893 
tuted itself under a different name or names, or 
merged with another organization. 
‘‘(2) PROCEDURE.—Amendments made to a 
designation in accordance with paragraph (1) shall 
be effective upon publication in the Federal Register. 
Subparagraphs (B) and (C) of subsection (a)(2) 
shall apply to an amended designation upon such 
publication. Paragraphs (2)(A)(i), (4), (5), (6), (7), 
and (8) of subsection (a) shall also apply to an 
amended designation. 
‘‘(3) ADMINISTRATIVE RECORD.—The adminis-
trative record shall be corrected to include the 
amendments as well as any additional relevant infor-
mation that supports those amendments. 
‘‘(4)
CLASSIFIED
INFORMATION.—The
Sec-
retary may consider classified information in amend-
ing a designation in accordance with this subsection. 
Classified information shall not be subject to disclo-
sure for such time as it remains classified, except 
that such information may be disclosed to a court ex 
parte and in camera for purposes of judicial review 
under subsection (c).’’. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
Section 219 of the Immigration and Nationality Act (8 
U.S.C. 1189) is amended—
894 
(1) in subsection (a)— 
(A) in paragraph (3)(B), by striking ‘‘sub-
section (b)’’ and inserting ‘‘subsection (c)’’; 
(B) in paragraph (6)(A)— 
(i) in the matter preceding clause (i), 
by striking ‘‘or a redesignation made under 
paragraph (4)(B)’’ and inserting ‘‘at any 
time, and shall revoke a designation upon 
completion of a review conducted pursuant 
to subparagraphs (B) and (C) of para-
graph (4)’’; and 
(ii) in clause (i), by striking ‘‘or redes-
ignation’’; 
(C) in paragraph (7), by striking ‘‘, or the 
revocation of a redesignation under paragraph 
(6),’’; and 
(D) in paragraph (8)— 
(i) by striking ‘‘, or if a redesignation 
under this subsection has become effective 
under paragraph (4)(B),’’; and 
(ii) by striking ‘‘or redesignation’’; 
and 
(2) in subsection (c), as so redesignated— 
(A) in paragraph (1), by striking ‘‘of the 
designation in the Federal Register,’’ and all
895 
that follows through ‘‘review of the designa-
tion’’ and inserting ‘‘in the Federal Register of 
a designation, an amended designation, or a de-
termination in response to a petition for revoca-
tion, the designated organization may seek judi-
cial review’’; 
(B) in paragraph (2), by inserting ‘‘, 
amended designation, or determination in re-
sponse to a petition for revocation’’ after ‘‘des-
ignation’’; 
(C) in paragraph (3), by inserting ‘‘, 
amended designation, or determination in re-
sponse to a petition for revocation’’ after ‘‘des-
ignation’’; and 
(D) in paragraph (4), by inserting ‘‘, 
amended designation, or determination in re-
sponse to a petition for revocation’’ after ‘‘des-
ignation’’ each place that term appears. 
(d) SAVINGS PROVISION.—For purposes of applying 
section 219 of the Immigration and Nationality Act on 
or after the date of enactment of this Act, the term ‘‘des-
ignation’’, as used in that section, includes all redesigna-
tions made pursuant to section 219(a)(4)(B) of the Immi-
gration and Nationality Act (8 U.S.C. 1189(a)(4)(B)) 
prior to the date of enactment of this Act, and such redes-
896 
ignations shall continue to be effective until revoked as 
provided in paragraph (5) or (6) of section 219(a) of the 
Immigration and Nationality Act (8 U.S.C. 1189(a)). 
SEC. 4052. INCLUSION IN ANNUAL DEPARTMENT OF STATE 
COUNTRY REPORTS ON TERRORISM OF IN-
FORMATION ON TERRORIST GROUPS THAT 
SEEK WEAPONS OF MASS DESTRUCTION AND 
GROUPS THAT HAVE BEEN DESIGNATED AS 
FOREIGN TERRORIST ORGANIZATIONS. 
(a) INCLUSION IN REPORTS.—Section 140 of the 
Foreign Relations Authorization Act, Fiscal Years 1988 
and 1989 (22 U.S.C. 2656f) is amended— 
(1) in subsection (a)(2)— 
(A)
by
inserting
‘‘any
terrorist
group 
known to have obtained or developed, or to have 
attempted to obtain or develop, weapons of 
mass destruction,’’ after ‘‘during the preceding 
five years,’’; and 
(B) by inserting ‘‘any group designated by 
the Secretary as a foreign terrorist organization 
under section 219 of the Immigration and Na-
tionality Act (8 U.S.C. 1189),’’ after ‘‘Export 
Administration Act of 1979,’’; 
(2)
in
subsection
(b)(1)(C)(iii),
by
striking 
‘‘and’’ at the end;
897 
(3) in subsection (b)(1)(C)— 
(A) by redesignating clause (iv) as clause 
(v); and 
(B) by inserting after clause (iii) the fol-
lowing new clause: 
‘‘(iv) providing weapons of mass de-
struction, or assistance in obtaining or de-
veloping such weapons, to terrorists or ter-
rorist groups; and’’; and 
(4) in subsection (b)(3) (as redesignated by sec-
tion 4002(b)(2)(B) of this Act)— 
(A) by redesignating subparagraphs (C), 
(D), and (E) as (D), (E), and (F), respectively; 
and 
(B) by inserting after subparagraph (B) 
the following new subparagraph: 
‘‘(C) efforts by those groups to obtain or 
develop weapons of mass destruction;’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply beginning with the first report 
under section 140 of the Foreign Relations Authorization 
Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f), sub-
mitted more than one year after the date of the enactment 
of this Act.
898 
Subtitle D—Afghanistan Freedom 
Support Act Amendments of 2004 
SEC. 4061. SHORT TITLE. 
This subtitle may be cited as the ‘‘Afghanistan Free-
dom Support Act Amendments of 2004’’. 
SEC. 4062. COORDINATION OF ASSISTANCE FOR AFGHANI-
STAN. 
(a) FINDINGS.—Congress finds that— 
(1) the Final Report of the National Commis-
sion on Terrorist Attacks Upon the United States 
criticized the provision of United States assistance 
to Afghanistan for being too inflexible; and 
(2) the Afghanistan Freedom Support Act of 
2002 (Public Law 107–327; 22 U.S.C. 7501 et seq.) 
contains provisions that provide for flexibility in the 
provision of assistance for Afghanistan and are not 
subject to the requirements of typical foreign assist-
ance programs and provide for the designation of a 
coordinator to oversee United States assistance for 
Afghanistan. 
(b)
DESIGNATION
OF
COORDINATOR.—Section 
104(a) of the Afghanistan Freedom Support Act of 2002 
(22 U.S.C. 7514(a)) is amended in the matter preceding 
paragraph (1) by striking ‘‘is strongly urged to’’ and in-
serting ‘‘shall’’.
899 
(c) OTHER MATTERS.—Section 104 of such Act (22 
U.S.C. 7514) is amended by adding at the end the fol-
lowing: 
‘‘(c) PROGRAM PLAN.—The coordinator designated 
under subsection (a) shall annually submit to the Commit-
tees on International Relations and Appropriations of the 
House of Representatives and the Committees on Foreign 
Relations and Appropriations of the Senate the Adminis-
tration’s plan for assistance to Afghanistan together with 
a description of such assistance in prior years. 
‘‘(d) COORDINATION WITH INTERNATIONAL COMMU-
NITY.—The coordinator designated under subsection (a) 
shall work with the international community, including 
multilateral organizations and international financial in-
stitutions, and the Government of Afghanistan to ensure 
that assistance to Afghanistan is implemented in a coher-
ent, consistent, and efficient manner to prevent duplica-
tion and waste.’’. 
SEC. 4063. GENERAL PROVISIONS RELATING TO THE AF-
GHANISTAN FREEDOM SUPPORT ACT OF 2002. 
(a) ASSISTANCE TO PROMOTE ECONOMIC, POLITICAL 
AND SOCIAL DEVELOPMENT.— 
(1) DECLARATION OF POLICY.—Congress reaf-
firms the authorities contained in title I of the Af-
ghanistan Freedom Support Act of 2002 (22 U.S.C.
900 
7501 et seq.; relating to economic and democratic 
development assistance for Afghanistan). 
(2)
PROVISION
OF
ASSISTANCE.—Section 
103(a) of such Act (22 U.S.C. 7513(a)) is amended 
in the matter preceding paragraph (1) by striking 
‘‘section 512 of Public Law 107–115 or any other 
similar’’ and inserting ‘‘any other’’. 
(b) DECLARATIONS OF POLICY.—Congress makes the 
following declarations: 
(1) The United States reaffirms the support 
that it and other countries expressed for the report 
entitled ‘‘Securing Afghanistan’s Future’’ in their 
Berlin Declaration of April 2004. The United States 
should help enable the growth needed to create an 
economically sustainable Afghanistan capable of the 
poverty reduction and social development foreseen in 
the report. 
(2) The United States supports the parliamen-
tary elections to be held in Afghanistan by April 
2005 and will help ensure that such elections are not 
undermined by warlords or narcotics traffickers. 
(3)(A) The United States continues to urge 
North Atlantic Treaty Organization members and 
other friendly countries to make much greater mili-
901 
tary contributions toward securing the peace in Af-
ghanistan. 
(B) The United States should continue to lead 
in the security domain by, among other things, pro-
viding logistical support to facilitate those contribu-
tions. 
(C) In coordination with the Government of Af-
ghanistan, the United States should urge others, 
and act itself, to increase efforts to promote disar-
mament, demobilization, and reintegration efforts, to 
enhance counternarcotics activities, to expand de-
ployments of Provincial Reconstruction Teams, and 
to increase training of Afghanistan’s National Army 
and its police and border security forces. 
(c) LONG-TERM STRATEGY.— 
(1) STRATEGY.—Title III of such Act (22 
U.S.C. 7551 et seq.) is amended by adding at the 
end the following: 
‘‘SEC. 304 FORMULATION OF LONG-TERM STRATEGY FOR 
AFGHANISTAN. 
‘‘(a) STRATEGY.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of the enactment of the Afghanistan 
Freedom Support Act Amendments of 2004, the 
President shall formulate and transmit to the Com-
902 
mittee on International Relations of the House of 
Representatives and the Committee on Foreign Re-
lations of the Senate a 5-year strategy for Afghani-
stan that includes specific and measurable goals, 
timeframes for accomplishing such goals, and spe-
cific resource levels necessary for accomplishing such 
goals for addressing the long-term development and 
security needs of Afghanistan, including sectors such 
as agriculture and irrigation, parliamentary and 
democratic development, the judicial system and rule 
of
law,
human
rights,
education,
health,
tele-
communications, electricity, women’s rights, counter-
narcotics, police, border security, anti-corruption, 
and other law-enforcement activities. 
‘‘(2) ADDITIONAL
REQUIREMENT.—The strat-
egy shall also delineate responsibilities for achieving 
such goals and identify and address possible external 
factors that could significantly affect the achieve-
ment of such goals. 
‘‘(b) IMPLEMENTATION.—Not later than 30 days 
after the date of the transmission of the strategy required 
by subsection (a), the Secretary of State, the Adminis-
trator of the United States Agency for International De-
velopment, and the Secretary of Defense shall submit to 
the Committee on International Relations of the House
903 
of Representatives and the Committee on Foreign Rela-
tions of the Senate a written 5-year action plan to imple-
ment the strategy developed pursuant to subsection (a). 
Such action plan shall include a description and schedule 
of the program evaluations that will monitor progress to-
ward achieving the goals described in subsection (a). 
‘‘(c) REVIEW.—The Secretary of State, the Adminis-
trator of the United States Agency for International De-
velopment, and the Secretary of Defense shall carry out 
an annual review of the strategy required by subsection 
(a) and the action plan required by subsection (b). 
‘‘(d) MONITORING.—The report required by section 
206(c)(2) of this Act shall include— 
‘‘(1) a description of progress toward implemen-
tation of both the strategy required by subsection 
(a) and the action plan required by subsection (b); 
and 
‘‘(2) a description of any changes to the strat-
egy or action plan since the date of the submission 
of the last report required by such section.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents for such Act (22 U.S.C. 7501 note) is amend-
ed by adding after the item relating to section 303 
the following: 
‘‘Sec. 304. Formulation of long-term strategy for Afghanistan.’’.
