363 
∆(9) A national determination of essential capa-
bilities is needed to identify levels of State and local 
government terrorism preparedness, to determine the 
nature and extent of State and local first responder 
needs, to identify the human and financial resources 
required to fulfill them, and to direct funding to meet 
those needs and to measure preparedness levels on a 
national scale. 
∆(10) To facilitate progress in achieving, main-
taining, and enhancing essential capabilities for 
State and local first responders, the Department of 
Homeland Security should seek to allocate homeland 
security funding for first responders to meet nation-
wide needs. 
∆(11) Private sector resources and citizen volun-
teers can perform critical functions in assisting in 
preventing and responding to terrorist attacks, and 
should be integrated into State and local planning ef-
forts to ensure that their capabilities and roles are 
understood, so as to provide enhanced State and local 
operational capability and surge capacity. 
∆(12) Public-private partnerships, such as the 
partnerships between the Business Executives for Na-
tional Security and the States of New Jersey and 
Georgia, can be useful to identify and coordinate pri-
364 
vate sector support for State and local first respond-
ers. Such models should be expanded to cover all 
States and territories. 
∆(13) An important aspect of essential capabili-
ties is measurability, so that it is possible to deter-
mine how prepared a State or local government is 
now, and what additional steps it needs to take, in 
order to respond to acts of terrorism. 
∆(14) The Department of Homeland Security 
should establish, publish, and regularly update na-
tional voluntary consensus standards for both equip-
ment and training, in cooperation with both public 
and private sector standard setting organizations, to 
assist State and local governments in obtaining the 
equipment and training to attain the essential capa-
bilities for first response to acts of terrorism, and to 
ensure that first responder funds are spent wisely. 
∆SEC. 5003. FASTER AND SMARTER FUNDING FOR FIRST RE-
SPONDERS. 
∆(a) IN GENERAL.—The Homeland Security Act of 
2002 (Public Law 107–296; 6 U.S.C. 361 et seq.) is amend-
ed— 
∆(1) in section 1(b) in the table of contents by 
adding at the end the following:
365 
∆‘‘TITLE XVIII—FUNDING FOR FIRST RESPONDERS 
∆‘‘Sec. 1801. Definitions. 
∆‘‘Sec. 1802. Faster and smarter funding for first responders. 
∆‘‘Sec. 1803. Essential capabilities for first responders. 
∆‘‘Sec. 1804. Task Force on Essential Capabilities for First Responders. 
∆‘‘Sec. 1805. Covered grant eligibility and criteria. 
∆‘‘Sec. 1806. Use of funds and accountability requirements. 
∆‘‘Sec. 1807. National standards for first responder equipment and train-
ing.’’; 
∆and 
∆(2) by adding at the end the following: 
∆‘‘TITLE XVIII—FUNDING FOR 
FIRST RESPONDERS 
∆‘‘SEC. 1801. DEFINITIONS. 
∆‘‘In this title: 
∆‘‘(1) BOARD.—The term ‘Board’ means the 
First Responder Grants Board established under sec-
tion 1805(f). 
∆‘‘(2) COVERED
GRANT.—The term ‘covered 
grant’ means any grant to which this title applies 
under section 1802. 
∆‘‘(3) DIRECTLY
ELIGIBLE
TRIBE.—The term 
‘directly eligible tribe’ means any Indian tribe or con-
sortium of Indian tribes that— 
∆‘‘(A) meets the criteria for inclusion in the 
qualified applicant pool for Self-Governance that 
are set forth in section 402(c) of the Indian Self- 
Determination and Education Assistance Act (25 
U.S.C. 458bb(c));
366 
∆‘‘(B) employs at least 10 full-time per-
sonnel in a law enforcement or emergency re-
sponse agency with the capacity to respond to 
calls for law enforcement or emergency services; 
and 
∆‘‘(C)(i) is located on, or within 5 miles of, 
an international border or waterway; 
∆‘‘(ii) is located within 5 miles of a facility 
within a critical infrastructure sector identified 
in section 1803(c)(2); 
∆‘‘(iii) is located within or contiguous to 
one of the 50 largest metropolitan statistical 
areas in the United States; or 
∆‘‘(iv) has more than 1,000 square miles of 
Indian country, as that term is defined in sec-
tion 1151 of title 18, United States Code. 
∆‘‘(4) ELEVATIONS
IN
THE
THREAT
ALERT 
LEVEL.—The term ‘elevations in the threat alert level’ 
means any designation (including those that are less 
than national in scope) that raises the homeland secu-
rity threat level to either the highest or second highest 
threat level under the Homeland Security Advisory 
System referred to in section 201(d)(7). 
∆‘‘(5) EMERGENCY
PREPAREDNESS.—The term 
‘emergency preparedness’ shall have the same mean-
367 
ing that term has under section 602 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5195a). 
∆‘‘(6) ESSENTIAL CAPABILITIES.—The term ‘es-
sential capabilities’ means the levels, availability, and 
competence of emergency personnel, planning, train-
ing, and equipment across a variety of disciplines 
needed to effectively and efficiently prevent, prepare 
for, and respond to acts of terrorism consistent with 
established practices. 
∆‘‘(7) FIRST RESPONDER.—The term ‘first re-
sponder’ shall have the same meaning as the term 
‘emergency response provider’. 
∆‘‘(8) INDIAN TRIBE.—The term ‘Indian tribe’ 
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaskan 
Native village or regional or village corporation as 
defined in or established pursuant to the Alaskan Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.), 
which is recognized as eligible for the special pro-
grams and services provided by the United States to 
Indians because of their status as Indians. 
∆‘‘(9) REGION.—The term ‘region’ means— 
∆‘‘(A) any geographic area consisting of all 
or parts of 2 or more contiguous States, counties,
368 
municipalities, or other local governments that 
have a combined population of at least 1,650,000 
or have an area of not less than 20,000 square 
miles, and that, for purposes of an application 
for a covered grant, is represented by 1 or more 
governments or governmental agencies within 
such geographic area, and that is established by 
law or by agreement of 2 or more such govern-
ments or governmental agencies in a mutual aid 
agreement; or 
∆‘‘(B) any other combination of contiguous 
local government units (including such a com-
bination established by law or agreement of two 
or more governments or governmental agencies 
in a mutual aid agreement) that is formally cer-
tified by the Secretary as a region for purposes 
of this Act with the consent of— 
∆‘‘(i) the State or States in which they 
are located, including a multi-State entity 
established by a compact between two or 
more States; and 
∆‘‘(ii) the incorporated municipalities, 
counties, and parishes that they encompass.
369 
∆‘‘(10) TASK
FORCE.—The term ‘Task Force’ 
means the Task Force on Essential Capabilities for 
First Responders established under section 1804. 
∆‘‘SEC. 1802. FASTER AND SMARTER FUNDING FOR FIRST 
RESPONDERS. 
∆‘‘(a) COVERED GRANTS.—This title applies to grants 
provided by the Department to States, regions, or directly 
eligible tribes for the primary purpose of improving the 
ability of first responders to prevent, prepare for, respond 
to, or mitigate threatened or actual terrorist attacks, espe-
cially those involving weapons of mass destruction, admin-
istered under the following: 
∆‘‘(1) STATE HOMELAND SECURITY GRANT PRO-
GRAM.—The State Homeland Security Grant Pro-
gram of the Department, or any successor to such 
grant program. 
∆‘‘(2) URBAN AREA SECURITY INITIATIVE.—The 
Urban Area Security Initiative of the Department, or 
any successor to such grant program. 
∆‘‘(3) LAW ENFORCEMENT TERRORISM PREVEN-
TION
PROGRAM.—The Law Enforcement Terrorism 
Prevention Program of the Department, or any suc-
cessor to such grant program.
370 
∆‘‘(4) CITIZEN CORPS PROGRAM.—The Citizen 
Corps Program of the Department, or any successor 
to such grant program. 
∆‘‘(b) EXCLUDED PROGRAMS.—This title does not 
apply to or otherwise affect the following Federal grant pro-
grams or any grant under such a program: 
∆‘‘(1) NONDEPARTMENT PROGRAMS.—Any Fed-
eral grant program that is not administered by the 
Department. 
∆‘‘(2) FIRE GRANT PROGRAMS.—The fire grant 
programs authorized by sections 33 and 34 of the 
Federal Fire Prevention and Control Act of 1974 (15 
U.S.C. 2229, 2229a). 
∆‘‘(3) EMERGENCY MANAGEMENT PLANNING AND 
ASSISTANCE
ACCOUNT
GRANTS.—The 
Emergency 
Management Performance Grant program and the 
Urban Search and Rescue Grants program authorized 
by title VI of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5195 et 
seq.); the Departments of Veterans Affairs and Hous-
ing and Urban Development, and Independent Agen-
cies Appropriations Act, 2000 (113 Stat. 1047 et 
seq.); and the Earthquake Hazards Reduction Act of 
1977 (42 U.S.C. 7701 et seq.).
371 
∆‘‘SEC. 1803. ESSENTIAL CAPABILITIES FOR FIRST RE-
SPONDERS. 
∆‘‘(a) ESTABLISHMENT
OF
ESSENTIAL
CAPABILI-
TIES.— 
∆‘‘(1) IN
GENERAL.—For purposes of covered 
grants, the Secretary shall establish clearly defined es-
sential capabilities for State and local government 
preparedness for terrorism, in consultation with— 
∆‘‘(A) the Task Force on Essential Capa-
bilities for First Responders established under 
section 1804; 
∆‘‘(B) the Under Secretaries for Emergency 
Preparedness and Response, Border and Trans-
portation Security, Information Analysis and 
Infrastructure Protection, and Science and Tech-
nology, and the Director of the Office for Domes-
tic Preparedness; 
∆‘‘(C) the Secretary of Health and Human 
Services; 
∆‘‘(D) other appropriate Federal agencies; 
∆‘‘(E) State and local first responder agen-
cies and officials; and 
∆‘‘(F) consensus-based standard making or-
ganizations responsible for setting standards rel-
evant to the first responder community. 
∆‘‘(2) DEADLINES.—The Secretary shall—
372 
∆‘‘(A) establish essential capabilities under 
paragraph (1) within 30 days after receipt of the 
report under section 1804(b); and 
∆‘‘(B) regularly update such essential capa-
bilities as necessary, but not less than every 3 
years. 
∆‘‘(3) PROVISION
OF
ESSENTIAL
CAPABILI-
TIES.—The Secretary shall ensure that a detailed de-
scription of the essential capabilities established 
under paragraph (1) is provided promptly to the 
States and to the Congress. The States shall make the 
essential capabilities available as necessary and ap-
propriate to local governments within their jurisdic-
tions. 
∆‘‘(b) OBJECTIVES.—The Secretary shall ensure that 
essential capabilities established under subsection (a)(1) 
meet the following objectives: 
∆‘‘(1) SPECIFICITY.—The determination of essen-
tial capabilities specifically shall describe the train-
ing, planning, personnel, and equipment that dif-
ferent types of communities in the Nation should pos-
sess, or to which they should have access, in order to 
meet the Department’s goals for terrorism prepared-
ness based upon—
373 
∆‘‘(A) the most current risk assessment 
available by the Directorate for Information 
Analysis and Infrastructure Protection of the 
threats of terrorism against the United States; 
∆‘‘(B) the types of threats, vulnerabilities, 
geography, size, and other factors that the Sec-
retary has determined to be applicable to each 
different type of community; and 
∆‘‘(C) the principles of regional coordina-
tion and mutual aid among State and local gov-
ernments. 
∆‘‘(2) FLEXIBILITY.—The establishment of essen-
tial capabilities shall be sufficiently flexible to allow 
State and local government officials to set priorities 
based on particular needs, while reaching nationally 
determined terrorism preparedness levels within a 
specified time period. 
∆‘‘(3) MEASURABILITY.—The establishment of es-
sential capabilities shall be designed to enable meas-
urement of progress towards specific terrorism pre-
paredness goals. 
∆‘‘(4) COMPREHENSIVENESS.—The determina-
tion of essential capabilities for terrorism prepared-
ness shall be made within the context of a comprehen-
sive State emergency management system.
374 
∆‘‘(c) FACTORS TO BE CONSIDERED.— 
∆‘‘(1) IN
GENERAL.—In establishing essential 
capabilities under subsection (a)(1), the Secretary 
specifically shall consider the variables of threat, vul-
nerability, and consequences with respect to the Na-
tion’s population (including transient commuting 
and tourist populations) and critical infrastructure. 
Such consideration shall be based upon the most cur-
rent risk assessment available by the Directorate for 
Information Analysis and Infrastructure Protection 
of the threats of terrorism against the United States. 
∆‘‘(2) CRITICAL
INFRASTRUCTURE
SECTORS.— 
The Secretary specifically shall consider threats of 
terrorism against the following critical infrastructure 
sectors in all areas of the Nation, urban and rural: 
∆‘‘(A) Agriculture. 
∆‘‘(B) Banking and finance. 
∆‘‘(C) Chemical industries. 
∆‘‘(D) The defense industrial base. 
∆‘‘(E) Emergency services. 
∆‘‘(F) Energy. 
∆‘‘(G) Food. 
∆‘‘(H) Government. 
∆‘‘(I) Postal and shipping. 
∆‘‘(J) Public health.
375 
∆‘‘(K) Information and telecommunications 
networks. 
∆‘‘(L) Transportation. 
∆‘‘(M) Water. 
∆The order in which the critical infrastructure 
sectors are listed in this paragraph shall not be con-
strued as an order of priority for consideration of the 
importance of such sectors. 
∆‘‘(3) TYPES OF THREAT.—The Secretary spe-
cifically shall consider the following types of threat to 
the critical infrastructure sectors described in para-
graph (2), and to populations in all areas of the Na-
tion, urban and rural: 
∆‘‘(A) Biological threats. 
∆‘‘(B) Nuclear threats. 
∆‘‘(C) Radiological threats. 
∆‘‘(D) Incendiary threats. 
∆‘‘(E) Chemical threats. 
∆‘‘(F) Explosives. 
∆‘‘(G) Suicide bombers. 
∆‘‘(H) Cyber threats. 
∆‘‘(I) Any other threats based on proximity 
to specific past acts of terrorism or the known 
activity of any terrorist group.
376 
∆The order in which the types of threat are list-
ed in this paragraph shall not be construed as an 
order of priority for consideration of the importance 
of such threats. 
∆‘‘(4) CONSIDERATION
OF
ADDITIONAL
FAC-
TORS.—In establishing essential capabilities under 
subsection (a)(1), the Secretary shall take into ac-
count any other specific threat to a population (in-
cluding a transient commuting or tourist population) 
or critical infrastructure sector that the Secretary has 
determined to exist. 
∆‘‘SEC. 1804. TASK FORCE ON ESSENTIAL CAPABILITIES FOR 
FIRST RESPONDERS. 
∆‘‘(a) ESTABLISHMENT.—To assist the Secretary in 
establishing essential capabilities under section 1803(a)(1), 
the Secretary shall establish an advisory body pursuant to 
section 871(a) not later than 60 days after the date of the 
enactment of this section, which shall be known as the Task 
Force on Essential Capabilities for First Responders. 
∆‘‘(b) REPORT.— 
∆‘‘(1) IN GENERAL.—The Task Force shall sub-
mit to the Secretary, not later than 9 months after its 
establishment by the Secretary under subsection (a) 
and every 3 years thereafter, a report on its rec-
377 
ommendations for essential capabilities for prepared-
ness for terrorism. 
∆‘‘(2) CONTENTS.—The report shall— 
∆‘‘(A) include a priority ranking of essen-
tial capabilities in order to provide guidance to 
the Secretary and to the Congress on deter-
mining the appropriate allocation of, and fund-
ing levels for, first responder needs; 
∆‘‘(B) set forth a methodology by which any 
State or local government will be able to deter-
mine the extent to which it possesses or has ac-
cess to the essential capabilities that States and 
local governments having similar risks should 
obtain; 
∆‘‘(C) describe the availability of national 
voluntary consensus standards, and whether 
there is a need for new national voluntary con-
sensus standards, with respect to first responder 
training and equipment; 
∆‘‘(D) include such additional matters as 
the Secretary may specify in order to further the 
terrorism preparedness capabilities of first re-
sponders; and 
∆‘‘(E) include such revisions to the contents 
of past reports as are necessary to take into ac-
378 
count changes in the most current risk assess-
ment available by the Directorate for Informa-
tion Analysis and Infrastructure Protection or 
other relevant information as determined by the 
Secretary. 
∆‘‘(3) CONSISTENCY
WITH
FEDERAL
WORKING 
GROUP.—The Task Force shall ensure that its rec-
ommendations for essential capabilities are, to the ex-
tent feasible, consistent with any preparedness goals 
or recommendations of the Federal working group es-
tablished under section 319F(a) of the Public Health 
Service Act (42 U.S.C. 247d–6(a)). 
∆‘‘(4) COMPREHENSIVENESS.—The Task Force 
shall ensure that its recommendations regarding es-
sential capabilities for terrorism preparedness are 
made within the context of a comprehensive State 
emergency management system. 
∆‘‘(5) PRIOR MEASURES.—The Task Force shall 
ensure that its recommendations regarding essential 
capabilities for terrorism preparedness take into ac-
count any capabilities that State or local officials 
have determined to be essential and have undertaken 
since September 11, 2001, to prevent or prepare for 
terrorist attacks. 
∆‘‘(c) MEMBERSHIP.—
379 
∆‘‘(1) IN GENERAL.—The Task Force shall con-
sist of 25 members appointed by the Secretary, and 
shall, to the extent practicable, represent a geographic 
and substantive cross section of governmental and 
nongovernmental first responder disciplines from the 
State and local levels, including as appropriate— 
∆‘‘(A) members selected from the emergency 
response field, including fire service and law en-
forcement, hazardous materials response, emer-
gency medical services, and emergency manage-
ment personnel (including public works per-
sonnel routinely engaged in emergency response); 
∆‘‘(B) health scientists, emergency and in-
patient medical providers, and public health pro-
fessionals, including experts in emergency health 
care response to chemical, biological, radio-
logical, and nuclear terrorism, and experts in 
providing mental health care during emergency 
response operations; 
∆‘‘(C) experts from Federal, State, and local 
governments, and the private sector, representing 
standards-setting organizations, including rep-
resentation from the voluntary consensus codes 
and standards development community, particu-
380 
larly those with expertise in first responder dis-
ciplines; and 
∆‘‘(D) State and local officials with exper-
tise in terrorism preparedness, subject to the con-
dition that if any such official is an elected offi-
cial representing one of the two major political 
parties, an equal number of elected officials shall 
be selected from each such party. 
∆‘‘(2) COORDINATION
WITH
THE
DEPARTMENT 
OF HEALTH AND HEALTH SERVICES.—In the selection 
of members of the Task Force who are health profes-
sionals, including emergency medical professionals, 
the Secretary shall coordinate the selection with the 
Secretary of Health and Human Services. 
∆‘‘(3) EX
OFFICIO
MEMBERS.—The Secretary 
and the Secretary of Health and Human Services 
shall each designate one or more officers of their re-
spective Departments to serve as ex officio members of 
the Task Force. One of the ex officio members from the 
Department of Homeland Security shall be the des-
ignated officer of the Federal Government for pur-
poses of subsection (e) of section 10 of the Federal Ad-
visory Committee Act (5 App. U.S.C.). 
∆‘‘(d) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—Notwithstanding section 871(a), the Federal
381 
Advisory Committee Act (5 U.S.C. App.), including sub-
sections (a), (b), and (d) of section 10 of such Act, and sec-
tion 552b(c) of title 5, United States Code, shall apply to 
the Task Force. 
∆‘‘SEC. 1805. COVERED GRANT ELIGIBILITY AND CRITERIA. 
∆‘‘(a) GRANT ELIGIBILITY.—Any State, region, or di-
rectly eligible tribe shall be eligible to apply for a covered 
grant. 
∆‘‘(b) GRANT CRITERIA.—In awarding covered grants, 
the Secretary shall assist States and local governments in 
achieving, maintaining, and enhancing the essential capa-
bilities for first responders established by the Secretary 
under section 1803. 
∆‘‘(c) STATE HOMELAND SECURITY PLANS.— 
∆‘‘(1) SUBMISSION
OF
PLANS.—The Secretary 
shall require that any State applying to the Secretary 
for a covered grant must submit to the Secretary a 
3-year State homeland security plan that— 
∆‘‘(A) demonstrates the extent to which the 
State has achieved the essential capabilities that 
apply to the State; 
∆‘‘(B) demonstrates the needs of the State 
necessary to achieve, maintain, or enhance the 
essential capabilities that apply to the State;
382 
∆‘‘(C) includes a prioritization of such 
needs based on threat, vulnerability, and con-
sequence assessment factors applicable to the 
State; 
∆‘‘(D) describes how the State intends— 
∆‘‘(i) to address such needs at the city, 
county, regional, tribal, State, and inter-
state level, including a precise description of 
any regional structure the State has estab-
lished for the purpose of organizing home-
land security preparedness activities funded 
by covered grants; 
∆‘‘(ii) to use all Federal, State, and 
local resources available for the purpose of 
addressing such needs; and 
∆‘‘(iii) to give particular emphasis to 
regional planning and cooperation, includ-
ing the activities of multijurisdictional 
planning agencies governed by local offi-
cials, both within its jurisdictional borders 
and with neighboring States; 
∆‘‘(E) is developed in consultation with and 
subject to appropriate comment by local govern-
ments within the State; and
383 
∆‘‘(F) with respect to the emergency pre-
paredness of first responders, addresses the 
unique aspects of terrorism as part of a com-
prehensive State emergency management plan. 
∆‘‘(2) APPROVAL BY SECRETARY.—The Secretary 
may not award any covered grant to a State unless 
the Secretary has approved the applicable State home-
land security plan. 
∆‘‘(d) CONSISTENCY WITH STATE PLANS.—The Sec-
retary shall ensure that each covered grant is used to sup-
plement and support, in a consistent and coordinated man-
ner, the applicable State homeland security plan or plans. 
∆‘‘(e) APPLICATION FOR GRANT.— 
∆‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, any State, region, or directly 
eligible tribe may apply for a covered grant by sub-
mitting to the Secretary an application at such time, 
in such manner, and containing such information as 
is required under this subsection, or as the Secretary 
may reasonably require. 
∆‘‘(2) 
DEADLINES
FOR
APPLICATIONS
AND 
AWARDS.—All applications for covered grants must be 
submitted at such time as the Secretary may reason-
ably require for the fiscal year for which they are sub-
mitted. The Secretary shall award covered grants
384 
pursuant to all approved applications for such fiscal 
year as soon as practicable, but not later than March 
1 of such year. 
∆‘‘(3) AVAILABILITY
OF
FUNDS.—All funds 
awarded by the Secretary under covered grants in a 
fiscal year shall be available for obligation through 
the end of the subsequent fiscal year. 
