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‘‘3534. Federal agency responsibilities.
‘‘3535. Annual independent evaluation.
‘‘3536. National security systems.
‘‘3537. Authorization of appropriations.
‘‘3538. Effect on existing law.’’.
(c) INFORMATION SECURITY RESPONSIBILITIES
OF
CERTAIN AGENCIES.—
(1) NATIONAL
SECURITY
RESPONSIBILITIES.—
(A) Nothing in this Act (including any amendment
made by this Act) shall supersede any authority of the
Secretary of Defense, the Director of Central Intel-
ligence, or other agency head, as authorized by law
and as directed by the President, with regard to the
operation, control, or management of national secu-
rity systems, as defined by section 3532(3) of title 44,
United States Code.
(B) Section 2224 of title 10, United States Code,
is amended—
(i) in subsection 2224(b), by striking ‘‘(b)
OBJECTIVES
AND MINIMUM REQUIREMENTS.—
(1)’’ and inserting ‘‘(b) OBJECTIVES
OF
THE
PROGRAM.—’’;
(ii) in subsection 2224(b), by striking ‘‘(2)
the program shall at a minimum meet the re-
quirements of section 3534 and 3535 of title 44,
United States Code.’’; and
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(iii) in subsection 2224(c), by inserting ‘‘,
including through compliance with subtitle II of
chapter 35 of title 44’’ after ‘‘infrastructure’’.
(2) ATOMIC ENERGY ACT OF 1954.—Nothing in
this Act shall supersede any requirement made by or
under the Atomic Energy Act of 1954 (42 U.S.C.
2011 et seq.). Restricted Data or Formerly Restricted
Data shall be handled, protected, classified, down-
graded, and declassified in conformity with the Atom-
ic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 1002. MANAGEMENT OF INFORMATION TECHNOLOGY.
(a) IN GENERAL.—Section 11331 of title 40, United
States Code, is amended to read as follows:
‘‘§ 11331. Responsibilities for Federal information sys-
tems standards
‘‘(a) DEFINITION.—In this section, the term ‘informa-
tion security’ has the meaning given that term in section
3532(b)(1) of title 44.
‘‘(b) REQUIREMENT TO PRESCRIBE STANDARDS.—
‘‘(1) IN GENERAL.—
‘‘(A) REQUIREMENT.—Except as provided
under paragraph (2), the Director of the Office
of Management and Budget shall, on the basis of
proposed standards developed by the National
Institute of Standards and Technology pursuant
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to paragraphs (2) and (3) of section 20(a) of the
National Institute of Standards and Technology
Act (15 U.S.C. 278g–3(a)) and in consultation
with the Secretary of Homeland Security, pro-
mulgate information security standards per-
taining to Federal information systems.
‘‘(B) REQUIRED
STANDARDS.—Standards
promulgated under subparagraph (A) shall
include—
‘‘(i) standards that provide minimum
information security requirements as deter-
mined under section 20(b) of the National
Institute of Standards and Technology Act
(15 U.S.C. 278g–3(b)); and
‘‘(ii) such standards that are otherwise
necessary to improve the efficiency of oper-
ation or security of Federal information
systems.
‘‘(C) REQUIRED STANDARDS BINDING.—In-
formation security standards described under
subparagraph (B) shall be compulsory and bind-
ing.
‘‘(2) STANDARDS
AND
GUIDELINES
FOR
NA-
TIONAL SECURITY SYSTEMS.—Standards and guide-
lines for national security systems, as defined under
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section 3532(3) of title 44, shall be developed, promul-
gated, enforced, and overseen as otherwise authorized
by law and as directed by the President.
‘‘(c) APPLICATION
OF
MORE
STRINGENT
STAND-
ARDS.—The head of an agency may employ standards for
the cost-effective information security for all operations and
assets within or under the supervision of that agency that
are more stringent than the standards promulgated by the
Director under this section, if such standards—
‘‘(1) contain, at a minimum, the provisions of
those applicable standards made compulsory and
binding by the Director; and
‘‘(2) are otherwise consistent with policies and
guidelines issued under section 3533 of title 44.
‘‘(d) REQUIREMENTS REGARDING DECISIONS BY DI-
RECTOR.—
‘‘(1) DEADLINE.—The decision regarding the
promulgation of any standard by the Director under
subsection (b) shall occur not later than 6 months
after the submission of the proposed standard to the
Director by the National Institute of Standards and
Technology, as provided under section 20 of the Na-
tional Institute of Standards and Technology Act (15
U.S.C. 278g–3).
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‘‘(2) NOTICE AND COMMENT.—A decision by the
Director to significantly modify, or not promulgate,
a proposed standard submitted to the Director by the
National Institute of Standards and Technology, as
provided under section 20 of the National Institute of
Standards and Technology Act (15 U.S.C. 278g–3),
shall be made after the public is given an opportunity
to comment on the Director’s proposed decision.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 113 of title 40, United States Code,
is amended by striking the item relating to section 11331
and inserting the following:
‘‘11331. Responsibilities for Federal information systems standards.’’.
SEC. 1003. NATIONAL INSTITUTE OF STANDARDS AND
TECHNOLOGY.
Section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g–3), is amended by striking
the text and inserting the following:
‘‘(a) The Institute shall—
‘‘(1) have the mission of developing standards,
guidelines, and associated methods and techniques for
information systems;
‘‘(2) develop standards and guidelines, including
minimum requirements, for information systems used
or operated by an agency or by a contractor of an
agency or other organization on behalf of an agency,
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other than national security systems (as defined in
section 3532(b)(2) of title 44, United States Code);
‘‘(3) develop standards and guidelines, including
minimum requirements, for providing adequate infor-
mation security for all agency operations and assets,
but such standards and guidelines shall not apply to
national security systems; and
‘‘(4) carry out the responsibilities described in
paragraph (3) through the Computer Security Divi-
sion.
‘‘(b) The standards and guidelines required by sub-
section (a) shall include, at a minimum—
‘‘(1)(A) standards to be used by all agencies to
categorize all information and information systems
collected or maintained by or on behalf of each agency
based on the objectives of providing appropriate levels
of information security according to a range of risk
levels;
‘‘(B) guidelines recommending the types of infor-
mation and information systems to be included in
each such category; and
‘‘(C) minimum information security require-
ments for information and information systems in
each such category;
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‘‘(2) a definition of and guidelines concerning
detection and handling of information security inci-
dents; and
‘‘(3) guidelines developed in coordination with
the National Security Agency for identifying an in-
formation system as a national security system con-
sistent with applicable requirements for national se-
curity systems, issued in accordance with law and as
directed by the President.
‘‘(c) In developing standards and guidelines required
by subsections (a) and (b), the Institute shall—
‘‘(1) consult with other agencies and offices (in-
cluding, but not limited to, the Director of the Office
of Management and Budget, the Departments of De-
fense and Energy, the National Security Agency, the
General Accounting Office, and the Secretary of
Homeland Security) to assure—
‘‘(A) use of appropriate information secu-
rity policies, procedures, and techniques, in
order to improve information security and avoid
unnecessary and costly duplication of effort; and
‘‘(B) that such standards and guidelines are
complementary with standards and guidelines
employed for the protection of national security
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systems and information contained in such sys-
tems;
‘‘(2) provide the public with an opportunity to
comment on proposed standards and guidelines;
‘‘(3) submit to the Director of the Office of Man-
agement and Budget for promulgation under section
11331 of title 40, United States Code—
‘‘(A) standards, as required under sub-
section (b)(1)(A), no later than 12 months after
the date of the enactment of this section; and
‘‘(B) minimum information security re-
quirements for each category, as required under
subsection (b)(1)(C), no later than 36 months
after the date of the enactment of this section;
‘‘(4) issue guidelines as required under sub-
section (b)(1)(B), no later than 18 months after the
date of the enactment of this Act;
‘‘(5) ensure that such standards and guidelines
do not require specific technological solutions or prod-
ucts, including any specific hardware or software se-
curity solutions;
‘‘(6) ensure that such standards and guidelines
provide for sufficient flexibility to permit alternative
solutions to provide equivalent levels of protection for
identified information security risks; and
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‘‘(7) use flexible, performance-based standards
and guidelines that, to the greatest extent possible,
permit the use of off-the-shelf commercially developed
information security products.