904 
SEC. 4064. RULE OF LAW AND RELATED ISSUES. 
Section 103(a)(5)(A) of the Afghanistan Freedom 
Support Act of 2002 (22 U.S.C. 7513(a)(5)(A)) is amend-
ed— 
(1) in clause (v), to read as follows: 
‘‘(v) support for the activities of the 
Government
of
Afghanistan
to
develop 
modern legal codes and court rules, to pro-
vide for the creation of legal assistance 
programs, and other initiatives to promote 
the rule of law in Afghanistan;’’; 
(2) in clause (xii), to read as follows: 
‘‘(xii) support for the effective admin-
istration of justice at the national, re-
gional, and local levels, including programs 
to improve penal institutions and the reha-
bilitation of prisoners, to establish a re-
sponsible
and
community-based
police 
force,
and
to
rehabilitate
or
construct 
courthouses and detention facilities;’’; and 
(3) in clause (xiii), by striking ‘‘and’’ at the 
end; 
(4) in clause (xiv), by striking the period at the 
end and inserting ‘‘; and’’; and 
(5) by adding at the end the following:
905 
‘‘(xv) assistance for the protection of 
Afghanistan’s
culture,
history,
and
na-
tional identity, including with the rehabili-
tation of Afghanistan’s museums and sites 
of cultural significance.’’. 
SEC. 4065. MONITORING OF ASSISTANCE. 
Section 108 of the Afghanistan Freedom Support Act 
of 2002 (22 U.S.C. 7518) is amended by adding at the 
end the following: 
‘‘(c) MONITORING OF ASSISTANCE FOR AFGHANI-
STAN.— 
‘‘(1) REPORT.—Not later than January 15, 
2005, and every six months thereafter, the Secretary 
of State, in consultation with the Administrator for 
the United States Agency for International Develop-
ment, shall submit to the Committee on Inter-
national Relations of the House of Representatives 
and the Committee on Foreign Relations of the Sen-
ate a report on the obligations and expenditures of 
United States assistance for Afghanistan from all 
United States Government agencies. 
‘‘(2) SUBMISSION
OF
INFORMATION
FOR
RE-
PORT.—The head of each United States Government 
agency referred to in paragraph (1) shall provide on 
a timely basis to the Secretary of State such infor-
906 
mation as the Secretary may reasonably require to 
allow the Secretary to prepare and submit the report 
required by such paragraph.’’. 
SEC. 4066. UNITED STATES POLICY TO SUPPORT DISAR-
MAMENT OF PRIVATE MILITIAS AND TO SUP-
PORT
EXPANSION
OF
INTERNATIONAL 
PEACEKEEPING AND SECURITY OPERATIONS 
IN AFGHANISTAN. 
(a) DISARMAMENT OF PRIVATE MILITIAS.—Section 
103 of the Afghanistan Freedom Support Act of 2002 (22 
U.S.C. 7513) is amended by adding at the end the fol-
lowing: 
‘‘(d) UNITED STATES POLICY RELATING TO DISAR-
MAMENT OF PRIVATE MILITIAS.— 
‘‘(1) IN GENERAL.—It shall be the policy of the 
United States to take immediate steps to provide ac-
tive support for the disarmament, demobilization, 
and reintegration of armed soldiers, particularly 
child soldiers, in Afghanistan, in close consultation 
with the President of Afghanistan. 
‘‘(2) REPORT.—The report required by section 
206(c)(2) of this Act shall include a description of 
the progress to implement paragraph (1).’’. 
(b) INTERNATIONAL PEACEKEEPING AND SECURITY 
OPERATIONS.—Section 103 of such Act (22 U.S.C.
907 
7513(d)), as amended by subsection (a), is further amend-
ed by adding at the end the following: 
‘‘(e) UNITED STATES POLICY RELATING TO INTER-
NATIONAL
PEACEKEEPING
AND
SECURITY
OPER-
ATIONS.—It shall be the policy of the United States to 
make every effort to support the expansion of inter-
national peacekeeping and security operations in Afghani-
stan in order to— 
‘‘(1) increase the area in which security is pro-
vided and undertake vital tasks related to promoting 
security, such as disarming warlords, militias, and 
irregulars, and disrupting opium production; and 
‘‘(2) safeguard highways in order to allow the 
free flow of commerce and to allow material assist-
ance to the people of Afghanistan, and aid personnel 
in Afghanistan, to move more freely.’’. 
SEC. 4067. EFFORTS TO EXPAND INTERNATIONAL PEACE-
KEEPING AND SECURITY OPERATIONS IN AF-
GHANISTAN. 
Section 206(d)(1) of the Afghanistan Freedom Sup-
port Act of 2002 (22 U.S.C. 7536(d)(1)) is amended to 
read as follows: 
‘‘(1)
EFFORTS
TO
EXPAND
INTERNATIONAL 
PEACEKEEPING AND SECURITY OPERATIONS IN AF-
GHANISTAN.—
908 
‘‘(A) EFFORTS.—The President shall en-
courage, and, as authorized by law, enable other 
countries to actively participate in expanded 
international peacekeeping and security oper-
ations in Afghanistan, especially through the 
provision of military personnel for extended pe-
riods of time. 
‘‘(B) REPORTS.—The President shall pre-
pare and transmit to the Committee on Inter-
national Relations of the House of Representa-
tives and the Committee on Foreign Relations 
of the Senate a report on efforts carried out 
pursuant to subparagraph (A). The first report 
under this subparagraph shall be transmitted 
not later than 60 days after the date of the en-
actment of the Afghanistan Freedom Support 
Act Amendments of 2004 and subsequent re-
ports shall be transmitted every six months 
thereafter and may be included in the report re-
quired by section 206(c)(2) of this Act.’’. 
SEC. 4068. PROVISIONS RELATING TO COUNTERNARCOTICS 
EFFORTS IN AFGHANISTAN. 
(a)
COUNTERNARCOTICS EFFORTS.—The Afghani-
stan Freedom Support Act of 2002 (22 U.S.C. 7501 et 
seq.) is amended—
909 
(1) by redesignating— 
(A) title III as title IV; and 
(B) sections 301 through 304 as sections 
401 through 404, respectively; and 
(2) by inserting after title II the following: 
‘‘TITLE III—PROVISIONS RELAT-
ING
TO
counternarcotics
EF-
FORTS IN AFGHANISTAN 
‘‘SEC.
301.
ASSISTANCE
FOR
COUNTERNARCOTICS
EF-
FORTS. 
‘‘In addition to programs established pursuant to sec-
tion 103(a)(3) of this Act or other similar programs, the 
President is authorized and encouraged to implement spe-
cific initiatives to assist in the eradication of poppy cul-
tivation and the disruption of heroin production in Af-
ghanistan, such as— 
‘‘(1) promoting alternatives to poppy cultiva-
tion, including the introduction of high value crops 
that are suitable for export and the provision of ap-
propriate technical assistance and credit mechanisms 
for farmers; 
‘‘(2) enhancing the ability of farmers to bring 
legitimate agricultural goods to market; 
‘‘(3) notwithstanding section 660 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2420), as-
910 
sistance, including nonlethal equipment, training (in-
cluding training in internationally recognized stand-
ards of human rights, the rule of law, anti-corrup-
tion, and the promotion of civilian police roles that 
support democracy), and payments, during fiscal 
years 2006 through 2008, for salaries for special 
counternarcotics police and supporting units; 
‘‘(4) training the Afghan National Army in 
counternarcotics activities; and 
‘‘(5) creating special counternarcotics courts, 
prosecutors, and places of incarceration.’’. 
(b) CLERICAL AMENDMENTS.—The table of contents 
for such Act (22 U.S.C. 7501 note) is amended— 
(1) by redesignating— 
(A) the item relating to title III as the 
item relating to title IV; and 
(B) the items relating to sections 301 
through 304 as the items relating to sections 
401 through 404; and 
(2) by inserting after the items relating to title 
II the following: 
‘‘TITLE III—PROVISIONS RELATING TO COUNTERNARCOTICS 
EFFORTS IN AFGHANISTAN 
‘‘Sec. 301. Assistance for counternarcotics efforts.’’.
911 
SEC. 4069. ADDITIONAL AMENDMENTS TO THE AFGHANI-
STAN FREEDOM SUPPORT ACT OF 2002. 
(a)
TECHNICAL
AMENDMENT.—Section 
103(a)(7)(A)(xii) of the Afghanistan Freedom Support 
Act of 2002 (22 U.S.C. 7513(a)(7)(A)(xii)) is amended 
by striking ‘‘National’’ and inserting ‘‘Afghan Inde-
pendent’’. 
(b) REPORTING REQUIREMENT.—Section 206(c)(2) 
of such Act (22 U.S.C. 7536(c)(2)) is amended in the mat-
ter preceding subparagraph (A) by striking ‘‘2007’’ and 
inserting ‘‘2012’’. 
SEC. 4070. REPEAL. 
Section 620D of the Foreign Assistance Act of 1961 
(22 U.S.C. 2374; relating to prohibition on assistance to 
Afghanistan) is hereby repealed. 
Subtitle E—Provisions Relating to 
Saudi Arabia and Pakistan 
SEC. 4081. NEW UNITED STATES STRATEGY FOR RELATION-
SHIP WITH SAUDI ARABIA. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the relationship between the United States and 
Saudi Arabia should include a more robust dialogue be-
tween the people and Government of the United States 
and the people and Government of Saudi Arabia in order 
to provide for a reevaluation of, and improvements to, the 
relationship by both sides.
912 
(b) REPORT.— 
(1) IN GENERAL.— Not later than one year 
after the date of the enactment of this Act, the 
President shall transmit to the Committee on Inter-
national Relations of the House of Representatives 
and the Committee on Foreign Relations of the Sen-
ate a strategy for collaboration with the people and 
Government of Saudi Arabia on subjects of mutual 
interest and importance to the United States. 
(2) CONTENTS.—The strategy required under 
paragraph (1) shall include the following provisions: 
(A) A framework for security cooperation 
in the fight against terrorism, with special ref-
erence to combating terrorist financing and an 
examination of the origins of modern terrorism. 
(B) A framework for political and eco-
nomic reform in Saudi Arabia and throughout 
the Middle East. 
(C) An examination of steps that should be 
taken to reverse the trend toward extremism in 
Saudi Arabia and other Muslim countries and 
throughout the Middle East. 
(D) A framework for promoting greater 
tolerance and respect for cultural and religious
913 
diversity in Saudi Arabia and throughout the 
Middle East. 
SEC. 4082. UNITED STATES COMMITMENT TO THE FUTURE 
OF PAKISTAN. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the United States should, over a long-term pe-
riod, help to ensure a promising, stable, and secure future 
for Pakistan, and should in particular provide assistance 
to encourage and enable Pakistan— 
(1) to continue and improve upon its commit-
ment to combating extremists; 
(2) to seek to resolve any outstanding difficul-
ties with its neighbors and other countries in its re-
gion; 
(3) to continue to make efforts to fully control 
its territory and borders; 
(4) to progress towards becoming a more effec-
tive and participatory democracy; 
(5) to participate more vigorously in the global 
marketplace and to continue to modernize its econ-
omy; 
(6) to take all necessary steps to halt the 
spread of weapons of mass destruction; 
(7) to continue to reform its education system; 
and
914 
(8) to, in other ways, implement a general 
strategy of moderation. 
(b) STRATEGY.—Not later than 180 days after the 
date of the enactment of this Act, the President shall 
transmit to Congress a detailed proposed strategy for the 
future, long-term, engagement of the United States with 
Pakistan. 
SEC. 4083. EXTENSION OF PAKISTAN WAIVERS. 
The Act entitled ‘‘An Act to authorize the President 
to exercise waivers of foreign assistance restrictions with 
respect to Pakistan through September 30, 2003, and for 
other purposes’’, approved October 27, 2001 (Public Law 
107–57; 115 Stat. 403), as amended by section 2213 of 
the Emergency Supplemental Appropriations Act for De-
fense and for the Reconstruction of Iraq and Afghanistan, 
2004 (Public Law 108–106; 117 Stat. 1232), is further 
amended— 
(1) in section 1(b)— 
(A) in the heading, by striking ‘‘FISCAL 
YEAR 2004’’ and inserting ‘‘FISCAL YEARS 
2005 AND 2006’’; and 
(B) in paragraph (1), by striking ‘‘2004’’ 
and inserting ‘‘2005 or 2006’’; 
(2) in section 3(2), by striking ‘‘and 2004,’’ 
and inserting ‘‘2004, 2005, and 2006’’; and
915 
(3) in section 6, by striking ‘‘2004’’ and insert-
ing ‘‘2006’’. 