∆‘‘(4) MINIMUM CONTENTS OF APPLICATION.— 
The Secretary shall require that each applicant in-
clude in its application, at a minimum— 
∆‘‘(A) the purpose for which the applicant 
seeks covered grant funds and the reasons why 
the applicant needs the covered grant to meet the 
essential capabilities for terrorism preparedness 
within the State, region, or directly eligible tribe 
to which the application pertains; 
∆‘‘(B) a description of how, by reference to 
the applicable State homeland security plan or 
plans under subsection (c), the allocation of 
grant funding proposed in the application, in-
cluding, where applicable, the amount not passed 
through under section 1806(g)(1), would assist in 
fulfilling the essential capabilities specified in 
such plan or plans;
385 
∆‘‘(C) a statement of whether a mutual aid 
agreement applies to the use of all or any por-
tion of the covered grant funds; 
∆‘‘(D) if the applicant is a State, a descrip-
tion of how the State plans to allocate the cov-
ered grant funds to regions, local governments, 
and Indian tribes; 
∆‘‘(E) if the applicant is a region— 
∆‘‘(i) a precise geographical descrip-
tion of the region and a specification of all 
participating and nonparticipating local 
governments within the geographical area 
comprising that region; 
∆‘‘(ii) a specification of what govern-
mental entity within the region will admin-
ister the expenditure of funds under the cov-
ered grant; and 
∆‘‘(iii) a designation of a specific indi-
vidual to serve as regional liaison; 
∆‘‘(F) a capital budget showing how the ap-
plicant intends to allocate and expend the cov-
ered grant funds; 
∆‘‘(G) if the applicant is a directly eligible 
tribe, a designation of a specific individual to 
serve as the tribal liaison; and
386 
∆‘‘(H) a statement of how the applicant in-
tends to meet the matching requirement, if any, 
that applies under section 1806(g)(2). 
∆‘‘(5) REGIONAL APPLICATIONS.— 
∆‘‘(A) RELATIONSHIP TO STATE APPLICA-
TIONS.—A regional application— 
∆‘‘(i) shall be coordinated with an ap-
plication submitted by the State or States of 
which such region is a part; 
∆‘‘(ii) shall supplement and avoid du-
plication with such State application; and 
∆‘‘(iii) shall address the unique re-
gional aspects of such region’s terrorism 
preparedness needs beyond those provided 
for in the application of such State or 
States. 
∆‘‘(B) STATE REVIEW AND SUBMISSION.— 
To ensure the consistency required under sub-
section (d) and the coordination required under 
subparagraph (A) of this paragraph, an appli-
cant that is a region must submit its application 
to each State of which any part is included in 
the region for review and concurrence prior to 
the submission of such application to the Sec-
retary. The regional application shall be trans-
387 
mitted to the Secretary through each such State 
within 30 days of its receipt, unless the Governor 
of such a State notifies the Secretary, in writing, 
that such regional application is inconsistent 
with the State’s homeland security plan and pro-
vides an explanation of the reasons therefor. 
∆‘‘(C) 
DISTRIBUTION
OF
REGIONAL 
AWARDS.—If the Secretary approves a regional 
application, then the Secretary shall distribute a 
regional award to the State or States submitting 
the applicable regional application under sub-
paragraph (B), and each such State shall, not 
later than the end of the 45-day period beginning 
on the date after receiving a regional award, 
pass through to the region all covered grant 
funds or resources purchased with such funds, ex-
cept those funds necessary for the State to carry 
out its responsibilities with respect to such re-
gional application: Provided, That in no such 
case shall the State or States pass through to the 
region less than 80 percent of the regional 
award. 
∆‘‘(D) CERTIFICATIONS
REGARDING
DIS-
TRIBUTION OF GRANT FUNDS TO REGIONS.—Any 
State that receives a regional award under sub-
388 
paragraph (C) shall certify to the Secretary, by 
not later than 30 days after the expiration of the 
period described in subparagraph (C) with re-
spect to the grant, that the State has made avail-
able to the region the required funds and re-
sources in accordance with subparagraph (C). 
∆‘‘(E) DIRECT PAYMENTS TO REGIONS.—If 
any State fails to pass through a regional award 
to a region as required by subparagraph (C) 
within 45 days after receiving such award and 
does not request or receive an extension of such 
period under section 1806(h)(2), the region may 
petition the Secretary to receive directly the por-
tion of the regional award that is required to be 
passed through to such region under subpara-
graph (C). 
∆‘‘(F) REGIONAL LIAISONS.—A regional li-
aison designated under paragraph (4)(E)(iii) 
shall— 
∆‘‘(i) coordinate with Federal, State, 
local, regional, and private officials within 
the region concerning terrorism prepared-
ness; 
∆‘‘(ii) develop a process for receiving 
input from Federal, State, local, regional,
389 
and private sector officials within the re-
gion to assist in the development of the re-
gional application and to improve the re-
gion’s access to covered grants; and 
∆‘‘(iii) administer, in consultation 
with State, local, regional, and private offi-
cials within the region, covered grants 
awarded to the region. 
∆‘‘(6) TRIBAL APPLICATIONS.— 
∆‘‘(A) SUBMISSION
TO
THE
STATE
OR 
STATES.—To ensure the consistency required 
under subsection (d), an applicant that is a di-
rectly eligible tribe must submit its application 
to each State within the boundaries of which any 
part of such tribe is located for direct submission 
to the Department along with the application of 
such State or States. 
∆‘‘(B) OPPORTUNITY
FOR
STATE
COM-
MENT.—Before awarding any covered grant to a 
directly eligible tribe, the Secretary shall provide 
an opportunity to each State within the bound-
aries of which any part of such tribe is located 
to comment to the Secretary on the consistency 
of the tribe’s application with the State’s home-
land security plan. Any such comments shall be
390 
submitted to the Secretary concurrently with the 
submission of the State and tribal applications. 
∆‘‘(C) FINAL
AUTHORITY.—The Secretary 
shall have final authority to determine the con-
sistency of any application of a directly eligible 
tribe with the applicable State homeland security 
plan or plans, and to approve any application 
of such tribe. The Secretary shall notify each 
State within the boundaries of which any part 
of such tribe is located of the approval of an ap-
plication by such tribe. 
∆‘‘(D) TRIBAL LIAISON.—A tribal liaison 
designated under paragraph (4)(G) shall— 
∆‘‘(i) coordinate with Federal, State, 
local, regional, and private officials con-
cerning terrorism preparedness; 
∆‘‘(ii) develop a process for receiving 
input from Federal, State, local, regional, 
and private sector officials to assist in the 
development of the application of such tribe 
and to improve the tribe’s access to covered 
grants; and 
∆‘‘(iii) administer, in consultation 
with State, local, regional, and private offi-
cials, covered grants awarded to such tribe.
391 
∆‘‘(E) LIMITATION ON THE NUMBER OF DI-
RECT GRANTS.—The Secretary may make cov-
ered grants directly to not more than 20 directly 
eligible tribes per fiscal year. 
∆‘‘(F) TRIBES
NOT
RECEIVING
DIRECT 
GRANTS.—An Indian tribe that does not receive 
a grant directly under this section is eligible to 
receive funds under a covered grant from the 
State or States within the boundaries of which 
any part of such tribe is located, consistent with 
the homeland security plan of the State as de-
scribed in subsection (c). If a State fails to com-
ply with section 1806(g)(1), the tribe may re-
quest payment under section 1806(h)(3) in the 
same manner as a local government. 
∆‘‘(7) EQUIPMENT STANDARDS.—If an applicant 
for a covered grant proposes to upgrade or purchase, 
with assistance provided under the grant, new equip-
ment or systems that do not meet or exceed any appli-
cable national voluntary consensus standards estab-
lished by the Secretary under section 1807(a), the ap-
plicant shall include in the application an expla-
nation of why such equipment or systems will serve 
the needs of the applicant better than equipment or 
systems that meet or exceed such standards.
392 
∆‘‘(f) FIRST RESPONDER GRANTS BOARD.— 
∆‘‘(1) ESTABLISHMENT
OF
BOARD.—The Sec-
retary shall establish a First Responder Grants 
Board, consisting of— 
∆‘‘(A) the Secretary; 
∆‘‘(B) the Under Secretary for Emergency 
Preparedness and Response; 
∆‘‘(C) the Under Secretary for Border and 
Transportation Security; 
∆‘‘(D) the Under Secretary for Information 
Analysis and Infrastructure Protection; 
∆‘‘(E) the Under Secretary for Science and 
Technology; and 
∆‘‘(F) the Director of the Office for Domes-
tic Preparedness. 
∆‘‘(2) CHAIRMAN.— 
∆‘‘(A) IN GENERAL.—The Secretary shall be 
the Chairman of the Board. 
∆‘‘(B) EXERCISE OF AUTHORITIES BY DEP-
UTY
SECRETARY.—The Deputy Secretary of 
Homeland Security may exercise the authorities 
of the Chairman, if the Secretary so directs. 
∆‘‘(3) RANKING OF GRANT APPLICATIONS.— 
∆‘‘(A) PRIORITIZATION
OF
GRANTS.—The 
Board—
393 
∆‘‘(i) shall evaluate and annually 
prioritize all pending applications for cov-
ered grants based upon the degree to which 
they would, by achieving, maintaining, or 
enhancing the essential capabilities of the 
applicants on a nationwide basis, lessen the 
threat to, vulnerability of, and consequences 
for persons and critical infrastructure; and 
∆‘‘(ii) in evaluating the threat to per-
sons and critical infrastructure for purposes 
of prioritizing covered grants, shall give 
greater weight to threats of terrorism based 
on their specificity and credibility, includ-
ing any pattern of repetition. 
∆‘‘(B) MINIMUM
AMOUNTS.—After evalu-
ating and prioritizing grant applications under 
subparagraph (A), the Board shall ensure that, 
for each fiscal year— 
∆‘‘(i) each of the States, other than the 
Virgin Islands, American Samoa, Guam, 
and the Northern Mariana Islands, that has 
an approved State homeland security plan 
receives no less than 0.25 percent of the 
funds available for covered grants for that 
fiscal year for purposes of implementing its
394 
homeland security plan in accordance with 
the prioritization of needs under subsection 
(c)(1)(C); 
∆‘‘(ii) each of the States, other than 
the 
Virgin 
Islands, 
American 
Samoa, 
Guam, and the Northern Mariana Islands, 
that has an approved State homeland secu-
rity plan and that meets one or both of the 
additional 
high-risk 
qualifying 
criteria 
under subparagraph (C) receives no less 
than 0.45 percent of the funds available for 
covered grants for that fiscal year for pur-
poses of implementing its homeland security 
plan in accordance with the prioritization 
of needs under subsection (c)(1)(C); 
∆‘‘(iii) the Virgin Islands, American 
Samoa, Guam, and the Northern Mariana 
Islands each receives no less than 0.08 per-
cent of the funds available for covered 
grants for that fiscal year for purposes of 
implementing its approved State homeland 
security plan in accordance with the 
prioritization of needs under subsection 
(c)(1)(C); and
395 
∆‘‘(iv) directly eligible tribes collec-
tively receive no less than 0.08 percent of 
the funds available for covered grants for 
such fiscal year for purposes of addressing 
the needs identified in the applications of 
such tribes, consistent with the homeland se-
curity plan of each State within the bound-
aries of which any part of any such tribe 
is located, except that this clause shall not 
apply with respect to funds available for a 
fiscal year if the Secretary receives less than 
5 applications for such fiscal year from 
such tribes under subsection (e)(6)(A) or 
does not approve at least one such applica-
tion. 
∆‘‘(C) ADDITIONAL HIGH-RISK QUALIFYING 
CRITERIA.—For 
purposes 
of 
subparagraph 
(B)(ii), additional high-risk qualifying criteria 
consist of— 
∆‘‘(i) having a significant inter-
national land border; or 
∆‘‘(ii) adjoining a body of water with-
in North America through which an inter-
national boundary line extends.
396 
∆‘‘(4) EFFECT OF REGIONAL AWARDS ON STATE 
MINIMUM.—Any regional award, or portion thereof, 
provided to a State under subsection (e)(5)(C) shall 
not be considered in calculating the minimum State 
award under paragraph (3)(B) of this subsection. 
∆‘‘(5) FUNCTIONS
OF
UNDER
SECRETARIES.— 
The Under Secretaries referred to in paragraph (1) 
shall seek to ensure that the relevant expertise and 
input of the staff of their directorates are available to 
and considered by the Board. 
∆‘‘SEC. 1806. USE OF FUNDS AND ACCOUNTABILITY RE-
QUIREMENTS. 
∆‘‘(a) IN GENERAL.—A covered grant may be used 
for— 
∆‘‘(1) purchasing or upgrading equipment, in-
cluding computer software, to enhance terrorism pre-
paredness and response; 
∆‘‘(2) exercises to strengthen terrorism prepared-
ness and response; 
∆‘‘(3) training for prevention (including detec-
tion) of, preparedness for, or response to attacks in-
volving weapons of mass destruction, including train-
ing in the use of equipment and computer software; 
∆‘‘(4) developing or updating response plans;
397 
∆‘‘(5) establishing or enhancing mechanisms for 
sharing terrorism threat information; 
∆‘‘(6) systems architecture and engineering, pro-
gram planning and management, strategy formula-
tion and strategic planning, life-cycle systems design, 
product and technology evaluation, and prototype de-
velopment for terrorism preparedness and response 
purposes; 
∆‘‘(7) 
additional 
personnel 
costs 
resulting 
from— 
∆‘‘(A) elevations in the threat alert level of 
the Homeland Security Advisory System by the 
Secretary, or a similar elevation in threat alert 
level issued by a State, region, or local govern-
ment with the approval of the Secretary; 
∆‘‘(B) travel to and participation in exer-
cises and training in the use of equipment and 
on prevention activities; and 
∆‘‘(C) the temporary replacement of per-
sonnel during any period of travel to and par-
ticipation in exercises and training in the use of 
equipment and on prevention activities; 
∆‘‘(8) the costs of equipment (including software) 
required to receive, transmit, handle, and store classi-
fied information;
398 
∆‘‘(9) protecting critical infrastructure against 
potential attack by the addition of barriers, fences, 
gates, and other such devices, except that the cost of 
such measures may not exceed the greater of— 
∆‘‘(A) $1,000,000 per project; or 
∆‘‘(B) such greater amount as may be ap-
proved by the Secretary, which may not exceed 
10 percent of the total amount of the covered 
grant; 
∆‘‘(10) the costs of commercially available inter-
operable communications equipment (which, where 
applicable, is based on national, voluntary consensus 
standards) that the Secretary, in consultation with 
the Chairman of the Federal Communications Com-
mission, deems best suited to facilitate interoper-
ability, coordination, and integration between and 
among emergency communications systems, and that 
complies with prevailing grant guidance of the De-
partment for interoperable communications; 
∆‘‘(11) educational curricula development for 
first responders to ensure that they are prepared for 
terrorist attacks; 
∆‘‘(12) training and exercises to assist public el-
ementary and secondary schools in developing and 
implementing programs to instruct students regard-
399 
ing age-appropriate skills to prepare for and respond 
to an act of terrorism; 
∆‘‘(13) paying of administrative expenses di-
rectly related to administration of the grant, except 
that such expenses may not exceed 3 percent of the 
amount of the grant; and 
∆‘‘(14) other appropriate activities as deter-
mined by the Secretary. 
∆‘‘(b) PROHIBITED USES.—Funds provided as a cov-
ered grant may not be used— 
∆‘‘(1) to supplant State or local funds; 
∆‘‘(2) to construct buildings or other physical fa-
cilities; 
∆‘‘(3) to acquire land; or 
∆‘‘(4) for any State or local government cost 
sharing contribution. 
∆‘‘(c) MULTIPLE-PURPOSE FUNDS.—Nothing in this 
section shall be construed to preclude State and local gov-
ernments from using covered grant funds in a manner that 
also enhances first responder preparedness for emergencies 
and disasters unrelated to acts of terrorism, if such use as-
sists such governments in achieving essential capabilities 
for terrorism preparedness established by the Secretary 
under section 1803.
400 
∆‘‘(d) REIMBURSEMENT OF COSTS.—In addition to 
the activities described in subsection (a), a covered grant 
may be used to provide a reasonable stipend to paid-on- 
call or volunteer first responders who are not otherwise com-
pensated for travel to or participation in training covered 
by this section. Any such reimbursement shall not be consid-
ered compensation for purposes of rendering such a first 
responder an employee under the Fair Labor Standards Act 
of 1938 (29 U.S.C. 201 et seq.). 
∆‘‘(e) ASSISTANCE
REQUIREMENT.—The Secretary 
may not request that equipment paid for, wholly or in part, 
with funds provided as a covered grant be made available 
for responding to emergencies in surrounding States, re-
gions, and localities, unless the Secretary undertakes to pay 
the costs directly attributable to transporting and operating 
such equipment during such response. 
∆‘‘(f) FLEXIBILITY IN UNSPENT HOMELAND SECURITY 
GRANT FUNDS.—Upon request by the recipient of a covered 
grant, the Secretary may authorize the grantee to transfer 
all or part of funds provided as the covered grant from uses 
specified in the grant agreement to other uses authorized 
under this section, if the Secretary determines that such 
transfer is in the interests of homeland security. 
∆‘‘(g) STATE, REGIONAL, AND TRIBAL RESPONSIBIL-
ITIES.—
401 
∆‘‘(1) PASS-THROUGH.—The Secretary shall re-
quire a recipient of a covered grant that is a State 
to obligate or otherwise make available to local gov-
ernments, first responders, and other local groups, to 
the extent required under the State homeland security 
plan or plans specified in the application for the 
grant, not less than 80 percent of the grant funds, re-
sources purchased with the grant funds having a 
value equal to at least 80 percent of the amount of 
the grant, or a combination thereof, by not later than 
the end of the 45-day period beginning on the date the 
grant recipient receives the grant funds. 
∆‘‘(2) COST SHARING.— 
∆‘‘(A) IN GENERAL.—The Federal share of 
the costs of an activity carried out with a cov-
ered grant to a State, region, or directly eligible 
tribe awarded after the 2-year period beginning 
on the date of the enactment of this section shall 
not exceed 75 percent. 
∆‘‘(B) INTERIM RULE.—The Federal share 
of the costs of an activity carried out with a cov-
ered grant awarded before the end of the 2-year 
period beginning on the date of the enactment of 
this section shall be 100 percent.
402 
∆‘‘(C) IN-KIND MATCHING.—Each recipient 
of a covered grant may meet the matching re-
quirement under subparagraph (A) by making 
in-kind contributions of goods or services that 
are directly linked with the purpose for which 
the grant is made, including, but not limited to, 
any necessary personnel overtime, contractor 
services, administrative costs, equipment fuel 
and maintenance, and rental space. 
∆‘‘(3) CERTIFICATIONS
REGARDING
DISTRIBU-
TION OF GRANT FUNDS TO LOCAL GOVERNMENTS.— 
Any State that receives a covered grant shall certify 
to the Secretary, by not later than 30 days after the 
expiration of the period described in paragraph (1) 
with respect to the grant, that the State has made 
available for expenditure by local governments, first 
responders, and other local groups the required 
amount of grant funds pursuant to paragraph (1). 
∆‘‘(4) QUARTERLY REPORT ON HOMELAND SECU-
RITY
SPENDING.—The Federal share described in 
paragraph (2)(A) may be increased by up to 2 per-
cent for any State, region, or directly eligible tribe 
that, not later than 30 days after the end of each fis-
cal quarter, submits to the Secretary a report on that 
fiscal quarter. Each such report must include, for
403 
each recipient of a covered grant or a pass-through 
under paragraph (1)— 
∆‘‘(A) the amount obligated to that recipi-
ent in that quarter; 
∆‘‘(B) the amount expended by that recipi-
ent in that quarter; and 
∆‘‘(C) a summary description of the items 
purchased by such recipient with such amount. 
∆‘‘(5) ANNUAL REPORT ON HOMELAND SECURITY 
SPENDING.—Each recipient of a covered grant shall 
submit an annual report to the Secretary not later 
than 60 days after the end of each fiscal year. Each 
recipient of a covered grant that is a region must si-
multaneously submit its report to each State of which 
any part is included in the region. Each recipient of 
a covered grant that is a directly eligible tribe must 
simultaneously submit its report to each State within 
the boundaries of which any part of such tribe is lo-
cated. Each report must include the following: 
∆‘‘(A) The amount, ultimate recipients, and 
dates of receipt of all funds received under the 
grant during the previous fiscal year. 
∆‘‘(B) The amount and the dates of dis-
bursements of all such funds expended in compli-
ance with paragraph (1) or pursuant to mutual
404 
aid agreements or other sharing arrangements 
that apply within the State, region, or directly 
eligible tribe, as applicable, during the previous 
fiscal year. 
∆‘‘(C) How the funds were utilized by each 
ultimate recipient or beneficiary during the pre-
ceding fiscal year. 
∆‘‘(D) The extent to which essential capa-
bilities identified in the applicable State home-
land security plan or plans were achieved, main-
tained, or enhanced as the result of the expendi-
ture of grant funds during the preceding fiscal 
year. 
∆‘‘(E) The extent to which essential capa-
bilities identified in the applicable State home-
land security plan or plans remain unmet. 
∆‘‘(6) INCLUSION OF RESTRICTED ANNEXES.—A 
recipient of a covered grant may submit to the Sec-
retary an annex to the annual report under para-
graph (5) that is subject to appropriate handling re-
strictions, if the recipient believes that discussion in 
the report of unmet needs would reveal sensitive but 
unclassified information. 
∆‘‘(7) PROVISION OF REPORTS.—The Secretary 
shall ensure that each annual report under paragraph
405 
(5) is provided to the Under Secretary for Emergency 
Preparedness and Response and the Director of the 
Office for Domestic Preparedness. 
∆‘‘(h) INCENTIVES TO EFFICIENT ADMINISTRATION OF 
HOMELAND SECURITY GRANTS.— 
∆‘‘(1) PENALTIES
FOR
DELAY
IN
PASSING 
THROUGH LOCAL SHARE.—If a recipient of a covered 
grant that is a State fails to pass through to local 
governments, first responders, and other local groups 
funds or resources required by subsection (g)(1) with-
in 45 days after receiving funds under the grant, the 
Secretary may— 
∆‘‘(A) reduce grant payments to the grant 
recipient from the portion of grant funds that is 
not required to be passed through under sub-
section (g)(1); 
∆‘‘(B) terminate payment of funds under 
the grant to the recipient, and transfer the ap-
propriate portion of those funds directly to local 
first responders that were intended to receive 
funding under that grant; or 
∆‘‘(C) impose additional restrictions or bur-
dens on the recipient’s use of funds under the 
grant, which may include—
406 
∆‘‘(i) prohibiting use of such funds to 
pay the grant recipient’s grant-related over-
time or other expenses; 
∆‘‘(ii) requiring the grant recipient to 
distribute to local government beneficiaries 
all or a portion of grant funds that are not 
required to be passed through under sub-
section (g)(1); or 
∆‘‘(iii) for each day that the grant re-
cipient fails to pass through funds or re-
sources 
in 
accordance 
with 
subsection 
(g)(1), reducing grant payments to the 
grant recipient from the portion of grant 
funds that is not required to be passed 
through under subsection (g)(1), except that 
the total amount of such reduction may not 
exceed 20 percent of the total amount of the 
grant. 