‘‘(d) The Institute shall—
‘‘(1) submit standards developed pursuant to
subsection (a), along with recommendations as to the
extent to which these should be made compulsory and
binding, to the Director of the Office of Management
and Budget for promulgation under section 11331 of
title 40, United States Code;
‘‘(2) provide assistance to agencies regarding—
‘‘(A) compliance with the standards and
guidelines developed under subsection (a);
‘‘(B) detecting and handling information
security incidents; and
‘‘(C) information security policies, proce-
dures, and practices;
‘‘(3) conduct research, as needed, to determine
the nature and extent of information security
vulnerabilities and techniques for providing cost-effec-
tive information security;
‘‘(4) develop and periodically revise performance
indicators and measures for agency information secu-
rity policies and practices;
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‘‘(5) evaluate private sector information security
policies and practices and commercially available in-
formation technologies to assess potential application
by agencies to strengthen information security;
‘‘(6) evaluate security policies and practices de-
veloped for national security systems to assess poten-
tial application by agencies to strengthen information
security;
‘‘(7) periodically assess the effectiveness of stand-
ards and guidelines developed under this section and
undertake revisions as appropriate;
‘‘(8) solicit and consider the recommendations of
the Information Security and Privacy Advisory
Board, established by section 21, regarding standards
and guidelines developed under subsection (a) and
submit such recommendations to the Director of the
Office of Management and Budget with such stand-
ards submitted to the Director; and
‘‘(9) prepare an annual public report on activi-
ties undertaken in the previous year, and planned for
the coming year, to carry out responsibilities under
this section.
‘‘(e) As used in this section—
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‘‘(1) the term ‘agency’ has the same meaning as
provided in section 3502(1) of title 44, United States
Code;
‘‘(2) the term ‘information security’ has the same
meaning as provided in section 3532(1) of such title;
‘‘(3) the term ‘information system’ has the same
meaning as provided in section 3502(8) of such title;
‘‘(4) the term ‘information technology’ has the
same meaning as provided in section 11101 of title
40, United States Code; and
‘‘(5) the term ‘national security system’ has the
same meaning as provided in section 3532(b)(2) of
such title.’’.
SEC. 1004. INFORMATION SECURITY AND PRIVACY ADVI-
SORY BOARD.
Section 21 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g–4), is amended—
(1) in subsection (a), by striking ‘‘Computer
System Security and Privacy Advisory Board’’ and
inserting ‘‘Information Security and Privacy Advi-
sory Board’’;
(2) in subsection (a)(1), by striking ‘‘computer
or telecommunications’’ and inserting ‘‘information
technology’’;
(3) in subsection (a)(2)—
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(A) by striking ‘‘computer or telecommuni-
cations technology’’ and inserting ‘‘information
technology’’; and
(B) by striking ‘‘computer or telecommuni-
cations equipment’’ and inserting ‘‘information
technology’’;
(4) in subsection (a)(3)—
(A) by striking ‘‘computer systems’’ and in-
serting ‘‘information system’’; and
(B) by striking ‘‘computer systems security’’
and inserting ‘‘information security’’;
(5) in subsection (b)(1) by striking ‘‘computer
systems security’’ and inserting ‘‘information secu-
rity’’;
(6) in subsection (b) by striking paragraph (2)
and inserting the following:
‘‘(2) to advise the Institute and the Director of
the Office of Management and Budget on information
security and privacy issues pertaining to Federal
Government information systems, including through
review of proposed standards and guidelines developed
under section 20; and’’;
(7) in subsection (b)(3) by inserting ‘‘annually’’
after ‘‘report’’;
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(8) by inserting after subsection (e) the following
new subsection:
‘‘(f) The Board shall hold meetings at such locations
and at such time and place as determined by a majority
of the Board.’’;
(9) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively; and
(10) by striking subsection (h), as redesignated
by paragraph (9), and inserting the following:
‘‘(h) As used in this section, the terms ‘‘information
system’’ and ‘‘information technology’’ have the meanings
given in section 20.’’.
SEC. 1005. TECHNICAL AND CONFORMING AMENDMENTS.
(a) FEDERAL COMPUTER SYSTEM SECURITY TRAINING
AND PLAN.—
(1) REPEAL.—Section 11332 of title 40, United
States Code, is repealed.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 113 of title 40,
United States Code, as amended by striking the item
relating to section 11332.
(b) FLOYD D. SPENCE NATIONAL DEFENSE AUTHOR-
IZATION ACT
FOR FISCAL YEAR 2001.—The Floyd D.
Spence National Defense Authorization Act for Fiscal Year
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2001 (Public Law 106–398) is amended by striking subtitle
G of title X (44 U.S.C. 3531 note).
(c) 
PAPERWORK
REDUCTION
ACT.—(1) 
Section
3504(g) of title 44, United States Code, is amended—
(A) by adding ‘‘and’’ at the end of paragraph
(1);
(B) in paragraph (2)—
(i) 
by 
striking 
‘‘sections 
11331 
and
11332(b) and (c) of title 40’’ and inserting ‘‘sec-
tion 11331 of title 40 and subchapter II of this
title’’; and
(ii) by striking the semicolon and inserting
a period; and
(C) by striking paragraph (3).
(2) Section 3505 of such title is amended by adding
at the end the following:
‘‘(c) INVENTORY OF INFORMATION SYSTEMS.—(1) The
head of each agency shall develop and maintain an inven-
tory of the information systems (including national secu-
rity systems) operated by or under the control of such agen-
cy;
‘‘(2) The identification of information systems in an
inventory under this subsection shall include an identifica-
tion of the interfaces between each such system and all other
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systems or networks, including those not operated by or
under the control of the agency;
‘‘(3) Such inventory shall be—
‘‘(A) updated at least annually;
‘‘(B) made available to the Comptroller General;
and
‘‘(C) used to support information resources man-
agement, including—
‘‘(i) preparation and maintenance of the in-
ventory of information resources under section
3506(b)(4);
‘‘(ii) 
information 
technology 
planning,
budgeting, acquisition, and management under
section 3506(h), subtitle III of title 40, and re-
lated laws and guidance;
‘‘(iii) monitoring, testing, and evaluation of
information security controls under subchapter
II;
‘‘(iv) preparation of the index of major in-
formation systems required under section 552(g)
of title 5, United States Code; and
‘‘(v) preparation of information system in-
ventories required for records management under
chapters 21, 29, 31, and 33.
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‘‘(4) The Director shall issue guidance for and oversee
the implementation of the requirements of this subsection.’’.
(3) Section 3506(g) of such title is amended—
(A) by adding ‘‘and’’ at the end of paragraph
(1);
(B) in paragraph (2)—
(i) by striking ‘‘section 11332 of title 40’’
and inserting ‘‘subchapter II of this chapter’’;
and
(ii) by striking ‘‘; and’’ and inserting a pe-
riod; and
(C) by striking paragraph (3).