Subtitle F—Oversight Provisions 
SEC. 4091. CASE-ZABLOCKI ACT REQUIREMENTS. 
(a)
AVAILABILITY
OF
TREATIES
AND
INTER-
NATIONAL AGREEMENTS.—Section 112a of title 1, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(d) The Secretary of State shall cause to be pub-
lished in slip form or otherwise made publicly available 
through the Internet website of the Department of State 
each treaty or international agreement proposed to be 
published in the compilation entitled ‘United States Trea-
ties and Other International Agreements’ not later than 
180 days after the date on which the treaty or agreement 
enters into force.’’. 
(b) TRANSMISSION TO CONGRESS.—Section 112b(a) 
of title 1, United States Code (commonly referred to as 
the ‘‘Case-Zablocki Act’’), is amended— 
(1) in the first sentence, by striking ‘‘has en-
tered into force’’ and inserting ‘‘has been signed or 
entered into force’’; and 
(2) in the second sentence, by striking ‘‘Com-
mittee on Foreign Affairs’’ and inserting ‘‘Com-
mittee on International Relations’’.
916 
(c) REPORT.—Section 112b of title 1, United States 
Code, is amended— 
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by inserting after subsection (c) the fol-
lowing: 
‘‘(d)(1) The Secretary of State shall submit to Con-
gress on an annual basis a report that contains an index 
of all international agreements (including oral agree-
ments), listed by country, date, title, and summary of each 
such agreement (including a description of the duration 
of activities under the agreement and the agreement 
itself), that the United States— 
‘‘(A) has signed, proclaimed, or with reference 
to which any other final formality has been executed, 
or that has been extended or otherwise modified, 
during the preceding calendar year; and 
‘‘(B) has not been published, or is not proposed 
to be published, in the compilation entitled ‘United 
States
Treaties
and
Other
International
Agree-
ments’. 
‘‘(2) The report described in paragraph (1) may be 
submitted in classified form.’’.
917 
(d) DETERMINATION
OF INTERNATIONAL AGREE-
MENT.—Subsection (e) of section 112b of title 1, United 
States Code, (as redesignated) is amended— 
(1) by striking ‘‘(e) The Secretary of State’’ 
and inserting ‘‘(e)(1) Subject to paragraph (2), the 
Secretary of State’’; and 
(2) by adding at the end the following: 
‘‘(2)(A) An arrangement shall constitute an inter-
national agreement within the meaning of this section 
(other than subsection (c) of this section) irrespective of 
the duration of activities under the arrangement or the 
arrangement itself. 
‘‘(B) Arrangements that constitute an international 
agreement within the meaning of this section (other than 
subsection (c) of this section) include, but are not limited 
to, the following: 
‘‘(i) A bilateral or multilateral counterterrorism 
agreement. 
‘‘(ii) A bilateral agreement with a country that 
is
subject
to
a
determination
under
section 
6(j)(1)(A) of the Export Administration Act of 1979 
(50 U.S.C. App. 2405(j)(1)(A)), section 620A(a) of 
the Foreign Assistance Act of 1961 (22 U.S.C. 
2371(a)), or section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)).’’.
918 
(e)
ENFORCEMENT
OF
REQUIREMENTS.—Section 
139(b) of the Foreign Relations Authorization Act, Fiscal 
Years 1988 and 1989 is amended to read as follows: 
‘‘(b) EFFECTIVE DATE.—Subsection (a) shall take 
effect 60 days after the date of the enactment of the 9/ 
11 Recommendations Implementation Act and shall apply 
during fiscal years 2005, 2006, and 2007.’’. 
Subtitle G—Additional Protections 
of United States Aviation Sys-
tem from Terrorist Attacks 
SEC. 4101. INTERNATIONAL AGREEMENTS TO ALLOW MAX-
IMUM
DEPLOYMENT
OF
FEDERAL
FLIGHT 
DECK OFFICERS. 
The President is encouraged to pursue aggressively 
international agreements with foreign governments to 
allow the maximum deployment of Federal air marshals 
and Federal flight deck officers on international flights. 
SEC. 4102. FEDERAL AIR MARSHAL TRAINING. 
Section 44917 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(d) TRAINING FOR FOREIGN LAW ENFORCEMENT 
PERSONNEL.— 
‘‘(1) IN GENERAL.—The Assistant Secretary for 
Immigration and Customs Enforcement of the De-
partment of Homeland Security, after consultation
919 
with the Secretary of State, may direct the Federal 
Air Marshal Service to provide appropriate air mar-
shal training to law enforcement personnel of foreign 
countries. 
‘‘(2)
WATCHLIST
SCREENING.—The
Federal 
Air Marshal Service may only provide appropriate 
air marshal training to law enforcement personnel of 
foreign countries after comparing the identifying in-
formation and records of law enforcement personnel 
of foreign countries against appropriate records in 
the consolidated and integrated terrorist watchlists 
of the Federal Government. 
‘‘(3) FEES.—The Assistant Secretary shall es-
tablish reasonable fees and charges to pay expenses 
incurred in carrying out this subsection. Funds col-
lected under this subsection shall be credited to the 
account in the Treasury from which the expenses 
were incurred and shall be available to the Assistant 
Secretary for purposes for which amounts in such 
account are available.’’. 
SEC.
4103.
MAN-PORTABLE
AIR
DEFENSE
SYSTEMS 
(MANPADS). 
(a) UNITED STATES POLICY ON NONPROLIFERATION 
AND EXPORT CONTROL.—
920 
(1) TO LIMIT AVAILABILITY AND TRANSFER OF 
MANPADS.—The President shall pursue, on an ur-
gent basis, further strong international diplomatic 
and cooperative efforts, including bilateral and mul-
tilateral treaties, in the appropriate forum to limit 
the
availability,
transfer,
and
proliferation
of 
MANPADSs worldwide. 
(2)
TO
LIMIT
THE
PROLIFERATION
OF 
MANPADS.—The President is encouraged to seek to 
enter into agreements with the governments of for-
eign countries that, at a minimum, would— 
(A) prohibit the entry into force of a 
MANPADS manufacturing license agreement 
and MANPADS co-production agreement, other 
than the entry into force of a manufacturing li-
cense or co-production agreement with a coun-
try that is party to such an agreement; 
(B) prohibit, except pursuant to transfers 
between
governments,
the
export
of
a 
MANPADS, including any component, part, ac-
cessory, or attachment thereof, without an indi-
vidual validated license; and 
(C) prohibit the reexport or retransfer of a 
MANPADS, including any component, part, ac-
cessory, or attachment thereof, to a third per-
921 
son, organization, or government unless the 
written consent of the government that ap-
proved the original export or transfer is first 
obtained. 
(3) TO ACHIEVE DESTRUCTION OF MANPADS.— 
The President should continue to pursue further 
strong international diplomatic and cooperative ef-
forts, including bilateral and multilateral treaties, in 
the appropriate forum to assure the destruction of 
excess, obsolete, and illicit stocks of MANPADSs 
worldwide. 
(4)
REPORTING
AND
BRIEFING
REQUIRE-
MENT.— 
(A)
PRESIDENT’S
REPORT.—Not
later 
than 180 days after the date of enactment of 
this Act, the President shall transmit to the ap-
propriate congressional committees a report 
that contains a detailed description of the sta-
tus of diplomatic efforts under paragraphs (1), 
(2), and (3) and of efforts by the appropriate 
United States agencies to comply with the rec-
ommendations of the General Accounting Office 
set forth in its report GAO–04–519, entitled 
‘‘Nonproliferation:
Further
Improvements
922 
Needed in U.S. Efforts to Counter Threats 
from Man-Portable Air Defense Systems’’. 
(B) ANNUAL BRIEFINGS.—Annually after 
the date of submission of the report under sub-
paragraph (A) and until completion of the dip-
lomatic and compliance efforts referred to in 
subparagraph (A), the Secretary of State shall 
brief the appropriate congressional committees 
on the status of such efforts. 
(b) FAA AIRWORTHINESS CERTIFICATION OF MIS-
SILE DEFENSE SYSTEMS FOR COMMERCIAL AIRCRAFT.— 
(1) IN GENERAL.—As soon as practicable, but 
not later than the date of completion of Phase II of 
the Department of Homeland Security’s counter- 
man-portable air defense system (MANPADS) devel-
opment and demonstration program, the Adminis-
trator of the Federal Aviation Administration shall 
establish a process for conducting airworthiness and 
safety certification of missile defense systems for 
commercial aircraft certified as effective and func-
tional by the Department of Homeland Security. 
The process shall require a certification by the Ad-
ministrator that such systems can be safely inte-
grated into aircraft systems and ensure airworthi-
ness and aircraft system integrity.
923 
(2) CERTIFICATION ACCEPTANCE.—Under the 
process, the Administrator shall accept the certifi-
cation of the Department of Homeland Security that 
a missile defense system is effective and functional 
to defend commercial aircraft against MANPADSs. 
(3) EXPEDITIOUS CERTIFICATION.—Under the 
process, the Administrator shall expedite the air-
worthiness and safety certification of missile defense 
systems for commercial aircraft certified by the De-
partment of Homeland Security. 
(4) REPORTS.—Not later than 90 days after 
the first airworthiness and safety certification for a 
missile defense system for commercial aircraft is 
issued by the Administrator, and annually thereafter 
until December 31, 2008, the Federal Aviation Ad-
ministration shall transmit to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report 
that contains a detailed description of each air-
worthiness and safety certification issued for a mis-
sile defense system for commercial aircraft. 
(c) PROGRAMS TO REDUCE MANPADS.— 
(1) IN GENERAL.—The President is encouraged 
to pursue strong programs to reduce the number of
924 
MANPADSs worldwide so that fewer MANPADSs 
will be available for trade, proliferation, and sale. 
(2)
REPORTING
AND
BRIEFING
REQUIRE-
MENTS.—Not later than 180 days after the date of 
enactment of this Act, the President shall transmit 
to the appropriate congressional committees a report 
that contains a detailed description of the status of 
the programs being pursued under subsection (a). 
Annually thereafter until the programs are no longer 
needed, the Secretary of State shall brief the appro-
priate congressional committees on the status of pro-
grams. 
(3) FUNDING.—There are authorized to be ap-
propriated such sums as may be necessary to carry 
out this section. 
(d) MANPADS VULNERABILITY ASSESSMENTS RE-
PORT.— 
(1) IN
GENERAL.—Not later than one year 
after the date of enactment of this Act, the Sec-
retary of Homeland Security shall transmit to the 
Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Sen-
ate a report describing the Department of Homeland 
Security’s plans to secure airports and the aircraft
925 
arriving
and
departing
from
airports
against 
MANPADSs attacks. 
(2) MATTERS TO BE ADDRESSED.—The Sec-
retary’s report shall address, at a minimum, the fol-
lowing: 
(A) The status of the Department’s efforts 
to conduct MANPADSs vulnerability assess-
ments at United States airports at which the 
Department is conducting assessments. 
(B) How intelligence is shared between the 
United States intelligence agencies and Federal, 
State, and local law enforcement to address the 
MANPADS threat and potential ways to im-
prove such intelligence sharing. 
(C) Contingency plans that the Depart-
ment has developed in the event that it receives 
intelligence
indicating
a
high
threat
of
a 
MANPADS
attack
on
aircraft
at
or
near 
United States airports. 
(D) The feasibility and effectiveness of im-
plementing public education and neighborhood 
watch programs in areas surrounding United 
States airports in cases in which intelligence re-
ports
indicate
there
is
a
high
risk
of 
MANPADS attacks on aircraft.
926 
(E) Any other issues that the Secretary 
deems relevant. 
(3) FORMAT.—The report required by this sub-
section may be submitted in a classified format. 
