procurements described in subsection (a) for which
in the administration of section 32 of the Office of
Federal Procurement Policy Act (41 U.S.C. 428) the
236
amount specified in subsections (c), (d), and (f) of
such section 32 shall be deemed to be $7,500.
(2) NUMBER OF EMPLOYEES.—The number of
employees designated under paragraph (1) shall
be—
(A) fewer than the number of employees of
the Department who are authorized to make
purchases 
without 
obtaining 
competitive
quotations, pursuant to section 32(c) of the Of-
fice of Federal Procurement Policy Act (41
U.S.C. 428(c));
(B) sufficient to ensure the geographic dis-
persal of the availability of the use of the pro-
curement authority under such paragraph at lo-
cations reasonably considered to be potential
terrorist targets; and
(C) sufficiently limited to allow for the
careful monitoring of employees designated
under such paragraph.
(3) REVIEW.—Procurements made under the
authority of this subsection shall be subject to review
by a designated supervisor on not less than a month-
ly basis. The supervisor responsible for the review
shall be responsible for no more than 7 employees
making procurements under this subsection.
237
(c) SIMPLIFIED ACQUISITION PROCEDURES.—
(1) IN GENERAL.—With respect to a procure-
ment described in subsection (a), the Secretary may
deem the simplified acquisition threshold referred to
in section 4(11) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(11)) to be—
(A) in the case of a contract to be awarded
and performed, or purchase to be made, within
the United States, $200,000; and
(B) in the case of a contract to be awarded
and performed, or purchase to be made, outside
of the United States, $300,000.
(2) 
CONFORMING
AMENDMENTS.—Section
18(c)(1) of the Office of Federal Procurement Policy
Act is amended—
(A) by striking ‘‘or’’ at the end of subpara-
graph (F);
(B) by striking the period at the end of
subparagraph (G) and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(H) the procurement is by the Secretary of
Homeland Security pursuant to the special proce-
dures provided in section 833(c) of the Homeland
Security Act of 2002.’’.
238
(d) APPLICATION OF CERTAIN COMMERCIAL ITEMS
AUTHORITIES.—
(1) IN GENERAL.—With respect to a procure-
ment described in subsection (a), the Secretary may
deem any item or service to be a commercial item
for the purpose of Federal procurement laws.
(2) LIMITATION.—The $5,000,000 limitation
provided in section 31(a)(2) of the Office of Federal
Procurement Policy Act (41 U.S.C. 427(a)(2)) and
section 303(g)(1)(B) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C.
253(g)(1)(B)) shall be deemed to be $7,500,000 for
purposes of property or services under the authority
of this subsection.
(3) CERTAIN AUTHORITY.—Authority under a
provision of law referred to in paragraph (2) that
expires under section 4202(e) of the Clinger-Cohen
Act of 1996 (divisions D and E of Public Law 104–
106; 10 U.S.C. 2304 note) shall, notwithstanding
such section, continue to apply for a procurement
described in subsection (a).
(e) REPORT.—Not later than 180 days after the end
of fiscal year 2005, the Comptroller General shall submit
to the Committee on Governmental Affairs of the Senate
and the Committee on Government Reform of the House
239
of Representatives a report on the use of the authorities
provided in this section. The report shall contain the fol-
lowing:
(1) An assessment of the extent to which prop-
erty and services acquired using authorities provided
under this section contributed to the capacity of the
Federal workforce to facilitate the mission of the
Department as described in section 101.
(2) An assessment of the extent to which prices
for property and services acquired using authorities
provided under this section reflected the best value.
(3) The number of employees designated by
each executive agency under subsection (b)(1).
(4) An assessment of the extent to which the
Department has implemented subsections (b)(2) and
(b)(3) to monitor the use of procurement authority
by employees designated under subsection (b)(1).
(5) Any recommendations of the Comptroller
General for improving the effectiveness of the imple-
mentation of the provisions of this section.
SEC. 834. UNSOLICITED PROPOSALS.
(a) REGULATIONS REQUIRED.—Within 1 year of the
date of enactment of this Act, the Federal Acquisition
Regulation shall be revised to include regulations with re-
gard to unsolicited proposals.
240
(b) CONTENT OF REGULATIONS.—The regulations
prescribed under subsection (a) shall require that before
initiating a comprehensive evaluation, an agency contact
point shall consider, among other factors, that the
proposal—
(1) is not submitted in response to a previously
published agency requirement; and
(2) contains technical and cost information for
evaluation and overall scientific, technical or socio-
economic merit, or cost-related or price-related fac-
tors.
SEC. 835. PROHIBITION ON CONTRACTS WITH CORPORATE
EXPATRIATES.
(a) IN GENERAL.—The Secretary may not enter into
any contract with a foreign incorporated entity which is
treated as an inverted domestic corporation under sub-
section (b).
(b) INVERTED DOMESTIC CORPORATION.—For pur-
poses of this section, a foreign incorporated entity shall
be treated as an inverted domestic corporation if, pursuant
to a plan (or a series of related transactions)—
(1) the entity completes after the date of enact-
ment of this Act, the direct or indirect acquisition of
substantially all of the properties held directly or in-
directly by a domestic corporation or substantially
241
all of the properties constituting a trade or business
of a domestic partnership;
(2) after the acquisition at least 80 percent of
the stock (by vote or value) of the entity is held—
(A) in the case of an acquisition with re-
spect to a domestic corporation, by former
shareholders of the domestic corporation by rea-
son of holding stock in the domestic corpora-
tion; or
(B) in the case of an acquisition with re-
spect to a domestic partnership, by former part-
ners of the domestic partnership by reason of
holding a capital or profits interest in the do-
mestic partnership; and
(3) the expanded affiliated group which after
the acquisition includes the entity does not have sub-
stantial business activities in the foreign country in
which or under the law of which the entity is created
or organized when compared to the total business
activities of such expanded affiliated group.
(c) DEFINITIONS AND SPECIAL RULES.—
(1) RULES FOR APPLICATION OF SUBSECTION
(b).—In applying subsection (b) for purposes of sub-
section (a), the following rules shall apply:
242
(A) CERTAIN
STOCK
DISREGARDED.—
There shall not be taken into account in deter-
mining ownership for purposes of subsection
(b)(2)—
(i) stock held by members of the ex-
panded affiliated group which includes the
foreign incorporated entity; or
(ii) stock of such entity which is sold
in a public offering related to the acquisi-
tion described in subsection (b)(1).
(B) PLAN DEEMED IN CERTAIN CASES.—If
a foreign incorporated entity acquires directly
or indirectly substantially all of the properties
of a domestic corporation or partnership during
the 4-year period beginning on the date which
is after the date of enactment of this Act and
which is 2 years before the ownership require-
ments of subsection (b)(2) are met, such ac-
tions shall be treated as pursuant to a plan.
(C) CERTAIN TRANSFERS DISREGARDED.—
The transfer of properties or liabilities (includ-
ing by contribution or distribution) shall be dis-
regarded if such transfers are part of a plan a
principal purpose of which is to avoid the pur-
poses of this section.
243
(D) SPECIAL RULE FOR RELATED PART-
NERSHIPS.—For purposes of applying sub-
section (b) to the acquisition of a domestic
partnership, except as provided in regulations,
all domestic partnerships which are under com-
mon control (within the meaning of section 482
of the Internal Revenue Code of 1986) shall be
treated as I partnership.
(E) TREATMENT OF CERTAIN RIGHTS.—
The Secretary shall prescribe such regulations
as may be necessary to—
(i) treat warrants, options, contracts
to acquire stock, convertible debt instru-
ments, and other similar interests as stock;
and
(ii) treat stock as not stock.
(2) EXPANDED AFFILIATED GROUP.—The term
‘‘expanded affiliated group’’ means an affiliated
group as defined in section 1504(a) of the Internal
Revenue Code of 1986 (without regard to section
1504(b) of such Code), except that section 1504 of
such Code shall be applied by substituting ‘‘more
than 50 percent’’ for ‘‘at least 80 percent’’ each
place it appears.
244
(3) FOREIGN
INCORPORATED
ENTITY.—The
term ‘‘foreign incorporated entity’’ means any entity
which is, or but for subsection (b) would be, treated
as a foreign corporation for purposes of the Internal
Revenue Code of 1986.
(4) OTHER
DEFINITIONS.—The terms ‘‘per-
son’’, ‘‘domestic’’, and ‘‘foreign’’ have the meanings
given such terms by paragraphs (1), (4), and (5) of
section 7701 (a) of the Internal Revenue Code of
1986, respectively.
(d) WAIVERS.—The Secretary shall waive subsection
(a) with respect to any specific contract if the Secretary
determines that the waiver is required in the interest of
homeland security, or to prevent the loss of any jobs in
the United States or prevent the Government from incur-
ring any additional costs that otherwise would not occur.
Subtitle E—Human Resources
Management
SEC. 841. ESTABLISHMENT OF HUMAN RESOURCES MAN-
AGEMENT SYSTEM.
(a) AUTHORITY.—
(1) SENSE OF CONGRESS.—It is the sense of
Congress that—
(A) it is extremely important that employ-
ees of the Department be allowed to participate
245
in a meaningful way in the creation of any
human resources management system affecting
them;
(B) such employees have the most direct
knowledge of the demands of their jobs and
have a direct interest in ensuring that their
human resources management system is condu-
cive to achieving optimal operational effi-
ciencies;
(C) the 21st century human resources
management system envisioned for the Depart-
ment should be one that benefits from the input
of its employees; and
(D) this collaborative effort will help se-
cure our homeland.
(2) IN GENERAL.—Subpart I of part III of title
5, United States Code, is amended by adding at the
end the following:
‘‘CHAPTER 97—DEPARTMENT OF
HOMELAND SECURITY
‘‘Sec.
‘‘9701. Establishment of human resources management system.
‘‘§ 9701. Establishment of human resources manage-
ment system
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this part, the Secretary of Homeland Security
246
may, in regulations prescribed jointly with the Director
of the Office of Personnel Management, establish, and
from time to time adjust, a human resources management
system for some or all of the organizational units of the
Department of Homeland Security.
‘‘(b) SYSTEM REQUIREMENTS.—Any system estab-
lished under subsection (a) shall—
‘‘(1) be flexible;
‘‘(2) be contemporary;
‘‘(3) not waive, modify, or otherwise affect—
‘‘(A) the public employment principles of
merit and fitness set forth in section 2301, in-
cluding the principles of hiring based on merit,
fair treatment without regard to political affili-
ation or other nonmerit considerations, equal
pay for equal work, and protection of employees
against reprisal for whistleblowing;
‘‘(B) any provision of section 2302, relat-
ing to prohibited personnel practices;
‘‘(C)(i) any provision of law referred to in
section 2302(b)(1), (8), and (9); or
‘‘(ii) any provision of law implementing
any provision of law referred to in section
2302(b)(1), (8), and (9) by—
247
‘‘(I) providing for equal employment
opportunity through affirmative action; or
‘‘(II) providing any right or remedy
available to any employee or applicant for
employment in the civil service;
‘‘(D) any other provision of this part (as
described in subsection (c)); or
‘‘(E) any rule or regulation prescribed
under any provision of law referred to in any of
the preceding subparagraphs of this paragraph;
‘‘(4) ensure that employees may organize, bar-
gain collectively, and participate through labor orga-
nizations of their own choosing in decisions which
affect them, subject to any exclusion from coverage
or limitation on negotiability established by law; and
‘‘(5) permit the use of a category rating system
for evaluating applicants for positions in the com-
petitive service.
‘‘(c) OTHER NONWAIVABLE PROVISIONS.—The other
provisions of this part as referred to in subsection
(b)(3)(D), are (to the extent not otherwise specified in
subparagraph (A), (B), (C), or (D) of subsection (b)(3))—
‘‘(1) subparts A, B, E, G, and H of this part;
and
248
‘‘(2) chapters 41, 45, 47, 55, 57, 59, 72, 73,
and 79, and this chapter.
‘‘(d) LIMITATIONS RELATING TO PAY.—Nothing in
this section shall constitute authority—
‘‘(1) to modify the pay of any employee who
serves in—
‘‘(A) an Executive Schedule position under
subchapter II of chapter 53 of title 5, United
States Code; or
‘‘(B) a position for which the rate of basic
pay is fixed in statute by reference to a section
or level under subchapter II of chapter 53 of
such title 5;
‘‘(2) to fix pay for any employee or position at
an annual rate greater than the maximum amount
of cash compensation allowable under section 5307
of such title 5 in a year; or
‘‘(3) to exempt any employee from the applica-
tion of such section 5307.
‘‘(e) PROVISIONS TO ENSURE COLLABORATION WITH
EMPLOYEE REPRESENTATIVES.—
‘‘(1) IN GENERAL.—In order to ensure that the
authority of this section is exercised in collaboration
with, and in a manner that ensures the participation
of employee representatives in the planning, develop-
249
ment, and implementation of any human resources
management system or adjustments to such system
under this section, the Secretary of Homeland Secu-
rity and the Director of the Office of Personnel
Management shall provide for the following:
‘‘(A) NOTICE
OF
PROPOSAL.—The Sec-
retary and the Director shall, with respect to
any proposed system or adjustment—
‘‘(i) provide to each employee rep-
resentative representing any employees
who might be affected, a written descrip-
tion of the proposed system or adjustment
(including the reasons why it is considered
necessary);
‘‘(ii) give each representative 30 cal-
endar days (unless extraordinary cir-
cumstances require earlier action) to re-
view and make recommendations with re-
spect to the proposal; and
‘‘(iii) give any recommendations re-
ceived from any such representatives under
clause (ii) full and fair consideration in de-
ciding whether or how to proceed with the
proposal.
250
‘‘(B) 
PRE-IMPLEMENTATION
CONGRES-
SIONAL
NOTIFICATION, CONSULTATION, AND
MEDIATION.—Following receipt of recommenda-
tions, if any, from employee representatives
with respect to a proposal described in subpara-
graph (A), the Secretary and the Director shall
accept such modifications to the proposal in re-
sponse to the recommendations as they deter-
mine advisable and shall, with respect to any
parts of the proposal as to which they have not
accepted the recommendations—
‘‘(i) notify Congress of those parts of
the proposal, together with the rec-
ommendations of employee representatives;
‘‘(ii) meet and confer for not less than
30 calendar days with any representatives
who have made recommendations, in order
to attempt to reach agreement on whether
or how to proceed with those parts of the
proposal; and
‘‘(iii) at the Secretary’s option, or if
requested by a majority of the employee
representatives 
who 
have 
made 
rec-
ommendations, use the services of the Fed-
eral Mediation and Conciliation Service
251
during such meet and confer period to fa-
cilitate the process of attempting to reach
agreement.
‘‘(C) IMPLEMENTATION.—
‘‘(i) Any part of the proposal as to
which the representatives do not make a
recommendation, or as to which their rec-
ommendations are accepted by the Sec-
retary and the Director, may be imple-
mented immediately.
‘‘(ii) With respect to any parts of the
proposal as to which recommendations
have been made but not accepted by the
Secretary and the Director, at any time
after 30 calendar days have elapsed since
the initiation of the congressional notifica-
tion, consultation, and mediation proce-
dures set forth in subparagraph (B), if the
Secretary determines, in the Secretary’s
sole and unreviewable discretion, that fur-
ther consultation and mediation is unlikely
to produce agreement, the Secretary may
implement any or all of such parts, includ-
ing any modifications made in response to
252
the recommendations as the Secretary de-
termines advisable.
‘‘(iii) The Secretary shall promptly
notify Congress of the implementation of
any part of the proposal and shall furnish
with such notice an explanation of the pro-
posal, any changes made to the proposal as
a result of recommendations from em-
ployee representatives, and of the reasons
why implementation is appropriate under
this subparagraph.
‘‘(D) CONTINUING COLLABORATION.—If a
proposal described in subparagraph (A) is im-
plemented, the Secretary and the Director
shall—
‘‘(i) develop a method for each em-
ployee representative to participate in any
further planning or development which
might become necessary; and
‘‘(ii) give each employee representative
adequate access to information to make
that participation productive.
‘‘(2) PROCEDURES.—Any procedures necessary
to carry out this subsection shall be established by
the Secretary and the Director jointly as internal
253
rules of departmental procedure which shall not be
subject to review. Such procedures shall include
measures to ensure—
‘‘(A) in the case of employees within a unit
with respect to which a labor organization is ac-
corded exclusive recognition, representation by
individuals designated or from among individ-
uals nominated by such organization;
‘‘(B) in the case of any employees who are
not within such a unit, representation by any
appropriate organization which represents a
substantial percentage of those employees or, if
none, in such other manner as may be appro-
priate, consistent with the purposes of the sub-
section;
‘‘(C) the fair and expeditious handling of
the consultation and mediation process de-
scribed in subparagraph (B) of paragraph (1),
including procedures by which, if the number of
employee 
representatives 
providing 
rec-
ommendations exceeds 5, such representatives
select a committee or other unified representa-
tive with which the Secretary and Director may
meet and confer; and
254
‘‘(D) the selection of representatives in a
manner consistent with the relative number of
employees represented by the organizations or
other representatives involved.