∆‘‘(2) EXTENSION OF PERIOD.—The Governor of 
a State may request in writing that the Secretary ex-
tend the 45-day period under section 1805(e)(5)(E) or 
paragraph (1) for an additional 15-day period. The 
Secretary may approve such a request, and may ex-
tend such period for additional 15-day periods, if the 
Secretary determines that the resulting delay in pro-
407 
viding grant funding to the local government entities 
that will receive funding under the grant will not 
have a significant detrimental impact on such enti-
ties’ terrorism preparedness efforts. 
∆‘‘(3) PROVISION
OF
NON-LOCAL
SHARE
TO 
LOCAL GOVERNMENT.— 
∆‘‘(A) IN
GENERAL.—The Secretary may 
upon request by a local government pay to the 
local government a portion of the amount of a 
covered grant awarded to a State in which the 
local government is located, if— 
∆‘‘(i) the local government will use the 
amount paid to expedite planned enhance-
ments to its terrorism preparedness as de-
scribed in any applicable State homeland 
security plan or plans; 
∆‘‘(ii) the State has failed to pass 
through funds or resources in accordance 
with subsection (g)(1); and 
∆‘‘(iii) the local government complies 
with subparagraphs (B) and (C). 
∆‘‘(B) SHOWING REQUIRED.—To receive a 
payment under this paragraph, a local govern-
ment must demonstrate that—
408 
∆‘‘(i) it is identified explicitly as an 
ultimate recipient or intended beneficiary 
in the approved grant application; 
∆‘‘(ii) it was intended by the grantee 
to receive a severable portion of the overall 
grant for a specific purpose that is identi-
fied in the grant application; 
∆‘‘(iii) it petitioned the grantee for the 
funds or resources after expiration of the pe-
riod within which the funds or resources 
were required to be passed through under 
subsection (g)(1); and 
∆‘‘(iv) it did not receive the portion of 
the overall grant that was earmarked or 
designated for its use or benefit. 
∆‘‘(C) EFFECT OF PAYMENT.—Payment of 
grant funds to a local government under this 
paragraph— 
∆‘‘(i) shall not affect any payment to 
another local government under this para-
graph; and 
∆‘‘(ii) shall not prejudice consideration 
of a request for payment under this para-
graph that is submitted by another local 
government.
409 
∆‘‘(D) DEADLINE
FOR
ACTION
BY
SEC-
RETARY.—The Secretary shall approve or dis-
approve each request for payment under this 
paragraph by not later than 15 days after the 
date the request is received by the Department. 
∆‘‘(i) REPORTS TO CONGRESS.—The Secretary shall 
submit an annual report to the Congress by December 31 
of each year— 
∆‘‘(1) describing in detail the amount of Federal 
funds provided as covered grants that were directed to 
each State, region, and directly eligible tribe in the 
preceding fiscal year; 
∆‘‘(2) containing information on the use of such 
grant funds by grantees; and 
∆‘‘(3) describing— 
∆‘‘(A) the Nation’s progress in achieving, 
maintaining, and enhancing the essential capa-
bilities established under section 1803(a) as a re-
sult of the expenditure of covered grant funds 
during the preceding fiscal year; and 
∆‘‘(B) an estimate of the amount of expend-
itures required to attain across the United States 
the essential capabilities established under sec-
tion 1803(a).
410 
∆‘‘SEC. 
1807. 
NATIONAL 
STANDARDS 
FOR 
FIRST 
RE-
SPONDER EQUIPMENT AND TRAINING. 
∆‘‘(a) EQUIPMENT STANDARDS.— 
∆‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Under Secretaries for Emergency Pre-
paredness and Response and Science and Technology 
and the Director of the Office for Domestic Prepared-
ness, shall, not later than 6 months after the date of 
enactment of this section, support the development of, 
promulgate, and update as necessary national vol-
untary consensus standards for the performance, use, 
and validation of first responder equipment for pur-
poses of section 1805(e)(7). Such standards— 
∆‘‘(A) shall be, to the maximum extent 
practicable, consistent with any existing vol-
untary consensus standards; 
∆‘‘(B) shall take into account, as appro-
priate, new types of terrorism threats that may 
not have been contemplated when such existing 
standards were developed; 
∆‘‘(C) shall be focused on maximizing inter-
operability, interchangeability, durability, flexi-
bility, efficiency, efficacy, portability, sustain-
ability, and safety; and 
∆‘‘(D) shall cover all appropriate uses of the 
equipment.
411 
∆‘‘(2) REQUIRED CATEGORIES.—In carrying out 
paragraph (1), the Secretary shall specifically con-
sider the following categories of first responder equip-
ment: 
∆‘‘(A) Thermal imaging equipment. 
∆‘‘(B) Radiation detection and analysis 
equipment. 
∆‘‘(C) Biological detection and analysis 
equipment. 
∆‘‘(D) Chemical detection and analysis 
equipment. 
∆‘‘(E) Decontamination and sterilization 
equipment. 
∆‘‘(F) Personal protective equipment, in-
cluding garments, boots, gloves, and hoods and 
other protective clothing. 
∆‘‘(G) Respiratory protection equipment. 
∆‘‘(H) Interoperable communications, in-
cluding wireless and wireline voice, video, and 
data networks. 
∆‘‘(I) Explosive mitigation devices and ex-
plosive detection and analysis equipment. 
∆‘‘(J) Containment vessels. 
∆‘‘(K) Contaminant-resistant vehicles.
412 
∆‘‘(L) Such other equipment for which the 
Secretary determines that national voluntary 
consensus standards would be appropriate. 
∆‘‘(b) TRAINING STANDARDS.— 
∆‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Under Secretaries for Emergency Pre-
paredness and Response and Science and Technology 
and the Director of the Office for Domestic Prepared-
ness, shall support the development of, promulgate, 
and regularly update as necessary national voluntary 
consensus standards for first responder training car-
ried out with amounts provided under covered grant 
programs, that will enable State and local govern-
ment first responders to achieve optimal levels of ter-
rorism preparedness as quickly as practicable. Such 
standards shall give priority to providing training 
to— 
∆‘‘(A) enable first responders to prevent, 
prepare for, respond to, and mitigate terrorist 
threats, including threats from chemical, biologi-
cal, nuclear, and radiological weapons and ex-
plosive devices capable of inflicting significant 
human casualties; and 
∆‘‘(B) familiarize first responders with the 
proper use of equipment, including software, de-
413 
veloped pursuant to the standards established 
under subsection (a). 
∆‘‘(2) REQUIRED CATEGORIES.—In carrying out 
paragraph (1), the Secretary specifically shall include 
the following categories of first responder activities: 
∆‘‘(A) Regional planning. 
∆‘‘(B) Joint exercises. 
∆‘‘(C) Intelligence collection, analysis, and 
sharing. 
∆‘‘(D) Emergency notification of affected 
populations. 
∆‘‘(E) Detection of biological, nuclear, radi-
ological, and chemical weapons of mass destruc-
tion. 
∆‘‘(F) Such other activities for which the 
Secretary determines that national voluntary 
consensus training standards would be appro-
priate. 
∆‘‘(3) CONSISTENCY.—In carrying out this sub-
section, the Secretary shall ensure that such training 
standards are consistent with the principles of emer-
gency preparedness for all hazards. 
∆‘‘(c) CONSULTATION WITH STANDARDS ORGANIZA-
TIONS.—In establishing national voluntary consensus 
standards for first responder equipment and training under
414 
this section, the Secretary shall consult with relevant public 
and private sector groups, including— 
∆‘‘(1) the National Institute of Standards and 
Technology; 
∆‘‘(2) the National Fire Protection Association; 
∆‘‘(3) the National Association of County and 
City Health Officials; 
∆‘‘(4) the Association of State and Territorial 
Health Officials; 
∆‘‘(5) the American National Standards Insti-
tute; 
∆‘‘(6) the National Institute of Justice; 
∆‘‘(7) the Inter-Agency Board for Equipment 
Standardization and Interoperability; 
∆‘‘(8) the National Public Health Performance 
Standards Program; 
∆‘‘(9) the National Institute for Occupational 
Safety and Health; 
∆‘‘(10) ASTM International; 
∆‘‘(11) the International Safety Equipment As-
sociation; 
∆‘‘(12) the Emergency Management Accredita-
tion Program; and 
∆‘‘(13) to the extent the Secretary considers ap-
propriate, other national voluntary consensus stand-
415 
ards development organizations, other interested Fed-
eral, State, and local agencies, and other interested 
persons. 
∆‘‘(d) COORDINATION WITH SECRETARY OF HHS.— 
In establishing any national voluntary consensus standards 
under this section for first responder equipment or training 
that involve or relate to health professionals, including 
emergency medical professionals, the Secretary shall coordi-
nate activities under this section with the Secretary of 
Health and Human Services.’’. 
∆(b) DEFINITION OF EMERGENCY RESPONSE PRO-
VIDERS.—Paragraph (6) of section 2 of the Homeland Secu-
rity Act of 2002 (Public Law 107–296; 6 U.S.C. 101(6)) 
is amended by striking ‘‘includes’’ and all that follows and 
inserting ‘‘includes Federal, State, and local governmental 
and nongovernmental emergency public safety, law enforce-
ment, fire, emergency response, emergency medical (includ-
ing hospital emergency facilities), and related personnel, or-
ganizations, agencies, and authorities.’’. 
∆(c) TEMPORARY LIMITATIONS ON APPLICATION.— 
∆(1) 1-YEAR DELAY IN APPLICATION.—The fol-
lowing provisions of title XVIII of the Homeland Se-
curity Act of 2002, as amended by subsection (a), 
shall not apply during the 1-year period beginning on 
the date of the enactment of this Act:
416 
∆(A) Subsections (b), (c), and (e)(4)(A) and 
(B) of section 1805. 
∆(B) In section 1805(f)(3)(A), the phrase ‘‘, 
by enhancing the essential capabilities of the ap-
plicants,’’. 
∆(2) 2-YEAR DELAY IN APPLICATION.—The fol-
lowing provisions of title XVIII of the Homeland Se-
curity Act of 2002, as amended by subsection (a), 
shall not apply during the 2-year period beginning on 
the date of the enactment of this Act: 
∆(A) Subparagraphs (D) and (E) of section 
1806(g)(5). 
∆(B) Section 1806(i)(3). 
∆SEC. 5004. MODIFICATION OF HOMELAND SECURITY ADVI-
SORY SYSTEM. 
∆(a) IN GENERAL.—Subtitle A of title II of the Home-
land Security Act of 2002 (Public Law 107–296; 6 U.S.C. 
121 et seq.) is amended by adding at the end the following: 
∆‘‘SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM. 
∆‘‘(a) IN GENERAL.—The Secretary shall revise the 
Homeland Security Advisory System referred to in section 
201(d)(7) to require that any designation of a threat level 
or other warning shall be accompanied by a designation 
of the geographic regions or economic sectors to which the 
designation applies.
417 
∆‘‘(b) REPORTS.—The Secretary shall report to the 
Congress annually by not later than December 31 each year 
regarding the geographic region-specific warnings and eco-
nomic sector-specific warnings issued during the preceding 
fiscal year under the Homeland Security Advisory System 
referred to in section 201(d)(7), and the bases for such 
warnings. The report shall be submitted in unclassified 
form and may, as necessary, include a classified annex.’’. 
∆(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 
101 et seq.) is amended by inserting after the item relating 
to section 202 the following: 
∆‘‘203. Homeland Security Advisory System.’’. 
∆SEC. 5005. COORDINATION OF INDUSTRY EFFORTS. 
∆Section 102(f) of the Homeland Security Act of 2002 
(Public Law 107–296; 6 U.S.C. 112(f)) is amended by strik-
ing ‘‘and’’ after the semicolon at the end of paragraph (6), 
by striking the period at the end of paragraph (7) and in-
serting ‘‘; and’’, and by adding at the end the following: 
∆‘‘(8) coordinating industry efforts, with respect 
to functions of the Department of Homeland Security, 
to identify private sector resources and capabilities 
that could be effective in supplementing Federal, 
State, and local government agency efforts to prevent 
or respond to a terrorist attack.’’.
418 
∆SEC. 5006. SUPERSEDED PROVISION. 
∆This subtitle supersedes section 1014 of Public Law 
107–56. 
∆SEC. 5007. SENSE OF CONGRESS REGARDING INTEROPER-
ABLE COMMUNICATIONS. 
∆(a) FINDING.—The Congress finds that— 
∆(1) many first responders working in the same 
jurisdiction or in different jurisdictions cannot effec-
tively and efficiently communicate with one another; 
and 
∆(2) their inability to do so threatens the 
public’s safety and may result in unnecessary loss of 
lives and property. 
∆(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that interoperable emergency communications systems 
and radios should continue to be deployed as soon as prac-
ticable for use by the first responder community, and that 
upgraded and new digital communications systems and 
new digital radios must meet prevailing national, vol-
untary consensus standards for interoperability. 
∆SEC. 5008. SENSE OF CONGRESS REGARDING CITIZEN 
CORPS COUNCILS. 
∆(a) FINDING.—The Congress finds that Citizen Corps 
councils help to enhance local citizen participation in ter-
rorism preparedness by coordinating multiple Citizen
419 
Corps programs, developing community action plans, as-
sessing possible threats, and identifying local resources. 
∆(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that individual Citizen Corps councils should seek to 
enhance the preparedness and response capabilities of all 
organizations participating in the councils, including by 
providing funding to as many of their participating orga-
nizations as practicable to promote local terrorism pre-
paredness programs. 
∆SEC. 5009. STUDY REGARDING NATIONWIDE EMERGENCY 
NOTIFICATION SYSTEM. 
∆(a) STUDY.—The Secretary of Homeland Security, 
in consultation with the heads of other appropriate Federal 
agencies and representatives of providers and participants 
in the telecommunications industry, shall conduct a study 
to determine whether it is cost-effective, efficient, and fea-
sible to establish and implement an emergency telephonic 
alert notification system that will— 
∆(1) alert persons in the United States of immi-
nent or current hazardous events caused by acts of 
terrorism; and 
∆(2) provide information to individuals regard-
ing appropriate measures that may be undertaken to 
alleviate or minimize threats to their safety and wel-
fare posed by such events.
420 
∆(b) TECHNOLOGIES TO CONSIDER.—In conducting 
the study, the Secretary shall consider the use of the tele-
phone, wireless communications, and other existing commu-
nications networks to provide such notification. 
∆(c) REPORT.—Not later than 9 months after the date 
of the enactment of this Act, the Secretary shall submit to 
the Congress a report regarding the conclusions of the study. 
∆SEC. 5010. REQUIRED COORDINATION. 
∆The Secretary of Homeland Security shall ensure 
that there is effective and ongoing coordination of Federal 
efforts to prevent, prepare for, and respond to acts of ter-
rorism and other major disasters and emergencies among 
the divisions of the Department of Homeland Security, in-
cluding the Directorate of Emergency Preparedness and Re-
sponse and the Office for State and Local Government Co-
ordination and Preparedness. 
∆Subtitle B—Government 
Reorganization Authority 
∆SEC. 5021. AUTHORIZATION OF INTELLIGENCE COMMU-
NITY REORGANIZATION PLANS. 
∆(a) REORGANIZATION PLANS.—Section 903(a)(2) of 
title 5, United States Code, is amended to read as follows: 
∆‘‘(2) the abolition of all or a part of the func-
tions of an agency;’’.
421 
∆(b) REPEAL OF LIMITATIONS.—Section 905 of title 
5, United States Code, is amended to read as follows: 
∆‘‘§ 905. Limitation on authority. 
∆‘‘The authority to submit reorganization plans under 
this chapter is limited to the following organizational units: 
∆‘‘(1) The Office of the National Intelligence Di-
rector. 
∆‘‘(2) The Central Intelligence Agency. 
∆‘‘(3) The National Security Agency. 
∆‘‘(4) The Defense Intelligence Agency. 
∆‘‘(5) 
The 
National 
Geospatial-Intelligence 
Agency. 
∆‘‘(6) The National Reconnaissance Office. 
∆‘‘(7) Other offices within the Department of De-
fense for the collection of specialized national intel-
ligence through reconnaissance programs. 
∆‘‘(8) The intelligence elements of the Army, the 
Navy, the Air Force, the Marine Corps, the Federal 
Bureau of Investigation, and the Department of En-
ergy. 
∆‘‘(9) The Bureau of Intelligence and Research 
of the Department of State. 
∆‘‘(10) The Office of Intelligence Analysis of the 
Department of Treasury.
422 
∆‘‘(11) The elements of the Department of Home-
land Security concerned with the analysis of intel-
ligence information, including the Office of Intel-
ligence of the Coast Guard. 
∆‘‘(12) Such other elements of any other depart-
ment or agency as may be designated by the Presi-
dent, or designated jointly by the National Intel-
ligence Director and the head of the department or 
agency concerned, as an element of the intelligence 
community.’’. 
∆(c) REORGANIZATION PLANS.—Section 903(a) of title 
5, United States Code, is amended— 
∆(1) in paragraph (5), by striking ‘‘or’’ after the 
semicolon; 
∆(2) in paragraph (6), by striking the period 
and inserting ‘‘; or’’; and 
∆(3) by inserting after paragraph (6) the fol-
lowing: 
∆‘‘(7) the creation of an agency.’’. 
∆(d) APPLICATION OF CHAPTER.—Chapter 9 of title 
5, United States Code, is amended by adding at the end 
the following:
423 
∆‘‘§ 913. Application of chapter 
∆‘‘This chapter shall apply to any reorganization plan 
transmitted to Congress in accordance with section 903(b) 
on or after the date of enactment of this section.’’. 
∆(e) TECHNICAL AND CONFORMING AMENDMENTS.— 
∆(1) TABLE OF SECTIONS.—The table of sections 
for chapter 9 of title 5, United States Code, is amend-
ed by adding after the item relating to section 912 the 
following: 
∆‘‘913. Application of chapter.’’. 
∆(2) REFERENCES.—Chapter 9 of title 5, United 
States Code, is amended— 
∆(A) in section 908(1), by striking ‘‘on or 
before December 31, 1984’’; and 
∆(B) in section 910, by striking ‘‘Govern-
ment Operations’’ each place it appears and in-
serting ‘‘Government Reform’’. 
∆(3) DATE MODIFICATION.—Section 909 of title 
5, United States Code, is amended in the first sen-
tence by striking ‘‘19’’ and inserting ‘‘20’’.
424 
∆Subtitle C—Restructuring Relat-
ing to the Department of Home-
land Security and Congressional 
Oversight 
∆SEC. 5025. RESPONSIBILITIES OF counternarcotics OFFICE. 
∆(a) AMENDMENT.—Section 878 of the Homeland Se-
curity Act of 2002 (6 U.S.C. 458) is amended to read as 
follows: 
∆‘‘SEC. 878. OFFICE OF counternarcotics ENFORCEMENT. 
∆‘‘(a) OFFICE.—There shall be in the Department an 
Office of counternarcotics Enforcement, which shall be head-
ed by a Director appointed by the President, by and with 
the advice and consent of the Senate. 
∆‘‘(b) ASSIGNMENT
OF PERSONNEL.—(1) The Sec-
retary shall assign to the Office permanent staff and other 
appropriate personnel detailed from other subdivisions of 
the Department to carry out responsibilities under this sec-
tion. 
∆‘‘(2) The Secretary shall designate senior employees 
from each appropriate subdivision of the Department that 
has significant counternarcotics responsibilities to act as a 
liaison between that subdivision and the Office of counter-
narcotics Enforcement. 
∆‘‘(c) LIMITATION ON CONCURRENT EMPLOYMENT.— 
Except as provided in subsection (d), the Director of the
425 
Office of counternarcotics Enforcement shall not be em-
ployed by, assigned to, or serve as the head of, any other 
branch of the Federal Government, any State or local gov-
ernment, or any subdivision of the Department other than 
the Office of counternarcotics Enforcement. 
∆‘‘(d) ELIGIBILITY TO SERVE AS THE UNITED STATES 
INTERDICTION COORDINATOR.—The Director of the Office 
of counternarcotics Enforcement may be appointed as the 
United States Interdiction Coordinator by the Director of 
the Office of National Drug Control Policy, and shall be 
the only person at the Department eligible to be so ap-
pointed. 
∆‘‘(e) RESPONSIBILITIES.—The Secretary shall direct 
the Director of the Office of counternarcotics Enforcement— 
∆‘‘(1) to coordinate policy and operations within 
the Department, between the Department and other 
Federal departments and agencies, and between the 
Department and State and local agencies with respect 
to stopping the entry of illegal drugs into the United 
States; 
∆‘‘(2) to ensure the adequacy of resources within 
the Department for stopping the entry of illegal drugs 
into the United States; 
∆‘‘(3) to recommend the appropriate financial 
and personnel resources necessary to help the Depart-
426 
ment better fulfill its responsibility to stop the entry 
of illegal drugs into the United States; 
∆‘‘(4) to track and sever connections between il-
legal drug trafficking and terrorism; and 
∆‘‘(5) to be a representative of the Department 
on all task forces, committees, or other entities whose 
purpose is to coordinate the counternarcotics enforce-
ment activities of the Department and other Federal, 
state or local agencies. 
∆‘‘(f) REPORTS TO CONGRESS.— 
∆‘‘(1) ANNUAL BUDGET REVIEW.—The Director 
of the Office of counternarcotics Enforcement shall, 
not later than 30 days after the submission by the 
President to Congress of any request for expenditures 
for the Department, submit to the Committees on Ap-
propriations and the authorizing committees of juris-
diction of the House of Representatives and the Sen-
ate a review and evaluation of such request. The re-
view and evaluation shall— 
∆‘‘(A) identify any request or subpart of 
any request that affects or may affect the 
counternarcotics activities of the Department or 
any of its subdivisions, or that affects the ability 
of the Department or any subdivision of the De-
427 
partment to meet its responsibility to stop the 
entry of illegal drugs into the United States; 
∆‘‘(B) describe with particularity how such 
requested funds would be or could be expended in 
furtherance of counternarcotics activities; and 
∆‘‘(C) compare such requests with requests 
for expenditures and amounts appropriated by 
Congress in the previous fiscal year. 
∆‘‘(2) EVALUATION OF COUNTERNARCOTICS AC-
TIVITIES.—The Director of the Office of counter-
narcotics Enforcement shall, not later than February 
1 of each year, submit to the Committees on Appro-
priations and the authorizing committees of jurisdic-
tion of the House of Representatives and the Senate 
a review and evaluation of the counternarcotics ac-
tivities of the Department for the previous fiscal year. 
The review and evaluation shall— 
∆‘‘(A) describe the counternarcotics activi-
ties of the Department and each subdivision of 
the Department (whether individually or in co-
operation with other subdivisions of the Depart-
ment, or in cooperation with other branches of 
the Federal Government or with State or local 
agencies), including the methods, procedures, and 
systems (including computer systems) for col-
428 
lecting, analyzing, sharing, and disseminating 
information concerning narcotics activity within 
the Department and between the Department 
and other Federal, State, and local agencies; 
∆‘‘(B) describe the results of those activities, 
using quantifiable data whenever possible; 
∆‘‘(C) state whether those activities were 
sufficient to meet the responsibility of the De-
partment to stop the entry of illegal drugs into 
the United States, including a description of the 
performance measures of effectiveness that were 
used in making that determination; and 
∆‘‘(D) 
recommend, 
where 
appropriate, 
changes to those activities to improve the per-
formance of the Department in meeting its re-
sponsibility to stop the entry of illegal drugs into 
the United States. 