(e) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1)
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Armed Services, the 
Committee on International Relations, and the 
Committee on Transportation and Infrastruc-
ture of the House of Representatives; and 
(B) the Committee on Armed Services, the 
Committee on Foreign Relations, and the Com-
mittee on Commerce, Science, and Transpor-
tation of the Senate. 
(2)
MANPADS.—The
term
‘‘MANPADS’’ 
means— 
(A) a surface-to-air missile system de-
signed to be man-portable and carried and fired 
by a single individual; and 
(B) any other surface-to-air missile system 
designed to be operated and fired by more than
927 
one individual acting as a crew and portable by 
several individuals. 
Subtitle
H—Improving
Inter-
national
Standards
and
Co-
operation to Fight Terrorist Fi-
nancing 
SEC. 4111. SENSE OF THE CONGRESS REGARDING SUCCESS 
IN MULTILATERAL ORGANIZATIONS. 
(a) COMMENDATION.—The Congress commends the 
Secretary of the Treasury for success and leadership in 
establishing international standards for fighting terrorist 
finance through multilateral organizations, including the 
Financial Action Task Force (FATF) at the Organization 
for Economic Cooperation and Development, the Inter-
national Monetary Fund, the International Bank for Re-
construction and Development, and the regional multilat-
eral development banks. 
(b) POLICY GUIDANCE.—The Congress encourages 
the Secretary of the Treasury to direct the United States 
Executive Director at each international financial institu-
tion to use the voice and vote of the United States to urge 
the institution, and encourages the Secretary of the Treas-
ury to use the voice and vote of the United States in other 
multilateral financial policymaking bodies, to—
928 
(1) provide funding for the implementation of 
FATF anti-money laundering and anti-terrorist fi-
nancing standards; and 
(2) promote economic development in the Mid-
dle East. 
SEC. 4112. EXPANDED REPORTING REQUIREMENT FOR THE 
SECRETARY OF THE TREASURY. 
(a) IN GENERAL.—Section 1701(b) of the Inter-
national Financial Institutions Act (22 U.S.C. 262r(b)) is 
amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(10); and 
(2) by redesignating paragraph (11) as para-
graph (12) and inserting after paragraph (10) the 
following: 
‘‘(11) an assessment of— 
‘‘(A) the progress made by the Inter-
national Terrorist Finance Coordinating Coun-
cil in developing policies to be pursued with the 
international financial institutions and other 
multilateral financial policymaking bodies re-
garding anti-terrorist financing initiatives; 
‘‘(B) the progress made by the United 
States in negotiations with the international fi-
nancial institutions and other multilateral fi-
929 
nancial policymaking bodies to set common 
anti-terrorist financing standards; 
‘‘(C) the extent to which the international 
financial institutions and other multilateral fi-
nancial policymaking bodies have adopted anti- 
terrorist financing standards advocated by the 
United States; and 
‘‘(D) whether and how the international fi-
nancial institutions are contributing to the fight 
against the financing of terrorist activities; 
and’’. 
(b) OTHER MULTILATERAL POLICYMAKING BODIES 
DEFINED.—Section 1701(c) of such Act (22 U.S.C. 
262r(c)) is amended by adding at the end the following: 
‘‘(5) OTHER
MULTILATERAL
FINANCIAL
POL-
ICYMAKING BODIES.—The term ‘other multilateral 
financial policymaking bodies’ means— 
‘‘(A) the Financial Action Task Force at 
the Organization for Economic Cooperation and 
Development; 
‘‘(B) the international network of financial 
intelligence
units
known
as
the
‘Egmont 
Group’; 
‘‘(C)
the
United
States,
Canada,
the 
United
Kingdom,
France,
Germany,
Italy,
930 
Japan, and Russia, when meeting as the Group 
of Eight; and 
‘‘(D) any other multilateral financial pol-
icymaking group in which the Secretary of the 
Treasury represents the United States.’’. 
SEC. 4113. INTERNATIONAL TERRORIST FINANCE COORDI-
NATING COUNCIL. 
(a) ESTABLISHMENT.—The Secretary of the Treas-
ury shall establish and convene an interagency council, to 
be known as the ‘‘International Terrorist Finance Coordi-
nating Council’’ (in this section referred to as the ‘‘Coun-
cil’’), which shall advise the Secretary on policies to be 
pursued by the United States at meetings of the inter-
national financial institutions and other multilateral finan-
cial policymaking bodies, regarding the development of 
international anti-terrorist financing standards. 
(b) MEETINGS.— 
(1) ATTENDEES.— 
(A)
GENERAL
ATTENDEES.—The
Sec-
retary of the Treasury (or a representative of 
the Secretary of the Treasury) and the Sec-
retary of State (or a representative of the Sec-
retary of State) shall attend each Council meet-
ing.
931 
(B) OTHER
ATTENDEES.—The Secretary 
of the Treasury shall determine which other of-
ficers of the Federal Government shall attend a 
Council meeting, on the basis of the issues to 
be raised for consideration at the meeting. The 
Secretary shall include in the meeting rep-
resentatives from all relevant Federal agencies 
with authority to address the issues. 
(2) SCHEDULE.—Not less frequently than an-
nually, the Secretary of the Treasury shall convene 
Council meetings at such times as the Secretary 
deems appropriate, based on the notice, schedule, 
and agenda items of the international financial insti-
tutions and other multilateral financial policymaking 
bodies. 
SEC. 4114. DEFINITIONS. 
In this subtitle: 
(1)
INTERNATIONAL
FINANCIAL
INSTITU-
TIONS.—The term ‘‘international financial institu-
tions’’ has the meaning given in section 1701(c)(2) 
of the International Financial Institutions Act. 
(2) OTHER MULTILATERAL FINANCIAL POLICY-
MAKING BODIES.—The term ‘‘other multilateral fi-
nancial policymaking bodies’’ means—
932 
(A) the Financial Action Task Force at the 
Organization for Economic Cooperation and 
Development; 
(B) the international network of financial 
intelligence
units
known
as
the
‘‘Egmont 
Group’’; 
(C) the United States, Canada, the United 
Kingdom, France, Germany, Italy, Japan, and 
Russia, when meeting as the Group of Eight; 
and 
(D) any other multilateral financial policy-
making group in which the Secretary of the 
Treasury represents the United States. 
TITLE V—GOVERNMENT 
RESTRUCTURING 
Subtitle A—Faster and Smarter 
Funding for First Responders 
SEC. 5001. SHORT TITLE. 
This subtitle may be cited as the ‘‘Faster and Smart-
er Funding for First Responders Act of 2004’’. 
SEC. 5002. FINDINGS. 
The Congress finds the following: 
(1) In order to achieve its objective of mini-
mizing the damage, and assisting in the recovery, 
from terrorist attacks, the Department of Homeland
933 
Security must play a leading role in assisting com-
munities to reach the level of preparedness they need 
to respond to a terrorist attack. 
(2) First responder funding is not reaching the 
men and women of our Nation’s first response teams 
quickly enough, and sometimes not at all. 
(3) To reform the current bureaucratic process 
so that homeland security dollars reach the first re-
sponders who need it most, it is necessary to clarify 
and consolidate the authority and procedures of the 
Department of Homeland Security that support first 
responders. 
(4) Ensuring adequate resources for the new 
national mission of homeland security, without de-
grading the ability to address effectively other types 
of major disasters and emergencies, requires a dis-
crete and separate grant making process for home-
land security funds for first response to terrorist 
acts, on the one hand, and for first responder pro-
grams designed to meet pre-September 11 priorities, 
on the other. 
(5) While a discrete homeland security grant 
making process is necessary to ensure proper focus 
on the unique aspects of terrorism prevention, pre-
paredness, and response, it is essential that State
934 
and local strategies for utilizing such grants be inte-
grated, to the greatest extent practicable, with exist-
ing State and local emergency management plans. 
(6) Homeland security grants to first respond-
ers must be based on the best intelligence con-
cerning the capabilities and intentions of our ter-
rorist enemies, and that intelligence must be used to 
target resources to the Nation’s greatest threats, 
vulnerabilities, and consequences. 
(7) The Nation’s first response capabilities will 
be improved by sharing resources, training, plan-
ning, personnel, and equipment among neighboring 
jurisdictions through mutual aid agreements and re-
gional cooperation. Such regional cooperation should 
be supported, where appropriate, through direct 
grants from the Department of Homeland Security. 
(8) An essential prerequisite to achieving the 
Nation’s homeland security objectives for first re-
sponders is the establishment of well-defined na-
tional goals for terrorism preparedness. These goals 
should delineate the essential capabilities that every 
jurisdiction in the United States should possess or 
to which it should have access. 
(9) A national determination of essential capa-
bilities is needed to identify levels of State and local
935 
government terrorism preparedness, to determine 
the nature and extent of State and local first re-
sponder needs, to identify the human and financial 
resources required to fulfill them, and to direct fund-
ing to meet those needs and to measure prepared-
ness 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 
efforts 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 
National Security and the States of New Jersey and 
Georgia, can be useful to identify and coordinate pri-
vate sector support for State and local first respond-
936 
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 
amended— 
(1) in section 1(b) in the table of contents by 
adding at the end the following: 
‘‘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.
937 
‘‘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 
section 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 
consortium 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 In-
dian Self-Determination and Education Assist-
ance Act (25 U.S.C. 458bb(c)); 
‘‘(B) employs at least 10 full-time per-
sonnel in a law enforcement or emergency re-
sponse agency with the capacity to respond to
938 
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 security 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-
ing that term has under section 602 of the Robert
939 
T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5195a). 
‘‘(6) ESSENTIAL CAPABILITIES.—The term ‘es-
sential capabilities’ means the levels, availability, 
and competence of emergency personnel, planning, 
training, and equipment across a variety of dis-
ciplines needed to effectively and efficiently prevent, 
prepare for, and respond to acts of terrorism con-
sistent 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 
Native Claims Settlement Act (43 U.S.C. 1601 et 
seq.), which is recognized as eligible for the special 
programs 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, coun-
ties, municipalities, or other local governments
940 
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 rep-
resented by 1 or more governments or govern-
mental agencies within such geographic area, 
and that is established by law or by agreement 
of 2 or more such governments 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 encom-
pass.
941 
‘‘(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 RE-
SPONDERS. 
‘‘(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.
942 
‘‘(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 
programs 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 Emer-
gency Management Performance Grant program and 
the Urban Search and Rescue Grants program au-
thorized by title VI of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.); the Departments of Veterans 
Affairs and Housing and Urban Development, and 
Independent
Agencies
Appropriations
Act,
2000 
(113 Stat. 1047 et seq.); and the Earthquake Haz-
ards Reduction Act of 1977 (42 U.S.C. 7701 et 
seq.).
943 
‘‘SEC. 1803. ESSENTIAL CAPABILITIES FOR FIRST RESPOND-
ERS. 
‘‘(a)
ESTABLISHMENT
OF
ESSENTIAL
CAPABILI-
TIES.— 
‘‘(1) IN
GENERAL.—For purposes of covered 
grants, the Secretary shall establish clearly defined 
essential capabilities for State and local government 
preparedness for terrorism, in consultation with— 
‘‘(A) the Task Force on Essential Capabili-
ties for First Responders established under sec-
tion 1804; 
‘‘(B) the Under Secretaries for Emergency 
Preparedness and Response, Border and Trans-
portation Security, Information Analysis and 
Infrastructure
Protection,
and
Science
and 
Technology, and the Director of the Office for 
Domestic 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 
relevant to the first responder community. 
‘‘(2) DEADLINES.—The Secretary shall—
944 
‘‘(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 
description 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 
appropriate to local governments within their juris-
dictions. 
‘‘(b) OBJECTIVES.—The Secretary shall ensure that 
essential capabilities established under subsection (a)(1) 
meet the following objectives: 
‘‘(1) SPECIFICITY.—The determination of es-
sential capabilities specifically shall describe the 
training, planning, personnel, and equipment that 
different types of communities in the Nation should 
possess, or to which they should have access, in 
order to meet the Department’s goals for terrorism 
preparedness based upon—
945 
‘‘(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 coordination 
and mutual aid among State and local govern-
ments. 
‘‘(2) FLEXIBILITY.—The establishment of es-
sential capabilities shall be sufficiently flexible to 
allow State and local government officials to set pri-
orities based on particular needs, while reaching na-
tionally determined terrorism preparedness levels 
within a specified time period. 