‘‘(f) PROVISIONS RELATING TO APPELLATE PROCE-
DURES.—
(1) SENSE OF CONGRESS.—It is the sense of
Congress that—
‘‘(A) employees of the Department are en-
titled to fair treatment in any appeals that they
bring in decisions relating to their employment;
and
‘‘(B) in prescribing regulations for any
such appeals procedures, the Secretary and the
Director 
of 
the 
Office 
of 
Personnel
Management—
‘‘(i) should ensure that employees of
the Department are afforded the protec-
tions of due process; and
‘‘(ii) toward that end, should be re-
quired to consult with the Merit Systems
Protection Board before issuing any such
regulations.
255
‘‘(2) REQUIREMENTS.—Any regulations under
this section which relate to any matters within the
purview of chapter 77—
‘‘(A) shall be issued only after consultation
with the Merit Systems Protection Board;
‘‘(B) shall ensure the availability of proce-
dures which shall—
‘‘(i) be consistent with requirements
of due process; and
‘‘(ii) provide, to the maximum extent
practicable, for the expeditious handling of
any matters involving the Department; and
‘‘(C) shall modify procedures under chap-
ter 77 only insofar as such modifications are
designed to further the fair, efficient, and expe-
ditious resolution of matters involving the em-
ployees of the Department.
‘‘(g) PROVISIONS RELATING
TO LABOR-MANAGE-
MENT RELATIONS.—Nothing in this section shall be con-
strued as conferring authority on the Secretary of Home-
land Security to modify any of the provisions of section
842 of the Homeland Security Act of 2002.
‘‘(h) SUNSET PROVISION.—Effective 5 years after
the conclusion of the transition period defined under sec-
tion 1501 of the Homeland Security Act of 2002, all au-
256
thority to issue regulations under this section (including
regulations which would modify, supersede, or terminate
any regulations previously issued under this section) shall
cease to be available.’’.
(3) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of chapters for part III of title 5,
United States Code, is amended by adding at the
end of the following:
‘‘97. Department of Homeland Security .................................... 9701’’.
(b) EFFECT ON PERSONNEL.—
(1) NONSEPARATION
OR
NONREDUCTION
IN
GRADE
OR
COMPENSATION
OF
FULL-TIME
PER-
SONNEL AND PART-TIME PERSONNEL HOLDING PER-
MANENT POSITIONS.—Except as otherwise provided
in this Act, the transfer under this Act of full-time
personnel (except special Government employees)
and part-time personnel holding permanent positions
shall not cause any such employee to be separated
or reduced in grade or compensation for 1 year after
the date of transfer to the Department.
(2) POSITIONS COMPENSATED IN ACCORDANCE
WITH EXECUTIVE SCHEDULE.—Any person who, on
the day preceding such person’s date of transfer
pursuant to this Act, held a position compensated in
accordance with the Executive Schedule prescribed
in chapter 53 of title 5, United States Code, and
257
who, without a break in service, is appointed in the
Department to a position having duties comparable
to the duties performed immediately preceding such
appointment shall continue to be compensated in
such new position at not less than the rate provided
for such position, for the duration of the service of
such person in such new position.
(3) COORDINATION RULE.—Any exercise of au-
thority under chapter 97 of title 5, United States
Code (as amended by subsection (a)), including
under any system established under such chapter,
shall be in conformance with the requirements of
this subsection.
SEC. 842. LABOR-MANAGEMENT RELATIONS.
(a) LIMITATION ON EXCLUSIONARY AUTHORITY.—
(1) IN GENERAL.—No agency or subdivision of
an agency which is transferred to the Department
pursuant to this Act shall be excluded from the cov-
erage of chapter 71 of title 5, United States Code,
as a result of any order issued under section
7103(b)(1) of such title 5 after June 18, 2002,
unless—
(A) the mission and responsibilities of the
agency (or subdivision) materially change; and
258
(B) a majority of the employees within
such agency (or subdivision) have as their pri-
mary duty intelligence, counterintelligence, or
investigative work directly related to terrorism
investigation.
(2) EXCLUSIONS
ALLOWABLE.—Nothing in
paragraph (1) shall affect the effectiveness of any
order to the extent that such order excludes any por-
tion of an agency or subdivision of an agency as to
which—
(A) recognition as an appropriate unit has
never been conferred for purposes of chapter 71
of such title 5; or
(B) any such recognition has been revoked
or otherwise terminated as a result of a deter-
mination under subsection (b)(1).
(b) 
PROVISIONS
RELATING
TO
BARGAINING
UNITS.—
(1) LIMITATION
RELATING
TO
APPROPRIATE
UNITS.—Each unit which is recognized as an appro-
priate unit for purposes of chapter 71 of title 5,
United States Code, as of the day before the effec-
tive date of this Act (and any subdivision of any
such unit) shall, if such unit (or subdivision) is
transferred to the Department pursuant to this Act,
259
continue to be so recognized for such purposes,
unless—
(A) the mission and responsibilities of such
unit (or subdivision) materially change; and
(B) a majority of the employees within
such unit (or subdivision) have as their primary
duty intelligence, counterintelligence, or inves-
tigative work directly related to terrorism inves-
tigation.
(2) LIMITATION
RELATING
TO
POSITIONS
OR
EMPLOYEES.—No position or employee within a unit
(or subdivision of a unit) as to which continued rec-
ognition is given in accordance with paragraph (1)
shall be excluded from such unit (or subdivision), for
purposes of chapter 71 of such title 5, unless the
primary job duty of such position or employee—
(A) materially changes; and
(B) consists of intelligence, counterintel-
ligence, or investigative work directly related to
terrorism investigation.
In the case of any positions within a unit (or sub-
division) which are first established on or after the
effective date of this Act and any employees first ap-
pointed on or after such date, the preceding sentence
shall be applied disregarding subparagraph (A).
260
(c) WAIVER.—If the President determines that the
application of subsections (a), (b), and (d) would have a
substantial adverse impact on the ability of the Depart-
ment to protect homeland security, the President may
waive the application of such subsections 10 days after
the President has submitted to Congress a written expla-
nation of the reasons for such determination.
(d) COORDINATION RULE.—No other provision of
this Act or of any amendment made by this Act may be
construed or applied in a manner so as to limit, supersede,
or otherwise affect the provisions of this section, except
to the extent that it does so by specific reference to this
section.
(e) RULE OF CONSTRUCTION.—Nothing in section
9701(e) of title 5, United States Code, shall be considered
to apply with respect to any agency or subdivision of any
agency, which is excluded from the coverage of chapter
71 of title 5, United States Code, by virtue of an order
issued in accordance with section 7103(b) of such title and
the preceding provisions of this section (as applicable), or
to any employees of any such agency or subdivision or to
any individual or entity representing any such employees
or any representatives thereof.
261
Subtitle F—Federal Emergency
Procurement Flexibility
SEC. 851. DEFINITION.
In this subtitle, the term ‘‘executive agency’’ has the
meaning given that term under section 4(1) of the Office
of Federal Procurement Policy Act (41 U.S.C. 403(1)).
SEC. 852. PROCUREMENTS FOR DEFENSE AGAINST OR RE-
COVERY FROM TERRORISM OR NUCLEAR, BI-
OLOGICAL, CHEMICAL, OR RADIOLOGICAL
ATTACK.
The authorities provided in this subtitle apply to any
procurement of property or services by or for an executive
agency that, as determined by the head of the executive
agency, are to be used to facilitate defense against or re-
covery from terrorism or nuclear, biological, chemical, or
radiological attack, but only if a solicitation of offers for
the procurement is issued during the 1-year period begin-
ning on the date of the enactment of this Act.
SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESH-
OLD FOR PROCUREMENTS IN SUPPORT OF
HUMANITARIAN OR PEACEKEEPING OPER-
ATIONS OR CONTINGENCY OPERATIONS.
(a) TEMPORARY THRESHOLD AMOUNTS.—For a pro-
curement referred to in section 852 that is carried out
in support of a humanitarian or peacekeeping operation
262
or a contingency operation, the simplified acquisition
threshold definitions shall be applied as if the amount de-
termined under the exception provided for such an oper-
ation in those definitions were—
(1) in the case of a contract to be awarded and
performed, or purchase to be made, inside the
United States, $200,000; or
(2) in the case of a contract to be awarded and
performed, or purchase to be made, outside the
United States, $300,000.
(b) SIMPLIFIED ACQUISITION THRESHOLD DEFINI-
TIONS.—In this section, the term ‘‘simplified acquisition
threshold definitions’’ means the following:
(1) Section 4(11) of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 403(11)).
(2) Section 309(d) of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C.
259(d)).
(3) Section 2302(7) of title 10, United States
Code.
(c) SMALL BUSINESS RESERVE.—For a procurement
carried out pursuant to subsection (a), section 15(j) of the
Small Business Act (15 U.S.C. 644(j)) shall be applied
as if the maximum anticipated value identified therein is
equal to the amounts referred to in subsection (a).
263
SEC. 854. INCREASED MICRO-PURCHASE THRESHOLD FOR
CERTAIN PROCUREMENTS.
In the administration of section 32 of the Office of
Federal Procurement Policy Act (41 U.S.C. 428) with re-
spect to a procurement referred to in section 852, the
amount specified in subsections (c), (d), and (f) of such
section 32 shall be deemed to be $7,500.
SEC. 855. APPLICATION OF CERTAIN COMMERCIAL ITEMS
AUTHORITIES TO CERTAIN PROCUREMENTS.
(a) AUTHORITY.—
(1) IN GENERAL.—The head of an executive
agency may apply the provisions of law listed in
paragraph (2) to a procurement referred to in sec-
tion 852 without regard to whether the property or
services are commercial items.
(2) COMMERCIAL ITEM LAWS.—The provisions
of law referred to in paragraph (1) are as follows:
(A) Sections 31 and 34 of the Office of
Federal Procurement Policy Act (41 U.S.C.
427, 430).
(B) Section 2304(g) of title 10, United
States Code.
(C) Section 303(g) of the Federal Property
and Administrative Services Act of 1949 (41
U.S.C. 253(g)).
264
(b) INAPPLICABILITY OF LIMITATION ON USE OF
SIMPLIFIED ACQUISITION PROCEDURES.—
(1) IN GENERAL.—The $5,000,000 limitation
provided in section 31(a)(2) of the Office of Federal
Procurement Policy Act (41 U.S.C. 427(a)(2)), sec-
tion 2304(g)(1)(B) of title 10, United States Code,
and section 303(g)(1)(B) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C.
253(g)(1)(B)) shall not apply to purchases of prop-
erty or services to which any of the provisions of law
referred to in subsection (a) are applied under the
authority of this section.
(2) OMB GUIDANCE.—The Director of the Of-
fice of Management and Budget shall issue guidance
and procedures for the use of simplified acquisition
procedures for a purchase of property or services in
excess of $5,000,000 under the authority of this sec-
tion.
(c) CONTINUATION OF AUTHORITY FOR SIMPLIFIED
PURCHASE PROCEDURES.—Authority under a provision of
law referred to in subsection (a)(2) that expires under sec-
tion 4202(e) of the Clinger-Cohen Act of 1996 (divisions
D and E of Public Law 104–106; 10 U.S.C. 2304 note)
shall, notwithstanding such section, continue to apply for
265
use by the head of an executive agency as provided in sub-
sections (a) and (b).
SEC. 856. USE OF STREAMLINED PROCEDURES.
(a) REQUIRED USE.—The head of an executive agen-
cy shall, when appropriate, use streamlined acquisition au-
thorities and procedures authorized by law for a procure-
ment referred to in section 852, including authorities and
procedures that are provided under the following provi-
sions of law:
(1) FEDERAL PROPERTY AND ADMINISTRATIVE
SERVICES ACT OF 1949.—In title III of the Federal
Property and Administrative Services Act of 1949:
(A) Paragraphs (1), (2), (6), and (7) of
subsection (c) of section 303 (41 U.S.C. 253),
relating to use of procedures other than com-
petitive procedures under certain circumstances
(subject to subsection (e) of such section).
(B) Section 303J (41 U.S.C. 253j), relat-
ing to orders under task and delivery order con-
tracts.
(2) TITLE 10, UNITED STATES CODE.—In chap-
ter 137 of title 10, United States Code:
(A) Paragraphs (1), (2), (6), and (7) of
subsection (c) of section 2304, relating to use
of procedures other than competitive procedures
266
under certain circumstances (subject to sub-
section (e) of such section).
(B) Section 2304c, relating to orders
under task and delivery order contracts.
(3) OFFICE OF FEDERAL PROCUREMENT POL-
ICY ACT.—Paragraphs (1)(B), (1)(D), and (2) of
section 18(c) of the Office of Federal Procurement
Policy Act (41 U.S.C. 416(c)), relating to inapplica-
bility of a requirement for procurement notice.
(b) WAIVER OF CERTAIN SMALL BUSINESS THRESH-
OLD
REQUIREMENTS.—Subclause 
(II) 
of 
section
8(a)(1)(D)(i) of the Small Business Act (15 U.S.C.
637(a)(1)(D)(i)) and clause (ii) of section 31(b)(2)(A) of
such Act (15 U.S.C. 657a(b)(2)(A)) shall not apply in the
use of streamlined acquisition authorities and procedures
referred to in paragraphs (1)(A) and (2)(A) of subsection
(a) for a procurement referred to in section 852.
SEC. 857. REVIEW AND REPORT BY COMPTROLLER GEN-
ERAL.
(a) REQUIREMENTS.—Not later than March 31,
2004, the Comptroller General shall—
(1) complete a review of the extent to which
procurements of property and services have been
made in accordance with this subtitle; and
268
viewed. The extent of coverage needed in areas such as
technology integration, employee training, and human
capital management, as well as the data requirements of
the study, shall be included as part of the consultation.
SEC. 858. IDENTIFICATION OF NEW ENTRANTS INTO THE
FEDERAL MARKETPLACE.
The head of each executive agency shall conduct mar-
ket research on an ongoing basis to identify effectively the
capabilities, including the capabilities of small businesses
and new entrants into Federal contracting, that are avail-
able in the marketplace for meeting the requirements of
the executive agency in furtherance of defense against or
recovery from terrorism or nuclear, biological, chemical,
or radiological attack. The head of the executive agency
shall, to the maximum extent practicable, take advantage
of commercially available market research methods, in-
cluding use of commercial databases, to carry out the re-
search.
Subtitle G—Support Anti-terrorism
by 
Fostering 
Effective 
Tech-
nologies Act of 2002
SEC. 861. SHORT TITLE.
This subtitle may be cited as the ‘‘Support Anti-ter-
rorism by Fostering Effective Technologies Act of 2002’’
or the ‘‘SAFETY Act’’.
269
SEC. 862. ADMINISTRATION.
(a) IN GENERAL.—The Secretary shall be responsible
for the administration of this subtitle.
(b) DESIGNATION OF QUALIFIED ANTI-TERRORISM
TECHNOLOGIES.—The Secretary may designate anti-ter-
rorism technologies that qualify for protection under the
system of risk management set forth in this subtitle in
accordance with criteria that shall include, but not be lim-
ited to, the following:
(1) Prior United States government use or
demonstrated substantial utility and effectiveness.
(2) Availability of the technology for immediate
deployment in public and private settings.
(3) Existence of extraordinarily large or ex-
traordinarily unquantifiable potential third party li-
ability risk exposure to the Seller or other provider
of such anti-terrorism technology.
(4) Substantial likelihood that such anti-ter-
rorism technology will not be deployed unless protec-
tions under the system of risk management provided
under this subtitle are extended.
(5) Magnitude of risk exposure to the public if
such anti-terrorism technology is not deployed.
(6) Evaluation of all scientific studies that can
be feasibly conducted in order to assess the capa-
270
bility of the technology to substantially reduce risks
of harm.
(7) Anti-terrorism technology that would be ef-
fective in facilitating the defense against acts of ter-
rorism, including technologies that prevent, defeat or
respond to such acts.
(c) REGULATIONS.—The Secretary may issue such
regulations, after notice and comment in accordance with
section 553 of title 5, United States, Code, as may be nec-
essary to carry out this subtitle.
SEC. 863. LITIGATION MANAGEMENT.