∆‘‘(3) CLASSIFIED OR LAW ENFORCEMENT SEN-
SITIVE INFORMATION.—Any content of a review and 
evaluation described in the reports required in this 
subsection that involves information classified under 
criteria established by an Executive order, or whose 
public disclosure, as determined by the Secretary, 
would be detrimental to the law enforcement or na-
tional security activities of the Department or any
429 
other Federal, State, or local agency, shall be pre-
sented to Congress separately from the rest of the re-
view and evaluation.’’. 
∆(b) CONFORMING AMENDMENT.—Section 103(a) of 
the Homeland Security Act of 2002 (6 U.S.C. 113(a)) is 
amended— 
∆(1) by redesignating paragraphs (8) and (9) as 
paragraphs (9) and (10), respectively; and 
∆(2) by inserting after paragraph (7) the fol-
lowing new paragraph (8): 
∆‘‘(8) A Director of the Office of counternarcotics 
Enforcement.’’. 
∆(c) AUTHORIZATION OF APPROPRIATIONS.—Of the 
amounts appropriated for the Department of Homeland Se-
curity for Departmental management and operations for 
fiscal year 2005, there is authorized up to $6,000,000 to 
carry out section 878 of the Department of Homeland Secu-
rity Act of 2002 (as amended by this section). 
∆SEC. 5026. USE OF counternarcotics ENFORCEMENT ACTIVI-
TIES IN CERTAIN EMPLOYEE PERFORMANCE 
APPRAISALS. 
∆(a) IN GENERAL.—Subtitle E of title VIII of the 
Homeland Security Act of 2002 (6 U.S.C. 411 and fol-
lowing) is amended by adding at the end the following:
430 
∆‘‘SEC. 843. USE OF counternarcotics ENFORCEMENT ACTIVI-
TIES IN CERTAIN EMPLOYEE PERFORMANCE 
APPRAISALS. 
∆‘‘(a) IN GENERAL.—Each subdivision of the Depart-
ment that is a National Drug Control Program Agency 
shall include as one of the criteria in its performance ap-
praisal system, for each employee directly or indirectly in-
volved in the enforcement of Federal, State, or local nar-
cotics laws, the performance of that employee with respect 
to the enforcement of Federal, State, or local narcotics laws, 
relying to the greatest extent practicable on objective per-
formance measures, including— 
∆‘‘(1) the contribution of that employee to sei-
zures of narcotics and arrests of violators of Federal, 
State, or local narcotics laws; and 
∆‘‘(2) the degree to which that employee cooper-
ated with or contributed to the efforts of other employ-
ees, either within the Department or other Federal, 
State, or local agencies, in counternarcotics enforce-
ment. 
∆‘‘(b) DEFINITIONS.—For purposes of this section— 
∆‘‘(1) the term ‘National Drug Control Program 
Agency’ means— 
∆‘‘(A) a National Drug Control Program 
Agency, as defined in section 702(7) of the Office
431 
of National Drug Control Policy Reauthorization 
Act of 1998 (as last in effect); and 
∆‘‘(B) any subdivision of the Department 
that has a significant counternarcotics responsi-
bility, as determined by— 
∆‘‘(i) the counternarcotics officer, ap-
pointed under section 878; or 
∆‘‘(ii) 
if 
applicable, 
the 
counter-
narcotics officer’s successor in function (as 
determined by the Secretary); and 
∆‘‘(2) the term ‘performance appraisal system’ 
means a system under which periodic appraisals of 
job performance of employees are made, whether 
under chapter 43 of title 5, United States Code, or 
otherwise.’’. 
∆(b) CLERICAL AMENDMENT.—The table of contents 
for the Homeland Security Act of 2002 is amended by in-
serting after the item relating to section 842 the following: 
∆‘‘Sec. 843. Use of counternarcotics enforcement activities in certain employee 
performance appraisals.’’. 
∆SEC. 5027. SENSE OF THE HOUSE OF REPRESENTATIVES 
ON ADDRESSING HOMELAND SECURITY FOR 
THE AMERICAN PEOPLE. 
∆(a) FINDINGS.—The House of Representatives finds 
that—
432 
∆(1) the House of Representatives created a Se-
lect Committee on Homeland Security at the start of 
the 108th Congress to provide for vigorous congres-
sional oversight for the implementation and operation 
of the Department of Homeland Security; 
∆(2) the House of Representatives also charged 
the Select Committee on Homeland Security, includ-
ing its Subcommittee on Rules, with undertaking a 
thorough and complete study of the operation and im-
plementation of the rules of the House, including the 
rule governing committee jurisdiction, with respect to 
the issue of homeland security and to make their rec-
ommendations to the Committee on Rules; 
∆(3) on February 11, 2003, the Committee on 
Appropriations of the House of Representatives cre-
ated a new Subcommittee on Homeland Security with 
jurisdiction over the Transportation Security Admin-
istration, the Coast Guard, and other entities within 
the Department of Homeland Security to help address 
the integration of the Department of Homeland Secu-
rity’s 22 legacy agencies; and 
∆(4) during the 108th Congress, the House of 
Representatives has taken several steps to help ensure 
its continuity in the event of a terrorist attack, in-
cluding—
433 
∆(A) adopting H.R. 2844, the Continuity of 
Representation Act, a bill to require States to 
hold expedited special elections to fill vacancies 
in the House of Representatives not later than 45 
days after the vacancy is announced by the 
Speaker in extraordinary circumstances; 
∆(B) granting authority for joint-leadership 
recalls from a period of adjournment to an alter-
nate place; 
∆(C) allowing for anticipatory consent with 
the Senate to assemble in an alternate place; 
∆(D) establishing the requirement that the 
Speaker submit to the Clerk a list of Members in 
the order in which each shall act as Speaker pro 
tempore in the case of a vacancy in the Office of 
Speaker (including physical inability of the 
Speaker to discharge his duties) until the election 
of a Speaker or a Speaker pro tempore, exer-
cising such authorities of the Speaker as may be 
necessary and appropriate to that end; 
∆(E) granting authority for the Speaker to 
declare an emergency recess of the House subject 
to the call of the Chair when notified of an im-
minent threat to the safety of the House;
434 
∆(F) granting authority for the Speaker, 
during any recess or adjournment of not more 
than three days, in consultation with the Minor-
ity Leader, to postpone the time for reconvening 
or to reconvene before the time previously ap-
pointed solely to declare the House in recess, in 
each case within the constitutional three-day 
limit; 
∆(G) establishing the authority for the 
Speaker to convene the House in an alternate 
place within the seat of Government; and 
∆(H) codifying the long-standing practice 
that the death, resignation, expulsion, disquali-
fication, or removal of a Member results in an 
adjustment of the quorum of the House, which 
the Speaker shall announce to the House and 
which shall not be subject to appeal. 
∆(b) SENSE OF THE HOUSE.—It is the sense of the 
House of Representatives that the Committee on Rules 
should act upon the recommendations provided by the Select 
Committee on Homeland Security, and other committees of 
existing jurisdiction, regarding the jurisdiction over pro-
posed legislation, messages, petitions, memorials and other 
matters relating to homeland security prior to or at the 
start of the 109th Congress.
435 
∆Subtitle D—Improvements to 
Information Security 
∆SEC. 5031. AMENDMENTS TO CLINGER-COHEN PROVISIONS 
TO ENHANCE AGENCY PLANNING FOR INFOR-
MATION SECURITY NEEDS. 
∆Chapter 113 of title 40, United States Code, is 
amended— 
∆(1) in section 11302(b), by inserting ‘‘secu-
rity,’’ after ‘‘use,’’; 
∆(2) in section 11302(c), by inserting ‘‘, includ-
ing information security risks,’’ after ‘‘risks’’ both 
places it appears; 
∆(3) in section 11312(b)(1), by striking ‘‘infor-
mation technology investments’’ and inserting ‘‘in-
vestments in information technology (including infor-
mation security needs)’’; and 
∆(4) in section 11315(b)(2), by inserting ‘‘, se-
cure,’’ after ‘‘sound’’.
436 
∆Subtitle E—Personnel 
Management Improvements 
∆CHAPTER 1—APPOINTMENTS PROCESS 
REFORM 
∆SEC. 5041. APPOINTMENTS TO NATIONAL SECURITY POSI-
TIONS. 
∆(a) DEFINITION
OF
NATIONAL
SECURITY
POSI-
TION.—For purposes of this section, the term ‘‘national se-
curity position’’ shall include— 
∆(1) those positions that involve activities of the 
United States Government that are concerned with 
the protection of the Nation from foreign aggression, 
terrorism, or espionage, including development of de-
fense plans or policies, intelligence or counter-
intelligence activities, and related activities concerned 
with the preservation of military strength of the 
United States and protection of the homeland; and 
∆(2) positions that require regular use of, or ac-
cess to, classified information. 
∆(b) PUBLICATION IN THE FEDERAL REGISTER.—Not 
later than 60 days after the effective date of this section, 
the Director of the Office of Personnel Management shall 
publish in the Federal Register a list of offices that con-
stitute national security positions under section (a) for 
which Senate confirmation is required by law, and the Di-
437 
rector shall revise such list from time to time as appro-
priate. 
∆(c) PRESIDENTIAL APPOINTMENTS.—(1) With re-
spect to appointment of individuals to offices identified 
under section (b) and listed in sections 5315 or 5316 of 
title 5, United States Code, which shall arise after the publi-
cation of the list required by section (b), and notwith-
standing any other provision of law, the advice and consent 
of the Senate shall not be required, but rather such appoint-
ment shall be made by the President alone. 
∆(2) With respect to appointment of individuals to of-
fices identified under section (b) and listed in sections 5313 
or 5314 of title 5, United States Code, which shall arise 
after the publication of the list required by section (b), and 
notwithstanding any other provision of law, the advice and 
consent of the Senate shall be required, except that if 30 
legislative days shall have expired from the date on which 
a nomination is submitted to the Senate without a con-
firmation vote occurring in the Senate, such appointment 
shall be made by the President alone. 
∆(3) For the purposes of this subsection, the term ‘‘leg-
islative day’’ means a day on which the Senate is in session. 
∆SEC. 5042. PRESIDENTIAL INAUGURAL TRANSITIONS. 
∆Subsections (a) and (b) of section 3349a of title 5, 
United States Code, are amended to read as follows:
439 
of subparagraphs (A) and (B) of section 3345(a)(3) shall 
not apply.’’. 
∆SEC. 5043. PUBLIC FINANCIAL DISCLOSURE FOR THE IN-
TELLIGENCE COMMUNITY. 
∆(a) IN GENERAL.—The Ethics in Government Act of 
1978 (5 U.S.C. App.) is amended by inserting before title 
IV the following: 
∆‘‘TITLE III—INTELLIGENCE PER-
SONNEL FINANCIAL DISCLO-
SURE REQUIREMENTS 
∆‘‘SEC. 301. PERSONS REQUIRED TO FILE. 
∆‘‘(a) Within 30 days of assuming the position of an 
officer or employee described in subsection (e), an indi-
vidual shall file a report containing the information de-
scribed in section 302(b) unless the individual has left an-
other position described in subsection (e) within 30 days 
prior to assuming such new position or has already filed 
a report under this title with respect to nomination for the 
new position or as a candidate for the position. 
∆‘‘(b)(1) Within 5 days of the transmittal by the Presi-
dent to the Senate of the nomination of an individual to 
a position in the executive branch, appointment to which 
requires the advice and consent of the Senate, such indi-
vidual shall file a report containing the information de-
scribed in section 302(b). Such individual shall, not later
440 
than the date of the first hearing to consider the nomination 
of such individual, make current the report filed pursuant 
to this paragraph by filing the information required by sec-
tion 302(a)(1)(A) with respect to income and honoraria re-
ceived as of the date which occurs 5 days before the date 
of such hearing. Nothing in this Act shall prevent any con-
gressional committee from requesting, as a condition of con-
firmation, any additional financial information from any 
Presidential nominee whose nomination has been referred 
to that committee. 
∆‘‘(2) An individual whom the President or the Presi-
dent-elect has publicly announced he intends to nominate 
to a position may file the report required by paragraph 
(1) at any time after that public announcement, but not 
later than is required under the first sentence of such para-
graph. 
∆‘‘(c) Any individual who is an officer or employee 
described in subsection (e) during any calendar year and 
performs the duties of his position or office for a period 
in excess of 60 days in that calendar year shall file on or 
before May 15 of the succeeding year a report containing 
the information described in section 302(a). 
∆‘‘(d) Any individual who occupies a position de-
scribed in subsection (e) shall, on or before the 30th day 
after termination of employment in such position, file a re-
441 
port containing the information described in section 302(a) 
covering the preceding calendar year if the report required 
by subsection (c) has not been filed and covering the portion 
of the calendar year in which such termination occurs up 
to the date the individual left such office or position, unless 
such individual has accepted employment in or takes the 
oath of office for another position described in subsection 
(e) or section 101(f). 
∆‘‘(e) The officers and employees referred to in sub-
sections (a), (c), and (d) are those officers and employees 
who— 
∆‘‘(1) are employed in or under— 
∆‘‘(A) the Office of the National Intelligence 
Director; or 
∆‘‘(B) an element of the intelligence com-
munity, as defined in section 3(4) of the Na-
tional Security Act of 1947 (50 U.S.C. 401a(4)); 
and 
∆‘‘(2) would (but for this subsection) otherwise 
be subject to title I by virtue of paragraph (3) of sec-
tion 101(f), including— 
∆‘‘(A) any special Government employee 
and any member of a uniformed service who is 
described in such paragraph; and
442 
∆‘‘(B) any officer or employee in any posi-
tion with respect to which the Director of the Of-
fice of Government Ethics makes a determination 
described in such paragraph. 
∆‘‘(f)(1) Reasonable extensions of time for filing any 
report may be granted under procedures prescribed by the 
Office of Government Ethics, but the total of such extensions 
shall not exceed 90 days. 
∆‘‘(2)(A) In the case of an individual who is serving 
in the Armed Forces, or serving in support of the Armed 
Forces, in an area while that area is designated by the 
President by Executive order as a combat zone for purposes 
of section 112 of the Internal Revenue Code of 1986, the 
date for the filing of any report shall be extended so that 
the date is 180 days after the later of— 
∆‘‘(i) the last day of the individual’s service in 
such area during such designated period; or 
∆‘‘(ii) the last day of the individual’s hos-
pitalization as a result of injury received or disease 
contracted while serving in such area. 
∆‘‘(B) The Office of Government Ethics, in consulta-
tion with the Secretary of Defense, may prescribe proce-
dures under this paragraph. 
∆‘‘(g) The Director of the Office of Government Ethics 
may grant a publicly available request for a waiver of any
443 
reporting requirement under this title with respect to an 
individual if the Director determines that— 
∆‘‘(1) such individual is not a full-time em-
ployee of the Government; 
∆‘‘(2) such individual is able to provide special 
services needed by the Government; 
∆‘‘(3) it is unlikely that such individual’s out-
side employment or financial interests will create a 
conflict of interest; 
∆‘‘(4) such individual is not reasonably expected 
to perform the duties of his office or position for more 
than 60 days in a calendar year; and 
∆‘‘(5) public financial disclosure by such indi-
vidual is not necessary in the circumstances. 
∆‘‘SEC. 302. CONTENTS OF REPORTS. 
∆‘‘(a) Each report filed pursuant to section 301 (c) 
and (d) shall include a full and complete statement with 
respect to the following: 
∆‘‘(1)(A) The source, description, and category of 
amount or value of income (other than income re-
ferred to in subparagraph (B)) from any source (other 
than from current employment by the United States 
Government), received during the preceding calendar 
year, aggregating more than $500 in amount or 
value, except that honoraria received during Govern-
444 
ment service by an officer or employee shall include, 
in addition to the source, the exact amount and the 
date it was received. 
∆‘‘(B) The source, description, and category of 
amount or value of investment income which may in-
clude but is not limited to dividends, rents, interest, 
and capital gains, received during the preceding cal-
endar year which exceeds $500 in amount or value. 
∆‘‘(C) The categories for reporting the amount or 
value of income covered in subparagraphs (A) and 
(B) are— 
∆‘‘(i) greater than $500 but not more than 
$20,000; 
∆‘‘(ii) greater than $20,000 but not more 
than $100,000; 
∆‘‘(iii) greater than $100,000 but not more 
than $1,000,000; 
∆‘‘(iv) greater than $1,000,000 but not 
more than $2,500,000; and 
∆‘‘(v) greater than $2,500,000. 
∆‘‘(2)(A) The identity of the source, a brief de-
scription, and the value of all gifts aggregating more 
than the minimal value as established by section 
7342(a)(5) of title 5, United States Code, or $250, 
whichever is greater, received from any source other
445 
than a relative of the reporting individual during the 
preceding calendar year, except that any food, lodg-
ing, or entertainment received as personal hospitality 
of an individual need not be reported, and any gift 
with a fair market value of $100 or less, as adjusted 
at the same time and by the same percentage as the 
minimal value is adjusted, need not be aggregated for 
purposes of this subparagraph. 
∆‘‘(B) The identity of the source and a brief de-
scription (including dates of travel and nature of ex-
penses provided) of reimbursements received from any 
source aggregating more than the minimal value as 
established by section 7342(a)(5) of title 5, United 
States Code, or $250, whichever is greater and re-
ceived during the preceding calendar year. 
∆‘‘(C) In an unusual case, a gift need not be ag-
gregated under subparagraph (A) if a publicly avail-
able request for a waiver is granted. 
∆‘‘(3) The identity and category of value of any 
interest in property held during the preceding cal-
endar year in a trade or business, or for investment 
or the production of income, which has a fair market 
value which exceeds $5,000 as of the close of the pre-
ceding calendar year, excluding any personal liability 
owed to the reporting individual by a spouse, or by
446 
a parent, brother, sister, or child of the reporting in-
dividual or of the reporting individual’s spouse, or 
any deposit accounts aggregating $100,000 or less in 
a financial institution, or any Federal Government 
securities aggregating $100,000 or less. 
∆‘‘(4) The identity and category of value of the 
total liabilities owed to any creditor other than a 
spouse, or a parent, brother, sister, or child of the re-
porting individual or of the reporting individual’s 
spouse which exceed $20,000 at any time during the 
preceding calendar year, excluding— 
∆‘‘(A) any mortgage secured by real prop-
erty which is a personal residence of the report-
ing individual or his spouse; and 
∆‘‘(B) any loan secured by a personal 
motor vehicle, household furniture, or appliances, 
which loan does not exceed the purchase price of 
the item which secures it. 
∆With respect to revolving charge accounts, only 
those with an outstanding liability which exceeds 
$20,000 as of the close of the preceding calendar year 
need be reported under this paragraph. 
∆‘‘(5) Except as provided in this paragraph, a 
brief description of any real property, other than 
property used solely as a personal residence of the re-
447 
porting individual or his spouse, and stocks, bonds, 
commodities futures, and other forms of securities, 
if— 
∆‘‘(A) purchased, sold, or exchanged during 
the preceding calendar year; 
∆‘‘(B) the value of the transaction exceeded 
$5,000; and 
∆‘‘(C) the property or security is not al-
ready required to be reported as a source of in-
come pursuant to paragraph (1)(B) or as an 
asset pursuant to paragraph (3). 
∆Reporting is not required under this paragraph 
of any transaction solely by and between the report-
ing individual, his spouse, or dependent children. 
∆‘‘(6)(A) The identity of all positions held on or 
before the date of filing during the current calendar 
year (and, for the first report filed by an individual, 
during the 1-year period preceding such calendar 
year) as an officer, director, trustee, partner, propri-
etor, representative, employee, or consultant of any 
corporation, company, firm, partnership, or other 
business enterprise, any nonprofit organization, any 
labor organization, or any educational or other insti-
tution other than the United States Government. This 
subparagraph shall not require the reporting of posi-
448 
tions held in any religious, social, fraternal, or polit-
ical entity and positions solely of an honorary na-
ture. 
∆‘‘(B) If any person, other than a person re-
ported as a source of income under paragraph (1)(A) 
or the United States Government, paid a nonelected 
reporting individual compensation in excess of 
$25,000 in the calendar year in which, or the cal-
endar year prior to the calendar year in which, the 
individual files his first report under this title, the 
individual shall include in the report— 
∆‘‘(i) the identity of each source of such 
compensation; and 
∆‘‘(ii) a brief description of the nature of 
the duties performed or services rendered by the 
reporting individual for each such source. 
∆‘‘(C) Subparagraph (B) shall not require any 
individual to include in such report any informa-
tion— 
∆‘‘(i) with respect to a person for whom 
services were provided by any firm or associa-
tion of which such individual was a member, 
partner, or employee, unless the individual was 
directly involved in the provision of such serv-
ices;
449 
∆‘‘(ii) that is protected by a court order or 
is under seal; or 
∆‘‘(iii) that is considered confidential as a 
result of— 
∆‘‘(I) a privileged relationship estab-
lished by a confidentiality agreement en-
tered into at the time the person retained 
the services of the individual; 
∆‘‘(II) a grand jury proceeding or a 
nonpublic investigation, if there are no pub-
lic filings, statements, appearances, or re-
ports that identify the person for whom 
such individual is providing services; or 
∆‘‘(III) an applicable rule of profes-
sional conduct that prohibits disclosure of 
the information and that can be enforced by 
a professional licensing body. 
∆‘‘(7) A description of parties to and terms of 
any agreement or arrangement with respect to (A) fu-
ture employment; (B) a leave of absence during the 
period of the reporting individual’s Government serv-
ice; (C) continuation of payments by a former em-
ployer other than the United States Government; and 
(D) continuing participation in an employee welfare 
or benefit plan maintained by a former employer. The
450 
description of any formal agreement for future em-
ployment shall include the date of that agreement. 
∆‘‘(8) The category of the total cash value of any 
interest of the reporting individual in a qualified 
blind trust. 
∆‘‘(b)(1) Each report filed pursuant to subsections (a) 
and (b) of section 301 shall include a full and complete 
statement with respect to the information required by— 
∆‘‘(A) paragraphs (1) and (6) of subsection (a) 
for the year of filing and the preceding calendar year, 
∆‘‘(B) paragraphs (3) and (4) of subsection (a) 
as of the date specified in the report but which is less 
than 31 days before the filing date, and 
∆‘‘(C) paragraph (7) of subsection (a) as of the 
filing date but for periods described in such para-
graph. 
∆‘‘(2)(A) In lieu of filling out 1 or more schedules of 
a financial disclosure form, an individual may supply the 
required information in an alternative format, pursuant to 
either rules adopted by the Office of Government Ethics or 
pursuant to a specific written determination by the Direc-
tor of the Office of Government Ethics for a reporting indi-
vidual. 
∆‘‘(B) In lieu of indicating the category of amount or 
value of any item contained in any report filed under this
451 
title, a reporting individual may indicate the exact dollar 
amount of such item. 