‘‘(3) MEASURABILITY.—The establishment of 
essential capabilities shall be designed to enable 
measurement of progress towards specific terrorism 
preparedness goals. 
‘‘(4)
COMPREHENSIVENESS.—The
determina-
tion of essential capabilities for terrorism prepared-
ness shall be made within the context of a com-
prehensive State emergency management system.
946 
‘‘(c) FACTORS TO BE CONSIDERED.— 
‘‘(1) IN GENERAL.—In establishing essential ca-
pabilities under subsection (a)(1), the Secretary spe-
cifically shall consider the variables of threat, vulner-
ability, 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 
current risk assessment available by the Directorate 
for Information Analysis and Infrastructure Protec-
tion 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.
947 
‘‘(J) Public health. 
‘‘(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 construed 
as an order of priority for consideration of the im-
portance 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 
paragraph (2), and to populations in all areas of the 
Nation, 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.
948 
The order in which the types of threat are listed 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-
949 
ommendations for essential capabilities for prepared-
ness for terrorism. 
‘‘(2) CONTENTS.—The report shall— 
‘‘(A) include a priority ranking of essential 
capabilities in order to provide guidance to the 
Secretary and to the Congress on determining 
the appropriate allocation of, and funding 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 re-
sponder training and equipment; 
‘‘(D) include such additional matters as 
the Secretary may specify in order to further 
the terrorism preparedness capabilities of first 
responders; and 
‘‘(E) include such revisions to the contents 
of past reports as are necessary to take into ac-
950 
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 
extent feasible, consistent with any preparedness 
goals or recommendations of the Federal working 
group established under section 319F(a) of the Pub-
lic 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.—
951 
‘‘(1) IN GENERAL.—The Task Force shall con-
sist of 25 members appointed by the Secretary, and 
shall, to the extent practicable, represent a geo-
graphic and substantive cross section of govern-
mental and nongovernmental first responder dis-
ciplines 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
re-
sponse); 
‘‘(B) health scientists, emergency and in-
patient medical providers, and public health 
professionals, including experts in emergency 
health care response to chemical, biological, ra-
diological, 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,
rep-
resenting standards-setting organizations, in-
cluding representation from the voluntary con-
952 
sensus codes and standards development com-
munity, particularly those with expertise in first 
responder disciplines; and 
‘‘(D) State and local officials with exper-
tise in terrorism preparedness, subject to the 
condition that if any such official is an elected 
official representing one of the two major polit-
ical 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 selec-
tion of members of the Task Force who are health 
professionals, including emergency medical profes-
sionals, 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 designated officer of the Federal Government for 
purposes of subsection (e) of section 10 of the Fed-
eral Advisory Committee Act (5 App. U.S.C.).
953 
‘‘(d) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—Notwithstanding section 871(a), the Fed-
eral Advisory Committee Act (5 U.S.C. App.), including 
subsections (a), (b), and (d) of section 10 of such Act, 
and section 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 Sec-
retary for a covered grant must submit to the Sec-
retary 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;
954 
‘‘(B) demonstrates the needs of the State 
necessary to achieve, maintain, or enhance the 
essential capabilities that apply to the State; 
‘‘(C) includes a prioritization of such needs 
based on threat, vulnerability, and consequence 
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 es-
tablished for the purpose of organizing 
homeland 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;
955 
‘‘(E) is developed in consultation with and 
subject to appropriate comment by local govern-
ments within the State; and 
‘‘(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
Sec-
retary may not award any covered grant to a State 
unless the Secretary has approved the applicable 
State homeland 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 
manner, 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 di-
rectly eligible tribe may apply for a covered grant by 
submitting to the Secretary an application at such 
time, in such manner, and containing such informa-
tion as is required under this subsection, or as the 
Secretary may reasonably require.
956 
‘‘(2)
DEADLINES
FOR
APPLICATIONS
AND 
AWARDS.—All applications for covered grants must 
be submitted at such time as the Secretary may rea-
sonably require for the fiscal year for which they are 
submitted. The Secretary shall award covered grants 
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 prepared-
ness 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-
957 
cluding,
where
applicable,
the
amount
not 
passed through under section 1806(g)(1), would 
assist in fulfilling the essential capabilities spec-
ified in such plan or plans; 
‘‘(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 description 
of the region and a specification of all par-
ticipating and nonparticipating local gov-
ernments
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 
covered grant; and 
‘‘(iii) a designation of a specific indi-
vidual to serve as regional liaison;
958 
‘‘(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 
‘‘(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 dupli-
cation with such State application; and 
‘‘(iii) shall address the unique regional 
aspects of such region’s terrorism pre-
paredness 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-
959 
cant that is a region must submit its applica-
tion 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 
Secretary. The regional application shall be 
transmitted 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 in-
consistent with the State’s homeland security 
plan and provides 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 submit-
ting the applicable regional application under 
subparagraph (B), and each such State shall, 
not later than the end of the 45-day period be-
ginning on the date after receiving a regional 
award, pass through to the region all covered 
grant funds or resources purchased with such 
funds, except those funds necessary for the 
State to carry out its responsibilities with re-
spect to such regional application; Provided
960 
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 
subparagraph (C) shall certify to the Secretary, 
by not later than 30 days after the expiration 
of the period described in subparagraph (C) 
with respect to the grant, that the State has 
made available to the region the required funds 
and resources 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 re-
gion may petition the Secretary to receive di-
rectly the portion of the regional award that is 
required to be passed through to such region 
under subparagraph (C).
961 
‘‘(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, 
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 officials 
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 sub-
962 
mission to the Department along with the appli-
cation of such State or States. 
‘‘(B)
OPPORTUNITY
FOR
STATE
COM-
MENT.—Before awarding any covered grant to 
a directly eligible tribe, the Secretary shall pro-
vide an opportunity to each State within the 
boundaries of which any part of such tribe is lo-
cated to comment to the Secretary on the con-
sistency of the tribe’s application with the 
State’s homeland security plan. Any such com-
ments shall be submitted to the Secretary con-
currently 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 secu-
rity plan or plans, and to approve any applica-
tion 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 application by such tribe. 
‘‘(D) TRIBAL
LIAISON.—A tribal liaison 
designated under paragraph (4)(G) shall—
963 
‘‘(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 officials, 
covered grants awarded to such tribe. 
‘‘(E) LIMITATION ON THE NUMBER OF DI-
RECT GRANTS.—The Secretary may make cov-
ered grants directly to not more than 20 di-
rectly 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 
comply with section 1806(g)(1), the tribe may
964 
request 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 ap-
plicable national voluntary consensus standards es-
tablished by the Secretary under section 1807(a), 
the applicant shall include in the application an ex-
planation of why such equipment or systems will 
serve the needs of the applicant better than equip-
ment or systems that meet or exceed such standards. 
‘‘(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
965 
‘‘(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— 
‘‘(i)
shall
evaluate
and
annually 
prioritize all pending applications for cov-
ered grants based upon the degree to 
which they would, by achieving, maintain-
ing, or enhancing the essential capabilities 
of the applicants on a nationwide basis, 
lessen the threat to, vulnerability of, and 
consequences for persons and critical infra-
structure; and 
‘‘(ii) in evaluating the threat to per-
sons and critical infrastructure for pur-
poses of prioritizing covered grants, shall 
give greater weight to threats of terrorism
966 
based on their specificity and credibility, 
including 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 imple-
menting its homeland security plan in ac-
cordance 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
967 
purposes of implementing its homeland se-
curity
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 
‘‘(iv) directly eligible tribes collectively 
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 secu-
rity 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
968 
from
such
tribes
under
subsection 
(e)(6)(A) or does not approve at least one 
such application. 
‘‘(C) ADDITIONAL HIGH-RISK QUALIFYING 
CRITERIA.—For
purposes
of
subparagraph 
(B)(ii), additional high-risk qualifying criteria 
consist of— 
‘‘(i) having a significant international 
land border; or 
‘‘(ii) adjoining a body of water within 
North America through which an inter-
national boundary line extends. 
‘‘(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.
969 
‘‘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 
preparedness 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; 
‘‘(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 de-
sign, product and technology evaluation, and proto-
type development for terrorism preparedness and re-
sponse 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
970 
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 clas-
sified information; 
‘‘(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
971 
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 ele-
mentary and secondary schools in developing and 
implementing programs to instruct students regard-
ing age-appropriate skills to prepare for and respond 
to an act of terrorism; 
‘‘(13) paying of administrative expenses directly 
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 determined 
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;
972 
‘‘(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 emer-
gencies and disasters unrelated to acts of terrorism, if 
such use assists such governments in achieving essential 
capabilities for terrorism preparedness established by the 
Secretary under section 1803. 
‘‘(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 
compensated for travel to or participation in training cov-
ered by this section. Any such reimbursement shall not 
be considered 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, regions, and localities, unless the Secretary under-
973 
takes to pay the costs directly attributable to transporting 
and operating such equipment during such response. 
‘‘(f) FLEXIBILITY IN UNSPENT HOMELAND SECU-
RITY 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 deter-
mines that such transfer is in the interests of homeland 
security. 
‘‘(g) STATE, REGIONAL, AND TRIBAL RESPONSIBIL-
ITIES.— 
‘‘(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 se-
curity plan or plans specified in the application for 
the grant, not less than 80 percent of the grant 
funds, resources 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 begin-
ning on the date the grant recipient receives the 
grant funds.
974 
‘‘(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 
covered grant awarded before the end of the 2- 
year period beginning on the date of the enact-
ment of this section shall be 100 percent. 
‘‘(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
975 
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 
fiscal quarter, submits to the Secretary a report on 
that fiscal quarter. Each such report must include, 
for each recipient of a covered grant or a pass- 
through under paragraph (1)— 
‘‘(A) the amount obligated to that recipient 
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
SECU-
RITY 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
976 
must simultaneously submit its report to each State 
of which any part is included in the region. Each re-
cipient 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 located. 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 com-
pliance with paragraph (1) or pursuant to mu-
tual aid agreements or other sharing arrange-
ments that apply within the State, region, or di-
rectly 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 expend-
977 
iture 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 para-
graph (5) is provided to the Under Secretary for 
Emergency Preparedness and Response and the Di-
rector 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 cov-
ered grant that is a State fails to pass through to 
local governments, first responders, and other local 
groups funds or resources required by subsection
978 
(g)(1) within 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— 
‘‘(i) prohibiting use of such funds to 
pay
the
grant
recipient’s
grant-related 
overtime 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
979 
(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 
extend
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 extend such period for additional 
15-day periods, if the Secretary determines that the 
resulting delay in providing grant funding to the 
local government entities that will receive funding 
under the grant will not have a significant detri-
mental impact on such entities’ terrorism prepared-
ness 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
980 
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— 
‘‘(i) it is identified explicitly as an ul-
timate 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 
period within which the funds or resources
981 
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. 
‘‘(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
982 
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 
result 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 section 1803(a). 
‘‘SEC. 1807. NATIONAL STANDARDS FOR FIRST RESPONDER 
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 Tech-
nology and the Director of the Office for Domestic 
Preparedness, shall, not later than 6 months after 
the date of enactment of this section, support the 
development of, promulgate, and update as nec-
essary national voluntary consensus standards for
983 
the performance, use, and validation of first re-
sponder
equipment
for
purposes
of
section 
1805(e)(7). Such standards— 
‘‘(A) shall be, to the maximum extent prac-
ticable, consistent with any existing voluntary 
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. 
‘‘(2) REQUIRED CATEGORIES.—In carrying out 
paragraph (1), the Secretary shall specifically con-
sider the following categories of first responder 
equipment: 
‘‘(A) Thermal imaging equipment. 
‘‘(B)
Radiation
detection
and
analysis 
equipment. 
‘‘(C)
Biological
detection
and
analysis 
equipment.
984 
‘‘(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. 