SEC. 1006. CONSTRUCTION.
Nothing in this Act, or the amendments made by this
Act, affects the authority of the National Institute of Stand-
ards and Technology or the Department of Commerce relat-
ing to the development and promulgation of standards or
guidelines under paragraphs (1) and (2) of section 20(a)
of the National Institute of Standards and Technology Act
(15 U.S.C. 278g–3(a)).
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TITLE XI—DEPARTMENT OF
JUSTICE DIVISIONS
Subtitle A—Executive Office for
Immigration Review
SEC. 1101. LEGAL STATUS OF EOIR.
(a) EXISTENCE OF EOIR.—There is in the Depart-
ment of Justice the Executive Office for Immigration Re-
view, which shall be subject to the direction and regulation
of the Attorney General under section 103(g) of the Immi-
gration and Nationality Act, as added by section 1102.
SEC. 1102. AUTHORITIES OF THE ATTORNEY GENERAL.
Section 103 of the Immigration and Nationality Act
(8 U.S.C. 1103) as amended by this Act, is further amended
by—
(1) amending the heading to read as follows:
‘‘POWERS AND DUTIES OF THE SECRETARY, THE UNDER
SECRETARY, AND THE ATTORNEY GENERAL’’;
(2) in subsection (a)—
(A) by inserting ‘‘Attorney General,’’ after
‘‘President,’’; and
(B) by redesignating paragraphs (8), (9),
(8) (as added by section 372 of Public Law 104–
208), and (9) (as added by section 372 of Public
Law 104–208) as paragraphs (8), (9), (10), and
(11), respectively; and
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(3) by adding at the end the following new sub-
section:
‘‘(g) ATTORNEY GENERAL.—
‘‘(1) IN GENERAL.—The Attorney General shall
have such authorities and functions under this Act
and all other laws relating to the immigration and
naturalization of aliens as were exercised by the Exec-
utive Office for Immigration Review, or by the Attor-
ney General with respect to the Executive Office for
Immigration Review, on the day before the effective
date of the Immigration Reform, Accountability and
Security Enhancement Act of 2002.
‘‘(2) POWERS.—The Attorney General shall es-
tablish such regulations, prescribe such forms of bond,
reports, entries, and other papers, issue such instruc-
tions, review such administrative determinations in
immigration proceedings, delegate such authority,
and perform such other acts as the Attorney General
determines to be necessary for carrying out this sec-
tion.’’.
SEC. 1103. STATUTORY CONSTRUCTION.
Nothing in this Act, any amendment made by this Act,
or in section 103 of the Immigration and Nationality Act,
as amended by section 1102, shall be construed to limit ju-
dicial deference to regulations, adjudications, interpreta-
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tions, orders, decisions, judgments, or any other actions of
the Secretary of Homeland Security or the Attorney Gen-
eral.
Subtitle B—Transfer of the Bureau
of Alcohol, Tobacco and Fire-
arms to the Department of Jus-
tice
SEC. 1111. BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND
EXPLOSIVES.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established within
the Department of Justice under the general authority
of the Attorney General the Bureau of Alcohol, To-
bacco, Firearms, and Explosives (in this section re-
ferred to as the ‘‘Bureau’’).
(2) DIRECTOR.—There shall be at the head of the
Bureau a Director, Bureau of Alcohol, Tobacco, Fire-
arms, and Explosives (in this subtitle referred to as
the ‘‘Director’’). The Director shall be appointed by
the Attorney General and shall perform such func-
tions as the Attorney General shall direct. The Direc-
tor shall receive compensation at the rate prescribed
by law under section 5314 of title V, United States
Code, for positions at level III of the Executive Sched-
ule.
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(3) COORDINATION.—The Attorney General, act-
ing through the Director and such other officials of
the Department of Justice as the Attorney General
may designate, shall provide for the coordination of
all firearms, explosives, tobacco enforcement, and
arson enforcement functions vested in the Attorney
General so as to assure maximum cooperation be-
tween and among any officer, employee, or agency of
the Department of Justice involved in the perform-
ance of these and related functions.
(4) PERFORMANCE
OF
TRANSFERRED
FUNC-
TIONS.—The Attorney General may make such provi-
sions as the Attorney General determines appropriate
to authorize the performance by any officer, employee,
or agency of the Department of Justice of any func-
tion transferred to the Attorney General under this
section.
(b) RESPONSIBILITIES.—Subject to the direction of the
Attorney General, the Bureau shall be responsible for
investigating—
(1) criminal and regulatory violations of the
Federal firearms, explosives, arson, alcohol, and to-
bacco smuggling laws;
(2) the functions transferred by subsection (c);
and
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(3) any other function related to the investiga-
tion of violent crime or domestic terrorism that is del-
egated to the Bureau by the Attorney General.
(c) TRANSFER OF AUTHORITIES, FUNCTIONS, PER-
SONNEL, AND ASSETS TO THE DEPARTMENT OF JUSTICE.—
(1) IN GENERAL.—Subject to paragraph (2), but
notwithstanding any other provision of law, there are
transferred to the Department of Justice the authori-
ties, functions, personnel, and assets of the Bureau of
Alcohol, Tobacco and Firearms, which shall be main-
tained as a distinct entity within the Department of
Justice, including the related functions of the Sec-
retary of the Treasury.
(2) ADMINISTRATION AND REVENUE COLLECTION
FUNCTIONS.—There shall be retained within the De-
partment of the Treasury the authorities, functions,
personnel, and assets of the Bureau of Alcohol, To-
bacco and Firearms relating to the administration
and enforcement of chapters 51 and 52 of the Internal
Revenue Code of 1986, sections 4181 and 4182 of the
Internal Revenue Code of 1986, and title 27, United
States Code.
(3) BUILDING
PROSPECTUS.—Prospectus PDC-
98W10, giving the General Services Administration
the authority for site acquisition, design, and con-
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struction of a new headquarters building for the Bu-
reau of Alcohol, Tobacco and Firearms, is transferred,
and deemed to apply, to the Bureau of Alcohol, To-
bacco, Firearms, and Explosives established in the
Department of Justice under subsection (a).
(d) TAX AND TRADE BUREAU.—
(1) ESTABLISHMENT.—There is established with-
in the Department of the Treasury the Tax and Trade
Bureau.
(2) ADMINISTRATOR.—The Tax and Trade Bu-
reau shall be headed by an Administrator, who shall
perform such duties as assigned by the Under Sec-
retary for Enforcement of the Department of the
Treasury. The Administrator shall occupy a career-
reserved position within the Senior Executive Service.
(3) RESPONSIBILITIES.—The authorities, func-
tions, personnel, and assets of the Bureau of Alcohol,
Tobacco and Firearms that are not transferred to the
Department of Justice under this section shall be re-
tained and administered by the Tax and Trade Bu-
reau.
SEC. 1112. TECHNICAL AND CONFORMING AMENDMENTS.
(a) The Inspector General Act of 1978 (5 U.S.C. App.)
is amended—
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(1) in section 8D(b)(1) by striking ‘‘Bureau of
Alcohol, Tobacco and Firearms’’ and inserting ‘‘Tax
and Trade Bureau’’; and
(2) in section 9(a)(1)(L)(i), by striking ‘‘Bureau
of Alcohol, Tobacco, and Firearms’’ and inserting
‘‘Tax and Trade Bureau’’.
(b) Section 1109(c)(2)(A)(i) of the Consolidated Omni-
bus Budget Reconciliation Act of 1985 (7 U.S.C. 1445-
3(c)(2)(A)(i)) is amended by striking ‘‘(on ATF Form
3068) by manufacturers of tobacco products to the Bureau
of Alcohol, Tobacco and Firearms’’ and inserting ‘‘by man-
ufacturers of tobacco products to the Tax and Trade Bu-
reau’’.