(a) FEDERAL CAUSE OF ACTION.—
(1) IN GENERAL.—There shall exist a Federal
cause of action for claims arising out of, relating to,
or resulting from an act of terrorism when qualified
anti-terrorism technologies have been deployed in de-
fense against or response or recovery from such act
and such claims result or may result in loss to the
Seller. The substantive law for decision in any such
action shall be derived from the law, including choice
of law principles, of the State in which such acts of
terrorism occurred, unless such law is inconsistent
with or preempted by Federal law. Such Federal
cause of action shall be brought only for claims for
injuries that are proximately caused by sellers that
271
provide qualified anti-terrorism technology to Fed-
eral and non-Federal government customers.
(2) JURISDICTION.—Such appropriate district
court of the United States shall have original and
exclusive jurisdiction over all actions for any claim
for loss of property, personal injury, or death arising
out of, relating to, or resulting from an act of ter-
rorism when qualified anti-terrorism technologies
have been deployed in defense against or response or
recovery from such act and such claims result or
may result in loss to the Seller.
(b) SPECIAL RULES.—In an action brought under
this section for damages the following provisions apply:
(1) PUNITIVE DAMAGES.—No punitive damages
intended to punish or deter, exemplary damages, or
other damages not intended to compensate a plain-
tiff for actual losses may be awarded, nor shall any
party be liable for interest prior to the judgment.
(2) NONECONOMIC DAMAGES.—
(A) IN GENERAL.—Noneconomic damages
may be awarded against a defendant only in an
amount directly proportional to the percentage
of responsibility of such defendant for the harm
to the plaintiff, and no plaintiff may recover
272
noneconomic damages unless the plaintiff suf-
fered physical harm.
(B) DEFINITION.—For purposes of sub-
paragraph (A), the term ‘‘noneconomic dam-
ages’’ means damages for losses for physical
and emotional pain, suffering, inconvenience,
physical impairment, mental anguish, disfigure-
ment, loss of enjoyment of life, loss of society
and companionship, loss of consortium, hedonic
damages, injury to reputation, and any other
nonpecuniary losses.
(c) COLLATERAL SOURCES.—Any recovery by a
plaintiff in an action under this section shall be reduced
by the amount of collateral source compensation, if any,
that the plaintiff has received or is entitled to receive as
a result of such acts of terrorism that result or may result
in loss to the Seller.
(d) GOVERNMENT CONTRACTOR DEFENSE.—
(1) IN GENERAL.—Should a product liability or
other lawsuit be filed for claims arising out of, relat-
ing to, or resulting from an act of terrorism when
qualified anti-terrorism technologies approved by the
Secretary, as provided in paragraphs (2) and (3) of
this subsection, have been deployed in defense
against or response or recovery from such act and
273
such claims result or may result in loss to the Seller,
there shall be a rebuttable presumption that the gov-
ernment contractor defense applies in such lawsuit.
This presumption shall only be overcome by evidence
showing that the Seller acted fraudulently or with
willful misconduct in submitting information to the
Secretary during the course of the Secretary’s con-
sideration of such technology under this subsection.
This presumption of the government contractor de-
fense shall apply regardless of whether the claim
against the Seller arises from a sale of the product
to Federal Government or non-Federal Government
customers.
(2) EXCLUSIVE
RESPONSIBILITY.—The Sec-
retary will be exclusively responsible for the review
and approval of anti-terrorism technology for pur-
poses of establishing a government contractor de-
fense in any product liability lawsuit for claims aris-
ing out of, relating to, or resulting from an act of
terrorism when qualified anti-terrorism technologies
approved by the Secretary, as provided in this para-
graph and paragraph (3), have been deployed in de-
fense against or response or recovery from such act
and such claims result or may result in loss to the
Seller. Upon the Seller’s submission to the Secretary
274
for approval of anti-terrorism technology, the Sec-
retary will conduct a comprehensive review of the de-
sign of such technology and determine whether it
will perform as intended, conforms to the Seller’s
specifications, and is safe for use as intended. The
Seller will conduct safety and hazard analyses on
such technology and will supply the Secretary with
all such information.
(3) CERTIFICATE.—For anti-terrorism tech-
nology reviewed and approved by the Secretary, the
Secretary will issue a certificate of conformance to
the Seller and place the anti-terrorism technology on
an Approved Product List for Homeland Security.
(e) EXCLUSION.—Nothing in this section shall in any
way limit the ability of any person to seek any form of
recovery from any person, government, or other entity
that—
(1) attempts to commit, knowingly participates
in, aids and abets, or commits any act of terrorism,
or any criminal act related to or resulting from such
act of terrorism; or
(2) participates in a conspiracy to commit any
such act of terrorism or any such criminal act.
SEC. 864. RISK MANAGEMENT.
(a) IN GENERAL.—
275
(1) LIABILITY
INSURANCE
REQUIRED.—Any
person or entity that sells or otherwise provides a
qualified anti-terrorism technology to Federal and
non-Federal government customers (‘‘Seller’’) shall
obtain liability insurance of such types and in such
amounts as shall be required in accordance with this
section and certified by the Secretary to satisfy oth-
erwise compensable third-party claims arising out of,
relating to, or resulting from an act of terrorism
when qualified anti-terrorism technologies have been
deployed in defense against or response or recovery
from such act.
(2) MAXIMUM AMOUNT.—For the total claims
related to 1 such act of terrorism, the Seller is not
required to obtain liability insurance of more than
the maximum amount of liability insurance reason-
ably available from private sources on the world
market at prices and terms that will not unreason-
ably distort the sales price of Seller’s anti-terrorism
technologies.
(3) SCOPE OF COVERAGE.—Liability insurance
obtained pursuant to this subsection shall, in addi-
tion to the Seller, protect the following, to the extent
of their potential liability for involvement in the
manufacture, qualification, sale, use, or operation of
276
qualified anti-terrorism technologies deployed in de-
fense against or response or recovery from an act of
terrorism:
(A) contractors, subcontractors, suppliers,
vendors and customers of the Seller.
(B) contractors, subcontractors, suppliers,
and vendors of the customer.
(4) THIRD PARTY CLAIMS.—Such liability in-
surance under this section shall provide coverage
against third party claims arising out of, relating to,
or resulting from the sale or use of anti-terrorism
technologies.
(b) RECIPROCAL WAIVER OF CLAIMS.—The Seller
shall enter into a reciprocal waiver of claims with its con-
tractors, subcontractors, suppliers, vendors and cus-
tomers, and contractors and subcontractors of the cus-
tomers, involved in the manufacture, sale, use or operation
of qualified anti-terrorism technologies, under which each
party to the waiver agrees to be responsible for losses, in-
cluding business interruption losses, that it sustains, or
for losses sustained by its own employees resulting from
an activity resulting from an act of terrorism when quali-
fied anti-terrorism technologies have been deployed in de-
fense against or response or recovery from such act.
277
(c) EXTENT
OF LIABILITY.—Notwithstanding any
other provision of law, liability for all claims against a
Seller arising out of, relating to, or resulting from an act
of terrorism when qualified anti-terrorism technologies
have been deployed in defense against or response or re-
covery from such act and such claims result or may result
in loss to the Seller, whether for compensatory or punitive
damages or for contribution or indemnity, shall not be in
an amount greater than the limits of liability insurance
coverage required to be maintained by the Seller under
this section.
SEC. 865. DEFINITIONS.
For purposes of this subtitle, the following definitions
apply:
(1) 
QUALIFIED
ANTI-TERRORISM
TECH-
NOLOGY.—For purposes of this subtitle, the term
‘‘qualified anti-terrorism technology’’ means any
product, equipment, service (including support serv-
ices), device, or technology (including information
technology) designed, developed, modified, or pro-
cured for the specific purpose of preventing, detect-
ing, identifying, or deterring acts of terrorism or
limiting the harm such acts might otherwise cause,
that is designated as such by the Secretary.
278
(2) ACT OF TERRORISM.—(A) The term ‘‘act of
terrorism’’ means any act that the Secretary deter-
mines meets the requirements under subparagraph
(B), as such requirements are further defined and
specified by the Secretary.
(B) REQUIREMENTS.—An act meets the re-
quirements of this subparagraph if the act—
(i) is unlawful;
(ii) causes harm to a person, property, or
entity, in the United States, or in the case of
a domestic United States air carrier or a
United States-flag vessel (or a vessel based
principally in the United States on which
United States income tax is paid and whose in-
surance coverage is subject to regulation in the
United States), in or outside the United States;
and
(iii) uses or attempts to use instrumental-
ities, weapons or other methods designed or in-
tended to cause mass destruction, injury or
other loss to citizens or institutions of the
United States.
(3) INSURANCE
CARRIER.—The term ‘‘insur-
ance carrier’’ means any corporation, association, so-
ciety, order, firm, company, mutual, partnership, in-
279
dividual aggregation of individuals, or any other
legal entity that provides commercial property and
casualty insurance. Such term includes any affiliates
of a commercial insurance carrier.
(4) LIABILITY INSURANCE.—
(A) IN GENERAL.—The term ‘‘liability in-
surance’’ means insurance for legal liabilities
incurred by the insured resulting from—
(i) loss of or damage to property of
others;
(ii) ensuing loss of income or extra ex-
pense incurred because of loss of or dam-
age to property of others;
(iii) bodily injury (including) to per-
sons other than the insured or its employ-
ees; or
(iv) loss resulting from debt or default
of another.
(5) LOSS.—The term ‘‘loss’’ means death, bod-
ily injury, or loss of or damage to property, includ-
ing business interruption loss.
(6) 
NON-FEDERAL
GOVERNMENT
CUS-
TOMERS.—The term ‘‘non-Federal Government cus-
tomers’’ means any customer of a Seller that is not
an agency or instrumentality of the United States
280
Government with authority under Public Law 85-
804 to provide for indemnification under certain cir-
cumstances for third-party claims against its con-
tractors, including but not limited to State and local
authorities and commercial entities.
Subtitle H—Miscellaneous
Provisions
SEC. 871. ADVISORY COMMITTEES.
(a) IN GENERAL.—The Secretary may establish, ap-
point members of, and use the services of, advisory com-
mittees, as the Secretary may deem necessary. An advi-
sory committee established under this section may be ex-
empted by the Secretary from Public Law 92–463, but
the Secretary shall publish notice in the Federal Register
announcing the establishment of such a committee and
identifying its purpose and membership. Notwithstanding
the preceding sentence, members of an advisory committee
that is exempted by the Secretary under the preceding
sentence who are special Government employees (as that
term is defined in section 202 of title 18, United States
Code) shall be eligible for certifications under subsection
(b)(3) of section 208 of title 18, United States Code, for
official actions taken as a member of such advisory com-
mittee.
281
(b) TERMINATION.—Any advisory committee estab-
lished by the Secretary shall terminate 2 years after the
date of its establishment, unless the Secretary makes a
written determination to extend the advisory committee to
a specified date, which shall not be more than 2 years
after the date on which such determination is made. The
Secretary may make any number of subsequent extensions
consistent with this subsection.
SEC. 872. REORGANIZATION.
(a) REORGANIZATION.—The Secretary may allocate
or reallocate functions among the officers of the Depart-
ment, and may establish, consolidate, alter, or discontinue
organizational units within the Department, but only—
(1) pursuant to section 1502(b); or
(2) after the expiration of 60 days after pro-
viding notice of such action to the appropriate con-
gressional committees, which shall include an expla-
nation of the rationale for the action.
(b) LIMITATIONS.—
(1) IN GENERAL.—Authority under subsection
(a)(1) does not extend to the abolition of any agen-
cy, entity, organizational unit, program, or function
established or required to be maintained by this Act.
(2) ABOLITIONS.—Authority under subsection
(a)(2) does not extend to the abolition of any agen-
282
cy, entity, organizational unit, program, or function
established or required to be maintained by statute.
SEC. 873. USE OF APPROPRIATED FUNDS.
(a) DISPOSAL OF PROPERTY.—
(1) STRICT
COMPLIANCE.—If specifically au-
thorized to dispose of real property in this or any
other Act, the Secretary shall exercise this authority
in strict compliance with section 204 of the Federal
Property and Administrative Services Act of 1949
(40 U.S.C. 485).
(2) DEPOSIT
OF
PROCEEDS.—The Secretary
shall deposit the proceeds of any exercise of property
disposal authority into the miscellaneous receipts of
the Treasury in accordance with section 3302(b) of
title 31, United States Code.
(b) GIFTS.—Gifts or donations of services or property
of or for the Department may not be accepted, used, or
disposed of unless specifically permitted in advance in an
appropriations Act and only under the conditions and for
the purposes specified in such appropriations Act.
(c) BUDGET REQUEST.—Under section 1105 of title
31, United States Code, the President shall submit to
Congress a detailed budget request for the Department
for fiscal year 2004, and for each subsequent fiscal year.
283
SEC. 874. FUTURE YEAR HOMELAND SECURITY PROGRAM.
(a) IN GENERAL.—Each budget request submitted to
Congress for the Department under section 1105 of title
31, United States Code, shall, at or about the same time,
be accompanied by a Future Years Homeland Security
Program.
(b) CONTENTS.—The Future Years Homeland Secu-
rity Program under subsection (a) shall be structured, and
include the same type of information and level of detail,
as the Future Years Defense Program submitted to Con-
gress by the Department of Defense under section 221
of title 10, United States Code.
(c) EFFECTIVE DATE.—This section shall take effect
with respect to the preparation and submission of the fis-
cal year 2005 budget request for the Department and for
any subsequent fiscal year, except that the first Future
Years Homeland Security Program shall be submitted not
later than 90 days after the Department’s fiscal year 2005
budget request is submitted to Congress.
SEC. 875. MISCELLANEOUS AUTHORITIES.
(a) SEAL.—The Department shall have a seal, whose
design is subject to the approval of the President.
(b) PARTICIPATION OF MEMBERS OF THE ARMED
FORCES.—With respect to the Department, the Secretary
shall have the same authorities that the Secretary of
Transportation has with respect to the Department of
284
Transportation under section 324 of title 49, United
States Code.
(c) REDELEGATION OF FUNCTIONS.—Unless other-
wise provided in the delegation or by law, any function
delegated under this Act may be redelegated to any subor-
dinate.
SEC. 876. MILITARY ACTIVITIES.
Nothing in this Act shall confer upon the Secretary
any authority to engage in warfighting, the military de-
fense of the United States, or other military activities, nor
shall anything in this Act limit the existing authority of
the Department of Defense or the Armed Forces to engage
in warfighting, the military defense of the United States,
or other military activities.
SEC. 877. REGULATORY AUTHORITY AND PREEMPTION.
(a) REGULATORY AUTHORITY.—Except as otherwise
provided in sections 306(c), 862(c), and 1806(b), this Act
vests no new regulatory authority in the Secretary or any
other Federal official, and transfers to the Secretary or
another Federal official only such regulatory authority as
exists on the date of enactment of this Act within any
agency, program, or function transferred to the Depart-
ment pursuant to this Act, or that on such date of enact-
ment is exercised by another official of the executive
branch with respect to such agency, program, or function.
285
Any such transferred authority may not be exercised by
an official from whom it is transferred upon transfer of
such agency, program, or function to the Secretary or an-
other Federal official pursuant to this Act. This Act may
not be construed as altering or diminishing the regulatory
authority of any other executive agency, except to the ex-
tent that this Act transfers such authority from the agen-
cy.
(b) PREEMPTION OF STATE OR LOCAL LAW.—Ex-
cept as otherwise provided in this Act, this Act preempts
no State or local law, except that any authority to preempt
State or local law vested in any Federal agency or official
transferred to the Department pursuant to this Act shall
be transferred to the Department effective on the date of
the transfer to the Department of that Federal agency or
official.
SEC. 878. COUNTERNARCOTICS OFFICER.
The Secretary shall appoint a senior official in the
Department to assume primary responsibility for coordi-
nating policy and operations within the Department and
between the Department and other Federal departments
and agencies with respect to interdicting the entry of ille-
gal drugs into the United States, and tracking and sev-
ering connections between illegal drug trafficking and ter-
rorism. Such official shall—
286
(1) ensure the adequacy of resources within the
Department for illicit drug interdiction; and
(2) serve as the United States Interdiction Co-
ordinator for the Director of National Drug Control
Policy.
SEC. 879. OFFICE OF INTERNATIONAL AFFAIRS.
(a) ESTABLISHMENT.—There is established within
the Office of the Secretary an Office of International Af-
fairs. The Office shall be headed by a Director, who shall
be a senior official appointed by the Secretary.
(b) DUTIES OF THE DIRECTOR.—The Director shall
have the following duties:
(1) To promote information and education ex-
change with nations friendly to the United States in
order to promote sharing of best practices and tech-
nologies relating to homeland security. Such ex-
change shall include the following:
(A) Exchange of information on research
and development on homeland security tech-
nologies.
(B) Joint training exercises of first re-
sponders.
(C) Exchange of expertise on terrorism
prevention, response, and crisis management.
287
(2) To identify areas for homeland security in-
formation and training exchange where the United
States has a demonstrated weakness and another
friendly nation or nations have a demonstrated ex-
pertise.