∆‘‘(c) In the case of any individual described in section 
301(e), any reference to the preceding calendar year shall 
be considered also to include that part of the calendar year 
of filing up to the date of the termination of employment. 
∆‘‘(d)(1) The categories for reporting the amount or 
value of the items covered in subsection (a)(3) are— 
∆‘‘(A) greater than $5,000 but not more than 
$15,000; 
∆‘‘(B) greater than $15,000 but not more than 
$25,000; 
∆‘‘(C) greater than $25,000 but not more than 
$100,000; 
∆‘‘(D) greater than $100,000 but not more than 
$1,000,000; 
∆‘‘(E) greater than $1,000,000 but not more 
than $2,500,000; and 
∆‘‘(F) greater than $2,500,000. 
∆‘‘(2) For the purposes of subsection (a)(3) if the cur-
rent value of an interest in real property (or an interest 
in a real estate partnership) is not ascertainable without 
an appraisal, an individual may list (A) the date of pur-
chase and the purchase price of the interest in the real prop-
erty, or (B) the assessed value of the real property for tax
452 
purposes, adjusted to reflect the market value of the property 
used for the assessment if the assessed value is computed 
at less than 100 percent of such market value, but such indi-
vidual shall include in his report a full and complete de-
scription of the method used to determine such assessed 
value, instead of specifying a category of value pursuant 
to paragraph (1). If the current value of any other item 
required to be reported under subsection (a)(3) is not ascer-
tainable without an appraisal, such individual may list the 
book value of a corporation whose stock is not publicly trad-
ed, the net worth of a business partnership, the equity value 
of an individually owned business, or with respect to other 
holdings, any recognized indication of value, but such indi-
vidual shall include in his report a full and complete de-
scription of the method used in determining such value. In 
lieu of any value referred to in the preceding sentence, an 
individual may list the assessed value of the item for tax 
purposes, adjusted to reflect the market value of the item 
used for the assessment if the assessed value is computed 
at less than 100 percent of such market value, but a full 
and complete description of the method used in determining 
such assessed value shall be included in the report. 
∆‘‘(3) The categories for reporting the amount or value 
of the items covered in paragraphs (4) and (8) of subsection 
(a) are—
453 
∆‘‘(A) greater than $20,000 but not more than 
$100,000; 
∆‘‘(B) greater than $100,000 but not more than 
$500,000; 
∆‘‘(C) greater than $500,000 but not more than 
$1,000,000; and 
∆‘‘(D) greater than $1,000,000. 
∆‘‘(e)(1) Except as provided in subparagraph (F), 
each report required by section 301 shall also contain infor-
mation listed in paragraphs (1) through (5) of subsection 
(a) respecting the spouse or dependent child of the reporting 
individual as follows: 
∆‘‘(A) The sources of earned income earned by a 
spouse, including honoraria, which exceed $500, ex-
cept that, with respect to earned income, if the spouse 
is self-employed in business or a profession, only the 
nature of such business or profession need be reported. 
∆‘‘(B) All information required to be reported in 
subsection (a)(1)(B) with respect to investment in-
come derived by a spouse or dependent child. 
∆‘‘(C) In the case of any gifts received by a 
spouse or dependent child which are not received to-
tally independent of the relationship of the spouse or 
dependent child to the reporting individual, the iden-
tity of the source and a brief description of gifts of
454 
transportation, lodging, food, or entertainment and a 
brief description and the value of other gifts. 
∆‘‘(D) In the case of any reimbursements re-
ceived by a spouse or dependent child which are not 
received totally independent of the relationship of the 
spouse or dependent child to the reporting individual, 
the identity of the source and a brief description of 
each such reimbursement. 
∆‘‘(E) In the case of items described in para-
graphs (3) through (5) of subsection (a), all informa-
tion required to be reported under these paragraphs 
other than items which the reporting individual cer-
tifies (i) represent the spouse’s or dependent child’s 
sole financial interest or responsibility and which the 
reporting individual has no knowledge of, (ii) are not 
in any way, past or present, derived from the income, 
assets, or activities of the reporting individual, and 
(iii) are ones from which he neither derives, nor ex-
pects to derive, any financial or economic benefit. 
∆‘‘(F) Reports required by subsections (a), (b), 
and (c) of section 301 shall, with respect to the spouse 
and dependent child of the reporting individual, only 
contain information listed in paragraphs (1), (3), 
and (4) of subsection (a).
455 
∆‘‘(2) No report shall be required with respect to a 
spouse living separate and apart from the reporting indi-
vidual with the intention of terminating the marriage or 
providing for permanent separation, or with respect to any 
income or obligations of an individual arising from the dis-
solution of his marriage or the permanent separation from 
his spouse. 
∆‘‘(f)(1) Except as provided in paragraph (2), each 
reporting individual shall report the information required 
to be reported pursuant to subsections (a), (b), and (c) with 
respect to the holdings of and the income from a trust or 
other financial arrangement from which income is received 
by, or with respect to which a beneficial interest in prin-
cipal or income is held by, such individual, his spouse, or 
any dependent child. 
∆‘‘(2) A reporting individual need not report the hold-
ings of or the source of income from any of the holdings 
of— 
∆‘‘(A) any qualified blind trust (as defined in 
paragraph (3)); 
∆‘‘(B) a trust— 
∆‘‘(i) which was not created directly by 
such individual, his spouse, or any dependent 
child, and
456 
∆‘‘(ii) the holdings or sources of income of 
which such individual, his spouse, and any de-
pendent child have no knowledge; or 
∆‘‘(C) an entity described under the provisions 
of paragraph (8), but such individual shall report the 
category of the amount of income received by him, his 
spouse, or any dependent child from the trust or other 
entity under subsection (a)(1)(B). 
∆‘‘(3) For purposes of this subsection, the term ‘quali-
fied blind trust’ includes any trust in which a reporting 
individual, his spouse, or any minor or dependent child has 
a beneficial interest in the principal or income, and which 
meets the following requirements: 
∆‘‘(A)(i) The trustee of the trust and any other 
entity designated in the trust instrument to perform 
fiduciary duties is a financial institution, an attor-
ney, a certified public accountant, a broker, or an in-
vestment advisor who— 
∆‘‘(I) is independent of and not affiliated 
with any interested party so that the trustee or 
other person cannot be controlled or influenced 
in the administration of the trust by any inter-
ested party; 
∆‘‘(II) is not and has not been an employee 
of or affiliated with any interested party and is
457 
not a partner of, or involved in any joint ven-
ture or other investment with, any interested 
party; and 
∆‘‘(III) is not a relative of any interested 
party. 
∆‘‘(ii) Any officer or employee of a trustee or 
other entity who is involved in the management or 
control of the trust— 
∆‘‘(I) is independent of and not affiliated 
with any interested party so that such officer or 
employee cannot be controlled or influenced in 
the administration of the trust by any interested 
party; 
∆‘‘(II) is not a partner of, or involved in 
any joint venture or other investment with, any 
interested party; and 
∆‘‘(III) is not a relative of any interested 
party. 
∆‘‘(B) Any asset transferred to the trust by an 
interested party is free of any restriction with respect 
to its transfer or sale unless such restriction is ex-
pressly approved by the Office of Government Ethics. 
∆‘‘(C) The trust instrument which establishes the 
trust provides that—
458 
∆‘‘(i) except to the extent provided in sub-
paragraph (B), the trustee in the exercise of his 
authority and discretion to manage and control 
the assets of the trust shall not consult or notify 
any interested party; 
∆‘‘(ii) the trust shall not contain any asset 
the holding of which by an interested party is 
prohibited by any law or regulation; 
∆‘‘(iii) the trustee shall promptly notify the 
reporting individual and the Office of Govern-
ment Ethics when the holdings of any particular 
asset transferred to the trust by any interested 
party are disposed of or when the value of such 
holding is less than $1,000; 
∆‘‘(iv) the trust tax return shall be pre-
pared by the trustee or his designee, and such re-
turn and any information relating thereto (other 
than the trust income summarized in appro-
priate categories necessary to complete an inter-
ested party’s tax return), shall not be disclosed to 
any interested party; 
∆‘‘(v) an interested party shall not receive 
any report on the holdings and sources of income 
of the trust, except a report at the end of each 
calendar quarter with respect to the total cash
459 
value of the interest of the interested party in the 
trust or the net income or loss of the trust or any 
reports necessary to enable the interested party 
to complete an individual tax return required by 
law or to provide the information required by 
subsection (a)(1) of this section, but such report 
shall not identify any asset or holding; 
∆‘‘(vi) except for communications which 
solely consist of requests for distributions of cash 
or other unspecified assets of the trust, there shall 
be no direct or indirect communication between 
the trustee and an interested party with respect 
to the trust unless such communication is in 
writing and unless it relates only (I) to the gen-
eral financial interest and needs of the interested 
party (including, but not limited to, an interest 
in maximizing income or long-term capital 
gain), (II) to the notification of the trustee of a 
law or regulation subsequently applicable to the 
reporting individual which prohibits the inter-
ested party from holding an asset, which notifi-
cation directs that the asset not be held by the 
trust, or (III) to directions to the trustee to sell 
all of an asset initially placed in the trust by an 
interested party which in the determination of
460 
the reporting individual creates a conflict of in-
terest or the appearance thereof due to the subse-
quent assumption of duties by the reporting in-
dividual (but nothing herein shall require any 
such direction); and 
∆‘‘(vii) the interested parties shall make no 
effort to obtain information with respect to the 
holdings of the trust, including obtaining a copy 
of any trust tax return filed or any information 
relating thereto except as otherwise provided in 
this subsection. 
∆‘‘(D) The proposed trust instrument and the 
proposed trustee is approved by the Office of Govern-
ment Ethics. 
∆‘‘(E) For purposes of this subsection, ‘interested 
party’ means a reporting individual, his spouse, and 
any minor or dependent child; ‘broker’ has the mean-
ing set forth in section 3(a)(4) of the Securities and 
Exchange Act of 1934 (15 U.S.C. 78c(a)(4)); and ‘in-
vestment adviser’ includes any investment adviser 
who, as determined under regulations prescribed by 
the supervising ethics office, is generally involved in 
his role as such an adviser in the management or con-
trol of trusts.
461 
∆‘‘(4)(A) An asset placed in a trust by an interested 
party shall be considered a financial interest of the report-
ing individual, for the purposes of any applicable conflict 
of interest statutes, regulations, or rules of the Federal Gov-
ernment (including section 208 of title 18, United States 
Code), until such time as the reporting individual is noti-
fied by the trustee that such asset has been disposed of, or 
has a value of less than $1,000. 
∆‘‘(B)(i) The provisions of subparagraph (A) shall not 
apply with respect to a trust created for the benefit of a 
reporting individual, or the spouse, dependent child, or 
minor child of such a person, if the Office of Government 
Ethics finds that— 
∆‘‘(I) the assets placed in the trust consist of a 
widely-diversified portfolio of readily marketable secu-
rities; 
∆‘‘(II) none of the assets consist of securities of 
entities having substantial activities in the area of the 
reporting individual’s primary area of responsibility; 
∆‘‘(III) the trust instrument prohibits the trust-
ee, notwithstanding the provisions of paragraph 
(3)(C) (iii) and (iv), from making public or inform-
ing any interested party of the sale of any securities; 
∆‘‘(IV) the trustee is given power of attorney, 
notwithstanding 
the 
provisions 
of 
paragraph
462 
(3)(C)(v), to prepare on behalf of any interested party 
the personal income tax returns and similar returns 
which may contain information relating to the trust; 
and 
∆‘‘(V) except as otherwise provided in this para-
graph, the trust instrument provides (or in the case 
of a trust which by its terms does not permit amend-
ment, the trustee, the reporting individual, and any 
other interested party agree in writing) that the trust 
shall be administered in accordance with the require-
ments of this subsection and the trustee of such trust 
meets the requirements of paragraph (3)(A). 
∆‘‘(ii) In any instance covered by subparagraph (B) 
in which the reporting individual is an individual whose 
nomination is being considered by a congressional com-
mittee, the reporting individual shall inform the congres-
sional committee considering his nomination before or dur-
ing the period of such individual’s confirmation hearing of 
his intention to comply with this paragraph. 
∆‘‘(5)(A) The reporting individual shall, within 30 
days after a qualified blind trust is approved by the Office 
of Government Ethics, file with such office a copy of— 
∆‘‘(i) the executed trust instrument of such trust 
(other than those provisions which relate to the testa-
mentary disposition of the trust assets), and
463 
∆‘‘(ii) a list of the assets which were transferred 
to such trust, including the category of value of each 
asset as determined under subsection (d). 
∆This subparagraph shall not apply with respect to 
a trust meeting the requirements for being considered a 
qualified blind trust under paragraph (7). 
∆‘‘(B) The reporting individual shall, within 30 days 
of transferring an asset (other than cash) to a previously 
established qualified blind trust, notify the Office of Govern-
ment Ethics of the identity of each such asset and the cat-
egory of value of each asset as determined under subsection 
(d). 
∆‘‘(C) Within 30 days of the dissolution of a qualified 
blind trust, a reporting individual shall (i) notify the Office 
of Government Ethics of such dissolution, and (ii) file with 
such Office and his designated agency ethics official a copy 
of a list of the assets of the trust at the time of such dissolu-
tion and the category of value under subsection (c) of each 
such asset. 
∆‘‘(D) Documents filed under subparagraphs (A), (B), 
and (C) and the lists provided by the trustee of assets placed 
in the trust by an interested party which have been sold 
shall be made available to the public in the same manner 
as a report is made available under section 305 and the
464 
provisions of that section shall apply with respect to such 
documents and lists. 
∆‘‘(E) A copy of each written communication with re-
spect to the trust under paragraph (3)(C)(vi) shall be filed 
by the person initiating the communication with the Office 
of Government Ethics within 5 days of the date of the com-
munication. 
∆‘‘(6)(A) A trustee of a qualified blind trust shall not 
knowingly and willfully, or negligently, (i) disclose any in-
formation to an interested party with respect to such trust 
that may not be disclosed under paragraph (3); (ii) acquire 
any holding the ownership of which is prohibited by the 
trust instrument; (iii) solicit advice from any interested 
party with respect to such trust, which solicitation is pro-
hibited by paragraph (3) or the trust agreement; or (iv) 
fail to file any document required by this subsection. 
∆‘‘(B) A reporting individual shall not knowingly and 
willfully, or negligently, (i) solicit or receive any informa-
tion with respect to a qualified blind trust of which he is 
an interested party that may not be disclosed under para-
graph (3)(C) or (ii) fail to file any document required by 
this subsection. 
∆‘‘(C)(i) The Attorney General may bring a civil ac-
tion in any appropriate United States district court 
against any individual who knowingly and willfully vio-
465 
lates the provisions of subparagraph (A) or (B). The court 
in which such action is brought may assess against such 
individual a civil penalty in any amount not to exceed 
$11,000. 
∆‘‘(ii) The Attorney General may bring a civil action 
in any appropriate United States district court against 
any individual who negligently violates the provisions of 
subparagraph (A) or (B). The court in which such action 
is brought may assess against such individual a civil pen-
alty in any amount not to exceed $5,500. 
∆‘‘(7) Any trust may be considered to be a qualified 
blind trust if— 
∆‘‘(A) the trust instrument is amended to com-
ply with the requirements of paragraph (3) or, in the 
case of a trust instrument which does not by its terms 
permit amendment, the trustee, the reporting indi-
vidual, and any other interested party agree in writ-
ing that the trust shall be administered in accordance 
with the requirements of this subsection and the trust-
ee of such trust meets the requirements of paragraph 
(3)(A); except that in the case of any interested party 
who is a dependent child, a parent or guardian of 
such child may execute the agreement referred to in 
this subparagraph;
466 
∆‘‘(B) a copy of the trust instrument (except tes-
tamentary provisions) and a copy of the agreement 
referred to in subparagraph (A), and a list of the as-
sets held by the trust at the time of approval by the 
Office of Government Ethics, including the category of 
value of each asset as determined under subsection 
(d), are filed with such office and made available to 
the public as provided under paragraph (5)(D); and 
∆‘‘(C) the Director of the Office of Government 
Ethics determines that approval of the trust arrange-
ment as a qualified blind trust is in the particular 
case appropriate to assure compliance with applicable 
laws and regulations. 
∆‘‘(8) A reporting individual shall not be required to 
report the financial interests held by a widely held invest-
ment fund (whether such fund is a mutual fund, regulated 
investment company, pension or deferred compensation 
plan, or other investment fund), if— 
∆‘‘(A)(i) the fund is publicly traded; or 
∆‘‘(ii) the assets of the fund are widely diversi-
fied; and 
∆‘‘(B) the reporting individual neither exercises 
control over nor has the ability to exercise control 
over the financial interests held by the fund.
468 
∆‘‘(i) the interest in the trust or investment fund 
is acquired, during the period to be covered by the re-
port, involuntarily (such as through inheritance) or 
as a legal incident of marriage; and 
∆‘‘(ii) for an individual described in subsection 
(d), the individual executes a written ethics agreement 
containing a commitment to divest the interest no 
later than 90 days after the date the report is due. 
∆Failure to divest within the time specified or within 
an extension period granted by the supervising ethics office 
for good cause shown shall result in an immediate require-
ment to report as specified in paragraph (1). 
∆‘‘(g) Political campaign funds, including campaign 
receipts and expenditures, need not be included in any re-
port filed pursuant to this title. 
∆‘‘(h) A report filed pursuant to subsection (a), (c), 
or (d) of section 301 need not contain the information de-
scribed in subparagraphs (A), (B), and (C) of subsection 
(a)(2) with respect to gifts and reimbursements received in 
a period when the reporting individual was not an officer 
or employee of the Federal Government. 
∆‘‘(i) A reporting individual shall not be required 
under this title to report— 
∆‘‘(1) financial interests in or income derived 
from—
469 
∆‘‘(A) any retirement system under title 5, 
United States Code (including the Thrift Sav-
ings Plan under subchapter III of chapter 84 of 
such title); or 
∆‘‘(B) any other retirement system main-
tained by the United States for officers or em-
ployees of the United States, including the Presi-
dent, or for members of the uniformed services; or 
∆‘‘(2) benefits received under the Social Security 
Act (42 U.S.C. 301 et seq.). 
∆‘‘SEC. 303. FILING OF REPORTS. 
∆‘‘(a) Except as otherwise provided in this section, the 
reports required under this title shall be filed by the report-
ing individual with the designated agency ethics official at 
the agency by which he is employed (or in the case of an 
individual described in section 301(d), was employed) or 
in which he will serve. The date any report is received (and 
the date of receipt of any supplemental report) shall be 
noted on such report by such official. 
∆‘‘(b) Reports required of members of the uniformed 
services shall be filed with the Secretary concerned. 
∆‘‘(c) The Office of Government Ethics shall develop 
and make available forms for reporting the information re-
quired by this title.
470 
∆‘‘SEC. 304. FAILURE TO FILE OR FILING FALSE REPORTS. 
∆‘‘(a) The Attorney General may bring a civil action 
in any appropriate United States district court against 
any individual who knowingly and willfully falsifies or who 
knowingly and willfully fails to file or report any informa-
tion that such individual is required to report pursuant to 
section 302. The court in which such action is brought may 
assess against such individual a civil penalty in any 
amount, not to exceed $11,000, order the individual to file 
or report any information required by section 302, or both. 
∆‘‘(b) The head of each agency, each Secretary con-
cerned, or the Director of the Office of Government Ethics, 
as the case may be, shall refer to the Attorney General the 
name of any individual which such official has reasonable 
cause to believe has willfully failed to file a report or has 
willfully falsified or willfully failed to file information re-
quired to be reported. 
∆‘‘(c) The President, the Vice President, the Secretary 
concerned, or the head of each agency may take any appro-
priate personnel or other action in accordance with appli-
cable law or regulation against any individual failing to 
file a report or falsifying or failing to report information 
required to be reported. 
∆‘‘(d)(1) Any individual who files a report required 
to be filed under this title more than 30 days after the later 
of—
471 
∆‘‘(A) the date such report is required to be filed 
pursuant to the provisions of this title and the rules 
and regulations promulgated thereunder; or 
∆‘‘(B) if a filing extension is granted to such in-
dividual under section 301(g), the last day of the fil-
ing extension period, shall, at the direction of and 
pursuant to regulations issued by the Office of Gov-
ernment Ethics, pay a filing fee of $500. All such fees 
shall be deposited in the miscellaneous receipts of the 
Treasury. The authority under this paragraph to di-
rect the payment of a filing fee may be delegated by 
the Office of Government Ethics to other agencies in 
the executive branch. 
∆‘‘(2) The Office of Government Ethics may waive the 
filing fee under this subsection for good cause shown. 
∆‘‘SEC. 305. CUSTODY OF AND PUBLIC ACCESS TO REPORTS. 
∆‘‘Any report filed with or transmitted to an agency 
or the Office of Government Ethics pursuant to this title 
shall be made available to the public (in the same manner 
as described in section 105) and retained by such agency 
or Office, as the case may be, for a period of 6 years after 
receipt of the report. After such 6-year period the report 
shall be destroyed unless needed in an ongoing investiga-
tion, except that in the case of an individual who filed the 
report pursuant to section 301(b) and was not subsequently
472 
confirmed by the Senate, such reports shall be destroyed 1 
year after the individual is no longer under consideration 
by the Senate, unless needed in an ongoing investigation. 
∆‘‘SEC. 306. REVIEW OF REPORTS. 
∆‘‘(a) Each designated agency ethics official or Sec-
retary concerned shall make provisions to ensure that each 
report filed with him under this title is reviewed within 
60 days after the date of such filing, except that the Director 
of the Office of Government Ethics shall review only those 
reports required to be transmitted to him under this title 
within 60 days after the date of transmittal. 
∆‘‘(b)(1) If after reviewing any report under sub-
section (a), the Director of the Office of Government Ethics, 
the Secretary concerned, or the designated agency ethics of-
ficial, as the case may be, is of the opinion that on the 
basis of information contained in such report the individual 
submitting such report is in compliance with applicable 
laws and regulations, he shall state such opinion on the re-
port, and shall sign such report. 
∆‘‘(2) If the Director of the Office of Government Eth-
ics, the Secretary concerned, or the designated agency ethics 
official after reviewing any report under subsection (a)— 
∆‘‘(A) believes additional information is re-
quired to be submitted to complete the report or to 
perform a conflict of interest analysis, he shall notify
473 
the individual submitting such report what addi-
tional information is required and the time by which 
it must be submitted, or 
∆‘‘(B) is of the opinion, on the basis of informa-
tion submitted, that the individual is not in compli-
ance with applicable laws and regulations, he shall 
notify the individual, afford a reasonable opportunity 
for a written or oral response, and after consideration 
of such response, reach an opinion as to whether or 
not, on the basis of information submitted, the indi-
vidual is in compliance with such laws and regula-
tions. 
