1486 
such organizations, institutions, and 
negotiations; and 
(C) the composition of United 
States delegations to multilateral ne-
gotiations. 
(4) ANNUAL
DIPLOMATIC
MISSIONS
OF 
MULTILATERAL
ISSUES.—The Special Rep-
resentative, in coordination with the As-
sistant Secretary for International Orga-
nizational Affairs, shall organize annual 
diplomatic missions to appropriate for-
eign countries to conduct consultations 
between principal officers responsible for 
advising the Secretary of State on inter-
national 
organizations 
and 
high-level 
representatives of the governments of 
such foreign countries to promote the 
United States agenda at the United Na-
tions General Assembly and other key 
international fora (such as the United Na-
tions Human Rights Commission). 
(5) LEADERSHIP
AND
MEMBERSHIP
OF 
INTERNATIONAL
ORGANIZATIONS.—The Spe-
cial Representative, in coordination with 
the Assistant Secretary of International
1487 
Organizational Affairs, shall direct the ef-
forts of the United States to reform the 
criteria for leadership of and member-
ship in international organizations as de-
scribed in section 4033. 
(6) PARTICIPATION IN MULTILATERAL NE-
GOTIATIONS.—The Secretary of State may 
direct the Special Representative to serve 
as a member of a United States delega-
tion to any multilateral negotiation. 
CHAPTER 3—OTHER PROVISIONS 
SEC. 4041. PILOT PROGRAM TO PROVIDE GRANTS TO AMER-
ICAN-SPONSORED 
SCHOOLS 
IN 
PREDOMI-
NANTLY MUSLIM COUNTRIES TO PROVIDE 
SCHOLARSHIPS. 
(a) FINDINGS.—Congress finds the fol-
lowing: 
(1) During the 2003–2004 school year, 
the Office of Overseas Schools of the De-
partment of State is financially assisting 
189 elementary and secondary schools in 
foreign countries. 
(2) American-sponsored elementary 
and secondary schools are located in 
more than 20 countries with significant
1488 
Muslim populations in the Near East, Af-
rica, South Asia, Central Asia, and East 
Asia. 
(3) American-sponsored elementary 
and secondary schools provide an Amer-
ican-style education in English, with cur-
ricula that typically include an emphasis 
on the development of critical thinking 
and analytical skills. 
(b) PURPOSE.—The United States has an 
interest in increasing the level of financial 
support provided to American-sponsored ele-
mentary and secondary schools in predomi-
nantly Muslim countries, in order to— 
(1) increase the number of students in 
such countries who attend such schools; 
(2) increase the number of young peo-
ple who may thereby gain at any early 
age an appreciation for the culture, soci-
ety, and history of the United States; and 
(3) increase the number of young peo-
ple who may thereby improve their pro-
ficiency in the English language. 
(c) PILOT PROGRAM AUTHORIZED.—The Sec-
retary of State, acting through the Director of
1489 
the Office of Overseas Schools of the Depart-
ment of State, may conduct a pilot program to 
make grants to American-sponsored elemen-
tary and secondary schools in predominantly 
Muslim countries for the purpose of providing 
full or partial merit-based scholarships to stu-
dents from lower- and middle-income families 
of such countries to attend such schools. 
(d) 
DETERMINATION
OF
ELIGIBLE
STU-
DENTS.—For purposes of expending grant 
funds, an American-sponsored elementary 
and secondary school that receives a grant 
under subsection (c) is authorized to establish 
criteria to be implemented by such school to 
determine what constitutes lower- and mid-
dle-income families in the country (or region 
of the country, if regional variations in in-
come levels in the country are significant) in 
which such school is located. 
(e) RESTRICTION
ON
USE
OF
FUNDS.— 
Amounts appropriated to the Secretary of 
State pursuant to the authorization of appro-
priations in subsection (h) shall be used for 
the sole purpose of making grants under this 
section, and may not be used for the adminis-
1490 
tration of the Office of Overseas Schools of 
the Department of State or for any other ac-
tivity of the Office. 
(f) VOLUNTARY PARTICIPATION.—Nothing in 
this section shall be construed to require par-
ticipation in the pilot program by an Amer-
ican-sponsored 
elementary 
or 
secondary 
school in a predominantly Muslim country. 
(g) REPORT.—Not later than April 15, 2006, 
the Secretary shall submit to the Committee 
on International Relations of the House of 
Representatives and the Committee on For-
eign Relations of the Senate a report on the 
pilot program. The report shall assess the suc-
cess of the program, examine any obstacles 
encountered in its implementation, and ad-
dress whether it should be continued, and if 
so, provide recommendations to increase its 
effectiveness. 
(h) FUNDING.—There are authorized to be 
appropriated to the Secretary of State such 
sums as may be necessary for each of fiscal 
years 2005, 2006, and 2007 to carry out this 
section.
1491 
SEC. 4042. ENHANCING FREE AND INDEPENDENT MEDIA. 
(a) FINDINGS.—Congress makes the fol-
lowing findings: 
(1) Freedom of speech and freedom of 
the press are fundamental human rights. 
(2) The United States has a national 
interest in promoting these freedoms by 
supporting free media abroad, which is 
essential to the development of free and 
democratic societies consistent with our 
own. 
(3) Free media is undermined, endan-
gered, or nonexistent in many repressive 
and transitional societies around the 
world, including in Eurasia, Africa, and 
the Middle East. 
(4) Individuals lacking access to a 
plurality of free media are vulnerable to 
misinformation and propaganda and are 
potentially more likely to adopt anti- 
American views. 
(5) Foreign governments have a re-
sponsibility to actively and publicly dis-
courage and rebut unprofessional and 
unethical media while respecting journal-
1492 
istic integrity and editorial independ-
ence. 
(b) STATEMENTS OF POLICY.—It shall be the 
policy of the United States, acting through the 
Secretary of State, to— 
(1) ensure that the promotion of press 
freedoms and free media worldwide is a 
priority of United States foreign policy 
and an integral component of United 
States public diplomacy; 
(2) respect the journalistic integrity 
and editorial independence of free media 
worldwide; and 
(3) ensure that widely accepted stand-
ards for professional and ethical journal-
istic and editorial practices are employed 
when assessing international media. 
(c) GRANTS TO PRIVATE SECTOR GROUP TO 
ESTABLISH MEDIA NETWORK.— 
(1) IN
GENERAL.—Grants made avail-
able to the National Endowment for De-
mocracy (NED) pursuant to paragraph (3) 
shall be used by NED to provide funding 
to a private sector group to establish and 
manage a free and independent media
1493 
network in accordance with paragraph 
(2). 
(2) PURPOSE.—The purpose of the net-
work shall be to provide an effective 
forum to convene a broad range of indi-
viduals, organizations, and governmental 
participants involved in journalistic ac-
tivities and the development of free and 
independent media to— 
(A) fund a clearinghouse to col-
lect 
and 
share 
information 
con-
cerning international media develop-
ment and training; 
(B) improve research in the field 
of media assistance and program 
evaluation to better inform decisions 
regarding funding and program de-
sign for government and private do-
nors; 
(C) explore the most appropriate 
use of existing means to more effec-
tively encourage the involvement of 
the private sector in the field of 
media assistance; and
1494 
(D) identify effective methods for 
the development of a free and inde-
pendent media in societies in transi-
tion. 
(3) FUNDING.—For grants made by the 
Department of State to NED as author-
ized by the National Endowment for De-
mocracy Act (Public Law 98–164, 97 Stat. 
1039), there are authorized to be appro-
priated to the Secretary of State such 
sums as may be necessary for each of fis-
cal years 2005, 2006, and 2007 to carry out 
this section. 
SEC. 4043. COMBATING BIASED OR FALSE FOREIGN MEDIA 
COVERAGE OF THE UNITED STATES. 
(a) FINDINGS.—Congress finds the fol-
lowing: 
(1) Biased or false media coverage of 
the United States and its allies is a sig-
nificant factor encouraging terrorist acts 
against the people of the United States. 
(2) Public diplomacy efforts designed 
to encourage an accurate understanding 
of the people of the United States and the 
policies of the United States are unlikely
1495 
to succeed if foreign publics are sub-
jected to unrelenting biased or false local 
media coverage of the United States. 
(3) Where freedom of the press exists 
in foreign countries the United States 
can combat biased or false media cov-
erage by responding in the foreign media 
or by communicating directly to foreign 
publics in such countries. 
(4) Foreign governments which en-
courage biased or false media coverage of 
the United States bear a significant de-
gree of responsibility for creating a cli-
mate within which terrorism can flour-
ish. Such governments are responsible 
for encouraging biased or false media 
coverage if they— 
(A) issue direct or indirect in-
structions to the media to publish bi-
ased or false information regarding 
the United States; 
(B) make deliberately biased or 
false charges expecting that such 
charges will be disseminated; or
1496 
(C) so severely constrain the abil-
ity of the media to express criticism 
of any such government that one of 
the few means of political expression 
available is criticism of the United 
States. 
(b) STATEMENTS OF POLICY.— 
(1) FOREIGN GOVERNMENTS.—It shall be 
the policy of the United States to regard 
foreign governments as knowingly en-
gaged in unfriendly acts toward the 
United States if such governments— 
(A) instruct their state-owned or 
influenced media to include content 
that is anti-American or prejudicial 
to the foreign and security policies of 
the United States; or 
(B) 
make 
deliberately 
false 
charges regarding the United States 
or permit false or biased charges 
against the United States to be made 
while constraining normal political 
discourse.