(3) To plan and undertake international con-
ferences, exchange programs, and training activities.
(4) To manage international activities within
the Department in coordination with other Federal
officials with responsibility for counter-terrorism
matters.
SEC. 880. PROHIBITION OF THE TERRORISM INFORMATION
AND PREVENTION SYSTEM.
Any and all activities of the Federal Government to
implement the proposed component program of the Citizen
Corps known as Operation TIPS (Terrorism Information
and Prevention System) are hereby prohibited.
SEC. 881. REVIEW OF PAY AND BENEFIT PLANS.
Notwithstanding any other provision of this Act, the
Secretary shall, in consultation with the Director of the
Office of Personnel Management, review the pay and ben-
efit plans of each agency whose functions are transferred
under this Act to the Department and, within 90 days
after the date of enactment, submit a plan to the Presi-
dent of the Senate and the Speaker of the House of Rep-
288
resentatives and the appropriate committees and sub-
committees of Congress, for ensuring, to the maximum ex-
tent practicable, the elimination of disparities in pay and
benefits throughout the Department, especially among law
enforcement personnel, that are inconsistent with merit
system principles set forth in section 2301 of title 5,
United States Code.
SEC. 882. OFFICE FOR NATIONAL CAPITAL REGION CO-
ORDINATION.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established within
the Office of the Secretary the Office of National
Capital Region Coordination, to oversee and coordi-
nate Federal programs for and relationships with
State, local, and regional authorities in the National
Capital Region, as defined under section 2674(f)(2)
of title 10, United States Code.
(2) DIRECTOR.—The Office established under
paragraph (1) shall be headed by a Director, who
shall be appointed by the Secretary.
(3) COOPERATION.—The Secretary shall co-
operate with the Mayor of the District of Columbia,
the Governors of Maryland and Virginia, and other
State, local, and regional officers in the National
Capital Region to integrate the District of Columbia,
289
Maryland, and Virginia into the planning, coordina-
tion, and execution of the activities of the Federal
Government for the enhancement of domestic pre-
paredness against the consequences of terrorist at-
tacks.
(b) 
RESPONSIBILITIES.—The 
Office 
established
under subsection (a)(1) shall—
(1) coordinate the activities of the Department
relating to the National Capital Region, including
cooperation with the Office for State and Local Gov-
ernment Coordination;
(2) assess, and advocate for, the resources
needed by State, local, and regional authorities in
the National Capital Region to implement efforts to
secure the homeland;
(3) provide State, local, and regional authorities
in the National Capital Region with regular informa-
tion, research, and technical support to assist the ef-
forts of State, local, and regional authorities in the
National Capital Region in securing the homeland;
(4) develop a process for receiving meaningful
input from State, local, and regional authorities and
the private sector in the National Capital Region to
assist in the development of the homeland security
plans and activities of the Federal Government;
290
(5) coordinate with Federal agencies in the Na-
tional Capital Region on terrorism preparedness, to
ensure adequate planning, information sharing,
training, and execution of the Federal role in domes-
tic preparedness activities;
(6) coordinate with Federal, State, local, and
regional agencies, and the private sector in the Na-
tional Capital Region on terrorism preparedness to
ensure adequate planning, information sharing,
training, and execution of domestic preparedness ac-
tivities among these agencies and entities; and
(7) serve as a liaison between the Federal Gov-
ernment and State, local, and regional authorities,
and private sector entities in the National Capital
Region to facilitate access to Federal grants and
other programs.
(c) ANNUAL REPORT.—The Office established under
subsection (a) shall submit an annual report to Congress
that includes—
(1) the identification of the resources required
to fully implement homeland security efforts in the
National Capital Region;
(2) an assessment of the progress made by the
National Capital Region in implementing homeland
security efforts; and
291
(3) recommendations to Congress regarding the
additional resources needed to fully implement
homeland security efforts in the National Capital
Region.
(d) LIMITATION.—Nothing contained in this section
shall be construed as limiting the power of State and local
governments.
SEC. 883. REQUIREMENT TO COMPLY WITH LAWS PRO-
TECTING 
EQUAL 
EMPLOYMENT 
OPPOR-
TUNITY AND PROVIDING WHISTLEBLOWER
PROTECTIONS.
Nothing in this Act shall be construed as exempting
the Department from requirements applicable with respect
to executive agencies—
(1) to provide equal employment protection for
employees of the Department (including pursuant to
the provisions in section 2302(b)(1) of title 5,
United States Code, and the Notification and Fed-
eral Employee Antidiscrimination and Retaliation
Act of 2002 (Pub. L. 107–174)); or
(2) to provide whistleblower protections for em-
ployees of the Department (including pursuant to
the provisions in section 2302(b)(8) and (9) of such
title and the Notification and Federal Employee
Antidiscrimination and Retaliation Act of 2002).
292
SEC. 884. FEDERAL LAW ENFORCEMENT TRAINING CEN-
TER.
(a) IN GENERAL.—The transfer of an authority or
an agency under this Act to the Department of Homeland
Security does not affect training agreements already en-
tered into with the Federal Law Enforcement Training
Center with respect to the training of personnel to carry
out that authority or the duties of that transferred agency.
(b) CONTINUITY OF OPERATIONS.—All activities of
the Federal Law Enforcement Training Center trans-
ferred to the Department of Homeland Security under this
Act shall continue to be carried out at the locations such
activities were carried out before such transfer.
SEC. 885. JOINT INTERAGENCY TASK FORCE.
(a) ESTABLISHMENT.—The Secretary may establish
and operate a permanent Joint Interagency Homeland Se-
curity Task Force composed of representatives from mili-
tary and civilian agencies of the United States Govern-
ment for the purposes of anticipating terrorist threats
against the United States and taking appropriate actions
to prevent harm to the United States.
(b) STRUCTURE.—It is the sense of Congress that the
Secretary should model the Joint Interagency Homeland
Security Task Force on the approach taken by the Joint
Interagency Task Forces for drug interdiction at Key
293
West, Florida and Alameda, California, to the maximum
extent feasible and appropriate.
SEC. 886. SENSE OF CONGRESS REAFFIRMING THE CONTIN-
UED IMPORTANCE AND APPLICABILITY OF
THE POSSE COMITATUS ACT.
(a) FINDINGS.—Congress finds the following:
(1) Section 1385 of title 18, United States
Code (commonly known as the ‘‘Posse Comitatus
Act’’), prohibits the use of the Armed Forces as a
posse comitatus to execute the laws except in cases
and under circumstances expressly authorized by the
Constitution or Act of Congress.
(2) Enacted in 1878, the Posse Comitatus Act
was expressly intended to prevent United States
Marshals, on their own initiative, from calling on the
Army for assistance in enforcing Federal law.
(3) The Posse Comitatus Act has served the
Nation well in limiting the use of the Armed Forces
to enforce the law.
(4) Nevertheless, by its express terms, the
Posse Comitatus Act is not a complete barrier to the
use of the Armed Forces for a range of domestic
purposes, including law enforcement functions, when
the use of the Armed Forces is authorized by Act of
Congress or the President determines that the use of
294
the Armed Forces is required to fulfill the Presi-
dent’s obligations under the Constitution to respond
promptly in time of war, insurrection, or other seri-
ous emergency.
(5) Existing laws, including chapter 15 of title
10, United States Code (commonly known as the
‘‘Insurrection Act’’), and the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.), grant the President broad
powers that may be invoked in the event of domestic
emergencies, including an attack against the Nation
using weapons of mass destruction, and these laws
specifically authorize the President to use the Armed
Forces to help restore public order.
(b) SENSE OF CONGRESS.—Congress reaffirms the
continued importance of section 1385 of title 18, United
States Code, and it is the sense of Congress that nothing
in this Act should be construed to alter the applicability
of such section to any use of the Armed Forces as a posse
comitatus to execute the laws.
SEC. 887. COORDINATION WITH THE DEPARTMENT OF
HEALTH AND HUMAN SERVICES UNDER THE
PUBLIC HEALTH SERVICE ACT.
(a) IN GENERAL.—The annual Federal response plan
developed by the Department shall be consistent with sec-
295
tion 319 of the Public Health Service Act (42 U.S.C.
247d).
(b) DISCLOSURES AMONG RELEVANT AGENCIES.—
(1) IN GENERAL.—Full disclosure among rel-
evant agencies shall be made in accordance with this
subsection.
(2) PUBLIC HEALTH EMERGENCY.—During the
period in which the Secretary of Health and Human
Services has declared the existence of a public health
emergency under section 319(a) of the Public
Health Service Act (42 U.S.C. 247d(a)), the Sec-
retary of Health and Human Services shall keep rel-
evant agencies, including the Department of Home-
land Security, the Department of Justice, and the
Federal Bureau of Investigation, fully and currently
informed.
(3) 
POTENTIAL
PUBLIC
HEALTH
EMER-
GENCY.—In cases involving, or potentially involving,
a public health emergency, but in which no deter-
mination of an emergency by the Secretary of
Health and Human Services under section 319(a) of
the Public Health Service Act (42 U.S.C. 247d(a)),
has been made, all relevant agencies, including the
Department of Homeland Security, the Department
of Justice, and the Federal Bureau of Investigation,
296
shall keep the Secretary of Health and Human Serv-
ices and the Director of the Centers for Disease
Control and Prevention fully and currently informed.
SEC. 888. PRESERVING COAST GUARD MISSION PERFORM-
ANCE.
(a) DEFINITIONS.—In this section:
(1) NON-HOMELAND SECURITY MISSIONS.—The
term ‘‘non-homeland security missions’’ means the
following missions of the Coast Guard:
(A) Marine safety.
(B) Search and rescue.
(C) Aids to navigation.
(D) Living marine resources (fisheries law
enforcement).
(E) Marine environmental protection.
(F) Ice operations.
(2) 
HOMELAND
SECURITY
MISSIONS.—The
term ‘‘homeland security missions’’ means the fol-
lowing missions of the Coast Guard:
(A) Ports, waterways and coastal security.
(B) Drug interdiction.
(C) Migrant interdiction.
(D) Defense readiness.
(E) Other law enforcement.
297
(b) TRANSFER.—There are transferred to the De-
partment the authorities, functions, personnel, and assets
of the Coast Guard, which shall be maintained as a dis-
tinct entity within the Department, including the authori-
ties and functions of the Secretary of Transportation re-
lating thereto.
(c) MAINTENANCE OF STATUS OF FUNCTIONS AND
ASSETS.—Notwithstanding any other provision of this
Act, the authorities, functions, and capabilities of the
Coast Guard to perform its missions shall be maintained
intact and without significant reduction after the transfer
of the Coast Guard to the Department, except as specified
in subsequent Acts.
(d) CERTAIN TRANSFERS PROHIBITED.—No mission,
function, or asset (including for purposes of this sub-
section any ship, aircraft, or helicopter) of the Coast
Guard may be diverted to the principal and continuing use
of any other organization, unit, or entity of the Depart-
ment, except for details or assignments that do not reduce
the Coast Guard’s capability to perform its missions.
(e) CHANGES TO MISSIONS.—
(1) PROHIBITION.—The Secretary may not sub-
stantially or significantly reduce the missions of the
Coast Guard or the Coast Guard’s capability to per-
298
form those missions, except as specified in subse-
quent Acts.
(2) WAIVER.—The Secretary may waive the re-
strictions under paragraph (1) for a period of not to
exceed 90 days upon a declaration and certification
by the Secretary to Congress that a clear, compel-
ling, and immediate need exists for such a waiver.
A certification under this paragraph shall include a
detailed justification for the declaration and certifi-
cation, including the reasons and specific informa-
tion that demonstrate that the Nation and the Coast
Guard cannot respond effectively if the restrictions
under paragraph (1) are not waived.
(f) ANNUAL REVIEW.—
(1) IN
GENERAL.—The Inspector General of
the Department shall conduct an annual review that
shall assess thoroughly the performance by the
Coast Guard of all missions of the Coast Guard (in-
cluding non-homeland security missions and home-
land security missions) with a particular emphasis
on examining the non-homeland security missions.
(2) REPORT.—The report under this paragraph
shall be submitted to—
(A) the Committee on Governmental Af-
fairs of the Senate;
300
tives, and the Committees on Appropriations of the Senate
and the House of Representatives that—
(1) analyzes the feasibility of accelerating the
rate of procurement in the Coast Guard’s Integrated
Deepwater System from 20 years to 10 years;
(2) includes an estimate of additional resources
required;
(3) describes the resulting increased capabili-
ties;
(4) outlines any increases in the Coast Guard’s
homeland security readiness;
(5) describes any increases in operational effi-
ciencies; and
(6) provides a revised asset phase-in time line.
SEC. 889. HOMELAND SECURITY FUNDING ANALYSIS IN
PRESIDENT’S BUDGET.
(a) IN GENERAL.—Section 1105(a) of title 31,
United States Code, is amended by adding at the end the
following:
‘‘(33)(A)(i) a detailed, separate analysis, by
budget function, by agency, and by initiative area
(as determined by the administration) for the prior
fiscal year, the current fiscal year, the fiscal years
for which the budget is submitted, and the ensuing
fiscal year identifying the amounts of gross and net
301
appropriations or obligational authority and outlays
that contribute to homeland security, with separate
displays for mandatory and discretionary amounts,
including—
‘‘(I) summaries of the total amount of
such appropriations or new obligational author-
ity and outlays requested for homeland security;
‘‘(II) an estimate of the current service lev-
els of homeland security spending;
‘‘(III) the most recent risk assessment and
summary of homeland security needs in each
initiative area (as determined by the adminis-
tration); and
‘‘(IV) an estimate of user fees collected by
the Federal Government on behalf of homeland
security activities;
‘‘(ii) with respect to subclauses (I) through (IV)
of clause (i), amounts shall be provided by account
for each program, project and activity; and
‘‘(iii) an estimate of expenditures for homeland
security activities by State and local governments
and the private sector for the prior fiscal year and
the current fiscal year.
‘‘(B) In this paragraph, consistent with the Of-
fice of Management and Budget’s June 2002 ‘An-
302
nual Report to Congress on Combatting Terrorism’,
the term ‘homeland security’ refers to those activi-
ties that detect, deter, protect against, and respond
to terrorist attacks occurring within the United
States and its territories.
‘‘(C) In implementing this paragraph, including
determining what Federal activities or accounts con-
stitute homeland security for purposes of budgetary
classification, the Office of Management and Budget
is directed to consult periodically, but at least annu-
ally, with the House and Senate Budget Commit-
tees, the House and Senate Appropriations Commit-
tees, and the Congressional Budget Office.’’.
(b) REPEAL OF DUPLICATIVE REPORTS.—The fol-
lowing sections are repealed:
(1) Section 1051 of Public Law 105–85.
(2) Section 1403 of Public Law 105–261.
(c) EFFECTIVE DATE.—This section and the amend-
ment made by this section shall apply beginning with re-
spect to the fiscal year 2005 budget submission.
SEC. 890. AIR TRANSPORTATION SAFETY AND SYSTEM STA-
BILIZATION ACT.
The Air Transportation Safety and System Stabiliza-
tion Act (49 U.S.C. 40101 note) is amended—
303
(1) in section 408 by striking the last sentence
of subsection (c); and
(2) in section 402 by striking paragraph (1)
and inserting the following:
‘‘(1) AIR
CARRIER.—The term ‘air carrier’
means a citizen of the United States undertaking by
any means, directly or indirectly, to provide air
transportation and includes employees and agents
(including persons engaged in the business of pro-
viding air transportation security and their affili-
ates) of such citizen. For purposes of the preceding
sentence, the term ‘agent’, as applied to persons en-
gaged in the business of providing air transportation
security, shall only include persons that have con-
tracted directly with the Federal Aviation Adminis-
tration on or after and commenced services no later
than February 17, 2002, to provide such security,
and had not been or are not debarred for any period
within 6 months from that date.’’.
Subtitle I—Information Sharing
SEC. 891. SHORT TITLE; FINDINGS; AND SENSE OF CON-
GRESS.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Homeland Security Information Sharing Act’’.
(b) FINDINGS.—Congress finds the following:
304
(1) The Federal Government is required by the
Constitution to provide for the common defense,
which includes terrorist attack.
(2) The Federal Government relies on State
and local personnel to protect against terrorist at-
tack.
(3) The Federal Government collects, creates,
manages, and protects classified and sensitive but
unclassified information to enhance homeland secu-
rity.
(4) Some homeland security information is
needed by the State and local personnel to prevent
and prepare for terrorist attack.
(5) The needs of State and local personnel to
have access to relevant homeland security informa-
tion to combat terrorism must be reconciled with the
need to preserve the protected status of such infor-
mation and to protect the sources and methods used
to acquire such information.