(c) Section 2(4)(J) of the Enhanced Border Security
and Visa Entry Reform Act of 2002 (Public Law 107-173;
8 U.S.C.A. 1701(4)(J)) is amended by striking ‘‘Bureau of
Alcohol, Tobacco, and Firearms’’ and inserting ‘‘Bureau of
Alcohol, Tobacco, Firearms, and Explosives, Department of
Justice’’.
(d) Section 3(1)(E) of the Firefighters’ Safety Study
Act (15 U.S.C. 2223b(1)(E)) is amended by striking ‘‘the
Bureau of Alcohol, Tobacco, and Firearms,’’ and inserting
‘‘the Bureau of Alcohol, Tobacco, Firearms, and Explosives,
Department of Justice,’’.
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(e) Chapter 40 of title 18, United States Code, is
amended—
(1) by striking section 841(k) and inserting the
following:
‘‘(k) ‘Attorney General’ means the Attorney General of
the United States.’’;
(2) in section 846(a), by striking ‘‘the Attorney Gen-
eral and the Federal Bureau of Investigation, together with
the Secretary’’ and inserting ‘‘the Federal Bureau of Inves-
tigation, together with the Bureau of Alcohol, Tobacco, Fire-
arms, and Explosives’’; and
(3) by striking ‘‘Secretary’’ each place it appears
and inserting ‘‘Attorney General’’.
(f) Chapter 44 of title 18, United States Code, is
amended—
(1) in section 921(a)(4)(B), by striking ‘‘Sec-
retary’’ and inserting ‘‘Attorney General’’;
(2) in section 921(a)(4), by striking ‘‘Secretary
of the Treasury’’ and inserting ‘‘Attorney General’’;
(3) in section 921(a), by striking paragraph (18)
and inserting the following:
‘‘(18) The term ‘Attorney General’ means the At-
torney General of the United States’’;
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(4) in section 922(p)(5)(A), by striking ‘‘after
consultation with the Secretary’’ and inserting ‘‘after
consultation with the Attorney General’’;
(5) in section 923(l), by striking ‘‘Secretary of
the Treasury’’ and inserting ‘‘Attorney General’’; and
(6) by striking ‘‘Secretary’’ each place it ap-
pears, except before ‘‘of the Army’’ in section
921(a)(4) and before ‘‘of Defense’’ in section
922(p)(5)(A), and inserting the term ‘‘Attorney Gen-
eral’’.
(g) Section 1261(a) of title 18, United States Code, is
amended to read as follows:
‘‘(a) The Attorney General—
‘‘(1) shall enforce the provisions of this chapter;
and
‘‘(2) has the authority to issue regulations to
carry out the provisions of this chapter.’’.
(h) Section 1952(c) of title 18, United States Code, is
amended by striking ‘‘Secretary of the Treasury’’ and in-
serting ‘‘Attorney General’’.
(i) Chapter 114 of title 18, United States Code, is
amended—
(1) by striking section 2341(5), and inserting the
following:
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‘‘(5) the term ‘Attorney General’ means the At-
torney General of the United States’’; and
(2) by striking ‘‘Secretary’’ each place it appears
and inserting ‘‘Attorney General’’.
(j) Section 6103(i)(8)(A)(i) of the Internal Revenue
Code of 1986 (relating to confidentiality and disclosure of
returns and return information) is amended by striking ‘‘or
the Bureau of Alcohol, Tobacco and Firearms’’ and insert-
ing ‘‘, the Bureau of Alcohol, Tobacco, Firearms, and Ex-
plosives, Department of Justice, or the Tax and Trade Bu-
reau, Department of the Treasury,’’.
(k) Section 7801(a) of the Internal Revenue Code of
1986 (relating to the authority of the Department of the
Treasury) is amended—
(1) by striking ‘‘SECRETARY.—Except’’ and in-
serting ‘‘SECRETARY.—
‘‘(1) IN GENERAL.—Except’’; and
(2) by adding at the end the following:
‘‘(2) ADMINISTRATION
AND
ENFORCEMENT
OF
CERTAIN PROVISIONS BY ATTORNEY GENERAL.—
‘‘(A) IN
GENERAL.—The administration
and enforcement of the following provisions of
this title shall be performed by or under the su-
pervision of the Attorney General; and the term
‘Secretary’ or ‘Secretary of the Treasury’ shall,
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when applied to those provisions, mean the At-
torney General; and the term ‘internal revenue
officer’ shall, when applied to those provisions,
mean any officer of the Bureau of Alcohol, To-
bacco, Firearms, and Explosives so designated by
the Attorney General:
‘‘(i) Chapter 53.
‘‘(ii) Chapters 61 through 80, to the ex-
tent such chapters relate to the enforcement
and administration of the provisions re-
ferred to in clause (i).
‘‘(B) USE OF EXISTING RULINGS AND IN-
TERPRETATIONS.—Nothing in this Act alters or
repeals the rulings and interpretations of the Bu-
reau of Alcohol, Tobacco, and Firearms in effect
on the effective date of the Homeland Security
Act of 2002, which concern the provisions of this
title referred to in subparagraph (A). The Attor-
ney General shall consult with the Secretary to
achieve uniformity and consistency in admin-
istering provisions under chapter 53 of title 26,
United States Code.’’.
(l) Section 2006(2) of title 28, United States Code, is
amended by inserting ‘‘, the Director, Bureau of Alcohol,
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Tobacco, Firearms, and Explosives, Department of Justice,’’
after ‘‘the Secretary of the Treasury’’.
(m) Section 713 of title 31, United States Code, is
amended—
(1) by striking the section heading and inserting
the following:
‘‘§ 713. Audit of Internal Revenue Service, Tax and
Trade Bureau, and Bureau of Alcohol, To-
bacco, Firearms, and Explosives’’;
(2) in subsection (a), by striking ‘‘Bureau of Al-
cohol, Tobacco, and Firearms,’’ and inserting ‘‘Tax
and Trade Bureau, Department of the Treasury, and
the Bureau of Alcohol, Tobacco, Firearms, and Explo-
sives, Department of Justice’’; and
(3) in subsection (b)
(A) in paragraph (1)(B), by striking ‘‘or
the Bureau’’ and inserting ‘‘or either Bureau’’;
(B) in paragraph (2)—
(i) by striking ‘‘or the Bureau’’ and
inserting ‘‘or either Bureau’’; and
(ii) by striking ‘‘and the Director of
the Bureau’’ and inserting ‘‘the Tax and
Trade Bureau, Department of the Treasury,
and the Director of the Bureau of Alcohol,
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Tobacco, Firearms, and Explosives, Depart-
ment of Justice’’; and
(C) in paragraph (3), by striking ‘‘or the
Bureau’’ and inserting ‘‘or either Bureau’’.
(n) Section 9703 of title 31, United States Code, is
amended—
(1) in subsection (a)(2)(B)—
(A) in clause (iii)(III), by inserting ‘‘and’’
after the semicolon;
(B) in clause (iv), by striking ‘‘; and’’ and
inserting a period; and
(C) by striking clause (v);
(2) by striking subsection (o);
(3) by redesignating existing subsection (p) as
subsection (o); and
(4) in subsection (o)(1), as redesignated by para-
graph (3), by striking ‘‘Bureau of Alcohol, Tobacco
and Firearms’’ and inserting ‘‘Tax and Trade Bu-
reau’’.