1497 
(2) SEEKING MEDIA ACCESS; RESPONDING 
TO FALSE CHARGES.—It shall be the policy 
of the United States to— 
(A) seek access to the media in 
foreign countries on terms no less fa-
vorable than those afforded any other 
foreign entity or on terms available 
to the foreign country in the United 
States; and 
(B) combat biased or false media 
coverage in foreign countries of the 
United States and its allies by re-
sponding in the foreign media or by 
communicating directly to foreign 
publics. 
(c) RESPONSIBILITIES REGARDING BIASED OR 
FALSE MEDIA COVERAGE.— 
(1) SECRETARY
OF
STATE.—The Sec-
retary of State shall instruct chiefs of 
mission to report on and combat biased 
or false media coverage originating in or 
received in foreign countries to which 
such chiefs are posted. Based on such re-
ports and other information available to 
the 
Secretary, 
the 
Secretary 
shall
1498 
prioritize efforts to combat such media 
coverage, giving special attention to audi-
ences where fostering popular opposition 
to terrorism is most important and such 
media coverage is most prevalent. 
(2) CHIEFS OF MISSION.—Chiefs of mis-
sion shall have the following responsibil-
ities: 
(A) Chiefs of mission shall give 
strong priority to combatting biased 
or false media reports in foreign 
countries to which such chiefs are 
posted regarding the United States. 
(B) Chiefs of mission posted to 
foreign countries in which freedom of 
the press exists shall inform the gov-
ernments of such countries of the 
policies of the United States regard-
ing biased or false media coverage of 
the United States, and shall make 
strong efforts to persuade such gov-
ernments to change policies that en-
courage such media coverage. 
(d) REPORTS.—Not later than 120 days 
after the date of the enactment of this Act and
1499 
at least annually thereafter until January 1, 
2015, the Secretary shall submit to the Com-
mittee on International Relations of the 
House of Representatives and the Committee 
on Foreign Relations of the Senate a report 
regarding the major themes of biased or false 
media coverage of the United States in for-
eign countries, the actions taken to persuade 
foreign governments to change policies that 
encourage such media coverage (and the re-
sults of such actions), and any other actions 
taken to combat such media coverage in for-
eign countries. 
SEC. 4044. REPORT ON BROADCAST OUTREACH STRATEGY. 
(a) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the 
President shall transmit to the Committee on 
International Relations of the House of Rep-
resentatives and the Committee on Foreign 
Relations of the Senate a report on the strat-
egy of the United States to expand its out-
reach to foreign Muslim audiences through 
broadcast media. 
(b) CONTENT.—The report required under 
subsection (a) shall contain the following:
1500 
(1) An assessment of the Broadcasting 
Board of Governors and the public diplo-
macy activities of the Department of 
State with respect to outreach to foreign 
Muslim 
audiences 
through 
broadcast 
media. 
(2) An outline of recommended ac-
tions that the United States should take 
to more regularly and comprehensively 
present a United States point of view 
through indigenous broadcast media in 
countries with sizeable Muslim popu-
lations, including increasing appearances 
by United States Government officials, 
experts, and citizens. 
(3) An assessment of potential incen-
tives for, and costs associated with, en-
couraging United States broadcasters to 
dub or subtitle into Arabic and other rel-
evant languages their news and public af-
fairs programs broadcast in Muslim coun-
tries in order to present those programs 
to a much broader Muslim audience than 
is currently reached.
1501 
(4) An assessment of providing a 
training program in media and press af-
fairs for members of the Foreign Service. 
SEC. 4045. OFFICE RELOCATION. 
As soon as practicable after the date of 
the enactment of this Act, the Secretary of 
State shall take such actions as are necessary 
to consolidate within the Harry S. Truman 
Building all offices of the Department of State 
that are responsible for the conduct of public 
diplomacy, including the Bureau of Edu-
cational and Cultural Affairs. 
SEC. 4046. STRENGTHENING THE COMMUNITY OF DEMOC-
RACIES FOR MUSLIM COUNTRIES. 
(a) SENSE OF CONGRESS.—It is the sense of 
Congress that the United States— 
(1) should work with the Community 
of Democracies to discuss, develop, and 
refine policies and assistance programs 
to support and promote political, eco-
nomic, judicial, educational, and social 
reforms in Muslim countries; 
(2) should, as part of that effort, se-
cure support to require countries seeking 
membership in the Community of Democ-
1502 
racies to be in full compliance with the 
Community’s criteria for participation, as 
established by the Community’s Con-
vening Group, should work to ensure 
that the criteria are part of a legally 
binding document, and should urge other 
donor countries to use compliance with 
the criteria as a basis for determining 
diplomatic and economic relations (in-
cluding assistance programs) with such 
participating countries; and 
(3) should seek support for inter-
national contributions to the Community 
of Democracies and should seek author-
ity 
for 
the 
Community’s 
Convening 
Group to oversee adherence and compli-
ance of participating countries with the 
criteria. 
(b) MIDDLE EAST PARTNERSHIP INITIATIVE 
AND BROADER MIDDLE EAST AND NORTH AFRICA 
INITIATIVE.—Amounts made available to carry 
out the Middle East Partnership Initiative 
and the Broader Middle East and North Africa 
Initiative may be made available to the Com-
1503 
munity of Democracies in order to strengthen 
and expand its work with Muslim countries. 
(c) REPORT.—The Secretary of State shall 
include in the annual report entitled ‘‘Sup-
porting Human Rights and Democracy: The 
U.S. Record’’ a description of efforts by the 
Community of Democracies to support and 
promote political, economic, judicial, edu-
cational, and social reforms in Muslim coun-
tries and the extent to which such countries 
meet the criteria for participation in the Com-
munity of Democracies. 
Subtitle C—Reform of Designation 
of Foreign Terrorist Organizations 
SEC. 4051. DESIGNATION OF FOREIGN TERRORIST ORGANI-
ZATIONS. 
(a) 
PERIOD
OF
DESIGNATION.—Section 
219(a)(4) of the Immigration and Nationality 
Act (8 U.S.C. 1189(a)(4)) is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘Subject to para-
graphs (5) and (6), a’’ and inserting 
‘‘A’’; and 
(B) by striking ‘‘for a period of 2 
years beginning on the effective date
1504 
of the designation under paragraph 
(2)(B)’’ and inserting ‘‘until revoked 
under paragraph (5) or (6) or set 
aside pursuant to subsection (c)’’; 
(2) by striking subparagraph (B) and 
inserting the following: 
‘‘(B) REVIEW OF DESIGNATION UPON 
PETITION.— 
‘‘(i) 
IN
GENERAL.—The 
Sec-
retary shall review the designa-
tion of a foreign terrorist organi-
zation under the procedures set 
forth in clauses (iii) and (iv) if the 
designated organization files a 
petition for revocation within the 
petition 
period 
described 
in 
clause (ii). 
‘‘(ii) 
PETITION
PERIOD.—For 
purposes of clause (i)— 
‘‘(I) if the designated orga-
nization has not previously 
filed a petition for revocation 
under this subparagraph, the 
petition period begins 2 years
1505 
after the date on which the 
designation was made; or 
‘‘(II) if the designated or-
ganization 
has 
previously 
filed a petition for revocation 
under this subparagraph, the 
petition period begins 2 years 
after the date of the deter-
mination made under clause 
(iv) on that petition. 
‘‘(iii) PROCEDURES.—Any for-
eign terrorist organization that 
submits a petition for revocation 
under this subparagraph must 
provide evidence in that petition 
that the relevant circumstances 
described in paragraph (1) have 
changed in such a manner as to 
warrant revocation with respect 
to the organization. 
‘‘(iv) DETERMINATION.— 
‘‘(I) IN GENERAL.—Not later 
than 180 days after receiving 
a petition for revocation sub-
mitted under this subpara-
1506 
graph, 
the 
Secretary 
shall 
make a determination as to 
such revocation. 
‘‘(II) CLASSIFIED
INFORMA-
TION.—The Secretary may con-
sider classified information in 
making a determination in re-
sponse to a petition for rev-
ocation. 
Classified 
informa-
tion shall not be subject to 
disclosure for such time as it 
remains classified, except that 
such information may be dis-
closed to a court ex parte and 
in camera for purposes of ju-
dicial 
review 
under 
sub-
section (c). 
‘‘(III) PUBLICATION
OF
DE-
TERMINATION.—A 
determina-
tion made by the Secretary 
under this clause shall be 
published in the Federal Reg-
ister. 
‘‘(IV) 
PROCEDURES.—Any 
revocation by the Secretary
1507 
shall be made in accordance 
with paragraph (6).’’; and 
(3) by adding at the end the fol-
lowing: 
‘‘(C) OTHER
REVIEW
OF
DESIGNA-
TION.— 
‘‘(i) IN GENERAL.—If in a 6-year 
period no review has taken place 
under subparagraph (B), the Sec-
retary shall review the designa-
tion of the foreign terrorist orga-
nization in order to determine 
whether such designation should 
be revoked pursuant to para-
graph (6). 
‘‘(ii) PROCEDURES.—If a review 
does not take place pursuant to 
subparagraph (B) in response to a 
petition for revocation that is 
filed in accordance with that sub-
paragraph, then the review shall 
be conducted pursuant to proce-
dures established by the Sec-
retary. The results of such review 
and the applicable procedures
1508 
shall not be reviewable in any 
court. 
‘‘(iii) PUBLICATION OF RESULTS 
OF
REVIEW.—The Secretary shall 
publish any determination made 
pursuant to this subparagraph in 
the Federal Register.’’. 