(6) Granting security clearances to certain
State and local personnel is one way to facilitate the
sharing of information regarding specific terrorist
threats among Federal, State, and local levels of
government.
305
(7) Methods exist to declassify, redact, or other-
wise adapt classified information so it may be shared
with State and local personnel without the need for
granting additional security clearances.
(8) State and local personnel have capabilities
and opportunities to gather information on sus-
picious activities and terrorist threats not possessed
by Federal agencies.
(9) The Federal Government and State and
local governments and agencies in other jurisdictions
may benefit from such information.
(10) Federal, State, and local governments and
intelligence, law enforcement, and other emergency
preparation and response agencies must act in part-
nership to maximize the benefits of information
gathering and analysis to prevent and respond to
terrorist attacks.
(11) Information systems, including the Na-
tional Law Enforcement Telecommunications Sys-
tem and the Terrorist Threat Warning System, have
been established for rapid sharing of classified and
sensitive but unclassified information among Fed-
eral, State, and local entities.
306
(12) Increased efforts to share homeland secu-
rity information should avoid duplicating existing in-
formation systems.
(c) SENSE OF CONGRESS.—It is the sense of Con-
gress that Federal, State, and local entities should share
homeland security information to the maximum extent
practicable, with special emphasis on hard-to-reach urban
and rural communities.
SEC. 892. FACILITATING HOMELAND SECURITY INFORMA-
TION SHARING PROCEDURES.
(a) PROCEDURES FOR DETERMINING EXTENT OF
SHARING OF HOMELAND SECURITY INFORMATION.—
(1) The President shall prescribe and imple-
ment procedures under which relevant Federal
agencies—
(A) share relevant and appropriate home-
land security information with other Federal
agencies, including the Department, and appro-
priate State and local personnel;
(B) identify and safeguard homeland secu-
rity information that is sensitive but unclassi-
fied; and
(C) to the extent such information is in
classified form, determine whether, how, and to
what extent to remove classified information, as
307
appropriate, and with which such personnel it
may be shared after such information is re-
moved.
(2) The President shall ensure that such proce-
dures apply to all agencies of the Federal Govern-
ment.
(3) Such procedures shall not change the sub-
stantive requirements for the classification and safe-
guarding of classified information.
(4) Such procedures shall not change the re-
quirements and authorities to protect sources and
methods.
(b) PROCEDURES FOR SHARING OF HOMELAND SE-
CURITY INFORMATION.—
(1) Under procedures prescribed by the Presi-
dent, all appropriate agencies, including the intel-
ligence community, shall, through information shar-
ing systems, share homeland security information
with Federal agencies and appropriate State and
local personnel to the extent such information may
be shared, as determined in accordance with sub-
section (a), together with assessments of the credi-
bility of such information.
308
(2) Each information sharing system through
which information is shared under paragraph (1)
shall—
(A) have the capability to transmit unclas-
sified or classified information, though the pro-
cedures and recipients for each capability may
differ;
(B) have the capability to restrict delivery
of information to specified subgroups by geo-
graphic location, type of organization, position
of a recipient within an organization, or a re-
cipient’s need to know such information;
(C) be configured to allow the efficient and
effective sharing of information; and
(D) be accessible to appropriate State and
local personnel.
(3) The procedures prescribed under paragraph
(1) shall establish conditions on the use of informa-
tion shared under paragraph (1)—
(A) to limit the redissemination of such in-
formation to ensure that such information is
not used for an unauthorized purpose;
(B) to ensure the security and confiden-
tiality of such information;
309
(C) to protect the constitutional and statu-
tory rights of any individuals who are subjects
of such information; and
(D) to provide data integrity through the
timely removal and destruction of obsolete or
erroneous names and information.
(4) The procedures prescribed under paragraph
(1) shall ensure, to the greatest extent practicable,
that the information sharing system through which
information is shared under such paragraph include
existing information sharing systems, including, but
not limited to, the National Law Enforcement Tele-
communications System, the Regional Information
Sharing System, and the Terrorist Threat Warning
System of the Federal Bureau of Investigation.
(5) Each appropriate Federal agency, as deter-
mined by the President, shall have access to each in-
formation sharing system through which information
is shared under paragraph (1), and shall therefore
have access to all information, as appropriate,
shared under such paragraph.
(6) The procedures prescribed under paragraph
(1) shall ensure that appropriate State and local
personnel are authorized to use such information
sharing systems—
310
(A) to access information shared with such
personnel; and
(B) to share, with others who have access
to such information sharing systems, the home-
land security information of their own jurisdic-
tions, which shall be marked appropriately as
pertaining to potential terrorist activity.
(7) Under procedures prescribed jointly by the
Director of Central Intelligence and the Attorney
General, each appropriate Federal agency, as deter-
mined by the President, shall review and assess the
information shared under paragraph (6) and inte-
grate such information with existing intelligence.
(c) SHARING
OF CLASSIFIED INFORMATION
AND
SENSITIVE
BUT
UNCLASSIFIED
INFORMATION
WITH
STATE AND LOCAL PERSONNEL.—
(1) The President shall prescribe procedures
under which Federal agencies may, to the extent the
President considers necessary, share with appro-
priate State and local personnel homeland security
information that remains classified or otherwise pro-
tected after the determinations prescribed under the
procedures set forth in subsection (a).
(2) It is the sense of Congress that such proce-
dures may include 1 or more of the following means:
311
(A) Carrying out security clearance inves-
tigations with respect to appropriate State and
local personnel.
(B) With respect to information that is
sensitive but unclassified, entering into non-
disclosure agreements with appropriate State
and local personnel.
(C) Increased use of information-sharing
partnerships that include appropriate State and
local personnel, such as the Joint Terrorism
Task Forces of the Federal Bureau of Inves-
tigation, the Anti-Terrorism Task Forces of the
Department of Justice, and regional Terrorism
Early Warning Groups.
(d) RESPONSIBLE OFFICIALS.—For each affected
Federal agency, the head of such agency shall designate
an official to administer this Act with respect to such
agency.
(e) FEDERAL CONTROL OF INFORMATION.—Under
procedures prescribed under this section, information ob-
tained by a State or local government from a Federal
agency under this section shall remain under the control
of the Federal agency, and a State or local law authorizing
or requiring such a government to disclose information
shall not apply to such information.
312
(f) DEFINITIONS.—As used in this section:
(1) The term ‘‘homeland security information’’
means any information possessed by a Federal,
State, or local agency that—
(A) relates to the threat of terrorist activ-
ity;
(B) relates to the ability to prevent, inter-
dict, or disrupt terrorist activity;
(C) would improve the identification or in-
vestigation of a suspected terrorist or terrorist
organization; or
(D) would improve the response to a ter-
rorist act.
(2) The term ‘‘intelligence community’’ has the
meaning given such term in section 3(4) of the Na-
tional Security Act of 1947 (50 U.S.C. 401a(4)).
(3) The term ‘‘State and local personnel’’
means any of the following persons involved in pre-
vention, preparation, or response for terrorist attack:
(A) State Governors, mayors, and other lo-
cally elected officials.
(B) State and local law enforcement per-
sonnel and firefighters.
(C) Public health and medical profes-
sionals.
313
(D) Regional, State, and local emergency
management agency personnel, including State
adjutant generals.
(E) Other appropriate emergency response
agency personnel.
(F) Employees of private-sector entities
that affect critical infrastructure, cyber, eco-
nomic, or public health security, as designated
by the Federal government in procedures devel-
oped pursuant to this section.
(4) The term ‘‘State’’ includes the District of
Columbia and any commonwealth, territory, or pos-
session of the United States.
(g) CONSTRUCTION.—Nothing in this Act shall be
construed as authorizing any department, bureau, agency,
officer, or employee of the Federal Government to request,
receive, or transmit to any other Government entity or
personnel, or transmit to any State or local entity or per-
sonnel otherwise authorized by this Act to receive home-
land security information, any information collected by the
Federal Government solely for statistical purposes in vio-
lation of any other provision of law relating to the con-
fidentiality of such information.
314
SEC. 893. REPORT.
(a) REPORT REQUIRED.—Not later than 12 months
after the date of the enactment of this Act, the President
shall submit to the congressional committees specified in
subsection (b) a report on the implementation of section
892. The report shall include any recommendations for ad-
ditional measures or appropriation requests, beyond the
requirements of section 892, to increase the effectiveness
of sharing of information between and among Federal,
State, and local entities.
(b) SPECIFIED CONGRESSIONAL COMMITTEES.—The
congressional committees referred to in subsection (a) are
the following committees:
(1) The Permanent Select Committee on Intel-
ligence and the Committee on the Judiciary of the
House of Representatives.
(2) The Select Committee on Intelligence and
the Committee on the Judiciary of the Senate.
SEC. 894. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out section 892.
SEC. 895. AUTHORITY TO SHARE GRAND JURY INFORMA-
TION.
Rule 6(e) of the Federal Rules of Criminal Procedure
is amended—
315
(1) in paragraph (2), by inserting ‘‘, or of
guidelines jointly issued by the Attorney General and
Director of Central Intelligence pursuant to Rule 6,’’
after ‘‘Rule 6’’; and
(2) in paragraph (3)—
(A) in subparagraph (A)(ii), by inserting
‘‘or of a foreign government’’ after ‘‘(including
personnel of a state or subdivision of a state’’;
(B) in subparagraph (C)(i)—
(i) in subclause (I), by inserting be-
fore the semicolon the following: ‘‘or, upon
a request by an attorney for the govern-
ment, when sought by a foreign court or
prosecutor for use in an official criminal
investigation’’;
(ii) in subclause (IV)—
(I) by inserting ‘‘or foreign’’
after ‘‘may disclose a violation of
State’’;
(II) by inserting ‘‘or of a foreign
government’’ after ‘‘to an appropriate
official of a State or subdivision of a
State’’; and
(III) by striking ‘‘or’’ at the end;
316
(iii) by striking the period at the end
of subclause (V) and inserting ‘‘; or’’; and
(iv) by adding at the end the fol-
lowing:
‘‘(VI) when matters involve a threat
of actual or potential attack or other grave
hostile acts of a foreign power or an agent
of a foreign power, domestic or inter-
national sabotage, domestic or inter-
national terrorism, or clandestine intel-
ligence gathering activities by an intel-
ligence service or network of a foreign
power or by an agent of a foreign power,
within the United States or elsewhere, to
any appropriate federal, state, local, or for-
eign government official for the purpose of
preventing or responding to such a
threat.’’; and
(C) in subparagraph (C)(iii)—
(i) by striking ‘‘Federal’’;
(ii) by inserting ‘‘or clause (i)(VI)’’
after ‘‘clause (i)(V)’’; and
(iii) by adding at the end the fol-
lowing: ‘‘Any state, local, or foreign official
who receives information pursuant to
317
clause (i)(VI) shall use that information
only consistent with such guidelines as the
Attorney General and Director of Central
Intelligence shall jointly issue.’’.
SEC. 896. AUTHORITY TO SHARE ELECTRONIC, WIRE, AND
ORAL INTERCEPTION INFORMATION.
Section 2517 of title 18, United States Code, is
amended by adding at the end the following:
‘‘(7) Any investigative or law enforcement officer, or
other Federal official in carrying out official duties as such
Federal official, who by any means authorized by this
chapter, has obtained knowledge of the contents of any
wire, oral, or electronic communication, or evidence de-
rived therefrom, may disclose such contents or derivative
evidence to a foreign investigative or law enforcement offi-
cer to the extent that such disclosure is appropriate to
the proper performance of the official duties of the officer
making or receiving the disclosure, and foreign investiga-
tive or law enforcement officers may use or disclose such
contents or derivative evidence to the extent such use or
disclosure is appropriate to the proper performance of
their official duties.
‘‘(8) Any investigative or law enforcement officer, or
other Federal official in carrying out official duties as such
Federal official, who by any means authorized by this
318
chapter, has obtained knowledge of the contents of any
wire, oral, or electronic communication, or evidence de-
rived therefrom, may disclose such contents or derivative
evidence to any appropriate Federal, State, local, or for-
eign government official to the extent that such contents
or derivative evidence reveals a threat of actual or poten-
tial attack or other grave hostile acts of a foreign power
or an agent of a foreign power, domestic or international
sabotage, domestic or international terrorism, or clandes-
tine intelligence gathering activities by an intelligence
service or network of a foreign power or by an agent of
a foreign power, within the United States or elsewhere,
for the purpose of preventing or responding to such a
threat. Any official who receives information pursuant to
this provision may use that information only as necessary
in the conduct of that person’s official duties subject to
any limitations on the unauthorized disclosure of such in-
formation, and any State, local, or foreign official who re-
ceives information pursuant to this provision may use that
information only consistent with such guidelines as the At-
torney General and Director of Central Intelligence shall
jointly issue.’’.
SEC. 897. FOREIGN INTELLIGENCE INFORMATION.
(a) 
DISSEMINATION
AUTHORIZED.—Section
203(d)(1) of the Uniting and Strengthening America by
319
Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT ACT) Act of 2001
(Public Law 107–56; 50 U.S.C. 403–5d) is amended by
adding at the end the following: ‘‘Consistent with the re-
sponsibility of the Director of Central Intelligence to pro-
tect intelligence sources and methods, and the responsi-
bility of the Attorney General to protect sensitive law en-
forcement information, it shall be lawful for information
revealing a threat of actual or potential attack or other
grave hostile acts of a foreign power or an agent of a for-
eign power, domestic or international sabotage, domestic
or international terrorism, or clandestine intelligence gath-
ering activities by an intelligence service or network of a
foreign power or by an agent of a foreign power, within
the United States or elsewhere, obtained as part of a
criminal investigation to be disclosed to any appropriate
Federal, State, local, or foreign government official for the
purpose of preventing or responding to such a threat. Any
official who receives information pursuant to this provision
may use that information only as necessary in the conduct
of that person’s official duties subject to any limitations
on the unauthorized disclosure of such information, and
any State, local, or foreign official who receives informa-
tion pursuant to this provision may use that information
only consistent with such guidelines as the Attorney Gen-
320
eral and Director of Central Intelligence shall jointly
issue.’’.
(b) CONFORMING AMENDMENTS.—Section 203(c) of
that Act is amended—
(1) by striking ‘‘section 2517(6)’’ and inserting
‘‘paragraphs (6) and (8) of section 2517 of title 18,
United States Code,’’; and
(2) by inserting ‘‘and (VI)’’ after ‘‘Rule
6(e)(3)(C)(i)(V)’’.
SEC. 898. INFORMATION ACQUIRED FROM AN ELECTRONIC
SURVEILLANCE.
Section 106(k)(1) of the Foreign Intelligence Surveil-
lance Act of 1978 (50 U.S.C. 1806) is amended by insert-
ing after ‘‘law enforcement officers’’ the following: ‘‘or law
enforcement personnel of a State or political subdivision
of a State (including the chief executive officer of that
State or political subdivision who has the authority to ap-
point or direct the chief law enforcement officer of that
State or political subdivision)’’.
SEC. 899. INFORMATION ACQUIRED FROM A PHYSICAL
SEARCH.
Section 305(k)(1) of the Foreign Intelligence Surveil-
lance Act of 1978 (50 U.S.C. 1825) is amended by insert-
ing after ‘‘law enforcement officers’’ the following: ‘‘or law
enforcement personnel of a State or political subdivision
321
of a State (including the chief executive officer of that
State or political subdivision who has the authority to ap-
point or direct the chief law enforcement officer of that
State or political subdivision)’’.
TITLE IX—NATIONAL
HOMELAND SECURITY COUNCIL
SEC. 901. NATIONAL HOMELAND SECURITY COUNCIL.
There is established within the Executive Office of
the President a council to be known as the ‘‘Homeland
Security Council’’ (in this title referred to as the ‘‘Coun-
cil’’).
SEC. 902. FUNCTION.
The function of the Council shall be to advise the
President on homeland security matters.
SEC. 903. MEMBERSHIP.
The members of the Council shall be the following:
(1) The President.
(2) The Vice President.
(3) The Secretary of Homeland Security.
(4) The Attorney General.
(5) The Secretary of Defense.
(6) Such other individuals as may be designated
by the President.
322
SEC. 904. OTHER FUNCTIONS AND ACTIVITIES.
For the purpose of more effectively coordinating the
policies and functions of the United States Government
relating to homeland security, the Council shall—
(1) assess the objectives, commitments, and
risks of the United States in the interest of home-
land security and to make resulting recommenda-
tions to the President;
(2) oversee and review homeland security poli-
cies of the Federal Government and to make result-
ing recommendations to the President; and
(3) perform such other functions as the Presi-
dent may direct.
SEC. 905. STAFF COMPOSITION.
The Council shall have a staff, the head of which shall
be a civilian Executive Secretary, who shall be appointed
by the President. The President is authorized to fix the
pay of the Executive Secretary at a rate not to exceed
the rate of pay payable to the Executive Secretary of the
National Security Council.