∆‘‘(3) If the Director of the Office of Government Eth-
ics, the Secretary concerned, or the designated agency ethics 
official reaches an opinion under paragraph (2)(B) that an 
individual is not in compliance with applicable laws and 
regulations, the official shall notify the individual of that 
opinion and, after an opportunity for personal consultation 
(if practicable), determine and notify the individual of 
which steps, if any, would in the opinion of such official 
be appropriate for assuring compliance with such laws and 
regulations and the date by which such steps should be 
taken. Such steps may include, as appropriate— 
∆‘‘(A) divestiture, 
∆‘‘(B) restitution,
474 
∆‘‘(C) the establishment of a blind trust, 
∆‘‘(D) request for an exemption under section 
208(b) of title 18, United States Code, or 
∆‘‘(E) voluntary request for transfer, reassign-
ment, limitation of duties, or resignation. 
∆The use of any such steps shall be in accordance with 
such rules or regulations as the Office of Government Ethics 
may prescribe. 
∆‘‘(4) If steps for assuring compliance with applicable 
laws and regulations are not taken by the date set under 
paragraph (3) by an individual in a position in the execu-
tive branch, appointment to which requires the advice and 
consent of the Senate, the matter shall be referred to the 
President for appropriate action. 
∆‘‘(5) If steps for assuring compliance with applicable 
laws and regulations are not taken by the date set under 
paragraph (3) by a member of the Foreign Service or the 
uniformed services, the Secretary concerned shall take ap-
propriate action. 
∆‘‘(6) If steps for assuring compliance with applicable 
laws and regulations are not taken by the date set under 
paragraph (3) by any other officer or employee, the matter 
shall be referred to the head of the appropriate agency for 
appropriate action.
475 
∆‘‘(7) The Office of Government Ethics may render ad-
visory opinions interpreting this title. Notwithstanding any 
other provision of law, the individual to whom a public 
advisory opinion is rendered in accordance with this para-
graph, and any other individual covered by this title who 
is involved in a fact situation which is indistinguishable 
in all material aspects, and who acts in good faith in ac-
cordance with the provisions and findings of such advisory 
opinion shall not, as a result of such act, be subject to any 
penalty or sanction provided by this title. 
∆‘‘SEC. 307. CONFIDENTIAL REPORTS AND OTHER ADDI-
TIONAL REQUIREMENTS. 
∆‘‘(a)(1) The Office of Government Ethics may require 
officers and employees of the executive branch (including 
special Government employees as defined in section 202 of 
title 18, United States Code) to file confidential financial 
disclosure reports, in such form as it may prescribe. The 
information required to be reported under this subsection 
by the officers and employees of any department or agency 
listed in section 301(e) shall be set forth in rules or regula-
tions prescribed by the Office of Government Ethics, and 
may be less extensive than otherwise required by this title, 
or more extensive when determined by the Office of Govern-
ment Ethics to be necessary and appropriate in light of sec-
tions 202 through 209 of title 18, United States Code, regu-
476 
lations promulgated thereunder, or the authorized activities 
of such officers or employees. Any individual required to 
file a report pursuant to section 301 shall not be required 
to file a confidential report pursuant to this subsection, ex-
cept with respect to information which is more extensive 
than information otherwise required by this title. Section 
305 shall not apply with respect to any such report. 
∆‘‘(2) Any information required to be provided by an 
individual under this subsection shall be confidential and 
shall not be disclosed to the public. 
∆‘‘(3) Nothing in this subsection exempts any indi-
vidual otherwise covered by the requirement to file a public 
financial disclosure report under this title from such re-
quirement. 
∆‘‘(b) The provisions of this title requiring the report-
ing of information shall supersede any general requirement 
under any other provision of law or regulation with respect 
to the reporting of information required for purposes of pre-
venting conflicts of interest or apparent conflicts of interest. 
Such provisions of this title shall not supersede the require-
ments of section 7342 of title 5, United States Code. 
∆‘‘(c) Nothing in this Act requiring reporting of infor-
mation shall be deemed to authorize the receipt of income, 
gifts, or reimbursements; the holding of assets, liabilities,
477 
or positions; or the participation in transactions that are 
prohibited by law, Executive order, rule, or regulation. 
∆‘‘SEC. 308. AUTHORITY OF COMPTROLLER GENERAL. 
∆‘‘The Comptroller General shall have access to finan-
cial disclosure reports filed under this title for the purposes 
of carrying out his statutory responsibilities. 
∆‘‘SEC. 309. DEFINITIONS. 
∆‘‘For the purposes of this title— 
∆‘‘(1) the term ‘dependent child’ means, when 
used with respect to any reporting individual, any 
individual who is a son, daughter, stepson, or step-
daughter and who— 
∆‘‘(A) is unmarried and under age 21 and 
is living in the household of such reporting indi-
vidual; or 
∆‘‘(B) is a dependent of such reporting in-
dividual within the meaning of section 152 of 
the Internal Revenue Code of 1986 (26 U.S.C. 
152); 
∆‘‘(2) the term ‘designated agency ethics official’ 
means an officer or employee who is designated to ad-
minister the provisions of this title within an agency; 
∆‘‘(3) the term ‘executive branch’ includes—
478 
∆‘‘(A) each Executive agency (as defined in 
section 105 of title 5, United States Code), other 
than the General Accounting Office; and 
∆‘‘(B) any other entity or administrative 
unit in the executive branch; 
∆‘‘(4) the term ‘gift’ means a payment, advance, 
forbearance, rendering, or deposit of money, or any 
thing of value, unless consideration of equal or greater 
value is received by the donor, but does not include— 
∆‘‘(A) bequests and other forms of inherit-
ance; 
∆‘‘(B) suitable mementos of a function hon-
oring the reporting individual; 
∆‘‘(C) food, lodging, transportation, and en-
tertainment provided by a foreign government 
within a foreign country or by the United States 
Government, the District of Columbia, or a State 
or local government or political subdivision 
thereof; 
∆‘‘(D) food and beverages which are not 
consumed in connection with a gift of overnight 
lodging; 
∆‘‘(E) communications to the offices of a re-
porting individual, including subscriptions to 
newspapers and periodicals; or
479 
∆‘‘(F) items that are accepted pursuant to 
or are required to be reported by the reporting 
individual under section 7342 of title 5, United 
States Code. 
∆‘‘(5) the term ‘honorarium’ means a payment 
of money or anything of value for an appearance, 
speech, or article; 
∆‘‘(6) the term ‘income’ means all income from 
whatever source derived, including but not limited to 
the following items: compensation for services, includ-
ing fees, commissions, and similar items; gross in-
come derived from business (and net income if the in-
dividual elects to include it); gains derived from deal-
ings in property; interest; rents; royalties; prizes and 
awards; dividends; annuities; income from life insur-
ance and endowment contracts; pensions; income from 
discharge of indebtedness; distributive share of part-
nership income; and income from an interest in an 
estate or trust; 
∆‘‘(7) the term ‘personal hospitality of any indi-
vidual’ means hospitality extended for a nonbusiness 
purpose by an individual, not a corporation or orga-
nization, at the personal residence of that individual 
or his family or on property or facilities owned by 
that individual or his family;
480 
∆‘‘(8) the term ‘reimbursement’ means any pay-
ment or other thing of value received by the reporting 
individual, other than gifts, to cover travel-related ex-
penses of such individual other than those which 
are— 
∆‘‘(A) provided by the United States Gov-
ernment, the District of Columbia, or a State or 
local government or political subdivision thereof; 
∆‘‘(B) required to be reported by the report-
ing individual under section 7342 of title 5, 
United States Code; or 
∆‘‘(C) required to be reported under section 
304 of the Federal Election Campaign Act of 
1971 (2 U.S.C. 434); 
∆‘‘(9) the term ‘relative’ means an individual 
who is related to the reporting individual, as father, 
mother, son, daughter, brother, sister, uncle, aunt, 
great aunt, great uncle, first cousin, nephew, niece, 
husband, wife, grandfather, grandmother, grandson, 
granddaughter, father-in-law, mother-in-law, son-in- 
law, daughter-in-law, brother-in-law, sister-in-law, 
stepfather, stepmother, stepson, stepdaughter, step-
brother, stepsister, half brother, half sister, or who is 
the grandfather or grandmother of the spouse of the
481 
reporting individual, and shall be deemed to include 
the fiance´ or fiance´e of the reporting individual; 
∆‘‘(10) the term ‘Secretary concerned’ has the 
meaning set forth in section 101(a)(9) of title 10, 
United States Code; and 
∆‘‘(11) the term ‘value’ means a good faith esti-
mate of the dollar value if the exact value is neither 
known nor easily obtainable by the reporting indi-
vidual. 
∆‘‘SEC. 310. NOTICE OF ACTIONS TAKEN TO COMPLY WITH 
ETHICS AGREEMENTS. 
∆‘‘(a) In any case in which an individual agrees with 
that individual’s designated agency ethics official, the Office 
of Government Ethics, or a Senate confirmation committee, 
to take any action to comply with this Act or any other 
law or regulation governing conflicts of interest of, or estab-
lishing standards of conduct applicable with respect to, offi-
cers or employees of the Government, that individual shall 
notify in writing the designated agency ethics official, the 
Office of Government Ethics, or the appropriate committee 
of the Senate, as the case may be, of any action taken by 
the individual pursuant to that agreement. Such notifica-
tion shall be made not later than the date specified in the 
agreement by which action by the individual must be taken, 
or not later than 3 months after the date of the agreement,
482 
if no date for action is so specified. If all actions agreed 
to have not been completed by the date of this notification, 
such notification shall continue on a monthly basis there-
after until the individual has met the terms of the agree-
ment. 
∆‘‘(b) If an agreement described in subsection (a) re-
quires that the individual recuse himself or herself from 
particular categories of agency or other official action, the 
individual shall reduce to writing those subjects regarding 
which the recusal agreement will apply and the process by 
which it will be determined whether the individual must 
recuse himself or herself in a specific instance. An indi-
vidual shall be considered to have complied with the re-
quirements of subsection (a) with respect to such recusal 
agreement if such individual files a copy of the document 
setting forth the information described in the preceding sen-
tence with such individual’s designated agency ethics offi-
cial or the Office of Government Ethics not later than the 
date specified in the agreement by which action by the indi-
vidual must be taken, or not later than 3 months after the 
date of the agreement, if no date for action is so specified. 
∆‘‘SEC. 311. ADMINISTRATION OF PROVISIONS. 
∆‘‘The Office of Government Ethics shall issue regula-
tions, develop forms, and provide such guidance as is nec-
essary to implement and interpret this title.’’.
483 
∆(b) EXEMPTION FROM PUBLIC ACCESS TO FINANCIAL 
DISCLOSURES.—Section 105(a)(1) of such Act is amended 
by inserting ‘‘the Office of the National Intelligence Direc-
tor,’’ before ‘‘the Central Intelligence Agency’’. 
∆(c) CONFORMING AMENDMENT.—Section 101(f) of 
such Act is amended— 
∆(1) in paragraph (12), by striking the period 
at the end and inserting a semicolon; and 
∆(2) by adding at the end the following: 
∆‘‘but do not include any officer or employee of any 
department or agency listed in section 301(e).’’. 
∆SEC. 5044. REDUCTION OF POSITIONS REQUIRING AP-
POINTMENT WITH SENATE CONFIRMATION. 
∆(a) DEFINITION.—In this section, the term ‘‘agency’’ 
means an Executive agency, as defined under section 105 
of title 5, United States Code. 
∆(b) REDUCTION PLAN.— 
∆(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the head of 
each agency shall submit a Presidential appointment 
reduction plan to— 
∆(A) the President; 
∆(B) the Committee on Governmental Af-
fairs of the Senate; and
484 
∆(C) the Committee on Government Reform 
of the House of Representatives. 
∆(2) CONTENT.—The plan under this subsection 
shall provide for the reduction of— 
∆(A) the number of positions within that 
agency that require an appointment by the 
President, by and with the advice and consent of 
the Senate; and 
∆(B) the number of levels of such positions 
within that agency. 
∆SEC. 5045. EFFECTIVE DATES. 
∆(a) SECTION 5043.— 
∆(1) IN GENERAL.—Subject to paragraph (2), 
the amendments made by section 5043 shall take effect 
on January 1 of the year following the year in which 
occurs the date of enactment of this Act. 
∆(2) LATER DATE.—If this Act is enacted on or 
after July 1 of a year, the amendments made by sec-
tion 301 shall take effect on July 1 of the following 
year. 
∆(b) SECTION 5044.—Section 5044 shall take effect on 
the date of enactment of this Act.
485 
∆CHAPTER 2—FEDERAL BUREAU OF 
INVESTIGATION REVITALIZATION 
∆SEC. 5051. MANDATORY SEPARATION AGE. 
∆(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 
8335(b) of title 5, United States Code, is amended— 
∆(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; 
and 
∆(2) by adding at the end the following: 
∆‘‘(2) In the case of employees of the Federal Bureau 
of Investigation, the second sentence of paragraph (1) shall 
be applied by substituting ‘65 years of age’ for ‘60 years 
of age’. The authority to grant exemptions in accordance 
with the preceding sentence shall cease to be available after 
December 31, 2009.’’. 
∆(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.— 
Section 8425(b) of title 5, United States Code, is amend-
ed— 
∆(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; 
and 
∆(2) by adding at the end the following: 
∆‘‘(2) In the case of employees of the Federal Bureau 
of Investigation, the second sentence of paragraph (1) shall 
be applied by substituting ‘65 years of age’ for ‘60 years 
of age’. The authority to grant exemptions in accordance
486 
with the preceding sentence shall cease to be available after 
December 31, 2009.’’. 
∆SEC. 5052. RETENTION AND RELOCATION BONUSES. 
∆(a) IN GENERAL.—Subchapter IV of chapter 57 of 
title 5, United States Code, is amended by adding at the 
end the following: 
∆‘‘§ 5759. Retention and relocation bonuses for the 
Federal Bureau of Investigation 
∆‘‘(a) AUTHORITY.—The Director of the Federal Bu-
reau of Investigation, after consultation with the Director 
of the Office of Personnel Management, may pay, on a case- 
by-case basis, a bonus under this section to an employee 
of the Bureau if— 
∆‘‘(1)(A) the unusually high or unique qualifica-
tions of the employee or a special need of the Bureau 
for the employee’s services makes it essential to retain 
the employee; and 
∆‘‘(B) the Director of the Federal Bureau of In-
vestigation determines that, in the absence of such a 
bonus, the employee would be likely to leave— 
∆‘‘(i) the Federal service; or 
∆‘‘(ii) for a different position in the Federal 
service; or 
∆‘‘(2) the individual is transferred to a different 
geographic area with a higher cost of living (as deter-
487 
mined by the Director of the Federal Bureau of Inves-
tigation). 
∆‘‘(b) SERVICE AGREEMENT.—Payment of a bonus 
under this section is contingent upon the employee entering 
into a written service agreement with the Bureau to com-
plete a period of service, not to exceed 4 years, with the 
Bureau. Such agreement shall include— 
∆‘‘(1) the period of service the individual shall 
be required to complete in return for the bonus; and 
∆‘‘(2) the conditions under which the agreement 
may be terminated before the agreed-upon service pe-
riod has been completed, and the effect of the termi-
nation. 
∆‘‘(c) LIMITATIONS ON AUTHORITY.—A bonus paid 
under this section— 
∆‘‘(1) shall not exceed 50 percent of the annual 
rate of basic pay of the employee as of the beginning 
of the period of service (established under subsection 
(b)) multiplied by the number of years (including a 
fractional part of a year) in the required period of 
service of the employee involved, but shall in no event 
exceed 100 percent of the annual rate of basic pay of 
the employee as of the beginning of the service period; 
and
488 
∆‘‘(2) may not be paid to an individual who is 
appointed to or who holds a position— 
∆‘‘(A) to which an individual is appointed 
by the President, by and with the advice and 
consent of the Senate; or 
∆‘‘(B) in the Senior Executive Service as a 
noncareer appointee (as defined in section 
3132(a)). 
∆‘‘(d) IMPACT ON BASIC PAY.—A retention bonus is 
not part of the basic pay of an employee for any purpose. 
∆‘‘(e) TERMINATION OF AUTHORITY.—The authority 
to grant bonuses under this section shall cease to be avail-
able after December 31, 2009.’’. 
∆(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 57 of title 5, United States Code, is amended by adding 
at the end the following: 
∆‘‘5759. Retention and relocation bonuses for the Federal Bureau of Investiga-
tion.’’. 
∆SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE 
SERVICE. 
∆(a) IN GENERAL.—Chapter 35 of title 5, United 
States Code, is amended by adding at the end the following:
489 
∆‘‘SUBCHAPTER VII—RETENTION OF RETIRED 
SPECIALIZED EMPLOYEES AT THE FEDERAL 
BUREAU OF INVESTIGATION 
∆‘‘§ 3598. Federal Bureau of Investigation Reserve 
Service 
∆‘‘(a) ESTABLISHMENT.—The Director of the Federal 
Bureau of Investigation may provide for the establishment 
and training of a Federal Bureau of Investigation Reserve 
Service (hereinafter in this section referred to as the ‘FBI 
Reserve Service’) for temporary reemployment of employees 
in the Bureau during periods of emergency, as determined 
by the Director. 
∆‘‘(b) MEMBERSHIP.—Membership in the FBI Reserve 
Service shall be limited to individuals who previously 
served as full-time employees of the Bureau. 
∆‘‘(c) ANNUITANTS.—If an individual receiving an 
annuity from the Civil Service Retirement and Disability 
Fund on the basis of such individual’s service becomes tem-
porarily reemployed pursuant to this section, such annuity 
shall not be discontinued thereby. An individual so reem-
ployed shall not be considered an employee for the purposes 
of chapter 83 or 84. 
∆‘‘(d) NO IMPACT
ON BUREAU PERSONNEL CEIL-
ING.—FBI Reserve Service members reemployed on a tem-
490 
porary basis pursuant to this section shall not count 
against any personnel ceiling applicable to the Bureau. 
∆‘‘(e) EXPENSES.—The Director may provide mem-
bers of the FBI Reserve Service transportation and per 
diem in lieu of subsistence, in accordance with applicable 
provisions of this title, for the purpose of participating in 
any training that relates to service as a member of the FBI 
Reserve Service. 
∆‘‘(f) LIMITATION ON MEMBERSHIP.—Membership of 
the FBI Reserve Service is not to exceed 500 members at 
any given time. 
∆‘‘(g) LIMITATION ON DURATION OF SERVICE.—An 
individual may not be reemployed under this section for 
more than 180 days in connection with any particular 
emergency unless, in the judgment of the Director, the pub-
lic interest so requires.’’. 
∆(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 35 of title 5, United States Code, is amended by adding 
at the end the following: 
∆‘‘SUBCHAPTER VII—RETENTION OF RETIRED SPECIALIZED EMPLOYEES AT THE 
FEDERAL BUREAU OF INVESTIGATION 
∆‘‘3598. Federal Bureau of Investigation Reserve Service.’’.
491 
∆SEC. 5054. CRITICAL POSITIONS IN THE FEDERAL BUREAU 
OF INVESTIGATION INTELLIGENCE DIREC-
TORATE. 
∆Section 5377(a)(2) of title 5, United States Code, is 
amended— 
∆(1) by striking ‘‘and’’ at the end of subpara-
graph (E); 
∆(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; and’’; and 
∆(3) by inserting after subparagraph (F) the fol-
lowing: 
∆‘‘(G) a position at the Federal Bureau of 
Investigation, the primary duties and respon-
sibilities of which relate to intelligence functions 
(as determined by the Director of the Federal 
Bureau of Investigation).’’. 
∆CHAPTER 3—REPORTING REQUIREMENT 
∆SEC. 5061. REPORTING REQUIREMENT. 
∆The President shall, within 6 months after the date 
of enactment of this Act, submit to Congress a report that— 
∆(1) evaluates the hiring policies of the Federal 
Government with respect to its foreign language needs 
and the war on terrorism, including an analysis of 
the personnel requirements at the Federal Bureau of 
Investigation, the Central Intelligence Agency, the De-
partment of Homeland Security, the Department of
492 
State, the Department of Defense, and all other Fed-
eral agencies the President identifies as having re-
sponsibilities in the war on terrorism; 
∆(2) describes with respect to each agency identi-
fied under paragraph (1) the Federal Government’s 
current workforce capabilities with respect to its for-
eign language needs and the war on terrorism; 
∆(3) summarizes for each agency identified 
under paragraph (1) any shortfall in the Federal 
Government’s workforce capabilities relative to its for-
eign language needs with respect to the war on ter-
rorism; and 
∆(4) provides a specific plan to eliminate any 
shortfalls identified under paragraph (3) and a cost 
estimate, by agency, for eliminating those shortfalls. 
∆Subtitle F—Security Clearance 
Modernization 
∆SEC. 5071. DEFINITIONS. 
∆In this subtitle: 
∆(1) The term ‘‘Director’’ means the National 
Intelligence Director. 
∆(2) The term ‘‘agency’’ means— 
∆(A) an executive agency, as defined in sec-
tion 105 of title 5, United States Code;
493 
∆(B) a military department, as defined in 
section 102 of title 5, United States Code; and 
∆(C) elements of the intelligence commu-
nity, as defined in section 3(4) of the National 
Security Act of 1947 (50 U.S.C. 401a(4)). 
∆(3) The term ‘‘authorized investigative agency’’ 
means an agency authorized by law, regulation or di-
rection of the Director to conduct a counter-
intelligence investigation or investigation of persons 
who are proposed for access to classified information 
to ascertain whether such persons satisfy the criteria 
for obtaining and retaining access to such informa-
tion. 
∆(4) The term ‘‘authorized adjudicative agency’’ 
means an agency authorized by law, regulation or di-
rection of the Director to determine eligibility for ac-
cess to classified information in accordance with Ex-
ecutive Order 12968. 
∆(5) The term ‘‘highly sensitive program’’ 
means— 
∆(A) a government program designated as a 
Special Access Program (as defined by section 
4.1(h) of Executive Order 12958); and 
∆(B) a government program that applies 
restrictions required for—
494 
∆(i) Restricted Data (as defined by 
section 11 y. of the Atomic Energy Act of 
1954 (42 U.S.C. 2014(y)); or 
∆(ii) other information commonly re-
ferred to as ‘‘Sensitive Compartmented In-
formation’’. 
∆(6) The term ‘‘current investigation file’’ 
means, with respect to a security clearance, a file on 
an investigation or adjudication that has been con-
ducted during— 
∆(A) the 5-year period beginning on the 
date the security clearance was granted, in the 
case of a Top Secret Clearance, or the date access 
was granted to a highly sensitive program; 
∆(B) the 10-year period beginning on the 
date the security clearance was granted in the 
case of a Secret Clearance; and 
∆(C) the 15-year period beginning on the 
date the security clearance was granted in the 
case of a Confidential Clearance. 
∆(7) The term ‘‘personnel security investigation’’ 
means any investigation required for the purpose of 
determining the eligibility of any military, civilian, 
or government contractor personnel to access classified 
information.
495 
∆(8) 
The 
term 
‘‘periodic 
reinvestigations’’ 
means— 
∆(A) investigations conducted for the pur-
pose of updating a previously completed back-
ground investigation— 
∆(i) every five years in the case of a 
Top Secret Clearance or access to a highly 
sensitive program; 
∆(ii) every 10 years in the case of a 
Secret Clearance; and 
∆(iii) every 15 years in the case of a 
Confidential Clearance; 
∆(B) on-going investigations to identify 
personnel security risks as they develop, pursu-
ant to section 5075(c). 