(o) Section 609N(2)(L) of the Justice Assistance Act
of 1984 (42 U.S.C. 10502(2)(L)) is amended by striking
‘‘Bureau of Alcohol, Tobacco, and Firearms’’ and inserting
‘‘Bureau of Alcohol, Tobacco, Firearms, and Explosives, De-
partment of Justice’’.
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(p) Section 32401(a) of the Violent Crime Control and
Law Enforcement Act of 1994 (42 U.S.C. 13921(a)) is
amended—
(1) by striking ‘‘Secretary of the Treasury’’ each
place it appears and inserting ‘‘Attorney General’’;
and
(2) in subparagraph (3)(B), by striking ‘‘Bureau
of Alcohol, Tobacco and Firearms’’ and inserting
‘‘Bureau of Alcohol, Tobacco, Firearms, and Explo-
sives, Department of Justice’’.
(q) Section 80303 of title 49, United States Code, is
amended—
(1) by inserting ‘‘or, when the violation of this
chapter involves contraband described in paragraph
(2) or (5) of section 80302(a), the Attorney General’’
after ‘‘section 80304 of this title.’’; and
(2) by inserting ‘‘, the Attorney General,’’ after
‘‘by the Secretary’’.
(r) Section 80304 of title 49, United States Code, is
amended—
(1) in subsection (a), by striking ‘‘(b) and (c)’’
and inserting ‘‘(b), (c), and (d)’’;
(2) by redesignating subsection (d) as subsection
(e); and
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(3) by inserting after subsection (c), the fol-
lowing:
‘‘(d) ATTORNEY GENERAL.—The Attorney General, or
officers, employees, or agents of the Bureau of Alcohol, To-
bacco, Firearms, and Explosives, Department of Justice
designated by the Attorney General, shall carry out the laws
referred to in section 80306(b) of this title to the extent that
the violation of this chapter involves contraband described
in section 80302 (a)(2) or (a)(5).’’.
(s) Section 103 of the Gun Control Act of 1968 (Public
Law 90–618; 82 Stat. 1226) is amended by striking ‘‘Sec-
retary of the Treasury’’ and inserting ‘‘Attorney General’’.
SEC. 1113. POWERS OF AGENTS OF THE BUREAU OF ALCO-
HOL, TOBACCO, FIREARMS, AND EXPLOSIVES.
Chapter 203 of title 18, United States Code, is amend-
ed by adding the following:
‘‘§ 3051. Powers of Special Agents of Bureau of Alco-
hol, Tobacco, Firearms, and Explosives.
‘‘(a) Special agents of the Bureau of Alcohol, Tobacco,
Firearms, and Explosives, as well as any other investigator
or officer charged by the Attorney General with the duty
of enforcing any of the criminal, seizure, or forfeiture provi-
sions of the laws of the United States, may carry firearms,
serve warrants and subpoenas issued under the authority
of the United States and make arrests without warrant for
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any offense against the United States committed in their
presence, or for any felony cognizable under the laws of the
United States if they have reasonable grounds to believe that
the person to be arrested has committed or is committing
such felony.
‘‘(b) Any special agent of the Bureau of Alcohol, To-
bacco, Firearms, and Explosives may, in respect to the per-
formance of his or her duties, make seizures of property sub-
ject to forfeiture to the United States.
‘‘(c)(1) Except as provided in paragraphs (2) and (3),
and except to the extent that such provisions conflict with
the provisions of section 983 of title 18, United States Code,
insofar as section 983 applies, the provisions of the Customs
laws relating to—
‘‘(A) the seizure, summary and judicial for-
feiture, and condemnation of property;
‘‘(B) the disposition of such property;
‘‘(C) the remission or mitigation of such for-
feiture; and
‘‘(D) the compromise of claims,
shall apply to seizures and forfeitures incurred, or alleged
to have been incurred, under any applicable provision of
law enforced or administered by the Bureau of Alcohol, To-
bacco, Firearms, and Explosives.
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‘‘(2) For purposes of paragraph (1), duties that are
imposed upon a customs officer or any other person with
respect to the seizure and forfeiture of property under the
customs laws of the United States shall be performed with
respect to seizures and forfeitures of property under this sec-
tion by such officers, agents, or any other person as may
be authorized or designated for that purpose by the Attorney
General.
‘‘(3) Notwithstanding any other provision of law, the
disposition of firearms forfeited by reason of a violation of
any law of the United States shall be governed by the provi-
sions of section 5872(b) of the Internal Revenue Code of
1986.’’.
SEC. 1114. EXPLOSIVES TRAINING AND RESEARCH FACIL-
ITY.
(a) ESTABLISHMENT.—There is established within the
Bureau an Explosives Training and Research Facility at
Fort AP Hill, Fredericksburg, Virginia.
(b) PURPOSE.—The facility established under sub-
section (a) shall be utilized to train Federal, State, and
local law enforcement officers to—
(1) investigate bombings and explosions;
(2) properly handle, utilize, and dispose of explo-
sive materials and devices;
(3) train canines on explosive detection; and
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(4) conduct research on explosives.
(c) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated such sums as may be necessary to establish
and maintain the facility established under subsection
(a).
(2) AVAILABILITY OF FUNDS.—Any amounts ap-
propriated pursuant to paragraph (1) shall remain
available until expended.
SEC. 1115. PERSONNEL MANAGEMENT DEMONSTRATION
PROJECT.
Notwithstanding any other provision of law, the Per-
sonnel Management Demonstration Project established
under section 102 of title I of Division C of the Omnibus
Consolidated and Emergency Supplemental Appropriations
Act for Fiscal Year 1999 (Pub. L. 105–277; 122 Stat. 2681–
585) shall be transferred to the Attorney General of the
United States for continued use by the Bureau of Alcohol,
Tobacco, Firearms, and Explosives, Department of Justice,
and the Secretary of the Treasury for continued use by the
Tax and Trade Bureau.
Subtitle C—Explosives
SEC. 1121. SHORT TITLE.
This subtitle may be referred to as the ‘‘Safe Explosives
Act’’.
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SEC. 1122. PERMITS FOR PURCHASERS OF EXPLOSIVES.
(a) DEFINITIONS.—Section 841 of title 18, United
States Code, is amended—
(1) by striking subsection (j) and inserting the
following:
‘‘(j) ‘Permittee’ means any user of explosives for
a lawful purpose, who has obtained either a user per-
mit or a limited permit under the provisions of this
chapter.’’; and
(2) by adding at the end the following:
‘‘(r) ‘Alien’ means any person who is not a cit-
izen or national of the United States.
‘‘(s) ‘Responsible person’ means an individual
who has the power to direct the management and
policies of the applicant pertaining to explosive mate-
rials.’’.
(b) PERMITS FOR PURCHASE OF EXPLOSIVES.—Sec-
tion 842 of title 18, United States Code, is amended—
(1) in subsection (a)(2), by striking ‘‘and’’ at the
end;
(2) by striking subsection (a)(3) and inserting
the following:
‘‘(3) 
other 
than 
a 
licensee 
or 
permittee
knowingly—
‘‘(A) to transport, ship, cause to be trans-
ported, or receive any explosive materials; or
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‘‘(B) to distribute explosive materials to
any person other than a licensee or permittee; or
‘‘(4) who is a holder of a limited permit—
‘‘(A) to transport, ship, cause to be trans-
ported, or receive in interstate or foreign com-
merce any explosive materials; or
‘‘(B) to receive explosive materials from a
licensee or permittee, whose premises are located
outside the State of residence of the limited per-
mit holder, or on more than 6 separate occasions,
during the period of the permit, to receive explo-
sive materials from 1 or more licensees or per-
mittees whose premises are located within the
State of residence of the limited permit holder.’’;
and
(3) by striking subsection (b) and inserting the
following:
‘‘(b) It shall be unlawful for any licensee or permittee
to knowingly distribute any explosive materials to any per-
son other than—
‘‘(1) a licensee;
‘‘(2) a holder of a user permit; or
‘‘(3) a holder of a limited permit who is a resi-
dent of the State where distribution is made and in
which the premises of the transferor are located.’’.