‘‘(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 Tech-
nology and the Director of the Office for Domestic 
Preparedness, shall support the development of, pro-
mulgate, and regularly update as necessary national
985 
voluntary consensus standards for first responder 
training carried out with amounts provided under 
covered grant programs, that will enable State and 
local government first responders to achieve optimal 
levels of terrorism preparedness as quickly as prac-
ticable. Such standards shall give priority to pro-
viding training to— 
‘‘(A) enable first responders to prevent, 
prepare for, respond to, and mitigate terrorist 
threats, including threats from chemical, bio-
logical, nuclear, and radiological weapons and 
explosive devices capable of inflicting significant 
human casualties; and 
‘‘(B) familiarize first responders with the 
proper use of equipment, including software, 
developed pursuant to the standards established 
under subsection (a). 
‘‘(2) REQUIRED CATEGORIES.—In carrying out 
paragraph (1), the Secretary specifically shall in-
clude the following categories of first responder ac-
tivities: 
‘‘(A) Regional planning. 
‘‘(B) Joint exercises. 
‘‘(C) Intelligence collection, analysis, and 
sharing.
986 
‘‘(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 this section, the Secretary shall consult with rel-
evant 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;
987 
‘‘(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 Asso-
ciation; 
‘‘(12) the Emergency Management Accredita-
tion Program; and 
‘‘(13) to the extent the Secretary considers ap-
propriate, other national voluntary consensus stand-
ards
development
organizations,
other
interested 
Federal, State, and local agencies, and other inter-
ested persons. 
‘‘(d) COORDINATION WITH SECRETARY OF HHS.— 
In establishing any national voluntary consensus stand-
ards under this section for first responder equipment or 
training that involve or relate to health professionals, in-
cluding emergency medical professionals, the Secretary
988 
shall coordinate activities under this section with the Sec-
retary of Health and Human Services.’’. 
(b) DEFINITION OF EMERGENCY RESPONSE PRO-
VIDERS.—Paragraph (6) of section 2 of the Homeland Se-
curity 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 enforcement, fire, emergency response, emer-
gency medical (including hospital emergency facilities), 
and related personnel, organizations, agencies, and au-
thorities.’’. 
(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: 
(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 
applicants,’’. 
(2) 2-YEAR DELAY IN APPLICATION.—The fol-
lowing provisions of title XVIII of the Homeland Se-
989 
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 fol-
lowing: 
‘‘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. 
‘‘(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 economic sector-specific warnings issued during the 
preceding fiscal year under the Homeland Security Advi-
sory System referred to in section 201(d)(7), and the
990 
bases for such warnings. The report shall be submitted 
in unclassified form and may, as necessary, include a clas-
sified 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 
striking ‘‘and’’ after the semicolon at the end of paragraph 
(6), by striking the period at the end of paragraph (7) 
and inserting ‘‘; and’’, and by adding at the end the fol-
lowing: 
‘‘(8) coordinating industry efforts, with respect 
to functions of the Department of Homeland Secu-
rity, to identify private sector resources and capabili-
ties that could be effective in supplementing Federal, 
State, and local government agency efforts to pre-
vent or respond to a terrorist attack.’’. 
SEC. 5006. SUPERSEDED PROVISION. 
This subtitle supersedes section 1014 of Public Law 
107–56.
991 
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 
Congress that interoperable emergency communications 
systems and radios should continue to be deployed as soon 
as practicable for use by the first responder community, 
and that upgraded and new digital communications sys-
tems and new digital radios must meet prevailing national, 
voluntary 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 terrorism preparedness by coordinating multiple Citizen 
Corps programs, developing community action plans, as-
sessing possible threats, and identifying local resources. 
(b) SENSE OF CONGRESS.—It is the sense of the 
Congress that individual Citizen Corps councils should
992 
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 or-
ganizations 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 regarding 
appropriate measures that may be undertaken to al-
leviate or minimize threats to their safety and wel-
fare posed by such events. 
(b) TECHNOLOGIES TO CONSIDER.—In conducting 
the study, the Secretary shall consider the use of the tele-
phone, wireless communications, and other existing com-
munications networks to provide such notification.
993 
(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 
Response and the Office for State and Local Government 
Coordination and Preparedness. 
Subtitle B—Government 
Reorganization Authority 
SEC. 5021. AUTHORIZATION OF INTELLIGENCE COMMUNITY 
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;’’. 
(b) REPEAL OF LIMITATIONS.—Section 905 of title 
5, United States Code, is amended to read as follows:
994 
‘‘§ 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 Agen-
cy. 
‘‘(6) The National Reconnaissance Office. 
‘‘(7) Other offices within the Department of 
Defense for the collection of specialized national in-
telligence 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. 
‘‘(11) The elements of the Department of 
Homeland Security concerned with the analysis of
995 
intelligence information, including the Office of In-
telligence 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: 
‘‘§ 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.—
996 
(1) TABLE OF SECTIONS.—The table of sections 
for chapter 9 of title 5, United States Code, is 
amended 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 ‘‘Government Operations’’ each 
place it appears and inserting ‘‘Government Re-
form’’. 
(3) DATE MODIFICATION.—Section 909 of title 
5, United States Code, is amended in the first sen-
tence by striking ‘‘19’’ and inserting ‘‘20’’. 
Subtitle C—Restructuring Relating 
to the Department of Homeland 
Security
and
Congressional 
Oversight 
SEC. 5025. RESPONSIBILITIES OF COUNTERNARCOTICS OF-
FICE. 
(a) AMENDMENT.—Section 878 of the Homeland Se-
curity Act of 2002 (6 U.S.C. 458) is amended to read 
as follows:
997 
‘‘SEC.
878.
OFFICE
OF
COUNTERNARCOTICS
ENFORCE-
MENT. 
‘‘(a) OFFICE.—There shall be in the Department an 
Office of counternarcotics Enforcement, which shall be 
headed 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 
section. 
‘‘(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 
counternarcotics Enforcement. 
‘‘(c) LIMITATION ON CONCURRENT EMPLOYMENT.— 
Except as provided in subsection (d), the Director of the 
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 ap-
998 
pointed 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 appointed. 
‘‘(e) RESPONSIBILITIES.—The Secretary shall direct 
the Director of the Office of counternarcotics Enforce-
ment— 
‘‘(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 re-
spect 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 De-
partment 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
999 
enforcement 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 expendi-
tures for the Department, submit to the Committees 
on Appropriations and the authorizing committees of 
jurisdiction of the House of Representatives and the 
Senate a review and evaluation of such request. The 
review and evaluation shall— 
‘‘(A) identify any request or subpart of any 
request that affects or may affect the counter-
narcotics activities of the Department or any of 
its subdivisions, or that affects the ability of the 
Department or any subdivision of the Depart-
ment 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
1000 
‘‘(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 Feb-
ruary 1 of each year, submit to the Committees on 
Appropriations and the authorizing committees of 
jurisdiction of the House of Representatives and the 
Senate a review and evaluation of the counter-
narcotics activities of the Department for the pre-
vious 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 
collecting,
analyzing,
sharing,
and
dissemi-
nating information concerning narcotics activity 
within the Department and between the De-
partment and other Federal, State, and local 
agencies;
1001 
‘‘(B) describe the results of those activi-
ties, 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 
other Federal, State, or local agency, shall be pre-
sented to Congress separately from the rest of the 
review and evaluation.’’.
1002 
(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 counter-
narcotics Enforcement.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Of the 
amounts appropriated for the Department of Homeland 
Security 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 
Security Act of 2002 (as amended by this section). 
SEC. 5026. USE OF COUNTERNARCOTICS ENFORCEMENT 
ACTIVITIES
IN
CERTAIN
EMPLOYEE
PER-
FORMANCE 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:
1003 
‘‘SEC. 843. USE OF COUNTERNARCOTICS ENFORCEMENT 
ACTIVITIES
IN
CERTAIN
EMPLOYEE
PER-
FORMANCE 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 
performance measures, including— 
‘‘(1) the contribution of that employee to sei-
zures of narcotics and arrests of violators of Fed-
eral, State, or local narcotics laws; and 
‘‘(2) the degree to which that employee cooper-
ated with or contributed to the efforts of other em-
ployees, either within the Department or other Fed-
eral, State, or local agencies, in counternarcotics en-
forcement. 
‘‘(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 Of-
1004 
fice of National Drug Control Policy Reauthor-
ization 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 
inserting after the item relating to section 842 the fol-
lowing: 
‘‘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—
1005 
(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 oper-
ation 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 
implementation of the rules of the House, including 
the rule governing committee jurisdiction, with re-
spect to the issue of homeland security and to make 
their recommendations 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 
Administration, the Coast Guard, and other entities 
within the Department of Homeland Security to help 
address the integration of the Department of Home-
land Security’s 22 legacy agencies; and 
(4) during the 108th Congress, the House of 
Representatives has taken several steps to help en-
sure its continuity in the event of a terrorist attack, 
including—
1006 
(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 al-
ternate 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 Of-
fice of Speaker (including physical inability of 
the Speaker to discharge his duties) until the 
election of a Speaker or a Speaker pro tempore, 
exercising 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 sub-
ject to the call of the Chair when notified of an 
imminent threat to the safety of the House;
1007 
(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 recon-
vening or to reconvene before the time pre-
viously appointed 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 Se-
lect Committee on Homeland Security, and other commit-
tees of existing jurisdiction, regarding the jurisdiction over 
proposed legislation, messages, petitions, memorials and 
other matters relating to homeland security prior to or at 
the start of the 109th Congress.
1008 
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 ‘‘security,’’ 
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’’.
1009 
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 
security 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 con-
cerned 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
1010 
which Senate confirmation is required by law, and the Di-
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 
publication of the list required by section (b), and notwith-
standing any other provision of law, the advice and con-
sent of the Senate shall not be required, but rather such 
appointment 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 confirmation vote occurring in the Senate, such appoint-
ment shall be made by the President alone. 
(3) For the purposes of this subsection, the term 
‘‘legislative day’’ means a day on which the Senate is in 
session.
1011 
SEC. 5042. PRESIDENTIAL INAUGURAL TRANSITIONS. 
Subsections (a) and (b) of section 3349a of title 5, 
United States Code, are amended to read as follows: 
‘‘(a) As used in this section— 
‘‘(1) the term ‘inauguration day’ means the 
date on which any person swears or affirms the oath 
of office as President; and 
‘‘(2) the term ‘specified national security posi-
tion’ shall mean not more than 20 positions requir-
ing Senate confirmation, not to include more than 3 
heads of Executive Departments, which are des-
ignated by the President on or after an inauguration 
day as positions for which the duties involve sub-
stantial responsibility for national security. 
‘‘(b) With respect to any vacancy that exists during 
the 60-day period beginning on an inauguration day, ex-
cept where the person swearing or affirming the oath of 
office was the President on the date preceding the date 
of swearing or affirming such oath of office, the 210-day 
period under section 3346 or 3348 shall be deemed to 
begin on the later of the date occurring— 
‘‘(1) 90 days after such transitional inaugura-
tion day; or 
‘‘(2) 90 days after the date on which the va-
cancy occurs.
1012 
‘‘(c) With respect to any vacancy in any specified na-
tional security position that exists during the 60-day pe-
riod beginning on an inauguration day, the requirements 
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
1013 
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 
than the date of the first hearing to consider the nomina-
tion of such individual, make current the report filed pur-
suant to this paragraph by filing the information required 
by section 302(a)(1)(A) with respect to income and hono-
raria received as of the date which occurs 5 days before 
the date of such hearing. Nothing in this Act shall prevent 
any congressional committee from requesting, as a condi-
tion of confirmation, 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 
paragraph. 
‘‘(c) Any individual who is an officer or employee de-
scribed 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 con-
taining the information described in section 302(a).
1014 
‘‘(d) Any individual who occupies a position described 
in subsection (e) shall, on or before the 30th day after 
termination of employment in such position, file a report 
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 por-
tion 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 employed in or under— 
‘‘(1) the Office of the National Intelligence Di-
rector; or 
‘‘(2) an element of the intelligence community, 
as defined in section 3(4) of the National Security 
Act of 1947 (50 U.S.C. 401a(4)). 
‘‘(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 exten-
sions 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
1015 
President by Executive order as a combat zone for pur-
poses of section 112 of the Internal Revenue Code of 
1986, the date for the filing of any report shall be ex-
tended 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 dis-
ease 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 
reporting requirement under this title with respect to an 
individual if the Director determines that— 
‘‘(1) such individual is not a full-time employee 
of the Government; 
‘‘(2) such individual is able to provide special 
services needed by the Government; 
‘‘(3) it is unlikely that such individual’s outside 
employment or financial interests will create a con-
flict of interest; and 
‘‘(4) public financial disclosure by such indi-
vidual is not necessary in the circumstances.