(b) ALIASES.—Section 219 of the Immigra-
tion and Nationality Act (8 U.S.C. 1189) is 
amended— 
(1) by redesignating subsections (b) 
and (c) as subsections (c) and (d), respec-
tively; and 
(2) by inserting after subsection (a) 
the following new subsection (b): 
‘‘(b) AMENDMENTS TO A DESIGNATION.— 
‘‘(1) IN GENERAL.—The Secretary may 
amend a designation under this sub-
section if the Secretary finds that the or-
ganization has changed its name, adopted 
a new alias, dissolved and then reconsti-
tuted itself under a different name or 
names, or merged with another organiza-
tion.
1509 
‘‘(2) PROCEDURE.—Amendments made 
to a designation in accordance with para-
graph (1) shall be effective upon publica-
tion in the Federal Register. Subpara-
graphs (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 sub-
section (a) shall also apply to an amended 
designation. 
‘‘(3) ADMINISTRATIVE RECORD.—The ad-
ministrative record shall be corrected to 
include the amendments as well as any 
additional relevant information that sup-
ports those amendments. 
‘‘(4) 
CLASSIFIED
INFORMATION.—The 
Secretary may consider classified infor-
mation in amending a designation in ac-
cordance with this subsection. Classified 
information shall not be subject to disclo-
sure for such time as it remains classi-
fied, except that such information may be 
disclosed to a court ex parte and in cam-
era for purposes of judicial review under 
subsection (c).’’.
1510 
(c) TECHNICAL
AND CONFORMING AMEND-
MENTS.—Section 219 of the Immigration and 
Nationality Act (8 U.S.C. 1189) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3)(B), by strik-
ing ‘‘subsection (b)’’ and inserting 
‘‘subsection (c)’’; 
(B) in paragraph (6)(A)— 
(i) in the matter preceding 
clause (i), by striking ‘‘or a redes-
ignation made under paragraph 
(4)(B)’’ and inserting ‘‘at any time, 
and shall revoke a designation 
upon completion of a review con-
ducted 
pursuant 
to 
subpara-
graphs (B) and (C) of paragraph 
(4)’’; and 
(ii) in clause (i), by striking 
‘‘or redesignation’’; 
(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 redes-
ignation under this subsection
1511 
has become effective under para-
graph (4)(B),’’; and 
(ii) by striking ‘‘or redesigna-
tion’’; and 
(2) in subsection (c), as so redesig-
nated— 
(A) in paragraph (1), by striking 
‘‘of the designation in the Federal 
Register,’’ 
and 
all 
that 
follows 
through ‘‘review of the designation’’ 
and inserting ‘‘in the Federal Register 
of a designation, an amended des-
ignation, or a determination in re-
sponse to a petition for revocation, 
the designated organization may seek 
judicial review’’; 
(B) in paragraph (2), by inserting 
‘‘, amended designation, or deter-
mination in response to a petition for 
revocation’’ after ‘‘designation’’; 
(C) in paragraph (3), by inserting 
‘‘, amended designation, or deter-
mination in response to a petition for 
revocation’’ after ‘‘designation’’; and
1512 
(D) in paragraph (4), by inserting 
‘‘, amended designation, or deter-
mination in response to a petition for 
revocation’’ after ‘‘designation’’ 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 enact-
ment of this Act, the term ‘‘designation’’, as 
used in that section, includes all redesigna-
tions made pursuant to section 219(a)(4)(B) of 
the Immigration and Nationality Act (8 U.S.C. 
1189(a)(4)(B)) prior to the date of enactment 
of this Act, and such redesignations shall con-
tinue 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)).
1513 
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, Fis-
cal 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 de-
veloped, or to have attempted to ob-
tain or develop, weapons of mass de-
struction,’’ after ‘‘during the pre-
ceding five years,’’; and 
(B) by inserting ‘‘any group des-
ignated by the Secretary as a foreign 
terrorist organization under section 
219 of the Immigration and Nation-
ality Act (8 U.S.C. 1189),’’ after ‘‘Ex-
port Administration Act of 1979,’’; 
(2) in subsection (b)(1)(C)(iii), by 
striking ‘‘and’’ at the end; 
(3) in subsection (b)(1)(C)—
1514 
(A) by redesignating clause (iv) as 
clause (v); and 
(B) by inserting after clause (iii) 
the following new clause: 
‘‘(iv) providing weapons of 
mass destruction, or assistance in 
obtaining 
or 
developing 
such 
weapons, to terrorists or terrorist 
groups; and’’; and 
(4) in subsection (b)(3) (as redesig-
nated by section 4002(b)(2)(B) of this 
Act)— 
(A) 
by 
redesignating 
subpara-
graphs (C), (D), and (E) as (D), (E), 
and (F), respectively; and 
(B) by inserting after subpara-
graph (B) the following new subpara-
graph: 
‘‘(C) efforts by those groups to ob-
tain or develop weapons of mass de-
struction;’’. 
(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
1515 
Years 1988 and 1989 (22 U.S.C. 2656f), sub-
mitted more than one year after the date of 
the enactment of this Act. 
Subtitle D—Afghanistan Freedom 
Support Act Amendments of 2004 
SEC. 4061. SHORT TITLE. 
This subtitle may be cited as the ‘‘Afghani-
stan Freedom 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 
Commission on Terrorist Attacks Upon 
the United States criticized the provision 
of United States assistance to Afghani-
stan 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 pro-
vide for flexibility in the provision of as-
sistance for Afghanistan and are not sub-
ject to the requirements of typical foreign 
assistance programs and provide for the
1516 
designation of a coordinator to oversee 
United States assistance for Afghanistan. 
(b) DESIGNATION
OF
COORDINATOR.—Sec-
tion 104(a) of the Afghanistan Freedom Sup-
port Act of 2002 (22 U.S.C. 7514(a)) is amended 
in the matter preceding paragraph (1) by 
striking ‘‘is strongly urged to’’ and inserting 
‘‘shall’’. 
(c) OTHER MATTERS.—Section 104 of such 
Act (22 U.S.C. 7514) is amended by adding at 
the end the following: 
‘‘(c) PROGRAM PLAN.—The coordinator des-
ignated under subsection (a) shall annually 
submit to the Committees on International 
Relations and Appropriations of the House of 
Representatives and the Committees on For-
eign Relations and Appropriations of the Sen-
ate the Administration’s plan for assistance to 
Afghanistan together with a description of 
such assistance in prior years. 
‘‘(d) COORDINATION
WITH
INTERNATIONAL 
COMMUNITY.—The 
coordinator 
designated 
under subsection (a) shall work with the 
international community, including multilat-
eral organizations and international financial
1517 
institutions, and the Government of Afghani-
stan to ensure that assistance to Afghanistan 
is implemented in a coherent, consistent, and 
efficient manner to prevent duplication and 
waste.’’. 
SEC. 4063. GENERAL PROVISIONS RELATING TO THE AF-
GHANISTAN FREEDOM SUPPORT ACT OF 2002. 
(a) ASSISTANCE TO PROMOTE ECONOMIC, PO-
LITICAL AND SOCIAL DEVELOPMENT.— 
(1) DECLARATION OF POLICY.—Congress 
reaffirms the authorities contained in 
title I of the Afghanistan Freedom Sup-
port Act of 2002 (22 U.S.C. 7501 et seq.; re-
lating to economic and democratic devel-
opment 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 para-
graph (1) by striking ‘‘section 512 of Pub-
lic 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 ex-
1518 
pressed 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 sustain-
able Afghanistan capable of the poverty 
reduction and social development fore-
seen in the report. 
(2) The United States supports the 
parliamentary elections to be held in Af-
ghanistan by April 2005 and will help en-
sure that such elections are not under-
mined by warlords or narcotics traf-
fickers. 
(3)(A) The United States continues to 
urge North Atlantic Treaty Organization 
members and other friendly countries to 
make much greater military contribu-
tions toward securing the peace in Af-
ghanistan. 
(B) The United States should con-
tinue to lead in the security domain by, 
among other things, providing logistical 
support to facilitate those contributions.
1519 
(C) In coordination with the Govern-
ment of Afghanistan, the United States 
should urge others, and act itself, to in-
crease efforts to promote disarmament, 
demobilization, and reintegration efforts, 
to enhance counternarcotics activities, to 
expand deployments of Provincial Recon-
struction 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 Committee 
on International Relations of the House 
of Representatives and the Committee on 
Foreign Relations of the Senate a 5-year
1520 
strategy for Afghanistan that includes 
specific 
and 
measurable 
goals, 
time-
frames for accomplishing such goals, and 
specific resource levels necessary for ac-
complishing such goals for addressing 
the long-term development and security 
needs of Afghanistan, including sectors 
such as agriculture and irrigation, par-
liamentary and democratic development, 
the judicial system and rule of law, 
human rights, education, health, tele-
communications, 
electricity, 
women’s 
rights, counternarcotics, police, border 
security, anti-corruption, and other law- 
enforcement activities. 
‘‘(2) ADDITIONAL
REQUIREMENT.—The 
strategy shall also delineate responsibil-
ities for achieving such goals and identify 
and address possible external factors that 
could significantly affect the achievement 
of such goals. 
‘‘(b) IMPLEMENTATION.—Not later than 30 
days after the date of the transmission of the 
strategy required by subsection (a), the Sec-
retary of State, the Administrator of the
1521 
United States Agency for International Devel-
opment, and the Secretary of Defense shall 
submit to the Committee on International Re-
lations of the House of Representatives and 
the Committee on Foreign Relations of the 
Senate a written 5-year action plan to imple-
ment the strategy developed pursuant to sub-
section (a). Such action plan shall include a 
description and schedule of the program eval-
uations that will monitor progress toward 
achieving the goals described in subsection 
(a). 