SEC. 906. RELATION TO THE NATIONAL SECURITY COUN-
CIL.
The President may convene joint meetings of the
Homeland Security Council and the National Security
Council with participation by members of either Council
or as the President may otherwise direct.
323
TITLE X—INFORMATION
SECURITY
SEC. 1001. INFORMATION SECURITY.
(a) SHORT TITLE.—This title may be cited as the
‘‘Federal Information Security Management Act of 2002’’.
(b) INFORMATION SECURITY.—
(1) IN GENERAL.—Subchapter II of chapter 35
of title 44, United States Code, is amended to read
as follows:
‘‘SUBCHAPTER II—INFORMATION
SECURITY
‘‘§ 3531. Purposes
‘‘The purposes of this subchapter are to—
‘‘(1) provide a comprehensive framework for en-
suring the effectiveness of information security con-
trols over information resources that support Fed-
eral operations and assets;
‘‘(2) recognize the highly networked nature of
the current Federal computing environment and pro-
vide effective governmentwide management and over-
sight of the related information security risks, in-
cluding coordination of information security efforts
throughout the civilian, national security, and law
enforcement communities;
324
‘‘(3) provide for development and maintenance
of minimum controls required to protect Federal in-
formation and information systems;
‘‘(4) provide a mechanism for improved over-
sight of Federal agency information security pro-
grams;
‘‘(5) acknowledge that commercially developed
information security products offer advanced, dy-
namic, robust, and effective information security so-
lutions, reflecting market solutions for the protection
of critical information infrastructures important to
the national defense and economic security of the
nation that are designed, built, and operated by the
private sector; and
‘‘(6) recognize that the selection of specific
technical hardware and software information secu-
rity solutions should be left to individual agencies
from among commercially developed products.’’.
‘‘§ 3532. Definitions
‘‘(a) IN GENERAL.—Except as provided under sub-
section (b), the definitions under section 3502 shall apply
to this subchapter.
‘‘(b) ADDITIONAL DEFINITIONS.—As used in this
subchapter—
325
‘‘(1) the term ‘information security’ means pro-
tecting information and information systems from
unauthorized access, use, disclosure, disruption,
modification, or destruction in order to provide—
‘‘(A) integrity, which means guarding
against improper information modification or
destruction, and includes ensuring information
nonrepudiation and authenticity;
‘‘(B) confidentiality, which means pre-
serving authorized restrictions on access and
disclosure, including means for protecting per-
sonal privacy and proprietary information;
‘‘(C) availability, which means ensuring
timely and reliable access to and use of infor-
mation; and
‘‘(D) authentication, which means utilizing
digital credentials to assure the identity of
users and validate their access;
‘‘(2) the term ‘national security system’ means
any information system (including any telecommuni-
cations system) used or operated by an agency or by
a contractor of an agency, or other organization on
behalf of an agency, the function, operation, or use
of which—
‘‘(A) involves intelligence activities;
326
‘‘(B) involves cryptologic activities related
to national security;
‘‘(C) involves command and control of mili-
tary forces;
‘‘(D) involves equipment that is an integral
part of a weapon or weapons system; or
‘‘(E) is critical to the direct fulfillment of
military or intelligence missions provided that
this definition does not apply to a system that
is used for routine administrative and business
applications (including payroll, finance, logis-
tics, and personnel management applications);
‘‘(3) the term ‘information technology’ has the
meaning given that term in section 11101 of title
40; and
‘‘(4) the term ‘information system’ means any
equipment or interconnected system or subsystems
of equipment that is used in the automatic acquisi-
tion, storage, manipulation, management, movement,
control, display, switching, interchange, trans-
mission, or reception of data or information, and
includes—
‘‘(A) computers and computer networks;
‘‘(B) ancillary equipment;
327
‘‘(C) software, firmware, and related proce-
dures;
‘‘(D) services, including support services;
and
‘‘(E) related resources.’’.
‘‘§ 3533. Authority and functions of the Director
‘‘(a) The Director shall oversee agency information
security policies and practices, by—
‘‘(1) promulgating information security stand-
ards under section 11331 of title 40;
‘‘(2) overseeing the implementation of policies,
principles, standards, and guidelines on information
security;
‘‘(3) requiring agencies, consistent with the
standards promulgated under such section 11331
and the requirements of this subchapter, to identify
and provide information security protections com-
mensurate with the risk and magnitude of the harm
resulting from the unauthorized access, use, disclo-
sure, disruption, modification, or destruction of—
‘‘(A) information collected or maintained
by or on behalf of an agency; or
‘‘(B) information systems used or operated
by an agency or by a contractor of an agency
or other organization on behalf of an agency;
328
‘‘(4) coordinating the development of standards
and guidelines under section 20 of the National In-
stitute of Standards and Technology Act (15 U.S.C.
278g–3) with agencies and offices operating or exer-
cising control of national security systems (including
the National Security Agency) to assure, to the max-
imum extent feasible, that such standards and
guidelines are complementary with standards and
guidelines developed for national security systems;
‘‘(5) overseeing agency compliance with the re-
quirements of this subchapter, including through
any authorized action under section 11303(b)(5) of
title 40, to enforce accountability for compliance
with such requirements;
‘‘(6) reviewing at least annually, and approving
or disapproving, agency information security pro-
grams required under section 3534(b);
‘‘(7) coordinating information security policies
and procedures with related information resources
management policies and procedures; and
‘‘(8) reporting to Congress no later than March
1 of each year on agency compliance with the re-
quirements of this subchapter, including—
‘‘(A) a summary of the findings of evalua-
tions required by section 3535;
329
‘‘(B) significant deficiencies in agency in-
formation security practices;
‘‘(C) planned remedial action to address
such deficiencies; and
‘‘(D) a summary of, and the views of the
Director on, the report prepared by the Na-
tional Institute of Standards and Technology
under section 20(e)(7) of the National Institute
of Standards and Technology Act (15 U.S.C.
278g–3).’’.
‘‘(b) Except for the authorities described in para-
graphs (4) and (7) of subsection (a), the authorities of
the Director under this section shall not apply to national
security systems.
‘‘§ 3534. Federal agency responsibilities
‘‘(a) The head of each agency shall—
‘‘(1) be responsible for—
‘‘(A) providing information security protec-
tions commensurate with the risk and mag-
nitude of the harm resulting from unauthorized
access, use, disclosure, disruption, modification,
or destruction of—
‘‘(i) information collected or main-
tained by or on behalf of the agency; and
330
‘‘(ii) information systems used or op-
erated by an agency or by a contractor of
an agency or other organization on behalf
of an agency;
‘‘(B) complying with the requirements of
this subchapter and related policies, procedures,
standards, and guidelines, including—
‘‘(i) information security standards
promulgated by the Director under section
11331 of title 40; and
‘‘(ii) information security standards
and guidelines for national security sys-
tems issued in accordance with law and as
directed by the President; and
‘‘(C) ensuring that information security
management processes are integrated with
agency strategic and operational planning proc-
esses;
‘‘(2) ensure that senior agency officials provide
information security for the information and infor-
mation systems that support the operations and as-
sets under their control, including through—
‘‘(A) assessing the risk and magnitude of
the harm that could result from the unauthor-
ized access, use, disclosure, disruption, modi-
331
fication, or destruction of such information or
information systems;
‘‘(B) determining the levels of information
security appropriate to protect such information
and information systems in accordance with
standards promulgated under section 11331 of
title 40 for information security classifications
and related requirements;
‘‘(C) implementing policies and procedures
to cost-effectively reduce risks to an acceptable
level; and
‘‘(D) periodically testing and evaluating in-
formation security controls and techniques to
ensure that they are effectively implemented;
‘‘(3) delegate to the agency Chief Information
Officer established under section 3506 (or com-
parable official in an agency not covered by such
section) the authority to ensure compliance with the
requirements imposed on the agency under this sub-
chapter, including—
‘‘(A) designating a senior agency informa-
tion security officer who shall—
‘‘(i) carry out the Chief Information
Officer’s responsibilities under this section;
332
‘‘(ii) possess professional qualifica-
tions, including training and experience,
required to administer the functions de-
scribed under this section;
‘‘(iii) have information security duties
as that official’s primary duty; and
‘‘(iv) head an office with the mission
and resources to assist in ensuring agency
compliance with this section;
‘‘(B) developing and maintaining an agen-
cywide information security program as re-
quired by subsection (b);
‘‘(C) developing and maintaining informa-
tion security policies, procedures, and control
techniques to address all applicable require-
ments, including those issued under section
3533 of this title, and section 11331 of title 40;
‘‘(D) training and overseeing personnel
with significant responsibilities for information
security with respect to such responsibilities;
and
‘‘(E) assisting senior agency officials con-
cerning their responsibilities under paragraph
(2);
333
‘‘(4) ensure that the agency has trained per-
sonnel sufficient to assist the agency in complying
with the requirements of this subchapter and related
policies, procedures, standards, and guidelines; and
‘‘(5) ensure that the agency Chief Information
Officer, in coordination with other senior agency of-
ficials, reports annually to the agency head on the
effectiveness of the agency information security pro-
gram, including progress of remedial actions.
‘‘(b) Each agency shall develop, document, and imple-
ment an agencywide information security program, ap-
proved by the Director under section 3533(a)(5), to pro-
vide information security for the information and informa-
tion systems that support the operations and assets of the
agency, including those provided or managed by another
agency, contractor, or other source, that includes—
‘‘(1) periodic assessments of the risk and mag-
nitude of the harm that could result from the unau-
thorized access, use, disclosure, disruption, modifica-
tion, or destruction of information and information
systems that support the operations and assets of
the agency;
‘‘(2) policies and procedures that—
‘‘(A) are based on the risk assessments re-
quired by paragraph (1);
334
‘‘(B) cost-effectively reduce information se-
curity risks to an acceptable level;
‘‘(C) ensure that information security is
addressed throughout the life cycle of each
agency information system; and
‘‘(D) ensure compliance with—
‘‘(i) the requirements of this sub-
chapter;
‘‘(ii) policies and procedures as may
be prescribed by the Director, and infor-
mation security standards promulgated
under section 11331 of title 40;
‘‘(iii) minimally acceptable system
configuration requirements, as determined
by the agency; and
‘‘(iv) any other applicable require-
ments, including standards and guidelines
for national security systems issued in ac-
cordance with law and as directed by the
President;
‘‘(3) subordinate plans for providing adequate
information security for networks, facilities, and sys-
tems or groups of information systems, as appro-
priate;
335
‘‘(4) security awareness training to inform per-
sonnel, including contractors and other users of in-
formation systems that support the operations and
assets of the agency, of—
‘‘(A) information security risks associated
with their activities; and
‘‘(B) their responsibilities in complying
with agency policies and procedures designed to
reduce these risks;
‘‘(5) periodic testing and evaluation of the ef-
fectiveness of information security policies, proce-
dures, and practices, to be performed with a fre-
quency depending on risk, but no less than annually,
of which such testing—
‘‘(A) shall include testing of management,
operational, and technical controls of every in-
formation system identified in the inventory re-
quired under section 3505(c); and
‘‘(B) may include testing relied on in a
evaluation under section 3535;
‘‘(6) a process for planning, implementing, eval-
uating, and documenting remedial action to address
any deficiencies in the information security policies,
procedures, and practices of the agency;
336
‘‘(7) procedures for detecting, reporting, and re-
sponding to security incidents, including—
‘‘(A) mitigating risks associated with such
incidents before substantial damage is done;
and
‘‘(B) notifying and consulting with, as
appropriate—
‘‘(i) law enforcement agencies and rel-
evant Offices of Inspector General;
‘‘(ii) an office designated by the Presi-
dent for any incident involving a national
security system; and
‘‘(iii) any other agency or office, in ac-
cordance with law or as directed by the
President; and
‘‘(8) plans and procedures to ensure continuity
of operations for information systems that support
the operations and assets of the agency.
‘‘(c) Each agency shall—
‘‘(1) report annually to the Director, the Com-
mittees on Government Reform and Science of the
House of Representatives, the Committees on Gov-
ernmental Affairs and Commerce, Science, and
Transportation of the Senate, the appropriate au-
thorization and appropriations committees of Con-
337
gress, and the Comptroller General on the adequacy
and effectiveness of information security policies,
procedures, and practices, and compliance with the
requirements of this subchapter, including compli-
ance with each requirement of subsection (b);
‘‘(2) address the adequacy and effectiveness of
information security policies, procedures, and prac-
tices in plans and reports relating to—
‘‘(A) annual agency budgets;
‘‘(B) information resources management
under subchapter 1 of this chapter;
‘‘(C) information technology management
under subtitle III of title 40;
‘‘(D) program performance under sections
1105 and 1115 through 1119 of title 31, and
sections 2801 and 2805 of title 39;
‘‘(E) financial management under chapter
9 of title 31, and the Chief Financial Officers
Act of 1990 (31 U.S.C. 501 note; Public Law
101–576) (and the amendments made by that
Act);
‘‘(F) financial management systems under
the Federal Financial Management Improve-
ment Act (31 U.S.C. 3512 note); and
338
‘‘(G) internal accounting and administra-
tive controls under section 3512 of title 31,
United States Code, (known as the ‘Federal
Managers Financial Integrity Act’); and
‘‘(3) report any significant deficiency in a pol-
icy, procedure, or practice identified under para-
graph (1) or (2)—
‘‘(A) as a material weakness in reporting
under section 3512 of title 31; and
‘‘(B) if relating to financial management
systems, as an instance of a lack of substantial
compliance under the Federal Financial Man-
agement Improvement Act (31 U.S.C. 3512
note).
‘‘(d)(1) In addition to the requirements of subsection
(c), each agency, in consultation with the Director, shall
include as part of the performance plan required under
section 1115 of title 31 a description of—
‘‘(A) the time periods, and
‘‘(B) the resources, including budget, staffing,
and training,
that are necessary to implement the program required
under subsection (b).
339
‘‘(2) The description under paragraph (1) shall be
based on the risk assessments required under subsection
(b)(2)(1).
‘‘(e) Each agency shall provide the public with timely
notice and opportunities for comment on proposed infor-
mation security policies and procedures to the extent that
such policies and procedures affect communication with
the public.
‘‘§ 3535. Annual independent evaluation
‘‘(a)(1) Each year each agency shall have performed
an independent evaluation of the information security pro-
gram and practices of that agency to determine the effec-
tiveness of such program and practices.
‘‘(2) Each evaluation by an agency under this section
shall include—
‘‘(A) testing of the effectiveness of information
security policies, procedures, and practices of a rep-
resentative subset of the agency’s information sys-
tems;
‘‘(B) an assessment (made on the basis of the
results of the testing) of compliance with—
‘‘(i) the requirements of this subchapter;
and
‘‘(ii) related information security policies,
procedures, standards, and guidelines; and
340
‘‘(C) separate presentations, as appropriate, re-
garding information security relating to national se-
curity systems.
‘‘(b) Subject to subsection (c)—
‘‘(1) for each agency with an Inspector General
appointed under the Inspector General Act of 1978,
the annual evaluation required by this section shall
be performed by the Inspector General or by an
independent external auditor, as determined by the
Inspector General of the agency; and
‘‘(2) for each agency to which paragraph (1)
does not apply, the head of the agency shall engage
an independent external auditor to perform the eval-
uation.
‘‘(c) For each agency operating or exercising control
of a national security system, that portion of the evalua-
tion required by this section directly relating to a national
security system shall be performed—
‘‘(1) only by an entity designated by the agency
head; and
‘‘(2) in such a manner as to ensure appropriate
protection for information associated with any infor-
mation security vulnerability in such system com-
mensurate with the risk and in accordance with all
applicable laws.
341
‘‘(d) The evaluation required by this section—
‘‘(1) shall be performed in accordance with gen-
erally accepted government auditing standards; and
‘‘(2) may be based in whole or in part on an
audit, evaluation, or report relating to programs or
practices of the applicable agency.
‘‘(e) Each year, not later than such date established
by the Director, the head of each agency shall submit to
the Director the results of the evaluation required under
this section.
‘‘(f) Agencies and evaluators shall take appropriate
steps to ensure the protection of information which, if dis-
closed, may adversely affect information security. Such
protections shall be commensurate with the risk and com-
ply with all applicable laws and regulations.
‘‘(g)(1) The Director shall summarize the results of
the evaluations conducted under this section in the report
to Congress required under section 3533(a)(8).
‘‘(2) The Director’s report to Congress under this
subsection shall summarize information regarding infor-
mation security relating to national security systems in
such a manner as to ensure appropriate protection for in-
formation associated with any information security vulner-
ability in such system commensurate with the risk and in
accordance with all applicable laws.