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(c) LICENSES AND USER PERMITS.—Section 843(a) of
title 18, United States Code, is amended—
(1) in the first sentence—
(A) by inserting ‘‘or limited permit’’ after
‘‘user permit’’; and
(B) by inserting before the period at the end
the following: ‘‘, including the names of and ap-
propriate identifying information regarding all
employees who will be authorized by the appli-
cant to possess explosive materials, as well as
fingerprints and a photograph of each respon-
sible person’’;
(2) in the second sentence, by striking ‘‘$200 for
each’’ and inserting ‘‘$50 for a limited permit and
$200 for any other’’; and
(3) by striking the third sentence and inserting
‘‘Each license or user permit shall be valid for not
longer than 3 years from the date of issuance and
each limited permit shall be valid for not longer than
1 year from the date of issuance. Each license or per-
mit shall be renewable upon the same conditions and
subject to the same restrictions as the original license
or permit, and upon payment of a renewal fee not to
exceed one-half of the original fee.’’.
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(d) CRITERIA FOR APPROVING LICENSES AND PER-
MITS.—Section 843(b) of title 18, United States Code, is
amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) the applicant (or, if the applicant is a corpora-
tion, partnership, or association, each responsible person
with respect to the applicant) is not a person described in
section 842(i);’’;
(2) in paragraph (4)—
(A) by inserting ‘‘(A) the Secretary verifies
by inspection or, if the application is for an
original limited permit or the first or second re-
newal of such a permit, by such other means as
the Secretary determines appropriate, that’’ be-
fore ‘‘the applicant’’; and
(B) by adding at the end the following:
‘‘(B) subparagraph (A) shall not apply to
an applicant for the renewal of a limited permit
if the Secretary has verified, by inspection with-
in the preceding 3 years, the matters described in
subparagraph (A) with respect to the applicant;
and’’;
(3) in paragraph (5), by striking the period at
the end and inserting a semicolon; and
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(4) by adding at the end the following:
‘‘(6) none of the employees of the applicant who
will be authorized by the applicant to possess explo-
sive materials is any person described in section
842(i); and
‘‘(7) in the case of a limited permit, the appli-
cant has certified in writing that the applicant will
not receive explosive materials on more than 6 sepa-
rate occasions during the 12-month period for which
the limited permit is valid.’’.
(e) APPLICATION APPROVAL.—Section 843(c) of title
18, United States Code, is amended by striking ‘‘forty-five
days’’ and inserting ‘‘90 days for licenses and permits,’’.
(f) INSPECTION AUTHORITY.—Section 843(f) of title
18, United States Code, is amended—
(1) in the first sentence—
(A) by striking ‘‘permittees’’ and inserting
‘‘holders of user permits’’; and
(B) by inserting ‘‘licensees and permittees’’
before ‘‘shall submit’’;
(2) in the second sentence, by striking ‘‘per-
mittee’’ the first time it appears and inserting ‘‘hold-
er of a user permit’’; and
(3) by adding at the end the following: ‘‘The Sec-
retary may inspect the places of storage for explosive
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materials of an applicant for a limited permit or, at
the time of renewal of such permit, a holder of a lim-
ited permit, only as provided in subsection (b)(4).
(g) POSTING OF PERMITS.—Section 843(g) of title 18,
United States Code, is amended by inserting ‘‘user’’ before
‘‘permits’’.
(h) BACKGROUND CHECKS; CLEARANCES.—Section
843 of title 18, United States Code, is amended by adding
at the end the following:
‘‘(h)(1) If the Secretary receives, from an employer, the
name and other identifying information of a responsible
person or an employee who will be authorized by the em-
ployer to possess explosive materials in the course of em-
ployment with the employer, the Secretary shall determine
whether the responsible person or employee is one of the per-
sons described in any paragraph of section 842(i). In mak-
ing the determination, the Secretary may take into account
a letter or document issued under paragraph (2).
‘‘(2)(A) If the Secretary determines that the responsible
person or the employee is not one of the persons described
in any paragraph of section 842(i), the Secretary shall no-
tify the employer in writing or electronically of the deter-
mination and issue, to the responsible person or employee,
a letter of clearance, which confirms the determination.
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‘‘(B) If the Secretary determines that the responsible
person or employee is one of the persons described in any
paragraph of section 842(i), the Secretary shall notify the
employer in writing or electronically of the determination
and issue to the responsible person or the employee, as the
case may be, a document that—
‘‘(i) confirms the determination;
‘‘(ii) explains the grounds for the determination;
‘‘(iii) provides information on how the disability
may be relieved; and
‘‘(iv) explains how the determination may be ap-
pealed.’’.
(i) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall take effect 180 days after the date
of enactment of this Act.
(2) EXCEPTION.—Notwithstanding any provision
of this Act, a license or permit issued under section
843 of title 18, United States Code, before the date of
enactment of this Act, shall remain valid until that
license or permit is revoked under section 843(d) or
expires, or until a timely application for renewal is
acted upon.
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SEC. 1123. PERSONS PROHIBITED FROM RECEIVING OR
POSSESSING EXPLOSIVE MATERIALS.
(a) DISTRIBUTION OF EXPLOSIVES.—Section 842(d) of
title 18, United States Code, is amended—
(1) in paragraph (5), by striking ‘‘or’’ at the
end;
(2) in paragraph (6), by striking the period at
the end and inserting ‘‘or who has been committed to
a mental institution;’’; and
(3) by adding at the end the following:
‘‘(7) is an alien, other than an alien who—
‘‘(A) is lawfully admitted for permanent
residence (as defined in section 101 (a)(20) of the
Immigration and Nationality Act); or
‘‘(B) is in lawful nonimmigrant status, is a
refugee admitted under section 207 of the Immi-
gration and Nationality Act (8 U.S.C. 1157), or
is in asylum status under section 208 of the Im-
migration and Nationality Act (8 U.S.C. 1158),
and—
‘‘(i) is a foreign law enforcement offi-
cer of a friendly foreign government, as de-
termined by the Secretary in consultation
with the Secretary of State, entering the
United States on official law enforcement
business, and the shipping, transporting,
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possession, or receipt of explosive materials
is in furtherance of this official law enforce-
ment business;
‘‘(ii) is a person having the power to
direct or cause the direction of the manage-
ment and policies of a corporation, partner-
ship, or association licensed pursuant to
section 843(a), and the shipping, trans-
porting, possession, or receipt of explosive
materials is in furtherance of such power;
‘‘(iii) is a member of a North Atlantic
Treaty Organization (NATO) or other
friendly foreign military force, as deter-
mined by the Secretary in consultation with
the Secretary of Defense, (whether or not
admitted in a nonimmigrant status) who is
present in the United States under military
orders for training or other military pur-
pose authorized by the United States, and
the shipping, transporting, possession, or
receipt of explosive materials is in further-
ance of the military purpose; or
‘‘(iv) is lawfully present in the United
States in cooperation with the Director of
Central Intelligence, and the shipment,
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transportation, receipt, or possession of the
explosive materials is in furtherance of such
cooperation;
‘‘(8) has been discharged from the armed forces
under dishonorable conditions;
‘‘(9) having been a citizen of the United States,
has renounced the citizenship of that person.’’.