‘‘(c) REVIEW.—The Secretary of State, the 
Administrator of the United States Agency for 
International Development, 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 
implementation of both the strategy re-
quired by subsection (a) and the action 
plan required by subsection (b); and
1522 
‘‘(2) a description of any changes to 
the strategy or action plan since the date 
of the submission of the last report re-
quired by such section.’’. 
(2) CLERICAL
AMENDMENT.—The table 
of contents for such Act (22 U.S.C. 7501 
note) is amended by adding after the 
item relating to section 303 the following: 
‘‘Sec. 304. Formulation of long-term strategy for Afghanistan.’’. 
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 amended— 
(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 provide for the 
creation of legal assistance pro-
grams, and other initiatives to 
promote the rule of law in Af-
ghanistan;’’; 
(2) in clause (xii), to read as follows: 
‘‘(xii) support for the effective 
administration of justice at the 
national, regional, and local lev-
1523 
els, including programs to im-
prove penal institutions and the 
rehabilitation of prisoners, to es-
tablish a responsible and commu-
nity-based police force, and to re-
habilitate 
or 
construct 
court-
houses and detention facilities;’’; 
and 
(3) in clause (xiii), by striking ‘‘and’’ 
at the end; 
(4) in clause (xiv), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(5) by adding at the end the fol-
lowing: 
‘‘(xv) assistance for the pro-
tection of Afghanistan’s culture, 
history, and national identity, in-
cluding with the rehabilitation 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 amend-
ed by adding at the end the following:
1524 
‘‘(c) MONITORING
OF ASSISTANCE
FOR AF-
GHANISTAN.— 
‘‘(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 
International Relations of the House of 
Representatives and the Committee on 
Foreign Relations of the Senate a report 
on the obligations and expenditures of 
United States assistance for Afghanistan 
from all United States Government agen-
cies. 
‘‘(2) SUBMISSION
OF
INFORMATION
FOR 
REPORT.—The head of each United States 
Government agency referred to in para-
graph (1) shall provide on a timely basis 
to the Secretary of State such informa-
tion as the Secretary may reasonably re-
quire to allow the Secretary to prepare 
and submit the report required by such 
paragraph.’’.
1525 
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 Sup-
port Act of 2002 (22 U.S.C. 7513) is amended 
by adding at the end the following: 
‘‘(d) UNITED STATES POLICY RELATING TO 
DISARMAMENT OF PRIVATE MILITIAS.— 
‘‘(1) IN GENERAL.—It shall be the pol-
icy of the United States to take imme-
diate steps to provide active support for 
the disarmament, demobilization, and re-
integration of armed soldiers, particu-
larly 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 imple-
ment paragraph (1).’’. 
(b) INTERNATIONAL PEACEKEEPING AND SE-
CURITY OPERATIONS.—Section 103 of such Act 
(22 U.S.C. 7513(d)), as amended by subsection
1526 
(a), is further amended by adding at the end 
the following: 
‘‘(e) UNITED STATES POLICY RELATING
TO 
INTERNATIONAL PEACEKEEPING
AND SECURITY 
OPERATIONS.—It shall be the policy of the 
United States to make every effort to support 
the expansion of international peacekeeping 
and security operations in Afghanistan in 
order to— 
‘‘(1) increase the area in which secu-
rity is provided and undertake vital tasks 
related to promoting security, such as 
disarming 
warlords, 
militias, 
and 
irregulars, and disrupting opium produc-
tion; and 
‘‘(2) safeguard highways in order to 
allow the free flow of commerce and to 
allow material assistance to the people of 
Afghanistan, and aid personnel in Af-
ghanistan, to move more freely.’’.
1527 
SEC. 4067. EFFORTS TO EXPAND INTERNATIONAL PEACE-
KEEPING AND SECURITY OPERATIONS IN AF-
GHANISTAN. 
Section 206(d)(1) of the Afghanistan Free-
dom Support Act of 2002 (22 U.S.C. 7536(d)(1)) 
is amended to read as follows: 
‘‘(1) 
EFFORTS
TO
EXPAND
INTER-
NATIONAL PEACEKEEPING AND SECURITY OP-
ERATIONS IN AFGHANISTAN.— 
‘‘(A) 
EFFORTS.—The 
President 
shall encourage, and, as authorized 
by law, enable other countries to ac-
tively participate in expanded inter-
national peacekeeping and security 
operations in Afghanistan, especially 
through the provision of military per-
sonnel for extended periods of time. 
‘‘(B) 
REPORTS.—The 
President 
shall prepare and transmit to the 
Committee on International Relations 
of the House of Representatives and 
the Committee on Foreign Relations 
of the Senate a report on efforts car-
ried out pursuant to subparagraph 
(A). The first report under this sub-
paragraph shall be transmitted not
1528 
later than 60 days after the date of 
the enactment of the Afghanistan 
Freedom Support Act Amendments of 
2004 and subsequent reports shall be 
transmitted every six months there-
after and may be included in the re-
port required by section 206(c)(2) of 
this Act.’’. 
SEC. 4068. PROVISIONS RELATING TO counternarcotics EF-
FORTS IN AFGHANISTAN. 
(a) COUNTERNARCOTICS EFFORTS.—The Af-
ghanistan Freedom Support Act of 2002 (22 
U.S.C. 7501 et seq.) is amended— 
(1) by redesignating— 
(A) title III as title IV; and 
(B) sections 301 through 304 as 
sections 401 through 404, respec-
tively; and 
(2) by inserting after title II the fol-
lowing:
1529 
‘‘TITLE III—PROVISIONS RELAT-
ING TO counternarcotics EF-
FORTS IN AFGHANISTAN 
‘‘SEC. 301. ASSISTANCE FOR counternarcotics EFFORTS. 
‘‘In addition to programs established pur-
suant to section 103(a)(3) of this Act or other 
similar programs, the President is authorized 
and encouraged to implement specific initia-
tives to assist in the eradication of poppy cul-
tivation and the disruption of heroin produc-
tion in Afghanistan, such as— 
‘‘(1) promoting alternatives to poppy 
cultivation, including the introduction of 
high value crops that are suitable for ex-
port and the provision of appropriate 
technical assistance and credit mecha-
nisms for farmers; 
‘‘(2) enhancing the ability of farmers 
to bring legitimate agricultural goods to 
market; 
‘‘(3) notwithstanding section 660 of 
the Foreign Assistance Act of 1961 (22 
U.S.C. 2420), assistance, including non-
lethal 
equipment, 
training 
(including 
training in internationally recognized
1530 
standards of human rights, the rule of 
law, anti-corruption, and the promotion 
of civilian police roles that support de-
mocracy), and payments, during fiscal 
years 2006 through 2008, for salaries for 
special counternarcotics police and sup-
porting units; 
‘‘(4) training the Afghan National 
Army in counternarcotics activities; and 
‘‘(5) creating special counternarcotics 
courts, prosecutors, and places of incar-
ceration.’’. 
(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 relat-
ing to title II the following: 
‘‘TITLE III—PROVISIONS RELATING TO COUNTERNARCOTICS 
EFFORTS IN AFGHANISTAN 
‘‘Sec. 301. Assistance for counternarcotics efforts.’’.
1531 
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 ‘‘Na-
tional’’ and inserting ‘‘Afghan Independent’’. 
(b) 
REPORTING
REQUIREMENT.—Section 
206(c)(2) of such Act (22 U.S.C. 7536(c)(2)) is 
amended in the matter preceding subpara-
graph (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 prohibi-
tion 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 
Congress that the relationship between the 
United States and Saudi Arabia should in-
clude a more robust dialogue between the 
people and Government of the United States
1532 
and the people and Government of Saudi Ara-
bia in order to provide for a reevaluation of, 
and improvements to, the relationship by 
both sides. 
(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 International Relations 
of the House of Representatives and the 
Committee on Foreign Relations of the 
Senate a strategy for collaboration with 
the people and Government of Saudi Ara-
bia on subjects of mutual interest and im-
portance to the United States. 
(2) CONTENTS.—The strategy required 
under paragraph (1) shall include the fol-
lowing provisions: 
(A) A framework for security co-
operation in the fight against ter-
rorism, with special reference to com-
bating terrorist financing and an ex-
amination of the origins of modern 
terrorism.
1533 
(B) A framework for political and 
economic 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 cul-
tural and religious 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 
Congress that the United States should, over 
a long-term period, help to ensure a prom-
ising, stable, and secure future for Pakistan, 
and should in particular provide assistance to 
encourage and enable Pakistan— 
(1) to continue and improve upon its 
commitment to combating extremists;
1534 
(2) to seek to resolve any outstanding 
difficulties with its neighbors and other 
countries in its region; 
(3) to continue to make efforts to fully 
control its territory and borders; 
(4) to progress towards becoming a 
more effective and participatory democ-
racy; 
(5) to participate more vigorously in 
the global marketplace and to continue to 
modernize its economy; 
(6) to take all necessary steps to halt 
the spread of weapons of mass destruc-
tion; 
(7) to continue to reform its edu-
cation system; and 
(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 de-
tailed proposed strategy for the future, long- 
term, engagement of the United States with 
Pakistan.
1535 
SEC. 4083. EXTENSION OF PAKISTAN WAIVERS. 
The Act entitled ‘‘An Act to authorize the 
President to exercise waivers of foreign as-
sistance 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 sec-
tion 2213 of the Emergency Supplemental Ap-
propriations Act for Defense and for the Re-
construction 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 
(3) in section 6, by striking ‘‘2004’’ and 
inserting ‘‘2006’’.