342
‘‘(3) Evaluations and any other descriptions of infor-
mation systems under the authority and control of the Di-
rector of Central Intelligence or of National Foreign Intel-
ligence Programs systems under the authority and control
of the Secretary of Defense shall be made available to Con-
gress only through the appropriate oversight committees
of Congress, in accordance with applicable laws.
‘‘(h) The Comptroller General shall periodically
evaluate and report to Congress on—
‘‘(1) the adequacy and effectiveness of agency
information security policies and practices; and
‘‘(2) implementation of the requirements of this
subchapter.
‘‘§ 3536. National security systems
‘‘The head of each agency operating or exercising
control of a national security system shall be responsible
for ensuring that the agency—
‘‘(1) provides information security protections
commensurate with the risk and magnitude of the
harm resulting from the unauthorized access, use,
disclosure, disruption, modification, or destruction of
the information contained in such system;
‘‘(2) implements information security policies
and practices as required by standards and guide-
343
lines for national security systems, issued in accord-
ance with law and as directed by the President; and
‘‘(3) complies with the requirements of this sub-
chapter.
‘‘§ 3537. Authorization of appropriations
‘‘There are authorized to be appropriated to carry out
the provisions of this subchapter such sums as may be
necessary for each of fiscal years 2003 through 2007.
‘‘§ 3538. Effect on existing law
‘‘Nothing in this subchapter, section 11331 of title
40, or section 20 of the National Standards and Tech-
nology Act (15 U.S.C. 278g–3) may be construed as af-
fecting the authority of the President, the Office of Man-
agement and Budget or the Director thereof, the National
Institute of Standards and Technology, or the head of any
agency, with respect to the authorized use or disclosure
of information, including with regard to the protection of
personal privacy under section 552a of title 5, the disclo-
sure of information under section 552 of title 5, the man-
agement and disposition of records under chapters 29, 31,
or 33 of title 44, the management of information resources
under subchapter I of chapter 35 of this title, or the dis-
closure of information to Congress or the Comptroller
General of the United States.’’.
344
(2) CLERICAL AMENDMENT.—The items in the
table of sections at the beginning of such chapter 35
under the heading ‘‘SUBCHAPTER II’’ are amend-
ed to read as follows:
‘‘3531. Purposes.
‘‘3532. Definitions.
‘‘3533. Authority and functions of the Director.
‘‘3534. Federal agency responsibilities.
‘‘3535. Annual independent evaluation.
‘‘3536. National security systems.
‘‘3537. Authorization of appropriations.
‘‘3538. Effect on existing law.’’.
(c) INFORMATION SECURITY RESPONSIBILITIES OF
CERTAIN AGENCIES.—
(1) NATIONAL SECURITY RESPONSIBILITIES.—
(A) Nothing in this Act (including any amendment
made by this Act) shall supersede any authority of
the Secretary of Defense, the Director of Central In-
telligence, or other agency head, as authorized by
law and as directed by the President, with regard to
the operation, control, or management of national
security systems, as defined by section 3532(3) of
title 44, United States Code.
(B) Section 2224 of title 10, United States
Code, is amended—
(i) in subsection 2224(b), by striking ‘‘(b)
OBJECTIVES AND MINIMUM REQUIREMENTS.—
(1)’’ and inserting ‘‘(b) OBJECTIVES OF THE
PROGRAM.—’’;
345
(ii) in subsection 2224(b), by striking ‘‘(2)
the program shall at a minimum meet the re-
quirements of section 3534 and 3535 of title
44, United States Code.’’; and
(iii) in subsection 2224(c), by inserting ‘‘,
including through compliance with subtitle II of
chapter 35 of title 44’’ after ‘‘infrastructure’’.
(2) ATOMIC ENERGY ACT OF 1954.—Nothing in
this Act shall supersede any requirement made by or
under the Atomic Energy Act of 1954 (42 U.S.C.
2011 et seq.). Restricted Data or Formerly Re-
stricted Data shall be handled, protected, classified,
downgraded, and declassified in conformity with the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et
seq.).
SEC. 1002. MANAGEMENT OF INFORMATION TECHNOLOGY.
(a) IN GENERAL.—Section 11331 of title 40, United
States Code, is amended to read as follows:
‘‘§ 11331. Responsibilities for Federal information sys-
tems standards
‘‘(a) DEFINITION.—In this section, the term ‘infor-
mation security’ has the meaning given that term in sec-
tion 3532(b)(1) of title 44.
‘‘(b) REQUIREMENT TO PRESCRIBE STANDARDS.—
‘‘(1) IN GENERAL.—
346
‘‘(A) REQUIREMENT.—Except as provided
under paragraph (2), the Director of the Office
of Management and Budget shall, on the basis
of proposed standards developed by the Na-
tional Institute of Standards and Technology
pursuant to paragraphs (2) and (3) of section
20(a) of the National Institute of Standards
and Technology Act (15 U.S.C. 278g–3(a)) and
in consultation with the Secretary of Homeland
Security, 
promulgate 
information 
security
standards pertaining to Federal information
systems.
‘‘(B) REQUIRED
STANDARDS.—Standards
promulgated under subparagraph (A) shall
include—
‘‘(i) standards that provide minimum
information security requirements as deter-
mined under section 20(b) of the National
Institute of Standards and Technology Act
(15 U.S.C. 278g–3(b)); and
‘‘(ii) such standards that are other-
wise necessary to improve the efficiency of
operation or security of Federal informa-
tion systems.
347
‘‘(C) REQUIRED
STANDARDS
BINDING.—
Information security standards described under
subparagraph (B) shall be compulsory and
binding.
‘‘(2) STANDARDS
AND
GUIDELINES
FOR
NA-
TIONAL SECURITY SYSTEMS.—Standards and guide-
lines for national security systems, as defined under
section 3532(3) of title 44, shall be developed, pro-
mulgated, enforced, and overseen as otherwise au-
thorized by law and as directed by the President.
‘‘(c) APPLICATION
OF MORE STRINGENT STAND-
ARDS.—The head of an agency may employ standards for
the cost-effective information security for all operations
and assets within or under the supervision of that agency
that are more stringent than the standards promulgated
by the Director under this section, if such standards—
‘‘(1) contain, at a minimum, the provisions of
those applicable standards made compulsory and
binding by the Director; and
‘‘(2) are otherwise consistent with policies and
guidelines issued under section 3533 of title 44.
‘‘(d) REQUIREMENTS REGARDING DECISIONS BY DI-
RECTOR.—
‘‘(1) DEADLINE.—The decision regarding the
promulgation of any standard by the Director under
348
subsection (b) shall occur not later than 6 months
after the submission of the proposed standard to the
Director by the National Institute of Standards and
Technology, as provided under section 20 of the Na-
tional Institute of Standards and Technology Act
(15 U.S.C. 278g–3).
‘‘(2) NOTICE
AND
COMMENT.—A decision by
the Director to significantly modify, or not promul-
gate, a proposed standard submitted to the Director
by the National Institute of Standards and Tech-
nology, as provided under section 20 of the National
Institute of Standards and Technology Act (15
U.S.C. 278g–3), shall be made after the public is
given an opportunity to comment on the Director’s
proposed decision.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 113 of title 40, United States
Code, is amended by striking the item relating to section
11331 and inserting the following:
‘‘11331. Responsibilities for Federal information systems standards.’’.
SEC. 1003. NATIONAL INSTITUTE OF STANDARDS AND
TECHNOLOGY.
Section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g–3), is amended by strik-
ing the text and inserting the following:
‘‘(a) The Institute shall—
349
‘‘(1) have the mission of developing standards,
guidelines, and associated methods and techniques
for information systems;
‘‘(2) develop standards and guidelines, includ-
ing minimum requirements, for information systems
used or operated by an agency or by a contractor of
an agency or other organization on behalf of an
agency, other than national security systems (as de-
fined in section 3532(b)(2) of title 44, United States
Code);
‘‘(3) develop standards and guidelines, includ-
ing minimum requirements, for providing adequate
information security for all agency operations and
assets, but such standards and guidelines shall not
apply to national security systems; and
‘‘(4) carry out the responsibilities described in
paragraph (3) through the Computer Security Divi-
sion.
‘‘(b) The standards and guidelines required by sub-
section (a) shall include, at a minimum—
‘‘(1)(A) standards to be used by all agencies to
categorize all information and information systems
collected or maintained by or on behalf of each agen-
cy based on the objectives of providing appropriate
350
levels of information security according to a range of
risk levels;
‘‘(B) guidelines recommending the types of in-
formation and information systems to be included in
each such category; and
‘‘(C) minimum information security require-
ments for information and information systems in
each such category;
‘‘(2) a definition of and guidelines concerning
detection and handling of information security inci-
dents; and
‘‘(3) guidelines developed in coordination with
the National Security Agency for identifying an in-
formation system as a national security system con-
sistent with applicable requirements for national se-
curity systems, issued in accordance with law and as
directed by the President.
‘‘(c) In developing standards and guidelines required
by subsections (a) and (b), the Institute shall—
‘‘(1) consult with other agencies and offices (in-
cluding, but not limited to, the Director of the Office
of Management and Budget, the Departments of
Defense and Energy, the National Security Agency,
the General Accounting Office, and the Secretary of
Homeland Security) to assure—
351
‘‘(A) use of appropriate information secu-
rity policies, procedures, and techniques, in
order to improve information security and avoid
unnecessary and costly duplication of effort;
and
‘‘(B) that such standards and guidelines
are complementary with standards and guide-
lines employed for the protection of national se-
curity systems and information contained in
such systems;
‘‘(2) provide the public with an opportunity to
comment on proposed standards and guidelines;
‘‘(3) submit to the Director of the Office of
Management and Budget for promulgation under
section 11331 of title 40, United States Code—
‘‘(A) standards, as required under sub-
section (b)(1)(A), no later than 12 months after
the date of the enactment of this section; and
‘‘(B) minimum information security re-
quirements for each category, as required under
subsection (b)(1)(C), no later than 36 months
after the date of the enactment of this section;
‘‘(4) issue guidelines as required under sub-
section (b)(1)(B), no later than 18 months after the
date of the enactment of this Act;
352
‘‘(5) ensure that such standards and guidelines
do not require specific technological solutions or
products, including any specific hardware or soft-
ware security solutions;
‘‘(6) ensure that such standards and guidelines
provide for sufficient flexibility to permit alternative
solutions to provide equivalent levels of protection
for identified information security risks; and
‘‘(7) use flexible, performance-based standards
and guidelines that, to the greatest extent possible,
permit the use of off-the-shelf commercially devel-
oped information security products.
‘‘(d) The Institute shall—
‘‘(1) submit standards developed pursuant to
subsection (a), along with recommendations as to
the extent to which these should be made compul-
sory and binding, to the Director of the Office of
Management and Budget for promulgation under
section 11331 of title 40, United States Code;
‘‘(2) provide assistance to agencies regarding—
‘‘(A) compliance with the standards and
guidelines developed under subsection (a);
‘‘(B) detecting and handling information
security incidents; and
353
‘‘(C) information security policies, proce-
dures, and practices;
‘‘(3) conduct research, as needed, to determine
the nature and extent of information security
vulnerabilities and techniques for providing cost-ef-
fective information security;
‘‘(4) develop and periodically revise performance
indicators and measures for agency information se-
curity policies and practices;
‘‘(5) evaluate private sector information secu-
rity policies and practices and commercially available
information technologies to assess potential applica-
tion by agencies to strengthen information security;
‘‘(6) evaluate security policies and practices de-
veloped for national security systems to assess po-
tential application by agencies to strengthen infor-
mation security;
‘‘(7) periodically assess the effectiveness of
standards and guidelines developed under this sec-
tion and undertake revisions as appropriate;
‘‘(8) solicit and consider the recommendations
of the Information Security and Privacy Advisory
Board, established by section 21, regarding stand-
ards and guidelines developed under subsection (a)
and submit such recommendations to the Director of
354
the Office of Management and Budget with such
standards submitted to the Director; and
‘‘(9) prepare an annual public report on activi-
ties undertaken in the previous year, and planned
for the coming year, to carry out responsibilities
under this section.
‘‘(e) As used in this section—
‘‘(1) the term ‘agency’ has the same meaning as
provided in section 3502(1) of title 44, United
States Code;
‘‘(2) the term ‘information security’ has the
same meaning as provided in section 3532(1) of
such title;
‘‘(3) the term ‘information system’ has the
same meaning as provided in section 3502(8) of
such title;
‘‘(4) the term ‘information technology’ has the
same meaning as provided in section 11101 of title
40, United States Code; and
‘‘(5) the term ‘national security system’ has the
same meaning as provided in section 3532(b)(2) of
such title.’’.
355
SEC. 1004. INFORMATION SECURITY AND PRIVACY ADVI-
SORY BOARD.
Section 21 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g–4), is amended—
(1) in subsection (a), by striking ‘‘Computer
System Security and Privacy Advisory Board’’ and
inserting ‘‘Information Security and Privacy Advi-
sory Board’’;
(2) in subsection (a)(1), by striking ‘‘computer
or telecommunications’’ and inserting ‘‘information
technology’’;
(3) in subsection (a)(2)—
(A) by striking ‘‘computer or telecommuni-
cations technology’’ and inserting ‘‘information
technology’’; and
(B) by striking ‘‘computer or telecommuni-
cations equipment’’ and inserting ‘‘information
technology’’;
(4) in subsection (a)(3)—
(A) by striking ‘‘computer systems’’ and
inserting ‘‘information system’’; and
(B) by striking ‘‘computer systems secu-
rity’’ and inserting ‘‘information security’’;
(5) in subsection (b)(1) by striking ‘‘computer
systems security’’ and inserting ‘‘information secu-
rity’’;
356
(6) in subsection (b) by striking paragraph (2)
and inserting the following:
‘‘(2) to advise the Institute and the Director of
the Office of Management and Budget on informa-
tion security and privacy issues pertaining to Fed-
eral Government information systems, including
through review of proposed standards and guidelines
developed under section 20; and’’;
(7) in subsection (b)(3) by inserting ‘‘annually’’
after ‘‘report’’;
(8) by inserting after subsection (e) the fol-
lowing new subsection:
‘‘(f) The Board shall hold meetings at such locations
and at such time and place as determined by a majority
of the Board.’’;
(9) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(10) by striking subsection (h), as redesignated
by paragraph (9), and inserting the following:
‘‘(h) As used in this section, the terms ‘‘information
system’’ and ‘‘information technology’’ have the meanings
given in section 20.’’.
SEC. 1005. TECHNICAL AND CONFORMING AMENDMENTS.
(a) FEDERAL COMPUTER SYSTEM SECURITY TRAIN-
ING AND PLAN.—
357
(1) REPEAL.—Section 11332 of title 40, United
States Code, is repealed.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 113 of title 40,
United States Code, as amended by striking the item
relating to section 11332.
(b) FLOYD D. SPENCE NATIONAL DEFENSE AU-
THORIZATION ACT FOR FISCAL YEAR 2001.—The Floyd
D. Spence National Defense Authorization Act for Fiscal
Year 2001 (Public Law 106–398) is amended by striking
subtitle G of title X (44 U.S.C. 3531 note).
(c) PAPERWORK
REDUCTION
ACT.—(1) Section
3504(g) of title 44, United States Code, is amended—
(A) by adding ‘‘and’’ at the end of paragraph
(1);
(B) in paragraph (2)—
(i) by striking ‘‘sections 11331 and
11332(b) and (c) of title 40’’ and inserting
‘‘section 11331 of title 40 and subchapter II of
this title’’; and
(ii) by striking the semicolon and inserting
a period; and
(C) by striking paragraph (3).
(2) Section 3505 of such title is amended by adding
at the end the following:
358
‘‘(c) INVENTORY OF INFORMATION SYSTEMS.—(1)
The head of each agency shall develop and maintain an
inventory of the information systems (including national
security systems) operated by or under the control of such
agency;
‘‘(2) The identification of information systems in an
inventory under this subsection shall include an identifica-
tion of the interfaces between each such system and all
other systems or networks, including those not operated
by or under the control of the agency;
‘‘(3) Such inventory shall be—
‘‘(A) updated at least annually;
‘‘(B) made available to the Comptroller Gen-
eral; and
‘‘(C) used to support information resources
management, including—
‘‘(i) preparation and maintenance of the
inventory of information resources under sec-
tion 3506(b)(4);
‘‘(ii) 
information 
technology 
planning,
budgeting, acquisition, and management under
section 3506(h), subtitle III of title 40, and re-
lated laws and guidance;
359
‘‘(iii) monitoring, testing, and evaluation of
information security controls under subchapter
II;
‘‘(iv) preparation of the index of major in-
formation systems required under section
552(g) of title 5, United States Code; and
‘‘(v) preparation of information system in-
ventories required for records management
under chapters 21, 29, 31, and 33.
‘‘(4) The Director shall issue guidance for and over-
see the implementation of the requirements of this sub-
section.’’.