(b) POSSESSION OF EXPLOSIVE MATERIALS.—Section
842(i) of title 18, United States Code, is amended—
(1) in paragraph (3), by striking ‘‘or’’ at the
end; and
(2) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) who is an alien, other than an alien who—
‘‘(A) is lawfully admitted for permanent
residence (as that term is defined in section
101(a)(20) of the Immigration and Nationality
Act); or
‘‘(B) is in lawful nonimmigrant status, is a
refugee admitted under section 207 of the Immi-
gration and Nationality Act (8 U.S.C. 1157), or
is in asylum status under section 208 of the Im-
migration and Nationality Act (8 U.S.C. 1158),
and—
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‘‘(i) is a foreign law enforcement offi-
cer of a friendly foreign government, as de-
termined by the Secretary in consultation
with the Secretary of State, entering the
United States on official law enforcement
business, and the shipping, transporting,
possession, or receipt of explosive materials
is in furtherance of this official law enforce-
ment business;
‘‘(ii) is a person having the power to
direct or cause the direction of the manage-
ment and policies of a corporation, partner-
ship, or association licensed pursuant to
section 843(a), and the shipping, trans-
porting, possession, or receipt of explosive
materials is in furtherance of such power;
‘‘(iii) is a member of a North Atlantic
Treaty Organization (NATO) or other
friendly foreign military force, as deter-
mined by the Secretary in consultation with
the Secretary of Defense, (whether or not
admitted in a nonimmigrant status) who is
present in the United States under military
orders for training or other military pur-
pose authorized by the United States, and
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the shipping, transporting, possession, or
receipt of explosive materials is in further-
ance of the military purpose; or
‘‘(iv) is lawfully present in the United
States in cooperation with the Director of
Central Intelligence, and the shipment,
transportation, receipt, or possession of the
explosive materials is in furtherance of such
cooperation;
‘‘(6) who has been discharged from the armed
forces under dishonorable conditions;
‘‘(7) who, having been a citizen of the United
States, has renounced the citizenship of that person’’;
and
(3) by inserting ‘‘or affecting’’ before ‘‘interstate’’
each place that term appears.
SEC. 1124. REQUIREMENT TO PROVIDE SAMPLES OF EXPLO-
SIVE MATERIALS AND AMMONIUM NITRATE.
Section 843 of title 18, United States Code, as amend-
ed by this Act, is amended by adding at the end the fol-
lowing:
‘‘(i) FURNISHING OF SAMPLES.—
‘‘(1) IN GENERAL.—Licensed manufacturers and
licensed importers and persons who manufacture or
import explosive materials or ammonium nitrate
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shall, when required by letter issued by the Secretary,
furnish—
‘‘(A) samples of such explosive materials or
ammonium nitrate;
‘‘(B) information on chemical composition
of those products; and
‘‘(C) any other information that the Sec-
retary determines is relevant to the identification
of the explosive materials or to identification of
the ammonium nitrate.
‘‘(2) REIMBURSEMENT.—The Secretary shall, by
regulation, authorize reimbursement of the fair mar-
ket value of samples furnished pursuant to this sub-
section, as well as the reasonable costs of shipment.’’.
SEC. 1125. DESTRUCTION OF PROPERTY OF INSTITUTIONS
RECEIVING 
FEDERAL 
FINANCIAL 
ASSIST-
ANCE.
Section 844(f)(1) of title 18, United States Code, is
amended by inserting before the word ‘‘shall’’ the following:
‘‘or any institution or organization receiving Federal fi-
nancial assistance,’’.
SEC. 1126. RELIEF FROM DISABILITIES.
Section 845(b) of title 18, United States Code, is
amended to read as follows:
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‘‘(b)(1) A person who is prohibited from shipping,
transporting, receiving, or possessing any explosive under
section 842(i) may apply to the Secretary for relief from
such prohibition.
‘‘(2) The Secretary may grant the relief requested
under paragraph (1) if the Secretary determines that the
circumstances regarding the applicability of section 842(i),
and the applicant’s record and reputation, are such that
the applicant will not be likely to act in a manner dan-
gerous to public safety and that the granting of such relief
is not contrary to the public interest.
‘‘(3) A licensee or permittee who applies for relief,
under this subsection, from the disabilities incurred under
this chapter as a result of an indictment for or conviction
of a crime punishable by imprisonment for a term exceeding
1 year shall not be barred by such disability from further
operations under the license or permit pending final action
on an application for relief filed pursuant to this section.’’.
SEC. 1127. THEFT REPORTING REQUIREMENT.
Section 844 of title 18, United States Code, is amended
by adding at the end the following:
‘‘(p) THEFT REPORTING REQUIREMENT.—
‘‘(1) IN GENERAL.—A holder of a license or per-
mit who knows that explosive materials have been sto-
len from that licensee or permittee, shall report the
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theft to the Secretary not later than 24 hours after the
discovery of the theft.
‘‘(2) PENALTY.—A holder of a license or permit
who does not report a theft in accordance with para-
graph (1), shall be fined not more than $10,000, im-
prisoned not more than 5 years, or both.’’.
SEC. 1128. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated such sums as
necessary to carry out this subtitle and the amendments
made by this subtitle.
TITLE XII—AIRLINE WAR RISK
INSURANCE LEGISLATION
SEC. 1201. AIR CARRIER LIABILITY FOR THIRD PARTY
CLAIMS ARISING OUT OF ACTS OF TER-
RORISM.
Section 44303 of title 49, United States Code, is
amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Sec-
retary of Transportation’’;
(2) by moving the text of paragraph (2) of sec-
tion 201(b) of the Air Transportation Safety and
System Stabilization Act (115 Stat. 235) to the end
and redesignating such paragraph as subsection (b);
(3) in subsection (b) (as so redesignated)—
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(A) by striking the subsection heading and
inserting ‘‘AIR CARRIER LIABILITY FOR THIRD
PARTY CLAIMS ARISING OUT OF ACTS OF TER-
RORISM.—’’;
(B) in the first sentence by striking ‘‘the
180-day period following the date of enactment
of this Act, the Secretary of Transportation’’ and
inserting ‘‘the period beginning on September
22, 2001, and ending on December 31, 2003, the
Secretary’’; and
(C) in the last sentence by striking ‘‘this
paragraph’’ and inserting ‘‘this subsection’’.
SEC. 1202. EXTENSION OF INSURANCE POLICIES.
Section 44302 of title 49, United States Code, is
amended by adding at the end the following:
‘‘(f) EXTENSION OF POLICIES.—
‘‘(1) IN GENERAL.—The Secretary shall extend
through August 31, 2003, and may extend through
December 31, 2003, the termination date of any in-
surance policy that the Department of Transportation
issued to an air carrier under subsection (a) and that
is in effect on the date of enactment of this subsection
on no less favorable terms to the air carrier than ex-
isted on June 19, 2002; except that the Secretary shall
amend the insurance policy, subject to such terms and
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conditions as the Secretary may prescribe, to add cov-
erage for losses or injuries to aircraft hulls, pas-
sengers, and crew at the limits carried by air carriers
for such losses and injuries as of such date of enact-
ment and at an additional premium comparable to
the premium charged for third-party casualty cov-
erage under such policy.
‘‘(2) SPECIAL
RULES.—Notwithstanding para-
graph (1)—
‘‘(A) in no event shall the total premium
paid by the air carrier for the policy, as amend-
ed, be more than twice the premium that the air
carrier was paying to the Department of Trans-
portation for its third party policy as of June
19, 2002; and
‘‘(B) the coverage in such policy shall begin
with the first dollar of any covered loss that is
incurred.’’.