1536 
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 following: 
‘‘(d) The Secretary of State shall cause to 
be published in slip form or otherwise made 
publicly 
available 
through 
the 
Internet 
website of the Department of State each trea-
ty or international agreement proposed to be 
published in the compilation entitled ‘United 
States 
Treaties 
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 (com-
monly referred to as the ‘‘Case-Zablocki Act’’), 
is amended— 
(1) in the first sentence, by striking 
‘‘has entered into force’’ and inserting 
‘‘has been signed or entered into force’’; 
and
1537 
(2) in the second sentence, by striking 
‘‘Committee on Foreign Affairs’’ and in-
serting ‘‘Committee on International Re-
lations’’. 
(c) REPORT.—Section 112b of title 1, United 
States Code, is amended— 
(1) by redesignating subsections (d) 
and (e) as subsections (e) and (f), respec-
tively; and 
(2) by inserting after subsection (c) 
the following: 
‘‘(d)(1) The Secretary of State shall submit 
to Congress on an annual basis a report that 
contains an index of all international agree-
ments (including oral agreements), listed by 
country, date, title, and summary of each such 
agreement (including a description of the du-
ration 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 for-
mality has been executed, or that has 
been extended or otherwise modified, 
during the preceding calendar year; and
1538 
‘‘(B) has not been published, or is not 
proposed to be published, in the compila-
tion entitled ‘United States Treaties and 
Other International Agreements’. 
‘‘(2) The report described in paragraph (1) 
may be submitted in classified form.’’. 
(d) 
DETERMINATION
OF
INTERNATIONAL 
AGREEMENT.—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 fol-
lowing: 
‘‘(2)(A) An arrangement shall constitute 
an international agreement within the mean-
ing of this section (other than subsection (c) 
of this section) irrespective of the duration of 
activities under the arrangement or the ar-
rangement itself. 
‘‘(B) Arrangements that constitute an 
international agreement within the meaning 
of this section (other than subsection (c) of
1539 
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 Ad-
ministration Act of 1979 (50 U.S.C. App. 
2405(j)(1)(A)), section 620A(a) of the For-
eign Assistance Act of 1961 (22 U.S.C. 
2371(a)), or section 40(d) of the Arms Ex-
port Control Act (22 U.S.C. 2780(d)).’’. 
(e) ENFORCEMENT OF REQUIREMENTS.—Sec-
tion 139(b) of the Foreign Relations Author-
ization 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 enact-
ment of the 9/11 Recommendations Implemen-
tation Act and shall apply during fiscal years 
2005, 2006, and 2007.’’.
1540 
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 ag-
gressively international agreements with for-
eign governments to allow the maximum de-
ployment 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 fol-
lowing: 
‘‘(d) TRAINING FOR FOREIGN LAW ENFORCE-
MENT PERSONNEL.— 
‘‘(1) IN GENERAL.—The Assistant Sec-
retary for Immigration and Customs En-
forcement of the Department of Home-
land Security, after consultation with the 
Secretary of State, may direct the Fed-
eral Air Marshal Service to provide ap-
propriate air marshal training to law en-
forcement personnel of foreign countries.
1541 
‘‘(2) WATCHLIST SCREENING.—The Fed-
eral Air Marshal Service may only pro-
vide appropriate air marshal training to 
law enforcement personnel of foreign 
countries after comparing the identifying 
information and records of law enforce-
ment 
personnel 
of 
foreign 
countries 
against appropriate records in the con-
solidated 
and 
integrated 
terrorist 
watchlists of the Federal Government. 
‘‘(3) FEES.—The Assistant Secretary 
shall 
establish 
reasonable 
fees 
and 
charges to pay expenses incurred in car-
rying out this subsection. Funds collected 
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 ac-
count are available.’’. 
SEC. 
4103. 
MAN-PORTABLE 
AIR 
DEFENSE 
SYSTEMS 
(MANPADS). 
(a) 
UNITED
STATES
POLICY
ON
NON-
PROLIFERATION AND EXPORT CONTROL.—
1542 
(1) TO LIMIT AVAILABILITY AND TRANS-
FER
OF
MANPADS.—The President shall 
pursue, on an urgent basis, further 
strong international diplomatic and coop-
erative efforts, including bilateral and 
multilateral treaties, in the appropriate 
forum to limit the availability, transfer, 
and proliferation of MANPADSs world-
wide. 
(2) TO
LIMIT
THE
PROLIFERATION
OF 
MANPADS.—The President is encouraged 
to seek to enter into agreements with the 
governments of foreign countries that, at 
a minimum, would— 
(A) prohibit the entry into force 
of a MANPADS manufacturing license 
agreement and MANPADS co-produc-
tion agreement, other than the entry 
into force of a manufacturing license 
or co-production agreement with a 
country that is party to such an 
agreement; 
(B) prohibit, except pursuant to 
transfers between governments, the 
export of a MANPADS, including any
1543 
component, part, accessory, or attach-
ment thereof, without an individual 
validated license; and 
(C) prohibit the reexport or re-
transfer of a MANPADS, including 
any component, part, accessory, or at-
tachment thereof, to a third person, 
organization, or government unless 
the written consent of the govern-
ment that approved the original ex-
port or transfer is first obtained. 
(3) 
TO
ACHIEVE
DESTRUCTION
OF 
MANPADS.—The President should continue 
to pursue further strong international 
diplomatic and cooperative efforts, in-
cluding bilateral and multilateral trea-
ties, in the appropriate forum to assure 
the destruction of excess, obsolete, and il-
licit 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 appropriate con-
1544 
gressional committees a report that 
contains a detailed description of the 
status of diplomatic efforts under 
paragraphs (1), (2), and (3) and of ef-
forts 
by 
the 
appropriate 
United 
States agencies to comply with the 
recommendations of the General Ac-
counting Office set forth in its report 
GAO–04–519, entitled ‘‘Nonprolifera-
tion: Further Improvements Needed 
in U.S. Efforts to Counter Threats 
from Man-Portable Air Defense Sys-
tems’’. 
(B) ANNUAL
BRIEFINGS.—Annually 
after the date of submission of the re-
port under subparagraph (A) and 
until completion of the diplomatic 
and compliance efforts referred to in 
subparagraph (A), the Secretary of 
State shall brief the appropriate con-
gressional committees on the status 
of such efforts. 
(b) FAA AIRWORTHINESS CERTIFICATION OF 
MISSILE DEFENSE SYSTEMS
FOR COMMERCIAL 
AIRCRAFT.—
1545 
(1) IN
GENERAL.—As soon as prac-
ticable, 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) 
development 
and 
demonstration 
pro-
gram, the Administrator of the Federal 
Aviation Administration shall establish a 
process for conducting airworthiness and 
safety certification of missile defense sys-
tems for commercial aircraft certified as 
effective and functional by the Depart-
ment of Homeland Security. The process 
shall require a certification by the Ad-
ministrator that such systems can be 
safely integrated into aircraft systems 
and ensure airworthiness and aircraft 
system integrity. 
(2) 
CERTIFICATION
ACCEPTANCE.— 
Under the process, the Administrator 
shall accept the certification of the De-
partment of Homeland Security that a 
missile defense system is effective and 
functional to defend commercial aircraft 
against MANPADSs.
1546 
(3) 
EXPEDITIOUS
CERTIFICATION.— 
Under the process, the Administrator 
shall expedite the airworthiness and safe-
ty certification of missile defense systems 
for commercial aircraft certified by the 
Department 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 Administration shall transmit to 
the Committee on Transportation and In-
frastructure of the House of Representa-
tives and the Committee on Commerce, 
Science, and Transportation of the Sen-
ate a report that contains a detailed de-
scription of each airworthiness and safe-
ty certification issued for a missile de-
fense system for commercial aircraft. 
(c) PROGRAMS TO REDUCE MANPADS.— 
(1) IN GENERAL.—The President is en-
couraged to pursue strong programs to 
reduce the number of MANPADSs world-
1547 
wide 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 Presi-
dent shall transmit to the appropriate 
congressional committees a report that 
contains a detailed description of the sta-
tus 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 programs. 
(3) FUNDING.—There are authorized to 
be appropriated such sums as may be 
necessary to carry out this section. 
(d) 
MANPADS 
VULNERABILITY
ASSESS-
MENTS REPORT.— 
(1) IN
GENERAL.—Not later than one 
year after the date of enactment of this 
Act, the Secretary of Homeland Security 
shall transmit to the Committee on 
Transportation and Infrastructure of the
1548 
House of Representatives and the Com-
mittee on Commerce, Science, and Trans-
portation of the Senate a report describ-
ing the Department of Homeland Secu-
rity’s plans to secure airports and the air-
craft arriving and departing from air-
ports against MANPADSs attacks. 
(2) MATTERS
TO
BE
ADDRESSED.—The 
Secretary’s report shall address, at a min-
imum, the following: 
(A) The status of the Depart-
ment’s efforts to conduct MANPADSs 
vulnerability assessments at United 
States airports at which the Depart-
ment is conducting assessments. 
(B) How intelligence is shared be-
tween the United States intelligence 
agencies and Federal, State, and local 
law 
enforcement 
to 
address 
the 
MANPADS threat and potential ways 
to improve such intelligence sharing. 
(C) Contingency plans that the 
Department has developed in the 
event that it receives intelligence in-
dicating a high threat of a MANPADS
1549 
attack on aircraft at or near United 
States airports. 
(D) The feasibility and effective-
ness of implementing public edu-
cation and neighborhood watch pro-
grams in areas surrounding United 
States airports in cases in which in-
telligence reports indicate there is a 
high risk of MANPADS attacks on air-
craft. 