1016 
‘‘(h)(1) The Director of the Office of Government 
Ethics may establish procedures under which an incoming 
individual can take actions to avoid conflicts of interest 
while in office if the individual has holdings or other finan-
cial interests that raise conflict concerns. 
‘‘(2) The actions referenced in paragraph (1) may in-
clude, but are not limited to, signed agreements with the 
individual’s employing agency, the establishment of blind 
trusts, or requirements for divesting interests or holdings 
while in office. 
‘‘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 value of income (other than income referred to in 
subparagraph (B)) from any source (other than 
from current employment by the United States Gov-
ernment), received during the preceding calendar 
year, aggregating more than $500 in value, except 
that honoraria received during Government service 
by an officer or employee shall include, in addition 
to the source, the exact amount and the date it was 
received.
1017 
‘‘(B) The source and description of investment 
income which may include but is not limited to divi-
dends, rents, interest, and capital gains, received 
during the preceding calendar year which exceeds 
$500 in amount or value. 
‘‘(C) The categories for reporting the amount 
for 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 
than a relative of the reporting individual during the 
preceding calendar year, except that any food, lodg-
ing, or entertainment received as personal hospitality
1018 
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 received during the preceding calendar year. 
‘‘(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 
preceding calendar year, excluding any personal li-
ability owed to the reporting individual by a spouse, 
or by a parent, brother, sister, or child of the report-
ing individual or of the reporting individual’s spouse, 
or any deposit accounts aggregating $100,000 or 
less in a financial institution, or any Federal Gov-
ernment securities aggregating $100,000 or less.
1019 
‘‘(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 
reporting 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. Not-
withstanding the preceding sentence, individuals re-
quired to file pursuant to section 301(b) shall also 
report the aggregate sum of the outstanding bal-
ances of all revolving charge accounts as of any date 
that is within 30 days of the date of filing if the ag-
gregate sum of those balances exceeds $20,000. 
‘‘(5) Except as provided in this paragraph, a 
brief description of any real property, other than
1020 
property used solely as a personal residence of the 
reporting individual or his spouse, or 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 already 
required to be reported as a source of income 
pursuant to paragraph (1)(B) or as an asset 
pursuant to paragraph (3). 
‘‘(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 
positions held in any religious, social, fraternal, or
1021 
political entity and positions solely of an honorary 
nature. 
‘‘(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 ex-
cess of $25,000 in the calendar year in which, or the 
calendar 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. 
The preceding sentence shall not require any individual 
to include in such report any information which is consid-
ered confidential as a result of a privileged relationship, 
established by law, between such individual and any per-
son or any information which the person for whom the 
services are provided has a reasonable expectation of pri-
vacy, nor shall it require an individual to report any infor-
mation with respect to any person for whom services were 
provided by any firm or association of which such indi-
vidual was a member, partner, or employee unless such
1022 
individual was directly involved in the provision of such 
services. 
‘‘(7) A description of parties to and terms of 
any agreement or arrangement with respect to (A) 
future employment; (B) a leave of absence during 
the period of the reporting individual’s Government 
service; (C) continuation of payments by a former 
employer other than the United States Government; 
and (D) continuing participation in an employee wel-
fare or benefit plan maintained by a former em-
ployer. The description of any formal agreement for 
future employment shall include the date on which 
that agreement was entered into. 
‘‘(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
1023 
‘‘(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 Di-
rector of the Office of Government Ethics for a reporting 
individual. 
‘‘(B) In lieu of indicating the category of amount or 
value of any item contained in any report filed under this 
title, a reporting individual may indicate the exact dollar 
amount of such item. 
‘‘(c)(1) In the case of any individual referred to in 
section 301(c), the Office of Government Ethics may by 
regulation require a reporting period to include any period 
in which the individual served as an officer or employee 
described in section 301(e) and the period would not oth-
erwise be covered by any public report filed pursuant to 
this title. 
‘‘(2) In the case of any individual referred to in sec-
tion 301(d), any reference to the preceding calendar year 
shall be considered also to include that part of the cal-
1024 
endar 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 
$100,000; 
‘‘(C) greater than $100,000 but not more than 
$1,000,000; 
‘‘(D) greater than $1,000,000 but not more 
than $2,500,000; and 
‘‘(E) 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 
property, or (B) the assessed value of the real property 
for tax 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 individual shall include in his report a full and 
complete description of the method used to determine such 
assessed value, instead of specifying a category of value
1025 
pursuant to paragraph (1). If the current value of any 
other item required to be reported under subsection (a)(3) 
is not ascertainable without an appraisal, such individual 
may list the book value of a corporation whose stock is 
not publicly traded, the net worth of a business partner-
ship, the equity value of an individually owned business, 
or with respect to other holdings, any recognized indica-
tion of value, but such individual shall include in his report 
a full and complete description of the method used in de-
termining 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 sub-
section (a) are— 
‘‘(A) greater than $20,000 but not more than 
$100,000; 
‘‘(B) greater than $100,000 but not more than 
$500,000;
1026 
‘‘(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 informa-
tion 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 
transportation, lodging, food, or entertainment and 
a brief description and the value of other gifts.
1027 
‘‘(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 indi-
vidual, the identity of the source and a brief descrip-
tion of each such reimbursement. 
‘‘(E) In the case of items described in para-
graphs (3) through (5) of subsection (a), all infor-
mation required to be reported under these para-
graphs other than items which the reporting indi-
vidual certifies (i) represent the spouse’s or depend-
ent 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) that 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 indi-
vidual, only contain information listed in paragraphs 
(1), (3), and (4) of subsection (a). 
‘‘(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
1028 
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 re-
porting 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 re-
ceived by, or with respect to which a beneficial interest 
in principal 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 
‘‘(ii) the holdings or sources of income of 
which such individual, his spouse, and any de-
pendent child have no knowledge; or
1029 
‘‘(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 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 associated 
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 
not a partner of, or involved in any joint ven-
ture or other investment with, any interested 
party; and
1030 
‘‘(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 associated 
with any interested party so that such officer or 
employee cannot be controlled or influenced in 
the administration of the trust by any inter-
ested party; 
‘‘(II) is not a partner of, or involved in any 
joint venture or other investment with, any in-
terested 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 re-
spect to its transfer or sale unless such restriction 
is expressly approved by the Office of Government 
Ethics. 
‘‘(C) The trust instrument which establishes the 
trust provides that— 
‘‘(i) except to the extent provided in sub-
paragraph (B), the trustee in the exercise of his 
authority and discretion to manage and control
1031 
the assets of the trust shall not consult or no-
tify 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 par-
ticular asset transferred to the trust by any in-
terested party are disposed of or when the value 
of such holding is less than $1,000; 
‘‘(iv) the trust tax return shall be prepared 
by the trustee or his designee, and such return 
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 in-
come of the trust, except a report at the end of 
each calendar quarter with respect to the total 
cash 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 in-
1032 
terested party to complete an individual tax re-
turn required by law or to provide the informa-
tion required by subsection (a)(1) of this sec-
tion, 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 communica-
tion between the trustee and an interested 
party with respect to the trust unless such com-
munication is in writing and unless it relates 
only (I) to the general 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 subse-
quently applicable to the reporting individual 
which prohibits the interested party from hold-
ing an asset, which notification directs that the 
asset not be held by the trust, or (III) to direc-
tions to the trustee to sell all of an asset ini-
tially placed in the trust by an interested party 
which in the determination of the reporting in-
dividual creates a conflict of interest or the ap-
1033 
pearance thereof due to the subsequent assump-
tion of duties by the reporting individual (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 Gov-
ernment Ethics. 
‘‘(E) For purposes of this subsection, ‘inter-
ested
party’
means
a
reporting
individual,
his 
spouse, and any minor or dependent child; ‘broker’ 
has the meaning set forth in section 3(a)(4) of the 
Securities and Exchange Act of 1934 (15 U.S.C. 
78c(a)(4)); and ‘investment adviser’ includes any in-
vestment adviser who, as determined under regula-
tions prescribed by the supervising ethics office, is 
generally involved in his role as such an adviser in 
the management or control of trusts. 
‘‘(4)(A) An asset placed in a trust by an interested 
party shall be considered a financial interest of the report-
1034 
ing individual, for the purposes of any applicable conflict 
of interest statutes, regulations, or rules of the Federal 
Government (including section 208 of title 18, United 
States Code), until such time as the reporting individual 
is notified 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 
well-diversified portfolio of readily marketable securi-
ties; 
‘‘(II) none of the assets consist of securities of 
entities having substantial activities in the area of 
the reporting individual’s primary area of responsi-
bility; 
‘‘(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 
(3)(C)(v), to prepare on behalf of any interested
1035 
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 
requirements 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 tes-
tamentary disposition of the trust assets), and
1036 
‘‘(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 Gov-
ernment Ethics of the identity of each such asset and the 
category of value of each asset as determined under sub-
section (d) of this section. 
‘‘(C) Within 30 days of the dissolution of a qualified 
blind trust, a reporting individual shall notify the Office 
of Government Ethics of such dissolution. 
‘‘(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 man-
ner as a report is made available under section 305 and 
the 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
1037 
of Government Ethics within 5 days of the date of the 
communication. 
‘‘(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) ac-
quire any holding the ownership of which is prohibited by 
the trust instrument; (iii) solicit advice from any inter-
ested party with respect to such trust, which solicitation 
is prohibited 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 
paragraph (3)(C) or (ii) fail to file any document required 
by this subsection. 
‘‘(C)(i) The Attorney General may bring a civil action 
in any appropriate United States district court against 
any individual who knowingly and willfully violates 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 $10,000. 
‘‘(ii) The Attorney General may bring a civil action 
in any appropriate United States district court against
1038 
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 $5,000. 
‘‘(7) Any trust may be considered to be a qualified 
blind trust if— 
‘‘(A) the trust instrument is amended to comply 
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 
individual, and any other interested party agree in 
writing that the trust shall be administered in ac-
cordance with the requirements of this subsection 
and the trustee 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; 
‘‘(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 sub-
section (d), are filed with such office and made
1039 
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 ar-
rangement as a qualified blind trust is in the par-
ticular 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. 
‘‘(9)(A)(i) A reporting individual described in sub-
section (a) or (b) of section 301 shall not be required to 
report the holdings or sources of income of any trust or 
investment fund where— 
‘‘(I) reporting would result in the disclosure of 
assets or sources of income of another person whose
1040 
interests are not required to be reported by the re-
porting individual under this title; 
‘‘(II) the disclosure of such assets and sources 
of income is prohibited by contract or the assets and 
sources of income are not otherwise publicly avail-
able; and 
‘‘(III) the reporting individual has executed a 
written ethics agreement which contains a general 
description of the trust or investment fund and a 
commitment to divest the interest in the trust or in-
vestment fund not later than 90 days after the date 
of the agreement. 
‘‘(ii) An agreement described under clause (i)(III) 
shall be attached to the public financial disclosure which 
would otherwise include a listing of the holdings or sources 
of income from this trust or investment fund. 
‘‘(B)(i) The provisions of subparagraph (A) shall 
apply to an individual described in subsection (c) or (d) 
of section 301 if— 
‘‘(I) the interest in the trust or investment fund 
is acquired involuntarily during the period to be cov-
ered by the report, such as through marriage or in-
heritance, and 
‘‘(II) for an individual described in subsection 
(c), the individual executes a written ethics agree-
1041 
ment containing a commitment to divest the interest 
no later than 90 days after the date on which the 
report is due. 
‘‘(ii) An agreement described under clause (i)(II) 
shall be attached to the public financial disclosure which 
would otherwise include a listing of the holdings or sources 
of income from this trust or investment fund. 
‘‘(iii) Failure to divest within the time specified or 
after an extension granted by the Director of the Office 
of Government Ethics for good cause shown shall result 
in an immediate requirement to report as specified in 
paragraph (1). 
‘‘(g) Political campaign funds, including campaign re-
ceipts 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 offi-
cer 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—
1042 
‘‘(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 
President, or for members of the uniformed 
services; or 
‘‘(2) benefits received under the Social Security 
Act (42 U.S.C. 301 et seq.). 