SEC. 1203. CORRECTION OF REFERENCE.
Effective November 19, 2001, section 147 of the Avia-
tion and Transportation Security Act (Public Law 107–
71) is amended by striking ‘‘(b)’’ and inserting ‘‘(c)’’.
SEC. 1204. REPORT.
Not later than 90 days after the date of enactment of
this Act, the Secretary shall transmit to the Committee on
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Commerce, Science, and Transportation of the Senate and
the Committee on Transportation and Infrastructure of the
House of Representatives a report that—
(A) evaluates the availability and cost of
commercial war risk insurance for air carriers
and other aviation entities for passengers and
third parties;
(B) analyzes the economic effect upon air
carriers and other aviation entities of available
commercial war risk insurance; and
(C) describes the manner in which the De-
partment could provide an alternative means of
providing aviation war risk reinsurance covering
passengers, crew, and third parties through use
of a risk-retention group or by other means.
TITLE XIII—FEDERAL
WORKFORCE IMPROVEMENT
Subtitle A—Chief Human Capital
Officers
SEC. 1301. SHORT TITLE.
This title may be cited as the ‘‘Chief Human Capital
Officers Act of 2002’’.
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SEC. 1302. AGENCY CHIEF HUMAN CAPITAL OFFICERS.
(a) IN GENERAL.—Part II of title 5, United States
Code, is amended by inserting after chapter 13 the fol-
lowing:
‘‘CHAPTER 14—AGENCY CHIEF HUMAN
CAPITAL OFFICERS
‘‘Sec.
‘‘1401. Establishment of agency Chief Human Capital Officers.
‘‘1402. Authority and functions of agency Chief Human Capital Officers.
‘‘§ 1401. Establishment of agency Chief Human Cap-
ital Officers
‘‘The head of each agency referred to under paragraphs
(1) and (2) of section 901(b) of title 31 shall appoint or
designate a Chief Human Capital Officer, who shall—
‘‘(1) advise and assist the head of the agency and
other agency officials in carrying out the agency’s re-
sponsibilities for selecting, developing, training, and
managing a high-quality, productive workforce in ac-
cordance with merit system principles;
‘‘(2) implement the rules and regulations of the
President and the Office of Personnel Management
and the laws governing the civil service within the
agency; and
‘‘(3) carry out such functions as the primary
duty of the Chief Human Capital Officer.
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‘‘§ 1402. Authority and functions of agency Chief
Human Capital Officers
‘‘(a) The functions of each Chief Human Capital Offi-
cer shall include—
‘‘(1) setting the workforce development strategy
of the agency;
‘‘(2) assessing workforce characteristics and fu-
ture needs based on the agency’s mission and strategic
plan;
‘‘(3) aligning the agency’s human resources poli-
cies and programs with organization mission, stra-
tegic goals, and performance outcomes;
‘‘(4) developing and advocating a culture of con-
tinuous learning to attract and retain employees with
superior abilities;
‘‘(5) identifying best practices and benchmarking
studies, and
‘‘(6) applying methods for measuring intellectual
capital and identifying links of that capital to orga-
nizational performance and growth.
‘‘(b) In addition to the authority otherwise provided
by this section, each agency Chief Human Capital Officer—
‘‘(1) shall have access to all records, reports, au-
dits, reviews, documents, papers, recommendations, or
other material that—
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‘‘(A) are the property of the agency or are
available to the agency; and
‘‘(B) relate to programs and operations
with respect to which that agency Chief Human
Capital Officer has responsibilities under this
chapter; and
‘‘(2) may request such information or assistance
as may be necessary for carrying out the duties and
responsibilities provided by this chapter from any
Federal, State, or local governmental entity.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—The
table of chapters for chapters for part II of title 5, United
States Code, is amended by inserting after the item relating
to chapter 13 the following:
‘‘14. Agency Chief Human Capital Officers ................................ 1401’’.
SEC. 1303. CHIEF HUMAN CAPITAL OFFICERS COUNCIL.
(a) ESTABLISHMENT.—There is established a Chief
Human Capital Officers Council, consisting of—
(1) the Director of the Office of Personnel Man-
agement, who shall act as chairperson of the Council;
(2) the Deputy Director for Management of the
Office of Management and Budget, who shall act as
vice chairperson of the Council; and
(3) the Chief Human Capital Officers of Execu-
tive departments and any other members who are des-
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ignated by the Director of the Office of Personnel
Management.
(b) FUNCTIONS.—The Chief Human Capital Officers
Council shall meet periodically to advise and coordinate the
activities of the agencies of its members on such matters
as modernization of human resources systems, improved
quality of human resources information, and legislation af-
fecting human resources operations and organizations.
(c) EMPLOYEE LABOR ORGANIZATIONS
AT MEET-
INGS.—The Chief Human Capital Officers Council shall en-
sure that representatives of Federal employee labor organi-
zations are present at a minimum of 1 meeting of the Coun-
cil each year. Such representatives shall not be members of
the Council.
(d) ANNUAL REPORT.—Each year the Chief Human
Capital Officers Council shall submit a report to Congress
on the activities of the Council.
SEC. 1304. STRATEGIC HUMAN CAPITAL MANAGEMENT.
Section 1103 of title 5, United States Code, is amended
by adding at the end the following:
‘‘(c)(1) The Office of Personnel Management shall de-
sign a set of systems, including appropriate metrics, for as-
sessing the management of human capital by Federal agen-
cies.
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‘‘(2) The systems referred to under paragraph (1) shall
be defined in regulations of the Office of Personnel Manage-
ment and include standards for—
‘‘(A)(i) aligning human capital strategies of
agencies with the missions, goals, and organizational
objectives of those agencies; and
‘‘(ii) integrating those strategies into the budget
and strategic plans of those agencies;
‘‘(B) closing skill gaps in mission critical occu-
pations;
‘‘(C) ensuring continuity of effective leadership
through implementation of recruitment, development,
and succession plans;
‘‘(D) sustaining a culture that cultivates and de-
velops a high performing workforce;
‘‘(E) developing and implementing a knowledge
management strategy supported by appropriate in-
vestment in training and technology; and
‘‘(F) holding managers and human resources of-
ficers accountable for efficient and effective human re-
sources management in support of agency missions in
accordance with merit system principles.’’.
SEC. 1305. EFFECTIVE DATE.
This subtitle shall take effect 180 days after the date
of enactment of this Act.
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Subtitle B—Reforms Relating to
Federal Human Capital Man-
agement
SEC. 1311. INCLUSION OF AGENCY HUMAN CAPITAL STRA-
TEGIC PLANNING IN PERFORMANCE PLANS
AND PROGRAMS PERFORMANCE REPORTS.
(a) PERFORMANCE PLANS.—Section 1115 of title 31,
United States Code, is amended—
(1) in subsection (a), by striking paragraph (3)
and inserting the following:
‘‘(3) provide a description of how the perform-
ance goals and objectives are to be achieved, including
the operation processes, training, skills and tech-
nology, and the human, capital, information, and
other resources and strategies required to meet those
performance goals and objectives.’’;
(2) by redesignating subsection (f) as subsection
(g); and
(3) by inserting after subsection (e) the following:
‘‘(f) With respect to each agency with a Chief Human
Capital Officer, the Chief Human Capital Officer shall pre-
pare that portion of the annual performance plan described
under subsection (a)(3).’’.
(b) PROGRAM
PERFORMANCE
REPORTS.—Section
1116(d) of title 31, United States Code, is amended—