(E) Any other issues that the Sec-
retary deems relevant. 
(3) FORMAT.—The report required by 
this subsection may be submitted in a 
classified format. 
(e) DEFINITIONS.—In this section, the fol-
lowing definitions apply: 
(1) APPROPRIATE CONGRESSIONAL COM-
MITTEES.—The term ‘‘appropriate congres-
sional committees’’ means— 
(A) the Committee on Armed 
Services, the Committee on Inter-
national Relations, and the Com-
mittee on Transportation and Infra-
1550 
structure of the House of Representa-
tives; and 
(B) the Committee on Armed 
Services, the Committee on Foreign 
Relations, and the Committee on 
Commerce, Science, and Transpor-
tation of the Senate. 
(2) 
MANPADS.—The 
term 
‘‘MANPADS’’ means— 
(A) a surface-to-air missile system 
designed to be man-portable and car-
ried and fired by a single individual; 
and 
(B) any other surface-to-air mis-
sile system designed to be operated 
and fired by more than one indi-
vidual acting as a crew and portable 
by several individuals.
1551 
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 com-
mends the Secretary of the Treasury for suc-
cess and leadership in establishing inter-
national standards for fighting terrorist fi-
nance through multilateral organizations, in-
cluding the Financial Action Task Force 
(FATF) at the Organization for Economic Co-
operation and Development, the International 
Monetary Fund, the International Bank for 
Reconstruction and Development, and the re-
gional multilateral development banks. 
(b) POLICY GUIDANCE.—The Congress en-
courages the Secretary of the Treasury to di-
rect the United States Executive Director at 
each international financial institution to use 
the voice and vote of the United States to urge 
the institution, and encourages the Secretary 
of the Treasury to use the voice and vote of
1552 
the United States in other multilateral finan-
cial policymaking bodies, to— 
(1) provide funding for the implemen-
tation of FATF anti-money laundering 
and anti-terrorist financing standards; 
and 
(2) promote economic development in 
the Middle East. 
SEC. 4112. EXPANDED REPORTING REQUIREMENT FOR THE 
SECRETARY OF THE TREASURY. 
(a) IN GENERAL.—Section 1701(b) of the 
International 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 
paragraph (12) and inserting after para-
graph (10) the following: 
‘‘(11) an assessment of— 
‘‘(A) the progress made by the 
International Terrorist Finance Co-
ordinating 
Council 
in 
developing 
policies to be pursued with the inter-
national financial institutions and 
other multilateral financial policy-
1553 
making 
bodies 
regarding 
anti-ter-
rorist financing initiatives; 
‘‘(B) the progress made by the 
United States in negotiations with the 
international 
financial 
institutions 
and other multilateral financial pol-
icymaking bodies to set common anti- 
terrorist financing standards; 
‘‘(C) the extent to which the inter-
national financial institutions and 
other multilateral financial policy-
making bodies have adopted anti-ter-
rorist financing standards advocated 
by the United States; and 
‘‘(D) whether and how the inter-
national 
financial 
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 
POLICYMAKING
BODIES.—The term ‘other
1554 
multilateral financial policymaking bod-
ies’ means— 
‘‘(A) the Financial Action Task 
Force at the Organization for Eco-
nomic 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, Ger-
many, Italy, Japan, and Russia, when 
meeting as the Group of Eight; and 
‘‘(D) any other multilateral finan-
cial policymaking 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 
Treasury 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 ‘‘Council’’), which shall advise the Sec-
retary on policies to be pursued by the United
1555 
States at meetings of the international finan-
cial institutions and other multilateral finan-
cial policymaking bodies, regarding the devel-
opment of international anti-terrorist financ-
ing standards. 
(b) MEETINGS.— 
(1) ATTENDEES.— 
(A) GENERAL ATTENDEES.—The Sec-
retary of the Treasury (or a rep-
resentative of the Secretary of the 
Treasury) and the Secretary of State 
(or a representative of the Secretary 
of State) shall attend each Council 
meeting. 
(B) OTHER
ATTENDEES.—The Sec-
retary of the Treasury shall deter-
mine which other officers of the Fed-
eral Government shall attend a Coun-
cil meeting, on the basis of the issues 
to be raised for consideration at the 
meeting. The Secretary shall include 
in the meeting representatives from 
all relevant Federal agencies with au-
thority to address the issues.
1556 
(2) SCHEDULE.—Not less frequently 
than annually, the Secretary of the Treas-
ury shall convene Council meetings at 
such times as the Secretary deems appro-
priate, based on the notice, schedule, and 
agenda items of the international finan-
cial institutions and other multilateral fi-
nancial policymaking bodies. 
SEC. 4114. DEFINITIONS. 
In this subtitle: 
(1) INTERNATIONAL FINANCIAL INSTITU-
TIONS.—The term ‘‘international financial 
institutions’’ has the meaning given in 
section 1701(c)(2) of the International Fi-
nancial Institutions Act. 
(2) OTHER
MULTILATERAL
FINANCIAL 
POLICYMAKING
BODIES.—The term ‘‘other 
multilateral financial policymaking bod-
ies’’ means— 
(A) the Financial Action Task 
Force at the Organization for Eco-
nomic Cooperation and Development; 
(B) the international network of 
financial intelligence units known as 
the ‘‘Egmont Group’’;
1557 
(C) the United States, Canada, the 
United Kingdom, France, Germany, 
Italy, Japan, and Russia, when meet-
ing as the Group of Eight; and 
(D) any other multilateral finan-
cial policymaking 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 Smarter Funding for First Responders 
Act of 2004’’. 
SEC. 5002. FINDINGS. 
The Congress finds the following: 
(1) In order to achieve its objective of 
minimizing the damage, and assisting in 
the recovery, from terrorist attacks, the 
Department of Homeland Security must 
play a leading role in assisting commu-
nities to reach the level of preparedness
1558 
they need to respond to a terrorist at-
tack. 
(2) First responder funding is not 
reaching the men and women of our Na-
tion’s 
first 
response 
teams 
quickly 
enough, and sometimes not at all. 
(3) To reform the current bureau-
cratic process so that homeland security 
dollars reach the first responders 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 se-
curity, without degrading the ability to 
address effectively other types of major 
disasters and emergencies, requires a dis-
crete and separate grant making process 
for homeland security funds for first re-
sponse to terrorist acts, on the one hand, 
and for first responder programs de-
signed to meet pre-September 11 prior-
ities, on the other.
1559 
(5) While a discrete homeland secu-
rity grant making process is necessary to 
ensure proper focus on the unique as-
pects of terrorism prevention, prepared-
ness, and response, it is essential that 
State and local strategies for utilizing 
such grants be integrated, to the greatest 
extent practicable, with existing State 
and local emergency management plans. 
(6) Homeland security grants to first 
responders must be based on the best in-
telligence concerning the capabilities and 
intentions of our terrorist 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 capa-
bilities will be improved by sharing re-
sources, training, planning, personnel, 
and equipment among neighboring juris-
dictions through mutual aid agreements 
and regional cooperation. Such regional 
cooperation should be supported, where 
appropriate, through direct grants from 
the Department of Homeland Security.
1560 
(8) 
An 
essential 
prerequisite 
to 
achieving the Nation’s homeland security 
objectives for first responders is the es-
tablishment 
of 
well-defined 
national 
goals for terrorism preparedness. These 
goals should delineate the essential capa-
bilities that every jurisdiction in the 
United States should possess or to which 
it should have access. 
(9) A national determination of essen-
tial capabilities is needed to identify lev-
els of State and local government ter-
rorism preparedness, to determine the 
nature and extent of State and local first 
responder needs, to identify the human 
and financial resources required to fulfill 
them, and to direct funding to meet those 
needs and to measure preparedness lev-
els on a national scale. 
(10) To facilitate progress in achiev-
ing, maintaining, and enhancing essential 
capabilities for State and local first re-
sponders, the Department of Homeland 
Security should seek to allocate home-
1561 
land security funding for first responders 
to meet nationwide needs. 
(11) Private sector resources and cit-
izen volunteers can perform critical func-
tions in assisting in preventing and re-
sponding to terrorist attacks, and should 
be integrated into State and local plan-
ning efforts to ensure that their capabili-
ties and roles are understood, so as to 
provide enhanced State and local oper-
ational 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 private 
sector support for State and local first re-
sponders. Such models should be ex-
panded to cover all States and territories. 
(13) An important aspect of essential 
capabilities is measurability, so that it is 
possible to determine 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.
1562 
(14) The Department of Homeland Se-
curity should establish, publish, and reg-
ularly update national voluntary con-
sensus standards for both equipment and 
training, in cooperation with both public 
and private sector standard setting orga-
nizations, to assist State and local gov-
ernments in obtaining the equipment and 
training to attain the essential capabili-
ties 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 con-
tents 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. 
‘‘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 equip-
ment and training.’’; 
and
1563 
(2) by adding at the end the fol-
lowing: 
‘‘TITLE XVIII—FUNDING FOR 
FIRST RESPONDERS 
‘‘SEC. 1801. DEFINITIONS. 
‘‘In this title: 
‘‘(1) BOARD.—The term ‘Board’ means 
the First Responder Grants Board estab-
lished under section 1805(f). 