‘‘(j)(1) Every month, each designated agency ethics 
officer shall submit to the Office of Government Ethics 
notification of any waiver of criminal conflict of interest 
laws granted to any individual in the preceding month 
with respect to a filing under this title that is not confiden-
tial. 
‘‘(2) Every month, the Office of Government Ethics 
shall make publicly available on the Internet— 
‘‘(A)
all
notifications
of
waivers
submitted 
under paragraph (1) in the preceding month; and 
‘‘(B) notification of all waivers granted by the 
Office
of
Government
Ethics
in
the
preceding 
month.
1043 
‘‘(k) A full copy of any waiver of criminal conflict 
of interest laws granted shall be included with any filing 
required under this title with respect to the year in which 
the waiver is granted. 
‘‘(l) The Office of Government Ethics shall provide 
upon request any waiver on file for which notice has been 
published. 
‘‘SEC. 303. FILING OF REPORTS. 
‘‘(a) Except as otherwise provided in this section, the 
reports required under this title shall be filed by the re-
porting individual with the designated agency ethics offi-
cial at the agency by which he is employed (or in the case 
of an individual described in section 301(d), was em-
ployed) or in which he will serve. The date any report is 
received (and the date of receipt of any supplemental re-
port) shall be noted on such report by such official. 
‘‘(b) Reports required to be filed under this title by 
the Director of the Office of Government Ethics shall be 
filed in the Office of Government Ethics and, immediately 
after being filed, shall be made available to the public in 
accordance with this title. 
‘‘(c) Reports required of members of the uniformed 
services shall be filed with the Secretary concerned.
1044 
‘‘(d) The Office of Government Ethics shall develop 
and make available forms for reporting the information 
required by this title. 
‘‘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 $10,000. 
‘‘(b) The head of each agency, each Secretary con-
cerned, or the Director of the Office of Government Eth-
ics, as the case may be, shall refer to the Attorney General 
the name of any individual which such official has reason-
able cause to believe has willfully failed to file a report 
or has willfully falsified or willfully failed to file informa-
tion required to be reported. 
‘‘(c) The President, the Vice President, the Secretary 
concerned, or the head of each agency may take any ap-
propriate personnel or other action in accordance with ap-
plicable law or regulation against any individual failing to 
file a report or falsifying or failing to report information 
required to be reported.
1045 
‘‘(d)(1) Any individual who files a report required to 
be filed under this title more than 30 days after the later 
of— 
‘‘(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 direct the payment of a filing fee may be dele-
gated 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 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 un-
less needed in an ongoing investigation, except that in the
1046 
case of an individual who filed the report pursuant to sec-
tion 301(b) and was not subsequently 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 Direc-
tor 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 subsection 
(a), the Director of the Office of Government Ethics, the 
Secretary concerned, or the designated agency ethics offi-
cial, as the case may be, is of the opinion that on the basis 
of information contained in such report the individual sub-
mitting such report is in compliance with applicable laws 
and regulations, he shall state such opinion on the report, 
and shall sign such report. 
‘‘(2) If the Director of the Office of Government Eth-
ics, the Secretary concerned, or the designated agency eth-
ics official after reviewing any report under subsection 
(a)—
1047 
‘‘(A) believes additional information is required 
to be submitted to complete the form or to perform 
a conflict of interest analysis, he shall notify the in-
dividual submitting such report what additional in-
formation 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 consider-
ation of such response, reach an opinion as to 
whether or not, on the basis of information sub-
mitted, the individual is in compliance with such 
laws and regulations. 
‘‘(3) If the Director of the Office of Government Eth-
ics, the Secretary concerned, or the designated agency eth-
ics 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 con-
sultation (if practicable), determine and notify the indi-
vidual of which steps, if any, would in the opinion of such 
official be appropriate for assuring compliance with such
1048 
laws and regulations and the date by which such steps 
should be taken. Such steps may include, as appropriate— 
‘‘(A) divestiture, 
‘‘(B) restitution, 
‘‘(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 a member of the Foreign Service or the 
uniformed services, the Secretary concerned shall take ap-
propriate action. 
‘‘(5) 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. 
‘‘(6) The Office of Government Ethics may render 
advisory opinions interpreting this title. Notwithstanding 
any other provision of law, the individual to whom a public
1049 
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 finan-
cial disclosure reports, in such form as it may prescribe. 
The information required to be reported under this sub-
section by the officers and employees of any department 
or agency listed in section 301(e) shall be set forth in rules 
or regulations 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 Government Ethics to be necessary and appro-
priate in light of sections 202 through 209 of title 18, 
United States Code, regulations promulgated thereunder, 
or the authorized activities of such officers or employees. 
Any individual required to file a report pursuant to section
1050 
301 shall not be required to file a confidential report pur-
suant to this subsection, except with respect to informa-
tion which is more extensive than information otherwise 
required by this title. Section 305 shall not apply with re-
spect 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 require-
ment under any other provision of law or regulation with 
respect to the reporting of information required for pur-
poses of preventing conflicts of interest or apparent con-
flicts of interest. Such provisions of this title shall not su-
persede the requirements 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, 
or positions; or the participation in transactions that are 
prohibited by law, Executive order, rule, or regulation.
1051 
‘‘SEC. 308. AUTHORITY OF COMPTROLLER GENERAL. 
‘‘The Comptroller General shall have access to finan-
cial disclosure reports filed under this title for the pur-
poses 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 indi-
vidual 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 
administer the provisions of this title within an 
agency; 
‘‘(3) the term ‘executive branch’ includes— 
‘‘(A) each Executive agency (as defined in 
section 105 of title 5, United States Code), 
other than the General Accounting Office; and
1052 
‘‘(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 subdivi-
sion 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 
‘‘(F) items that are accepted pursuant to 
or are required to be reported by the reporting
1053 
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, in-
cluding fees, commissions, and similar items; gross 
income derived from business (and net income if the 
individual elects to include it); gains derived from 
dealings in property; interest; rents; royalties; prizes 
and awards; dividends; annuities; income from life 
insurance and endowment contracts; pensions; in-
come from discharge of indebtedness; distributive 
share of partnership income; and income from an in-
terest 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; 
‘‘(8) the term ‘reimbursement’ means any pay-
ment or other thing of value received by the report-
1054 
ing individual, other than gifts, to cover travel-re-
lated expenses 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 reporting individual, and shall be deemed to in-
clude the fiance´ or fiance´e of the reporting indi-
vidual;
1055 
‘‘(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 Of-
fice of Government Ethics, or a Senate confirmation com-
mittee, to take any action to comply with this Act or any 
other law or regulation governing conflicts of interest of, 
or establishing standards of conduct applicable with re-
spect to, officers or employees of the Government, that 
individual shall notify in writing the designated agency 
ethics official, the Office of Government Ethics, or the ap-
propriate committee of the Senate, as the case may be, 
of any action taken by the individual pursuant to that 
agreement. Such notification shall be made not later than 
the date specified in the agreement by which action by 
the individual must be taken, or not later than 3 months 
after the date of the agreement, if no date for action is 
so specified. If all actions agreed to have not been com-
1056 
pleted by the date of this notification, such notification 
shall continue on a monthly basis thereafter until the indi-
vidual has met the terms of the agreement. 
‘‘(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 
sentence with such individual’s designated agency ethics 
official or the Office of Government Ethics within the time 
prescribed in the penultimate sentence of subsection (a). 
‘‘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.’’. 
(b) EXEMPTION FROM PUBLIC ACCESS TO FINAN-
CIAL DISCLOSURES.—Section 105(a)(1) of such Act is 
amended by inserting ‘‘the Office of the National Intel-
1057 
ligence Director,’’ before ‘‘the Central Intelligence Agen-
cy’’. 
(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 depart-
ment 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 
(C) the Committee on Government Reform 
of the House of Representatives.
1058 
(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 ef-
fect 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. 
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—
1059 
(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 ac-
cordance 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 ac-
cordance 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:
1060 
‘‘§ 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 em-
ployee of the Bureau if— 
‘‘(1)(A) the unusually high or unique qualifica-
tions of the employee or a special need of the Bu-
reau 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 de-
termined by the Director of the Federal Bureau of 
Investigation). 
‘‘(b) SERVICE AGREEMENT.—Payment of a bonus 
under this section is contingent upon the employee enter-
ing into a written service agreement with the Bureau to 
complete a period of service with the Bureau. Such agree-
ment shall include—
1061 
‘‘(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 
period has been completed, and the effect of the ter-
mination. 
‘‘(c) LIMITATION
ON AUTHORITY.—A bonus paid 
under this section may not exceed 50 percent of the em-
ployee’s basic pay. 
‘‘(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 add-
ing 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 fol-
lowing:
1062 
‘‘SUBCHAPTER VII—RETENTION OF RETIRED 
SPECIALIZED
EMPLOYEES
AT
THE
FED-
ERAL 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 employ-
ees in the Bureau during periods of emergency, as deter-
mined by the Director. 
‘‘(b) MEMBERSHIP.—Membership in the FBI Re-
serve Service shall be limited to individuals who previously 
served as full-time employees of the Bureau. 
‘‘(c) ANNUITANTS.—If an individual receiving an an-
nuity from the Civil Service Retirement and Disability 
Fund on the basis of such individual’s service becomes 
temporarily reemployed pursuant to this section, such an-
nuity shall not be discontinued thereby. An individual so 
reemployed 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
1063 
temporary 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.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 35 of title 5, United States Code, is amended by add-
ing 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.’’. 
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
1064 
(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—MANAGEMENT AUTHORITY 
SEC. 5061. MANAGEMENT AUTHORITY. 
(a)
MANAGEMENT
AUTHORITY.—Section 
7103(b)(1)(A) of title 5, United States Code, is amended 
by adding ‘‘homeland security,’’ after ‘‘investigative,’’. 
(b) EXCLUSIONARY AUTHORITY.—Section 842 of the 
Homeland Security Act (Public Law 107–296; 6 U.S.C. 
412) is repealed. 
Subtitle 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;
1065 
(B) a military department, as defined in 
section 102 of title 5, United States Code; and 
(C) elements of the intelligence community, 
as defined in section 3(4) of the National Secu-
rity 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 re-
strictions required for—
1066 
(i) Restricted Data (as defined by sec-
tion 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 ac-
cess 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.
1067 
(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 Se-
cret Clearance; and 
(iii) every 15 years in the case of a 
Confidential Clearance; 
(B) on-going investigations to identify per-
sonnel security risks as they develop, pursuant 
to section 105(c). 
(9) The term ‘‘appropriate committees of Con-
gress’’ means— 
(A) the Permanent Select Committee on 
Intelligence and the Committees on Armed 
Services, 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.
1068 
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 to highly sensitive programs throughout the 
Federal Government. 
(2) Developing and implementing uniform and 
consistent policies and procedures to ensure the ef-
fective, efficient, and timely completion of security 
clearances and determinations for access to highly 
sensitive programs, including the standardization of 
security 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 
disputes involving the reciprocity of security clear-
ances and access to highly sensitive programs.
1069 
(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 development 
of tools and techniques for enhancing the conduct of 
investigations and granting of clearances. 
SEC. 5073. RECIPROCITY OF SECURITY CLEARANCE AND 
ACCESS DETERMINATIONS. 
(a) REQUIREMENT FOR RECIPROCITY.—(1) All 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 
REQUIREMENTS.—(1) An authorized investigative agency 
or authorized adjudicative agency may not establish addi-
tional investigative or adjudicative requirements (other 
than requirements for the conduct of a polygraph exam-
ination) that exceed requirements specified in Executive 
Orders establishing security requirements for access to 
classified information.
1070 
(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 
maintaining, an integrated, secure, national database into 
which appropriate data relevant to the granting, denial, 
or revocation of a security clearance or access pertaining 
to military, civilian, or government contractor personnel 
shall be entered from all authorized investigative and adju-
dicative agencies. 
(b) INTEGRATION.—The national database estab-
lished under subsection (a) shall function to integrate in-
formation from existing Federal clearance tracking sys-
1071 
tems from other authorized investigative and adjudicative 
agencies 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 
determine 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 clear-
ance revoked, by any other authorized investigative or ad-
judicative 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 
adjudicative 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 
determines it is necessary for national security purposes.