(3) Section 3506(g) of such title is amended—
(A) by adding ‘‘and’’ at the end of paragraph
(1);
(B) in paragraph (2)—
(i) by striking ‘‘section 11332 of title 40’’
and inserting ‘‘subchapter II of this chapter’’;
and
(ii) by striking ‘‘; and’’ and inserting a pe-
riod; and
(C) by striking paragraph (3).
SEC. 1006. CONSTRUCTION.
Nothing in this Act, or the amendments made by this
Act, affects the authority of the National Institute of
360
Standards and Technology or the Department of Com-
merce relating to the development and promulgation of
standards or guidelines under paragraphs (1) and (2) of
section 20(a) of the National Institute of Standards and
Technology Act (15 U.S.C. 278g–3(a)).
TITLE XI—DEPARTMENT OF
JUSTICE DIVISIONS
Subtitle A—Executive Office for
Immigration Review
SEC. 1101. LEGAL STATUS OF EOIR.
(a) EXISTENCE OF EOIR.—There is in the Depart-
ment of Justice the Executive Office for Immigration Re-
view, which shall be subject to the direction and regulation
of the Attorney General under section 103(g) of the Immi-
gration and Nationality Act, as added by section 1102.
SEC. 1102. AUTHORITIES OF THE ATTORNEY GENERAL.
Section 103 of the Immigration and Nationality Act
(8 U.S.C. 1103) as amended by this Act, is further
amended by—
(1) amending the heading to read as follows:
‘‘POWERS AND DUTIES OF THE SECRETARY, THE UNDER
SECRETARY, AND THE ATTORNEY GENERAL’’;
(2) in subsection (a)—
(A) by inserting ‘‘Attorney General,’’ after
‘‘President,’’; and
361
(B) by redesignating paragraphs (8), (9),
(8) (as added by section 372 of Public Law
104–208), and (9) (as added by section 372 of
Public Law 104–208) as paragraphs (8), (9),
(10), and (11), respectively; and
(3) by adding at the end the following new sub-
section:
‘‘(g) ATTORNEY GENERAL.—
‘‘(1) IN GENERAL.—The Attorney General shall
have such authorities and functions under this Act
and all other laws relating to the immigration and
naturalization of aliens as were exercised by the Ex-
ecutive Office for Immigration Review, or by the At-
torney General with respect to the Executive Office
for Immigration Review, on the day before the effec-
tive date of the Immigration Reform, Accountability
and Security Enhancement Act of 2002.
‘‘(2) POWERS.—The Attorney General shall es-
tablish such regulations, prescribe such forms of
bond, reports, entries, and other papers, issue such
instructions, review such administrative determina-
tions in immigration proceedings, delegate such au-
thority, and perform such other acts as the Attorney
General determines to be necessary for carrying out
this section.’’.
362
SEC. 1103. STATUTORY CONSTRUCTION.
Nothing in this Act, any amendment made by this
Act, or in section 103 of the Immigration and Nationality
Act, as amended by section 1102, shall be construed to
limit judicial deference to regulations, adjudications, inter-
pretations, orders, decisions, judgments, or any other ac-
tions of the Secretary of Homeland Security or the Attor-
ney General.
Subtitle B—Transfer of the Bureau
of Alcohol, Tobacco and Fire-
arms to the Department of Jus-
tice
SEC. 1111. BUREAU OF ALCOHOL, TOBACCO, FIREARMS,
AND EXPLOSIVES.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established within
the Department of Justice under the general author-
ity of the Attorney General the Bureau of Alcohol,
Tobacco, Firearms, and Explosives (in this section
referred to as the ‘‘Bureau’’).
(2) DIRECTOR.—There shall be at the head of
the Bureau a Director, Bureau of Alcohol, Tobacco,
Firearms, and Explosives (in this subtitle referred to
as the ‘‘Director’’). The Director shall be appointed
by the Attorney General and shall perform such
functions as the Attorney General shall direct. The
363
Director shall receive compensation at the rate pre-
scribed by law under section 5314 of title V, United
States Code, for positions at level III of the Execu-
tive Schedule.
(3) COORDINATION.—The Attorney General,
acting through the Director and such other officials
of the Department of Justice as the Attorney Gen-
eral may designate, shall provide for the coordina-
tion of all firearms, explosives, tobacco enforcement,
and arson enforcement functions vested in the Attor-
ney General so as to assure maximum cooperation
between and among any officer, employee, or agency
of the Department of Justice involved in the per-
formance of these and related functions.
(4) PERFORMANCE
OF
TRANSFERRED
FUNC-
TIONS.—The Attorney General may make such pro-
visions as the Attorney General determines appro-
priate to authorize the performance by any officer,
employee, or agency of the Department of Justice of
any function transferred to the Attorney General
under this section.
(b) RESPONSIBILITIES.—Subject to the direction of
the Attorney General, the Bureau shall be responsible for
investigating—
364
(1) criminal and regulatory violations of the
Federal firearms, explosives, arson, alcohol, and to-
bacco smuggling laws;
(2) the functions transferred by subsection (c);
and
(3) any other function related to the investiga-
tion of violent crime or domestic terrorism that is
delegated to the Bureau by the Attorney General.
(c) TRANSFER OF AUTHORITIES, FUNCTIONS, PER-
SONNEL, AND ASSETS TO THE DEPARTMENT OF JUS-
TICE.—
(1) IN GENERAL.—Subject to paragraph (2),
but notwithstanding any other provision of law,
there are transferred to the Department of Justice
the authorities, functions, personnel, and assets of
the Bureau of Alcohol, Tobacco and Firearms, which
shall be maintained as a distinct entity within the
Department of Justice, including the related func-
tions of the Secretary of the Treasury.
(2) ADMINISTRATION AND REVENUE COLLEC-
TION FUNCTIONS.—There shall be retained within
the Department of the Treasury the authorities,
functions, personnel, and assets of the Bureau of Al-
cohol, Tobacco and Firearms relating to the admin-
istration and enforcement of chapters 51 and 52 of
365
the Internal Revenue Code of 1986, sections 4181
and 4182 of the Internal Revenue Code of 1986,
and title 27, United States Code.
(3) BUILDING PROSPECTUS.—Prospectus PDC-
98W10, giving the General Services Administration
the authority for site acquisition, design, and con-
struction of a new headquarters building for the Bu-
reau of Alcohol, Tobacco and Firearms, is trans-
ferred, and deemed to apply, to the Bureau of Alco-
hol, Tobacco, Firearms, and Explosives established
in the Department of Justice under subsection (a).
(d) TAX AND TRADE BUREAU.—
(1) ESTABLISHMENT.—There is established
within the Department of the Treasury the Tax and
Trade Bureau.
(2) ADMINISTRATOR.—The Tax and Trade Bu-
reau shall be headed by an Administrator, who shall
perform such duties as assigned by the Under Sec-
retary for Enforcement of the Department of the
Treasury. The Administrator shall occupy a career-
reserved position within the Senior Executive Serv-
ice.
(3) RESPONSIBILITIES.—The authorities, func-
tions, personnel, and assets of the Bureau of Alco-
hol, Tobacco and Firearms that are not transferred
366
to the Department of Justice under this section shall
be retained and administered by the Tax and Trade
Bureau.
SEC. 1112. TECHNICAL AND CONFORMING AMENDMENTS.
(a) The Inspector General Act of 1978 (5 U.S.C.
App.) is amended—
(1) in section 8D(b)(1) by striking ‘‘Bureau of
Alcohol, Tobacco and Firearms’’ and inserting ‘‘Tax
and Trade Bureau’’; and
(2) in section 9(a)(1)(L)(i), by striking ‘‘Bu-
reau of Alcohol, Tobacco, and Firearms’’ and insert-
ing ‘‘Tax and Trade Bureau’’.
(b) Section 1109(c)(2)(A)(i) of the Consolidated Om-
nibus Budget Reconciliation Act of 1985 (7 U.S.C. 1445-
3(c)(2)(A)(i)) is amended by striking ‘‘(on ATF Form
3068) by manufacturers of tobacco products to the Bu-
reau of Alcohol, Tobacco and Firearms’’ and inserting ‘‘by
manufacturers of tobacco products to the Tax and Trade
Bureau’’.
(c) Section 2(4)(J) of the Enhanced Border Security
and Visa Entry Reform Act of 2002 (Public Law 107-
173; 8 U.S.C.A. 1701(4)(J)) is amended by striking ‘‘Bu-
reau of Alcohol, Tobacco, and Firearms’’ and inserting
‘‘Bureau of Alcohol, Tobacco, Firearms, and Explosives,
Department of Justice’’.
367
(d) Section 3(1)(E) of the Firefighters’ Safety Study
Act (15 U.S.C. 2223b(1)(E)) is amended by striking ‘‘the
Bureau of Alcohol, Tobacco, and Firearms,’’ and inserting
‘‘the Bureau of Alcohol, Tobacco, Firearms, and Explo-
sives, Department of Justice,’’.
(e) Chapter 40 of title 18, United States Code, is
amended—
(1) by striking section 841(k) and inserting the
following:
‘‘(k) ‘Attorney General’ means the Attorney General
of the United States.’’;
(2) in section 846(a), by striking ‘‘the Attorney Gen-
eral and the Federal Bureau of Investigation, together
with the Secretary’’ and inserting ‘‘the Federal Bureau
of Investigation, together with the Bureau of Alcohol, To-
bacco, Firearms, and Explosives’’; and
(3) by striking ‘‘Secretary’’ each place it ap-
pears and inserting ‘‘Attorney General’’.
(f) Chapter 44 of title 18, United States Code, is
amended—
(1) in section 921(a)(4)(B), by striking ‘‘Sec-
retary’’ and inserting ‘‘Attorney General’’;
(2) in section 921(a)(4), by striking ‘‘Secretary
of the Treasury’’ and inserting ‘‘Attorney General’’;
368
(3) in section 921(a), by striking paragraph
(18) and inserting the following:
‘‘(18) The term ‘Attorney General’ means the
Attorney General of the United States’’;
(4) in section 922(p)(5)(A), by striking ‘‘after
consultation with the Secretary’’ and inserting
‘‘after consultation with the Attorney General’’;
(5) in section 923(l), by striking ‘‘Secretary of
the Treasury’’ and inserting ‘‘Attorney General’’;
and
(6) by striking ‘‘Secretary’’ each place it ap-
pears, except before ‘‘of the Army’’ in section
921(a)(4) and before ‘‘of Defense’’ in section
922(p)(5)(A), and inserting the term ‘‘Attorney
General’’.
(g) Section 1261(a) of title 18, United States Code,
is amended to read as follows:
‘‘(a) The Attorney General—
‘‘(1) shall enforce the provisions of this chapter;
and
‘‘(2) has the authority to issue regulations to
carry out the provisions of this chapter.’’.
(h) Section 1952(c) of title 18, United States Code,
is amended by striking ‘‘Secretary of the Treasury’’ and
inserting ‘‘Attorney General’’.
369
(i) Chapter 114 of title 18, United States Code, is
amended—
(1) by striking section 2341(5), and inserting
the following:
‘‘(5) the term ‘Attorney General’ means the At-
torney General of the United States’’; and
(2) by striking ‘‘Secretary’’ each place it ap-
pears and inserting ‘‘Attorney General’’.
(j) Section 6103(i)(8)(A)(i) of the Internal Revenue
Code of 1986 (relating to confidentiality and disclosure
of returns and return information) is amended by striking
‘‘or the Bureau of Alcohol, Tobacco and Firearms’’ and
inserting ‘‘, the Bureau of Alcohol, Tobacco, Firearms,
and Explosives, Department of Justice, or the Tax and
Trade Bureau, Department of the Treasury,’’.
(k) Section 7801(a) of the Internal Revenue Code of
1986 (relating to the authority of the Department of the
Treasury) is amended—
(1) by striking ‘‘SECRETARY.—Except’’ and in-
serting ‘‘SECRETARY.—
‘‘(1) IN GENERAL.—Except’’; and
(2) by adding at the end the following:
‘‘(2) ADMINISTRATION AND ENFORCEMENT OF
CERTAIN PROVISIONS BY ATTORNEY GENERAL.—
370
‘‘(A) IN
GENERAL.—The administration
and enforcement of the following provisions of
this title shall be performed by or under the su-
pervision of the Attorney General; and the term
‘Secretary’ or ‘Secretary of the Treasury’ shall,
when applied to those provisions, mean the At-
torney General; and the term ‘internal revenue
officer’ shall, when applied to those provisions,
mean any officer of the Bureau of Alcohol, To-
bacco, Firearms, and Explosives so designated
by the Attorney General:
‘‘(i) Chapter 53.
‘‘(ii) Chapters 61 through 80, to the
extent such chapters relate to the enforce-
ment and administration of the provisions
referred to in clause (i).
‘‘(B) USE OF EXISTING RULINGS AND IN-
TERPRETATIONS.—Nothing in this Act alters or
repeals the rulings and interpretations of the
Bureau of Alcohol, Tobacco, and Firearms in
effect on the effective date of the Homeland Se-
curity Act of 2002, which concern the provi-
sions of this title referred to in subparagraph
(A). The Attorney General shall consult with
the Secretary to achieve uniformity and consist-
371
ency in administering provisions under chapter
53 of title 26, United States Code.’’.
(l) Section 2006(2) of title 28, United States Code,
is amended by inserting ‘‘, the Director, Bureau of Alco-
hol, Tobacco, Firearms, and Explosives, Department of
Justice,’’ after ‘‘the Secretary of the Treasury’’.
(m) Section 713 of title 31, United States Code, is
amended—
(1) by striking the section heading and insert-
ing the following:
‘‘§ 713. Audit of Internal Revenue Service, Tax and
Trade Bureau, and Bureau of Alcohol, To-
bacco, Firearms, and Explosives’’;
(2) in subsection (a), by striking ‘‘Bureau of
Alcohol, Tobacco, and Firearms,’’ and inserting
‘‘Tax and Trade Bureau, Department of the Treas-
ury, and the Bureau of Alcohol, Tobacco, Firearms,
and Explosives, Department of Justice’’; and
(3) in subsection (b)
(A) in paragraph (1)(B), by striking ‘‘or
the Bureau’’ and inserting ‘‘or either Bureau’’;
(B) in paragraph (2)—
(i) by striking ‘‘or the Bureau’’ and
inserting ‘‘or either Bureau’’; and
372
(ii) by striking ‘‘and the Director of
the Bureau’’ and inserting ‘‘the Tax and
Trade Bureau, Department of the Treas-
ury, and the Director of the Bureau of Al-
cohol, Tobacco, Firearms, and Explosives,
Department of Justice’’; and
(C) in paragraph (3), by striking ‘‘or the
Bureau’’ and inserting ‘‘or either Bureau’’.
(n) Section 9703 of title 31, United States Code, is
amended—
(1) in subsection (a)(2)(B)—
(A) in clause (iii)(III), by inserting ‘‘and’’
after the semicolon;
(B) in clause (iv), by striking ‘‘; and’’ and
inserting a period; and
(C) by striking clause (v);
(2) by striking subsection (o);
(3) by redesignating existing subsection (p) as
subsection (o); and
(4) in subsection (o)(1), as redesignated by
paragraph (3), by striking ‘‘Bureau of Alcohol, To-
bacco and Firearms’’ and inserting ‘‘Tax and Trade
Bureau’’.
(o) Section 609N(2)(L) of the Justice Assistance Act
of 1984 (42 U.S.C. 10502(2)(L)) is amended by striking
373
‘‘Bureau of Alcohol, Tobacco, and Firearms’’ and insert-
ing ‘‘Bureau of Alcohol, Tobacco, Firearms, and Explo-
sives, Department of Justice’’.
(p) Section 32401(a) of the Violent Crime Control
and Law Enforcement Act of 1994 (42 U.S.C. 13921(a))
is amended—
(1) by striking ‘‘Secretary of the Treasury’’
each place it appears and inserting ‘‘Attorney Gen-
eral’’; and
(2) in subparagraph (3)(B), by striking ‘‘Bu-
reau of Alcohol, Tobacco and Firearms’’ and insert-
ing ‘‘Bureau of Alcohol, Tobacco, Firearms, and Ex-
plosives, Department of Justice’’.
(q) Section 80303 of title 49, United States Code,
is amended—
(1) by inserting ‘‘or, when the violation of this
chapter involves contraband described in paragraph
(2) or (5) of section 80302(a), the Attorney Gen-
eral’’ after ‘‘section 80304 of this title.’’; and
(2) by inserting ‘‘, the Attorney General,’’ after
‘‘by the Secretary’’.
(r) Section 80304 of title 49, United States Code,
is amended—
(1) in subsection (a), by striking ‘‘(b) and (c)’’
and inserting ‘‘(b), (c), and (d)’’;