‘‘(2) COVERED GRANT.—The term ‘cov-
ered 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 inclu-
sion in the qualified applicant pool 
for Self-Governance that are set forth 
in section 402(c) of the Indian Self- 
Determination and Education Assist-
ance Act (25 U.S.C. 458bb(c)); 
‘‘(B) employs at least 10 full-time 
personnel in a law enforcement or 
emergency response agency with the
1564 
capacity to respond to calls for law 
enforcement or emergency services; 
and 
‘‘(C)(i) is located on, or within 5 
miles of, an international border or 
waterway; 
‘‘(ii) is located within 5 miles of a 
facility within a critical infrastruc-
ture 
sector 
identified 
in 
section 
1803(c)(2); 
‘‘(iii) is located within or contig-
uous to one of the 50 largest metro-
politan statistical areas in the United 
States; or 
‘‘(iv) has more than 1,000 square 
miles of Indian country, as that term 
is defined in section 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 (in-
cluding those that are less than national 
in scope) that raises the homeland secu-
rity threat level to either the highest or 
second highest threat level under the
1565 
Homeland Security Advisory System re-
ferred to in section 201(d)(7). 
‘‘(5) EMERGENCY
PREPAREDNESS.—The 
term ‘emergency preparedness’ shall have 
the same meaning that term has under 
section 602 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance 
Act (42 U.S.C. 5195a). 
‘‘(6) 
ESSENTIAL
CAPABILITIES.—The 
term ‘essential capabilities’ means the 
levels, availability, and competence of 
emergency personnel, planning, training, 
and equipment across a variety of dis-
ciplines needed to effectively and effi-
ciently prevent, prepare for, and respond 
to acts of terrorism consistent with estab-
lished practices. 
‘‘(7) FIRST RESPONDER.—The term ‘first 
responder’ shall have the same meaning 
as the term ‘emergency response pro-
vider’. 
‘‘(8) INDIAN TRIBE.—The term ‘Indian 
tribe’ means any Indian tribe, band, na-
tion, or other organized group or commu-
nity, including any Alaskan Native village
1566 
or regional or village corporation as de-
fined 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 Indi-
ans. 
‘‘(9) 
REGION.—The 
term 
‘region’ 
means— 
‘‘(A) any geographic area con-
sisting of all or parts of 2 or more 
contiguous States, counties, munici-
palities, or other local governments 
that have a combined population of 
at least 1,650,000 or have an area of 
not less than 20,000 square miles, and 
that, for purposes of an application 
for a covered grant, is represented by 
1 or more governments or govern-
mental agencies within such geo-
graphic area, and that is established 
by law or by agreement of 2 or more 
such governments or governmental
1567 
agencies in a mutual aid agreement; 
or 
‘‘(B) any other combination of 
contiguous local government units 
(including such a combination estab-
lished by law or agreement of two or 
more governments or governmental 
agencies in a mutual aid agreement) 
that is formally certified by the Sec-
retary 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 munici-
palities, counties, and parishes 
that they encompass. 
‘‘(10) TASK
FORCE.—The term ‘Task 
Force’ means the Task Force on Essential 
Capabilities for First Responders estab-
lished under section 1804.
1568 
‘‘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, re-
spond to, or mitigate threatened or actual ter-
rorist attacks, especially those involving 
weapons of mass destruction, administered 
under the following: 
‘‘(1) STATE HOMELAND SECURITY GRANT 
PROGRAM.—The State Homeland Security 
Grant Program 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 PRE-
VENTION PROGRAM.—The Law Enforcement 
Terrorism Prevention Program of the De-
partment, or any successor to such grant 
program.
1569 
‘‘(4) CITIZEN CORPS PROGRAM.—The Cit-
izen 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 
Federal grant program that is not admin-
istered 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
PLAN-
NING
AND
ASSISTANCE
ACCOUNT
GRANTS.— 
The Emergency Management Perform-
ance Grant program and the Urban 
Search and Rescue Grants program au-
thorized by title VI of the Robert T. Staf-
ford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5195 et seq.); the 
Departments of Veterans Affairs and 
Housing and Urban Development, and
1570 
Independent 
Agencies 
Appropriations 
Act, 2000 (113 Stat. 1047 et seq.); and the 
Earthquake Hazards Reduction Act of 
1977 (42 U.S.C. 7701 et seq.). 
‘‘SEC. 1803. ESSENTIAL CAPABILITIES FOR FIRST RESPOND-
ERS. 
‘‘(a) ESTABLISHMENT
OF ESSENTIAL CAPA-
BILITIES.— 
‘‘(1) IN GENERAL.—For purposes of cov-
ered 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 
Capabilities for First Responders es-
tablished under section 1804; 
‘‘(B) the Under Secretaries for 
Emergency 
Preparedness 
and 
Re-
sponse, Border and Transportation 
Security, Information Analysis and 
Infrastructure 
Protection, 
and 
Science and Technology, and the Di-
rector of the Office for Domestic Pre-
paredness;
1571 
‘‘(C) the Secretary of Health and 
Human Services; 
‘‘(D) other appropriate Federal 
agencies; 
‘‘(E) State and local first re-
sponder agencies and officials; and 
‘‘(F) 
consensus-based 
standard 
making organizations responsible for 
setting standards relevant to the first 
responder community. 
‘‘(2) 
DEADLINES.—The 
Secretary 
shall— 
‘‘(A) establish essential capabili-
ties under paragraph (1) within 30 
days after receipt of the report under 
section 1804(b); and 
‘‘(B) regularly update such essen-
tial capabilities 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 capa-
bilities established under paragraph (1) 
is provided promptly to the States and to 
the Congress. The States shall make the
1572 
essential capabilities available as nec-
essary and appropriate to local govern-
ments within their jurisdictions. 
‘‘(b) OBJECTIVES.—The Secretary shall en-
sure that essential capabilities established 
under subsection (a)(1) meet the following ob-
jectives: 
‘‘(1) SPECIFICITY.—The determination 
of essential capabilities specifically shall 
describe the training, planning, per-
sonnel, and equipment that different 
types of communities in the Nation 
should possess, or to which they should 
have access, in order to meet the Depart-
ment’s goals for terrorism preparedness 
based upon— 
‘‘(A) the most current risk assess-
ment available by the Directorate for 
Information Analysis and Infrastruc-
ture Protection of the threats of ter-
rorism against the United States; 
‘‘(B) 
the 
types 
of 
threats, 
vulnerabilities, geography, size, and 
other factors that the Secretary has
1573 
determined to be applicable to each 
different type of community; and 
‘‘(C) the principles of regional co-
ordination and mutual aid among 
State and local governments. 
‘‘(2) FLEXIBILITY.—The establishment 
of essential capabilities shall be suffi-
ciently flexible to allow State and local 
government officials to set priorities 
based on particular needs, while reach-
ing nationally determined terrorism pre-
paredness levels within a specified time 
period. 
‘‘(3) 
MEASURABILITY.—The 
establish-
ment of essential capabilities shall be de-
signed 
to 
enable 
measurement 
of 
progress towards specific terrorism pre-
paredness goals. 
‘‘(4) COMPREHENSIVENESS.—The deter-
mination of essential capabilities for ter-
rorism preparedness shall be made with-
in the context of a comprehensive State 
emergency management system. 
‘‘(c) FACTORS TO BE CONSIDERED.—
1574 
‘‘(1) IN
GENERAL.—In establishing es-
sential 
capabilities 
under 
subsection 
(a)(1), the Secretary specifically shall con-
sider the variables of threat, vulner-
ability, and consequences with respect to 
the Nation’s population (including tran-
sient commuting and tourist populations) 
and critical infrastructure. Such consid-
eration shall be based upon the most cur-
rent risk assessment available by the Di-
rectorate for Information Analysis and 
Infrastructure Protection of the threats 
of terrorism against the United States. 
‘‘(2) CRITICAL
INFRASTRUCTURE
SEC-
TORS.—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.
1575 
‘‘(G) Food. 
‘‘(H) Government. 
‘‘(I) Postal and shipping. 
‘‘(J) Public health. 
‘‘(K) 
Information 
and 
tele-
communications networks. 
‘‘(L) Transportation. 
‘‘(M) Water. 
The order in which the critical infra-
structure sectors are listed in this para-
graph shall not be construed as an order 
of priority for consideration of the impor-
tance of such sectors. 
‘‘(3) TYPES OF THREAT.—The Secretary 
specifically shall consider the following 
types of threat to the critical infrastruc-
ture sectors described in paragraph (2), 
and to populations in all areas of the Na-
tion, urban and rural: 
‘‘(A) Biological threats. 
‘‘(B) Nuclear threats. 
‘‘(C) Radiological threats. 
‘‘(D) Incendiary threats. 
‘‘(E) Chemical threats. 
‘‘(F) Explosives.
1576 
‘‘(G) Suicide bombers. 
‘‘(H) Cyber threats. 
‘‘(I) Any other threats based on 
proximity to specific past acts of ter-
rorism or the known activity of any 
terrorist group. 
The order in which the types of threat 
are listed in this paragraph shall not be 
construed as an order of priority for con-
sideration of the importance of such 
threats. 
‘‘(4) 
CONSIDERATION
OF
ADDITIONAL 
FACTORS.—In establishing essential capa-
bilities under subsection (a)(1), the Sec-
retary shall take into account any other 
specific threat to a population (including 
a transient commuting or tourist popu-
lation) 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 Sec-
retary in establishing essential capabilities 
under section 1803(a)(1), the Secretary shall
1577 
establish an advisory body pursuant to sec-
tion 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 submit 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 
recommendations for essential capabili-
ties for preparedness for terrorism. 