∆(9) The term ‘‘appropriate committees of Con-
gress’’ means— 
∆(A) the Permanent Select Committee on 
Intelligence and the Committees on Armed Serv-
ices, Judiciary, and Government Reform of the 
House of Representatives; and 
∆(B) the Select Committee on Intelligence 
and the Committees on Armed Services, Judici-
ary, and Governmental Affairs of the Senate.
496 
∆SEC. 5072. SECURITY CLEARANCE AND INVESTIGATIVE 
PROGRAMS OVERSIGHT AND ADMINISTRA-
TION. 
∆The Deputy National Intelligence Director for Com-
munity Management and Resources shall have responsi-
bility for the following: 
∆(1) Directing day-to-day oversight of investiga-
tions and adjudications for personnel security clear-
ances and highly sensitive programs throughout the 
Federal Government. 
∆(2) Developing and implementing uniform and 
consistent policies and procedures to ensure the effec-
tive, efficient, and timely completion of security clear-
ances and determinations for access to highly sen-
sitive programs, including the standardization of se-
curity questionnaires, financial disclosure require-
ments for security clearance applicants, and poly-
graph policies and procedures. 
∆(3) Serving as the final authority to designate 
an authorized investigative agency or authorized ad-
judicative agency pursuant to section 5074(d). 
∆(4) Ensuring reciprocal recognition of access to 
classified information among agencies, including act-
ing as the final authority to arbitrate and resolve dis-
putes involving the reciprocity of security clearances 
and access to highly sensitive programs.
497 
∆(5) Ensuring, to the maximum extent prac-
ticable, that sufficient resources are available in each 
agency to achieve clearance and investigative pro-
gram goals. 
∆(6) Reviewing and coordinating the develop-
ment of tools and techniques for enhancing the con-
duct of investigations and granting of clearances. 
∆SEC. 5073. RECIPROCITY OF SECURITY CLEARANCE AND 
ACCESS DETERMINATIONS. 
∆(a) REQUIREMENT FOR RECIPROCITY.—(1) All secu-
rity clearance background investigations and determina-
tions completed by an authorized investigative agency or 
authorized adjudicative agency shall be accepted by all 
agencies. 
∆(2) All security clearance background investigations 
initiated by an authorized investigative agency shall be 
transferable to any other authorized investigative agency. 
∆(b) PROHIBITION ON ESTABLISHING ADDITIONAL.— 
(1) An authorized investigative agency or authorized adju-
dicative agency may not establish additional investigative 
or adjudicative requirements (other than requirements for 
the conduct of a polygraph examination) that exceed re-
quirements specified in Executive Orders establishing secu-
rity requirements for access to classified information.
498 
∆(2) Notwithstanding the paragraph (1), the Director 
may establish additional requirements as needed for na-
tional security purposes. 
∆(c) PROHIBITION
ON
DUPLICATIVE
INVESTIGA-
TIONS.—An authorized investigative agency or authorized 
adjudicative agency may not conduct an investigation for 
purposes of determining whether to grant a security clear-
ance to an individual where a current investigation or 
clearance of equal level already exists or has been granted 
by another authorized adjudicative agency. 
∆SEC. 5074. ESTABLISHMENT OF NATIONAL DATABASE . 
∆(a) ESTABLISHMENT.—Not later than 12 months 
after the date of the enactment of this Act, the Director of 
the Office of Personnel Management, in cooperation with 
the Director, shall establish, and begin operating and main-
taining, an integrated, secure, national database into which 
appropriate data relevant to the granting, denial, or revoca-
tion of a security clearance or access pertaining to military, 
civilian, or government contractor personnel shall be en-
tered from all authorized investigative and adjudicative 
agencies. 
∆(b) INTEGRATION.—The national database estab-
lished under subsection (a) shall function to integrate infor-
mation from existing Federal clearance tracking systems
499 
from other authorized investigative and adjudicative agen-
cies into a single consolidated database. 
∆(c) REQUIREMENT TO CHECK DATABASE.—Each au-
thorized investigative or adjudicative agency shall check the 
national database established under subsection (a) to deter-
mine whether an individual the agency has identified as 
requiring a security clearance has already been granted or 
denied a security clearance, or has had a security clearance 
revoked, by any other authorized investigative or adjudica-
tive agency. 
∆(d) CERTIFICATION OF AUTHORIZED INVESTIGATIVE 
AGENCIES OR AUTHORIZED ADJUDICATIVE AGENCIES.— 
The Director shall evaluate the extent to which an agency 
is submitting information to, and requesting information 
from, the national database established under subsection (a) 
as part of a determination of whether to certify the agency 
as an authorized investigative agency or authorized adju-
dicative agency. 
∆(e) 
EXCLUSION
OF
CERTAIN
INTELLIGENCE 
OPERATIVES.—The Director may authorize an agency to 
withhold information about certain individuals from the 
database established under subsection (a) if the Director de-
termines it is necessary for national security purposes.
500 
∆(f) COMPLIANCE.—The Director shall establish a re-
view procedure by which agencies can seek review of actions 
required under section 5073. 
∆(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated such sums as may be nec-
essary for fiscal year 2005 and each subsequent fiscal year 
for the implementation, maintenance and operation of the 
database established in subsection (a). 
∆SEC. 5075. USE OF AVAILABLE TECHNOLOGY IN CLEAR-
ANCE INVESTIGATIONS. 
∆(a) INVESTIGATIONS.—Not later than 12 months 
after the date of the enactment of this Act, each authorized 
investigative agency that conducts personnel security clear-
ance investigations shall use, to the maximum extent prac-
ticable, available information technology and databases to 
expedite investigative processes and to verify standard in-
formation submitted as part of an application for a secu-
rity clearance. 
∆(b) INTERIM CLEARANCE.—If the application of an 
applicant for an interim clearance has been processed using 
the technology under subsection (a), the interim clearances 
for the applicant at the secret, top secret, and special access 
program levels may be granted before the completion of the 
appropriate investigation. Any request to process an in-
terim clearance shall be given priority, and the authority
501 
granting the interim clearance shall ensure that final adju-
dication on the application is made within 90 days after 
the initial clearance is granted. 
∆(c) ON-GOING MONITORING OF INDIVIDUALS WITH 
SECURITY
CLEARANCES.—(1) Authorized investigative 
agencies and authorized adjudicative agencies shall estab-
lish procedures for the regular, ongoing verification of per-
sonnel with security clearances in effect for continued access 
to classified information. Such procedures shall include the 
use of available technology to detect, on a regularly recur-
ring basis, any issues of concern that may arise involving 
such personnel and such access. 
∆(2) Such regularly recurring verification may be 
used as a basis for terminating a security clearance or ac-
cess and shall be used in periodic reinvestigations to address 
emerging threats and adverse events associated with indi-
viduals with security clearances in effect to the maximum 
extent practicable. 
∆(3) If the Director certifies that the national security 
of the United States is not harmed by the discontinuation 
of periodic reinvestigations, the regularly recurring 
verification under this section may replace periodic reinves-
tigations.
502 
∆SEC. 5076. REDUCTION IN LENGTH OF PERSONNEL SECU-
RITY CLEARANCE PROCESS. 
∆(a) 60-DAY PERIOD FOR DETERMINATION ON CLEAR-
ANCES.—Each authorized adjudicative agency shall make 
a determination on an application for a personnel security 
clearance within 60 days after the date of receipt of the 
completed application for a security clearance by an au-
thorized investigative agency. The 60-day period shall in-
clude— 
∆(1) a period of not longer than 40 days to com-
plete the investigative phase of the clearance review; 
and 
∆(2) a period of not longer than 20 days to com-
plete the adjudicative phase of the clearance review. 
∆(b) EFFECTIVE DATE AND PHASE-IN.— 
∆(1) EFFECTIVE
DATE.—Subsection (a) shall 
take effect 5 years after the date of the enactment of 
this Act. 
∆(2) PHASE-IN.—During the period beginning 
on a date not later than 2 years after the date of the 
enactment of this Act and ending on the date on 
which subsection (a) takes effect as specified in para-
graph (1), each authorized adjudicative agency shall 
make a determination on an application for a per-
sonnel security clearance pursuant to this title within 
120 days after the date of receipt of the application
503 
for a security clearance by an authorized investigative 
agency. The 120-day period shall include— 
∆(A) a period of not longer than 90 days to 
complete the investigative phase of the clearance 
review; and 
∆(B) a period of not longer than 30 days 
to complete the adjudicative phase of the clear-
ance review. 
∆SEC. 5077. SECURITY CLEARANCES FOR PRESIDENTIAL 
TRANSITION. 
∆(a) CANDIDATES
FOR NATIONAL SECURITY POSI-
TIONS.—(1) The President-elect shall submit to the Director 
the names of candidates for high-level national security po-
sitions, for positions at the level of under secretary of execu-
tive departments and above, as soon as possible after the 
date of the general elections held to determine the electors 
of President and Vice President under section 1 or 2 of title 
3, United States Code. 
∆(2) The Director shall be responsible for the expedi-
tious completion of the background investigations necessary 
to provide appropriate security clearances to the individ-
uals who are candidates described under paragraph (1) be-
fore the date of the inauguration of the President-elect as 
President and the inauguration of the Vice-President-elect 
as Vice President.
504 
∆(b) SECURITY CLEARANCES FOR TRANSITION TEAM 
MEMBERS.—(1) In this section, the term ‘‘major party’’ has 
the meaning provided under section 9002(6) of the Internal 
Revenue Code of 1986. 
∆(2) Each major party candidate for President, except 
a candidate who is the incumbent President, shall submit, 
before the date of the general presidential election, requests 
for security clearances for prospective transition team mem-
bers who will have a need for access to classified informa-
tion to carry out their responsibilities as members of the 
President-elect’s transition team. 
∆(3) Necessary background investigations and eligi-
bility determinations to permit appropriate prospective 
transition team members to have access to classified infor-
mation shall be completed, to the fullest extent practicable, 
by the day after the date of the general presidential election. 
∆SEC. 5078. REPORTS. 
∆Not later than February 15, 2006, and annually 
thereafter through 2016, the Director shall submit to the ap-
propriate committees of Congress a report on the progress 
made during the preceding year toward meeting the re-
quirements specified in this Act. The report shall include— 
∆(1) the periods of time required by the author-
ized investigative agencies and authorized adjudica-
tive agencies during the year covered by the report for
505 
conducting investigations, adjudicating cases, and 
granting clearances, from date of submission to ulti-
mate disposition and notification to the subject and 
the subject’s employer; 
∆(2) a discussion of any impediments to the 
smooth and timely functioning of the implementation 
of this title; and 
∆(3) such other information or recommendations 
as the Deputy Director deems appropriate. 
∆Subtitle G—Emergency Financial 
Preparedness 
∆SEC. 5081. DELEGATION AUTHORITY OF THE SECRETARY 
OF THE TREASURY. 
∆Subsection (d) of section 306 of title 31, United 
States Code, is amended by inserting ‘‘or employee’’ after 
‘‘another officer’’. 
∆SEC. 5082. EXTENSION OF EMERGENCY ORDER AUTHORITY 
OF THE SECURITIES AND EXCHANGE COMMIS-
SION. 
∆(a) EXTENSION OF AUTHORITY.—Paragraph (2) of 
section 12(k) of the Securities Exchange Act of 1934 (15 
U.S.C. 78l(k)(2)) is amended to read as follows: 
∆‘‘(2) EMERGENCY ORDERS.—(A) The Commis-
sion, in an emergency, may by order summarily take 
such action to alter, supplement, suspend, or impose
506 
requirements or restrictions with respect to any mat-
ter or action subject to regulation by the Commission 
or a self-regulatory organization under the securities 
laws, as the Commission determines is necessary in 
the public interest and for the protection of inves-
tors— 
∆‘‘(i) to maintain or restore fair and or-
derly securities markets (other than markets in 
exempted securities); 
∆‘‘(ii) to ensure prompt, accurate, and safe 
clearance and settlement of transactions in secu-
rities (other than exempted securities); or 
∆‘‘(iii) to reduce, eliminate, or prevent the 
substantial disruption by the emergency of (I) 
securities markets (other than markets in ex-
empted securities), investment companies, or any 
other significant portion or segment of such mar-
kets, or (II) the transmission or processing of se-
curities transactions (other than transactions in 
exempted securities). 
∆‘‘(B) An order of the Commission under this 
paragraph (2) shall continue in effect for the period 
specified by the Commission, and may be extended. 
Except as provided in subparagraph (C), the Com-
507 
mission’s action may not continue in effect for more 
than 30 business days, including extensions. 
∆‘‘(C) An order of the Commission under this 
paragraph (2) may be extended to continue in effect 
for more than 30 business days if, at the time of the 
extension, the Commission finds that the emergency 
still exists and determines that the continuation of the 
order beyond 30 business days is necessary in the 
public interest and for the protection of investors to 
attain an objective described in clause (i), (ii), or 
(iii) of subparagraph (A). In no event shall an order 
of the Commission under this paragraph (2) continue 
in effect for more than 90 calendar days. 
∆‘‘(D) If the actions described in subparagraph 
(A) involve a security futures product, the Commis-
sion shall consult with and consider the views of the 
Commodity Futures Trading Commission. In exer-
cising its authority under this paragraph, the Com-
mission shall not be required to comply with the pro-
visions of section 553 of title 5, United States Code, 
or with the provisions of section 19(c) of this title. 
∆‘‘(E) Notwithstanding the exclusion of exempted 
securities (and markets therein) from the Commis-
sion’s authority under subparagraph (A), the Com-
mission may use such authority to take action to
508 
alter, supplement, suspend, or impose requirements or 
restrictions with respect to clearing agencies for 
transactions in such exempted securities. In taking 
any action under this subparagraph, the Commission 
shall consult with and consider the views of the Sec-
retary of the Treasury.’’. 
∆(b) CONSULTATION; DEFINITION OF EMERGENCY.— 
Section 12(k) of the Securities Exchange Act of 1934 (15 
U.S.C. 78l(k)) is further amended by striking paragraph 
(6) and inserting the following: 
∆‘‘(6) CONSULTATION.—Prior to taking any ac-
tion described in paragraph (1)(B), the Commission 
shall consult with and consider the views of the Sec-
retary of the Treasury, Board of Governors of the 
Federal Reserve System, and the Commodity Futures 
Trading Commission, unless such consultation is im-
practicable in light of the emergency. 
∆‘‘(7) DEFINITIONS.— 
∆‘‘(A) EMERGENCY.—For purposes of this 
subsection, the term ‘emergency’ means— 
∆‘‘(i) a major market disturbance 
characterized by or constituting— 
∆‘‘(I) sudden and excessive fluc-
tuations of securities prices generally,
509 
or a substantial threat thereof, that 
threaten fair and orderly markets; or 
∆‘‘(II) a substantial disruption of 
the safe or efficient operation of the na-
tional system for clearance and settle-
ment of transactions in securities, or a 
substantial threat thereof; or 
∆‘‘(ii) a major disturbance that sub-
stantially disrupts, or threatens to substan-
tially disrupt— 
∆‘‘(I) the functioning of securities 
markets, investment companies, or any 
other significant portion or segment of 
the securities markets; or 
∆‘‘(II) the transmission or proc-
essing of securities transactions. 
∆‘‘(B) 
SECURITIES
LAWS.—Notwith-
standing section 3(a)(47), for purposes of this 
subsection, the term ‘securities laws’ does not in-
clude the Public Utility Holding Company Act 
of 1935 (15 U.S.C. 79a et seq.).’’.
510 
∆SEC. 5083. PARALLEL AUTHORITY OF THE SECRETARY OF 
THE TREASURY WITH RESPECT TO GOVERN-
MENT SECURITIES. 
∆Section 15C of the Securities Exchange Act of 1934 
(15 U.S.C. 78o–5) is amended by adding at the end the 
following new subsection: 
∆‘‘(h) EMERGENCY AUTHORITY.—The Secretary may 
by order take any action with respect to a matter or action 
subject to regulation by the Secretary under this section, 
or the rules of the Secretary thereunder, involving a govern-
ment security or a market therein (or significant portion 
or segment of that market), that the Commission may take 
under section 12(k)(2) of this title with respect to trans-
actions in securities (other than exempted securities) or a 
market therein (or significant portion or segment of that 
market).’’. 
∆Subtitle H—Other Matters 
∆CHAPTER 1—PRIVACY MATTERS 
∆SEC. 5091. REQUIREMENT THAT AGENCY RULEMAKING 
TAKE INTO CONSIDERATION IMPACTS ON IN-
DIVIDUAL PRIVACY. 
∆(a) SHORT TITLE.—This section may be cited as the 
‘‘Federal Agency Protection of Privacy Act of 2004’’. 
∆(b) IN GENERAL.—Title 5, United States Code, is 
amended by adding after section 553 the following new sec-
tion:
511 
‘‘∆§ 553a. Privacy impact assessment in rulemaking 
∆‘‘(a) INITIAL PRIVACY IMPACT ASSESSMENT.— 
∆‘‘(1) IN GENERAL.—Whenever an agency is re-
quired by section 553 of this title, or any other law, 
to publish a general notice of proposed rulemaking for 
a proposed rule, or publishes a notice of proposed 
rulemaking for an interpretative rule involving the 
internal revenue laws of the United States, and such 
rule or proposed rulemaking pertains to the collection, 
maintenance, use, or disclosure of personally identifi-
able information from 10 or more individuals, other 
than agencies, instrumentalities, or employees of the 
Federal government, the agency shall prepare and 
make available for public comment an initial privacy 
impact assessment that describes the impact of the 
proposed rule on the privacy of individuals. Such as-
sessment or a summary thereof shall be signed by the 
senior agency official with primary responsibility for 
privacy policy and be published in the Federal Reg-
ister at the time of the publication of a general notice 
of proposed rulemaking for the rule. 
∆‘‘(2) CONTENTS.—Each initial privacy impact 
assessment required under this subsection shall con-
tain the following: 
∆‘‘(A) A description and analysis of the ex-
tent to which the proposed rule will impact the
512 
privacy interests of individuals, including the 
extent to which the proposed rule— 
∆‘‘(i) provides notice of the collection 
of personally identifiable information, and 
specifies what personally identifiable infor-
mation is to be collected and how it is to be 
collected, maintained, used, and disclosed; 
∆‘‘(ii) allows access to such informa-
tion by the person to whom the personally 
identifiable information pertains and pro-
vides an opportunity to correct inaccura-
cies; 
∆‘‘(iii) 
prevents 
such 
information, 
which is collected for one purpose, from 
being used for another purpose; and 
∆‘‘(iv) provides security for such infor-
mation. 
∆‘‘(B) A description of any significant al-
ternatives to the proposed rule which accomplish 
the stated objectives of applicable statutes and 
which minimize any significant privacy impact 
of the proposed rule on individuals. 
∆‘‘(b) FINAL PRIVACY IMPACT ASSESSMENT.— 
∆‘‘(1) IN GENERAL.—Whenever an agency pro-
mulgates a final rule under section 553 of this title,
513 
after being required by that section or any other law 
to publish a general notice of proposed rulemaking, or 
promulgates a final interpretative rule involving the 
internal revenue laws of the United States, and such 
rule or proposed rulemaking pertains to the collection, 
maintenance, use, or disclosure of personally identifi-
able information from 10 or more individuals, other 
than agencies, instrumentalities, or employees of the 
Federal government, the agency shall prepare a final 
privacy impact assessment, signed by the senior agen-
cy official with primary responsibility for privacy 
policy. 
∆‘‘(2) CONTENTS.—Each final privacy impact 
assessment required under this subsection shall con-
tain the following: 
∆‘‘(A) A description and analysis of the ex-
tent to which the final rule will impact the pri-
vacy interests of individuals, including the ex-
tent to which such rule— 
∆‘‘(i) provides notice of the collection 
of personally identifiable information, and 
specifies what personally identifiable infor-
mation is to be collected and how it is to be 
collected, maintained, used, and disclosed;
514 
∆‘‘(ii) allows access to such informa-
tion by the person to whom the personally 
identifiable information pertains and pro-
vides an opportunity to correct inaccura-
cies; 
∆‘‘(iii) 
prevents 
such 
information, 
which is collected for one purpose, from 
being used for another purpose; and 
∆‘‘(iv) provides security for such infor-
mation. 
∆‘‘(B) A summary of any significant issues 
raised by the public comments in response to the 
initial privacy impact assessment, a summary of 
the analysis of the agency of such issues, and a 
statement of any changes made in such rule as 
a result of such issues. 
∆‘‘(C) A description of the steps the agency 
has taken to minimize the significant privacy 
impact on individuals consistent with the stated 
objectives of applicable statutes, including a 
statement of the factual, policy, and legal reasons 
for selecting the alternative adopted in the final 
rule and why each one of the other significant al-
ternatives to the rule considered by the agency
515 
which affect the privacy interests of individuals 
was rejected. 
∆‘‘(3) AVAILABILITY
TO
PUBLIC.—The agency 
shall make copies of the final privacy impact assess-
ment available to members of the public and shall 
publish in the Federal Register such assessment or a 
summary thereof. 
∆‘‘(c) WAIVERS.— 
∆‘‘(1) EMERGENCIES.—An agency head may 
waive or delay the completion of some or all of the 
requirements of subsections (a) and (b) to the same 
extent as the agency head may, under section 608, 
waive or delay the completion of some or all of the 
requirements of sections 603 and 604, respectively. 
∆‘‘(2) NATIONAL
SECURITY.—An agency head 
may, for national security reasons, or to protect from 
disclosure classified information, confidential com-
mercial information, or information the disclosure of 
which may adversely affect a law enforcement effort, 
waive or delay the completion of some or all of the 
following requirements: 
∆‘‘(A) The requirement of subsection (a)(1) 
to make an assessment available for public com-
ment.
516 
∆‘‘(B) The requirement of subsection (a)(1) 
to have an assessment or summary thereof pub-
lished in the Federal Register. 
∆‘‘(C) The requirements of subsection (b)(3). 
∆‘‘(d) PROCEDURES FOR GATHERING COMMENTS.— 
When any rule is promulgated which may have a signifi-
cant privacy impact on individuals, or a privacy impact 
on a substantial number of individuals, the head of the 
agency promulgating the rule or the official of the agency 
with statutory responsibility for the promulgation of the 
rule shall assure that individuals have been given an oppor-
tunity to participate in the rulemaking for the rule through 
techniques such as— 
∆‘‘(1) the inclusion in an advance notice of pro-
posed rulemaking, if issued, of a statement that the 
proposed rule may have a significant privacy impact 
on individuals, or a privacy impact on a substantial 
number of individuals; 
∆‘‘(2) the publication of a general notice of pro-
posed rulemaking in publications of national circula-
tion likely to be obtained by individuals; 
∆‘‘(3) the direct notification of interested indi-
viduals; 
∆‘‘(4) the conduct of open conferences or public 
hearings concerning the rule for individuals, includ-
517 
ing soliciting and receiving comments over computer 
networks; and 
∆‘‘(5) the adoption or modification of agency 
procedural rules to reduce the cost or complexity of 
participation in the rulemaking by individuals. 
∆‘‘(e) PERIODIC REVIEW OF RULES.— 
∆‘‘(1) IN GENERAL.—Each agency shall carry 
out a periodic review of the rules promulgated by the 
agency that have a significant privacy impact on in-
dividuals, or a privacy impact on a substantial num-
ber of individuals. Under such periodic review, the 
agency shall determine, for each such rule, whether 
the rule can be amended or rescinded in a manner 
that minimizes any such impact while remaining in 
accordance with applicable statutes. For each such de-
termination, the agency shall consider the following 
factors: 
∆‘‘(A) The continued need for the rule. 
∆‘‘(B) The nature of complaints or com-
ments received from the public concerning the 
rule. 
∆‘‘(C) The complexity of the rule. 
∆‘‘(D) The extent to which the rule overlaps, 
duplicates, or conflicts with other Federal rules,
518 
and, to the extent feasible, with State and local 
governmental rules. 
∆‘‘(E) The length of time since the rule was 
last reviewed under this subsection. 
∆‘‘(F) The degree to which technology, eco-
nomic conditions, or other factors have changed 
in the area affected by the rule since the rule was 
last reviewed under this subsection. 
∆‘‘(2) PLAN
REQUIRED.—Each agency shall 
carry out the periodic review required by paragraph 
(1) in accordance with a plan published by such 
agency in the Federal Register. Each such plan shall 
provide for the review under this subsection of each 
rule promulgated by the agency not later than 10 
years after the date on which such rule was published 
as the final rule and, thereafter, not later than 10 
years after the date on which such rule was last re-
viewed under this subsection. The agency may amend 
such plan at any time by publishing the revision in 
the Federal Register. 
∆‘‘(3) ANNUAL PUBLICATION.—Each year, each 
agency shall publish in the Federal Register a list of 
the rules to be reviewed by such agency under this 
subsection during the following year. The list shall in-
clude a brief description of each such rule and the
519 
need for and legal basis of such rule and shall invite 
public comment upon the determination to be made 
under this subsection with respect to such rule. 
∆‘‘(f) JUDICIAL REVIEW.— 
∆‘‘(1) IN GENERAL.—For any rule subject to this 
section, an individual who is adversely affected or ag-
grieved by final agency action is entitled to judicial 
review of agency compliance with the requirements of 
subsections (b) and (c) in accordance with chapter 7. 
Agency compliance with subsection (d) shall be judi-
cially reviewable in connection with judicial review of 
subsection (b). 
∆‘‘(2) JURISDICTION.—Each court having juris-
diction to review such rule for compliance with sec-
tion 553, or under any other provision of law, shall 
have jurisdiction to review any claims of noncompli-
ance with subsections (b) and (c) in accordance with 
chapter 7. Agency compliance with subsection (d) 
shall be judicially reviewable in connection with judi-
cial review of subsection (b). 
∆‘‘(3) LIMITATIONS.— 
∆‘‘(A) An individual may seek such review 
during the period beginning on the date of final 
agency action and ending 1 year later, except 
that where a provision of law requires that an
520 
action challenging a final agency action be com-
menced before the expiration of 1 year, such less-
er period shall apply to an action for judicial re-
view under this subsection. 
∆‘‘(B) In the case where an agency delays 
the issuance of a final privacy impact assess-
ment pursuant to subsection (c), an action for 
judicial review under this section shall be filed 
not later than— 
∆‘‘(i) 1 year after the date the assess-
ment is made available to the public; or 
∆‘‘(ii) where a provision of law re-
quires that an action challenging a final 
agency regulation be commenced before the 
expiration of the 1-year period, the number 
of days specified in such provision of law 
that is after the date the assessment is made 
available to the public. 
∆‘‘(4) RELIEF.—In granting any relief in an ac-
tion under this subsection, the court shall order the 
agency to take corrective action consistent with this 
section and chapter 7, including, but not limited to— 
∆‘‘(A) remanding the rule to the agency; 
and
521 
∆‘‘(B) deferring the enforcement of the rule 
against individuals, unless the court finds that 
continued enforcement of the rule is in the public 
interest. 
∆‘‘(5) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be construed to limit the author-
ity of any court to stay the effective date of any rule 
or provision thereof under any other provision of law 
or to grant any other relief in addition to the require-
ments of this subsection. 
∆‘‘(6) RECORD OF AGENCY ACTION.—In an ac-
tion for the judicial review of a rule, the privacy im-
pact assessment for such rule, including an assess-
ment prepared or corrected pursuant to paragraph 
(4), shall constitute part of the entire record of agency 
action in connection with such review. 
∆‘‘(7) EXCLUSIVITY.—Compliance or noncompli-
ance by an agency with the provisions of this section 
shall be subject to judicial review only in accordance 
with this subsection. 
∆‘‘(8) SAVINGS CLAUSE.—Nothing in this sub-
section bars judicial review of any other impact state-
ment or similar assessment required by any other law 
if judicial review of such statement or assessment is 
otherwise permitted by law.
522 
∆‘‘(g) DEFINITION.—For purposes of this section, the 
term ‘personally identifiable information’ means informa-
tion that can be used to identify an individual, including 
such individual’s name, address, telephone number, photo-
graph, social security number or other identifying informa-
tion. It includes information about such individual’s med-
ical or financial condition.’’. 
∆(c) PERIODIC REVIEW TRANSITION PROVISIONS.— 
∆(1) INITIAL PLAN.—For each agency, the plan 
required by subsection (e) of section 553a of title 5, 
United States Code (as added by subsection (a)), shall 
be published not later than 180 days after the date of 
the enactment of this Act. 
∆(2) In the case of a rule promulgated by an 
agency before the date of the enactment of this Act, 
such plan shall provide for the periodic review of such 
rule before the expiration of the 10-year period begin-
ning on the date of the enactment of this Act. For any 
such rule, the head of the agency may provide for a 
1-year extension of such period if the head of the 
agency, before the expiration of the period, certifies in 
a statement published in the Federal Register that re-
viewing such rule before the expiration of the period 
is not feasible. The head of the agency may provide 
for additional 1-year extensions of the period pursu-
523 
ant to the preceding sentence, but in no event may the 
period exceed 15 years. 
∆(d) CONGRESSIONAL REVIEW.—Section 801(a)(1)(B) 
of title 5, United States Code, is amended— 
∆(1) by redesignating clauses (iii) and (iv) as 
clauses (iv) and (v), respectively; and 
∆(2) by inserting after clause (ii) the following 
new clause: 
∆‘‘(iii) the agency’s actions relevant to section 
553a;’’. 
∆(e) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 5 of title 5, United States Code, 
is amended by adding after the item relating to section 553 
the following new item: 
∆‘‘553a. Privacy impact assessment in rulemaking.’’. 
∆SEC. 5092. CHIEF PRIVACY OFFICERS FOR AGENCIES WITH 
LAW 
ENFORCEMENT 
OR 
ANTI-TERRORISM 
FUNCTIONS. 
∆(a) IN GENERAL.—There shall be within each Fed-
eral agency with law enforcement or anti-terrorism func-
tions a chief privacy officer, who shall have primary re-
sponsibility within that agency for privacy policy. The 
agency chief privacy officer shall be designated by the head 
of the agency. 
∆(b) RESPONSIBILITIES.—The responsibilities of each 
agency chief privacy officer shall include—
524 
∆(1) ensuring that the use of technologies sus-
tains, and does not erode, privacy protections relating 
to the use, collection, and disclosure of personally 
identifiable information; 
∆(2) ensuring that personally identifiable infor-
mation contained in systems of records is handled in 
full compliance with fair information practices as set 
out in section 552a of title 5, United States Code; 
∆(3) evaluating legislative and regulatory pro-
posals involving collection, use, and disclosure of per-
sonally identifiable information by the Federal Gov-
ernment; 
∆(4) conducting a privacy impact assessment of 
proposed rules of the agency on the privacy of person-
ally identifiable information, including the type of 
personally identifiable information collected and the 
number of people affected; 
∆(5) preparing and submitting a report to Con-
gress on an annual basis on activities of the agency 
that affect privacy, including complaints of privacy 
violations, implementation of section 552a of title 5, 
United States Code, internal controls, and other rel-
evant matters; 
∆(6) ensuring that the agency protects personally 
identifiable information and information systems
525 
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) confidentially, which means pre-
serving authorized restrictions on access and dis-
closure, including means for protecting personal 
privacy and proprietary information; 
∆(C) availability, which means ensuring 
timely and reliable access to and use of that in-
formation; and 
∆(D) authentication, which means utilizing 
digital credentials to assure the identity of users 
and validate their access; and 
∆(7) advising the head of the agency and the Di-
rector of the Office of Management and Budget on in-
formation security and privacy issues pertaining to 
Federal Government information systems. 
∆CHAPTER 2—MUTUAL AID AND 
LITIGATION MANAGEMENT 
∆SEC. 5101. SHORT TITLE. 
∆This chapter may be cited as the ‘‘Mutual Aid and 
Litigation Management Authorization Act of 2004’’.
526 
∆SEC. 5102. MUTUAL AID AUTHORIZED. 
∆(a) AUTHORIZATION
TO
ENTER
INTO
AGREE-
MENTS.— 
∆(1) IN GENERAL.—The authorized representa-
tive of a State, locality, or the Federal Government 
may enter into an interstate mutual aid agreement or 
a mutual aid agreement with the Federal Government 
on behalf of the State, locality, or Federal Govern-
ment under which, at the request of any party to the 
agreement, the other party to the agreement may— 
∆(A) provide law enforcement, fire, rescue, 
emergency health and medical services, transpor-
tation, communications, public works and engi-
neering, mass care, and resource support in an 
emergency or public service event occurring in 
the jurisdiction of the requesting party; 
∆(B) provide other services to prepare for, 
mitigate, manage, respond to, or recover from an 
emergency or public service event occurring in 
the jurisdiction of the requesting party; and 
∆(C) participate in training events occur-
ring in the jurisdiction of the requesting party. 
∆(b) LIABILITY AND ACTIONS AT LAW.— 
∆(1) LIABILITY.—A responding party or its offi-
cers or employees shall be liable on account of any act 
or omission occurring while providing assistance or
527 
participating in a training event in the jurisdiction 
of a requesting party under a mutual aid agreement 
(including any act or omission arising from the 
maintenance or use of any equipment, facilities, or 
supplies in connection therewith), but only to the ex-
tent permitted under and in accordance with the laws 
and procedures of the State of the responding party 
and subject to this chapter. 
∆(2) JURISDICTION OF COURTS.— 
∆(A) IN
GENERAL.—Subject to subpara-
graph (B) and section 3, any action brought 
against a responding party or its officers or em-
ployees on account of an act or omission de-
scribed in subsection (b)(1) may be brought only 
under the laws and procedures of the State of the 
responding party and only in the State courts or 
United States District Courts located therein. 
∆(B) UNITED
STATES
AS
PARTY.—If the 
United States is the party against whom an ac-
tion described in paragraph (1) is brought, the 
action may be brought only in a United States 
District Court. 
∆(c) WORKERS’ COMPENSATION AND DEATH BENE-
FITS.—
528 
∆(1) PAYMENT
OF
BENEFITS.—A responding 
party shall provide for the payment of workers’ com-
pensation and death benefits with respect to officers 
or employees of the party who sustain injuries or are 
killed while providing assistance or participating in 
a training event under a mutual aid agreement in the 
same manner and on the same terms as if the injury 
or death were sustained within the jurisdiction of the 
responding party. 
∆(2) LIABILITY FOR BENEFITS.—No party shall 
be liable under the law of any State other than its 
own (or, in the case of the Federal Government, under 
any law other than Federal law) for the payment of 
workers’ compensation and death benefits with respect 
to injured officers or employees of the party who sus-
tain injuries or are killed while providing assistance 
or participating in a training event under a mutual 
aid agreement. 
∆(d) LICENSES AND PERMITS.—Whenever any person 
holds a license, certificate, or other permit issued by any 
responding party evidencing the meeting of qualifications 
for professional, mechanical, or other skills, such person will 
be deemed licensed, certified, or permitted by the requesting 
party to provide assistance involving such skill under a mu-
tual aid agreement.
529 
∆(e) SCOPE.—Except to the extent provided in this sec-
tion, the rights and responsibilities of the parties to a mu-
tual aid agreement shall be as described in the mutual aid 
agreement. 
∆(f) EFFECT ON OTHER AGREEMENTS.—Nothing in 
this section precludes any party from entering into supple-
mentary mutual aid agreements with fewer than all the 
parties, or with another, or affects any other agreements 
already in force among any parties to such an agreement, 
including the Emergency Management Assistance Compact 
(EMAC) under Public Law 104–321. 
∆(g) FEDERAL GOVERNMENT.—Nothing in this section 
may be construed to limit any other expressed or implied 
authority of any entity of the Federal Government to enter 
into mutual aid agreements. 
∆(h) CONSISTENCY WITH STATE LAW.—A party may 
enter into a mutual aid agreement under this chapter only 
insofar as the agreement is in accord with State law. 
∆SEC. 5103. LITIGATION MANAGEMENT AGREEMENTS. 
∆(a) AUTHORIZATION TO ENTER INTO LITIGATION 
MANAGEMENT AGREEMENTS.—The authorized representa-
tive of a State or locality may enter into a litigation man-
agement agreement on behalf of the State or locality. Such 
litigation management agreements may provide that all 
claims against such Emergency Response Providers arising
530 
out of, relating to, or resulting from an act of terrorism 
when Emergency Response Providers from more than 1 
State have acted in defense against, in response to, or recov-
ery from such act shall be governed by the following provi-
sions. 
∆(b) FEDERAL CAUSE OF ACTION.— 
∆(1) IN GENERAL.—There shall exist a Federal 
cause of action for claims against Emergency Re-
sponse Providers arising out of, relating to, or result-
ing from an act of terrorism when Emergency Re-
sponse Providers from more than 1 State have acted 
in defense against, in response to, or recovery from 
such act. As determined by the parties to a litigation 
management agreement, the substantive law for deci-
sion in any such action shall be— 
∆(A) derived from the law, including choice 
of law principles, of the State in which such acts 
of terrorism occurred, unless such law is incon-
sistent with or preempted by Federal law; or 
∆(B) derived from the choice of law prin-
ciples agreed to by the parties to a litigation 
management agreement as described in the liti-
gation management agreement, unless such prin-
ciples are inconsistent with or preempted by 
Federal law.
531 
∆(2) JURISDICTION.—Such appropriate district 
court of the United States shall have original and ex-
clusive jurisdiction over all actions for any claim 
against Emergency Response Providers for loss of 
property, personal injury, or death arising out of, re-
lating to, or resulting from an act of terrorism when 
Emergency Response Providers from more than 1 
State have acted in defense against, in response to, or 
recovery from an act of terrorism. 
∆(3) SPECIAL RULES.—In an action brought for 
damages that is governed by a litigation management 
agreement, the following provisions apply: 
∆(A) PUNITIVE
DAMAGES.—No punitive 
damages intended to punish or deter, exemplary 
damages, or other damages not intended to com-
pensate a plaintiff for actual losses may be 
awarded, nor shall any party be liable for inter-
est prior to the judgment. 
∆(B) COLLATERAL
SOURCES.—Any recov-
ery by a plaintiff in an action governed by a 
litigation management agreement shall be re-
duced by the amount of collateral source com-
pensation, if any, that the plaintiff has received 
or is entitled to receive as a result of such acts 
of terrorism.
532 
∆(4) EXCLUSIONS.—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— 
∆(A) attempts to commit, knowingly par-
ticipates in, aids and abets, or commits any act 
of terrorism, or any criminal act related to or 
resulting from such act of terrorism; or 
∆(B) participates in a conspiracy to com-
mit any such act of terrorism or any such crimi-
nal act. 
∆SEC. 5104. ADDITIONAL PROVISIONS. 
∆(a) NO ABROGATION OF OTHER IMMUNITIES.—Noth-
ing in this chapter shall abrogate any other immunities 
from liability that any party may have under any other 
State or Federal law. 
∆(b) EXCEPTION FOR CERTAIN FEDERAL LAW EN-
FORCEMENT ACTIVITIES.—A mutual aid agreement or a 
litigation management agreement may not apply to law en-
forcement security operations at special events of national 
significance under section 3056(e) of title 18, United States 
Code, or to other law enforcement functions of the United 
States Secret Service.
533 
∆(c) SECRET SERVICE.—Section 3056 of title 18, 
United States Code, is amended by adding at the end the 
following new subsection: 
∆‘‘(g) The Secret Service shall be maintained as a dis-
tinct entity within the Department of Homeland Security 
and shall not be merged with any other department func-
tion. All personnel and operational elements of the United 
States Secret Service shall report to the Director of the Se-
cret Service, who shall report directly to the Secretary of 
Homeland Security without being required to report 
through any other official of the Department.’’. 
∆SEC. 5105. DEFINITIONS. 
∆For purposes of this chapter, the following definitions 
apply: 
∆(1) AUTHORIZED REPRESENTATIVE.—The term 
‘‘authorized representative’’ means— 
∆(A) in the case of the Federal Government, 
any individual designated by the President with 
respect to the executive branch, the Chief Justice 
of the United States with respect to the judicial 
branch, or the President pro Tempore of the Sen-
ate and Speaker of the House of Representatives 
with respect to the Congress, or their designees, 
to enter into a mutual aid agreement;
534 
∆(B) in the case of a locality, the official 
designated by law to declare an emergency in 
and for the locality, or the official’s designee; 
and 
∆(C) in the case of a State, the Governor or 
the Governor’s designee. 
∆(2) 
EMERGENCY.—The 
term 
‘‘emergency’’ 
means a major disaster or emergency declared by the 
President, or a State of Emergency declared by an 
authorized representative of a State or locality, in re-
sponse to which assistance may be provided under a 
mutual aid agreement. 
∆(3) EMERGENCY
RESPONSE
PROVIDER.—The 
term ‘‘Emergency Response Provider’’ means State or 
local emergency public safety, law enforcement, emer-
gency response, emergency medical (including hos-
pital emergency facilities), and related personnel, 
agencies, and authorities that are a party to a litiga-
tion management agreement. 
∆(4) EMPLOYEE.—The term ‘‘employee’’ means, 
with respect to a party to a mutual aid agreement, 
the employees of the party, including its agents or au-
thorized volunteers, who are committed to provide as-
sistance under the agreement.
535 
∆(5) LITIGATION
MANAGEMENT
AGREEMENT.— 
The term ‘‘litigation management agreement’’ means 
an agreement entered into pursuant to the authority 
granted under section 5103. 
∆(6) LOCALITY.—The term ‘‘locality’’ means a 
county, city, or town. 
∆(7) MUTUAL AID AGREEMENT.—The term ‘‘mu-
tual aid agreement’’ means an agreement entered into 
pursuant to the authority granted under section 5102. 
∆(8) PUBLIC SERVICE EVENT.—The term ‘‘public 
service event’’ means any undeclared emergency, inci-
dent, or situation in preparation for or response to 
which assistance may be provided under a mutual 
aid agreement. 
∆(9) REQUESTING PARTY.—The term ‘‘requesting 
party’’ means, with respect to a mutual aid agree-
ment, the party in whose jurisdiction assistance is 
provided, or a training event is held, under the agree-
ment. 
∆(10) RESPONDING PARTY.—The term ‘‘respond-
ing party’’ means, with respect to a mutual aid 
agreement, the party providing assistance, or partici-
pating in a training event, under the agreement, but 
does not include the requesting party.
536 
∆(11) STATE.—The term ‘‘State’’ includes each 
of the several States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands, and 
any other territory or possession of the United States, 
and any political subdivision of any such place. 
∆(12) TRAINING
EVENT.—The term ‘‘training 
event’’ means an emergency and public service event- 
related exercise, test, or other activity using equip-
ment and personnel to prepare for or simulate per-
formance of any aspect of the giving or receiving of 
assistance during emergencies or public service events, 
but does not include an actual emergency or public 
service event. 
∆CHAPTER 3—MISCELLANEOUS MATTERS 
∆SEC. 5131. ENHANCEMENT OF PUBLIC SAFETY COMMU-
NICATIONS INTEROPERABILITY. 
∆(a) COORDINATION OF PUBLIC SAFETY INTEROPER-
ABLE COMMUNICATIONS PROGRAMS.— 
∆(1) PROGRAM.—The Secretary of Homeland 
Security, in consultation with the Secretary of Com-
merce and the Chairman of the Federal Communica-
tions Commission, shall establish a program to en-
537 
hance public safety interoperable communications at 
all levels of government. Such program shall— 
∆(A) establish a comprehensive national ap-
proach to achieving public safety interoperable 
communications; 
∆(B) coordinate with other Federal agencies 
in carrying out subparagraph (A); 
∆(C) develop, in consultation with other ap-
propriate Federal agencies and State and local 
authorities, appropriate minimum capabilities 
for communications interoperability for Federal, 
State, and local public safety agencies; 
∆(D) accelerate, in consultation with other 
Federal agencies, including the National Insti-
tute of Standards and Technology, the private 
sector, and nationally recognized standards orga-
nizations as appropriate, the development of na-
tional voluntary consensus standards for public 
safety interoperable communications; 
∆(E) encourage the development and imple-
mentation of flexible and open architectures, 
with appropriate levels of security, for short-term 
and long-term solutions to public safety commu-
nications interoperability;
538 
∆(F) assist other Federal agencies in identi-
fying priorities for research, development, and 
testing and evaluation with regard to public 
safety interoperable communications; 
∆(G) identify priorities within the Depart-
ment of Homeland Security for research, devel-
opment, and testing and evaluation with regard 
to public safety interoperable communications; 
∆(H) establish coordinated guidance for 
Federal grant programs for public safety inter-
operable communications; 
∆(I) provide technical assistance to State 
and local public safety agencies regarding plan-
ning, acquisition strategies, interoperability ar-
chitectures, training, and other functions nec-
essary to achieve public safety communications 
interoperability; 
∆(J) develop and disseminate best practices 
to improve public safety communications inter-
operability; and 
∆(K) 
develop 
appropriate 
performance 
measures and milestones to systematically meas-
ure the Nation’s progress towards achieving pub-
lic safety communications interoperability, in-
539 
cluding the development of national voluntary 
consensus standards. 
∆(2) OFFICE FOR INTEROPERABILITY AND COM-
PATIBILITY.— 
∆(A) ESTABLISHMENT
OF
OFFICE.—The 
Secretary may establish an Office for Interoper-
ability and Compatibility to carry out this sub-
section. 
∆(B) FUNCTIONS.—If the Secretary estab-
lishes such office, the Secretary shall, through 
such office— 
∆(i) carry out Department of Home-
land Security responsibilities and authori-
ties relating to the SAFECOM Program; 
and 
∆(ii) carry out subsection (c) (relating 
to rapid interoperable communications ca-
pabilities for high risk jurisdictions). 
∆(3) APPLICABILITY
OF
FEDERAL
ADVISORY 
COMMITTEE ACT.—The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to advisory 
groups established and maintained by the Secretary 
for purposes of carrying out this subsection. 
∆(b) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary shall report to