‘‘(2) CONTENTS.—The report shall— 
‘‘(A) include a priority ranking of 
essential capabilities in order to pro-
vide guidance to the Secretary and to 
the Congress on determining the ap-
propriate 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 determine the extent 
to which it possesses or has access to 
the essential capabilities that States
1578 
and local governments having similar 
risks should obtain; 
‘‘(C) describe the availability of 
national voluntary consensus stand-
ards, and whether there is a need for 
new national voluntary consensus 
standards, with respect to first re-
sponder training and equipment; 
‘‘(D) include such additional mat-
ters as the Secretary may specify in 
order to further the terrorism pre-
paredness capabilities of first re-
sponders; and 
‘‘(E) include such revisions to the 
contents of past reports as are nec-
essary to take into account changes 
in the most current risk assessment 
available by the Directorate for Infor-
mation Analysis and Infrastructure 
Protection or other relevant informa-
tion as determined by the Secretary. 
‘‘(3) CONSISTENCY WITH FEDERAL WORK-
ING GROUP.—The Task Force shall ensure 
that its recommendations for essential 
capabilities are, to the extent feasible,
1579 
consistent with any preparedness goals 
or recommendations of the Federal work-
ing 
group 
established 
under 
section 
319F(a) of the Public Health Service Act 
(42 U.S.C. 247d–6(a)). 
‘‘(4) COMPREHENSIVENESS.—The Task 
Force shall ensure that its recommenda-
tions regarding essential 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 re-
garding essential capabilities for ter-
rorism preparedness take into account 
any capabilities that State or local offi-
cials have determined to be essential and 
have undertaken since September 11, 
2001, to prevent or prepare for terrorist 
attacks. 
‘‘(c) MEMBERSHIP.— 
‘‘(1) IN
GENERAL.—The Task Force 
shall consist of 25 members appointed by 
the Secretary, and shall, to the extent 
practicable, represent a geographic and
1580 
substantive cross section of governmental 
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 enforcement, 
hazardous materials response, emer-
gency medical services, and emer-
gency management personnel (includ-
ing public works personnel routinely 
engaged in emergency response); 
‘‘(B) health scientists, emergency 
and inpatient medical providers, and 
public health professionals, including 
experts in emergency health care re-
sponse to chemical, biological, radio-
logical, and nuclear terrorism, and 
experts in providing mental health 
care during emergency response op-
erations; 
‘‘(C) experts from Federal, State, 
and local governments, and the pri-
vate sector, representing standards- 
setting organizations, including rep-
1581 
resentation from the voluntary con-
sensus codes and standards develop-
ment community, particularly those 
with expertise in first responder dis-
ciplines; and 
‘‘(D) State and local officials with 
expertise in terrorism preparedness, 
subject to the condition that if any 
such official is an elected official rep-
resenting one of the two major polit-
ical parties, an equal number of elect-
ed officials shall be selected from 
each such party. 
‘‘(2) COORDINATION WITH THE DEPART-
MENT OF HEALTH AND HEALTH SERVICES.—In 
the selection of members of the Task 
Force who are health professionals, in-
cluding emergency medical professionals, 
the Secretary shall coordinate the selec-
tion with the Secretary of Health and 
Human Services. 
‘‘(3) EX
OFFICIO
MEMBERS.—The Sec-
retary and the Secretary of Health and 
Human Services shall each designate one 
or more officers of their respective De-
1582 
partments to serve as ex officio members 
of the Task Force. One of the ex officio 
members from the Department of Home-
land Security shall be the designated offi-
cer of the Federal Government for pur-
poses of subsection (e) of section 10 of the 
Federal Advisory Committee Act (5 App. 
U.S.C.). 
‘‘(d) APPLICABILITY OF FEDERAL ADVISORY 
COMMITTEE
ACT.—Notwithstanding 
section 
871(a), the Federal 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, re-
gion, or directly eligible tribe shall be eligible 
to apply for a covered grant. 
‘‘(b) GRANT CRITERIA.—In awarding cov-
ered grants, the Secretary shall assist States 
and local governments in achieving, main-
taining, and enhancing the essential capabili-
ties for first responders established by the 
Secretary under section 1803.
1583 
‘‘(c) STATE HOMELAND SECURITY PLANS.— 
‘‘(1) SUBMISSION
OF
PLANS.—The Sec-
retary shall require that any State apply-
ing to the Secretary for a covered grant 
must submit to the Secretary a 3-year 
State homeland security plan that— 
‘‘(A) demonstrates the extent to 
which the State has achieved the es-
sential capabilities that apply to the 
State; 
‘‘(B) demonstrates the needs of 
the State necessary to achieve, main-
tain, or enhance the essential capa-
bilities that apply to the State; 
‘‘(C) includes a prioritization of 
such needs based on threat, vulner-
ability, and consequence assessment 
factors applicable to the State; 
‘‘(D) describes how the State in-
tends— 
‘‘(i) to address such needs at 
the city, county, regional, tribal, 
State, and interstate level, includ-
ing a precise description of any 
regional structure the State has
1584 
established for the purpose of or-
ganizing homeland security pre-
paredness 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 em-
phasis to regional planning and 
cooperation, including the activi-
ties of multijurisdictional plan-
ning agencies governed by local 
officials, both within its jurisdic-
tional borders and with neigh-
boring States; 
‘‘(E) is developed in consultation 
with and subject to appropriate com-
ment by local governments within the 
State; and 
‘‘(F) with respect to the emer-
gency preparedness of first respond-
ers, addresses the unique aspects of 
terrorism as part of a comprehensive 
State emergency management plan.
1585 
‘‘(2) APPROVAL
BY
SECRETARY.—The 
Secretary 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 
Secretary shall ensure that each covered 
grant is used to supplement and support, in 
a consistent and coordinated manner, the ap-
plicable State homeland security plan or 
plans. 
‘‘(e) APPLICATION FOR GRANT.— 
‘‘(1) IN GENERAL.—Except as otherwise 
provided in this subsection, any State, re-
gion, or directly eligible tribe may apply 
for a covered grant by submitting to the 
Secretary an application at such time, in 
such manner, and containing such infor-
mation as is required under this sub-
section, or as the Secretary may reason-
ably require. 
‘‘(2) DEADLINES FOR APPLICATIONS AND 
AWARDS.—All 
applications 
for 
covered 
grants must be submitted at such time as 
the Secretary may reasonably require for
1586 
the fiscal year for which they are sub-
mitted. The Secretary shall award cov-
ered grants pursuant to all approved ap-
plications 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 sub-
sequent fiscal year. 
‘‘(4) MINIMUM
CONTENTS
OF
APPLICA-
TION.—The Secretary shall require that 
each applicant include in its application, 
at a minimum— 
‘‘(A) the purpose for which the ap-
plicant seeks covered grant funds and 
the reasons why the applicant needs 
the covered grant to meet the essen-
tial capabilities for terrorism pre-
paredness within the State, region, or 
directly eligible tribe to which the ap-
plication pertains; 
‘‘(B) a description of how, by ref-
erence to the applicable State home-
1587 
land security plan or plans under 
subsection (c), the allocation of grant 
funding proposed in the application, 
including, 
where 
applicable, 
the 
amount not passed through under 
section 1806(g)(1), would assist in ful-
filling the essential capabilities speci-
fied in such plan or plans; 
‘‘(C) a statement of whether a mu-
tual aid agreement applies to the use 
of all or any portion of the covered 
grant funds; 
‘‘(D) if the applicant is a State, a 
description of how the State plans to 
allocate the covered grant funds to 
regions, local governments, and In-
dian tribes; 
‘‘(E) if the applicant is a region— 
‘‘(i) a precise geographical de-
scription of the region and a spec-
ification of all participating and 
nonparticipating 
local 
govern-
ments within the geographical 
area comprising that region;
1588 
‘‘(ii) a specification of what 
governmental entity within the 
region will administer the ex-
penditure of funds under the cov-
ered grant; and 
‘‘(iii) a designation of a spe-
cific individual to serve as re-
gional liaison; 
‘‘(F) a capital budget showing how 
the applicant intends to allocate and 
expend the covered grant funds; 
‘‘(G) if the applicant is a directly 
eligible tribe, a designation of a spe-
cific individual to serve as the tribal 
liaison; and 
‘‘(H) a statement of how the appli-
cant intends to meet the matching re-
quirement, if any, that applies under 
section 1806(g)(2). 
‘‘(5) REGIONAL APPLICATIONS.— 
‘‘(A) RELATIONSHIP TO STATE APPLI-
CATIONS.—A regional application— 
‘‘(i) shall be coordinated with 
an application submitted by the
1589 
State or States of which such re-
gion is a part; 
‘‘(ii) 
shall 
supplement 
and 
avoid duplication with such State 
application; and 
‘‘(iii) shall address the unique 
regional aspects of such region’s 
terrorism preparedness needs be-
yond those provided for in the ap-
plication of such State or States. 
‘‘(B) STATE
REVIEW
AND
SUBMIS-
SION.—To ensure the consistency re-
quired under subsection (d) and the 
coordination required under subpara-
graph (A) of this paragraph, an appli-
cant that is a region must submit its 
application to each State of which 
any part is included in the region for 
review and concurrence prior to the 
submission of such application to the 
Secretary. The regional application 
shall be transmitted to the Secretary 
through each such State within 30 
days of its receipt, unless the Gov-
ernor of such a State notifies the Sec-
1590 
retary, in writing, that such regional 
application is inconsistent with the 
State’s homeland security plan and 
provides an explanation of the rea-
sons therefor. 
‘‘(C) DISTRIBUTION
OF
REGIONAL 
AWARDS.—If the Secretary approves a 
regional application, then the Sec-
retary shall distribute a regional 
award to the State or States submit-
ting the applicable regional applica-
tion under subparagraph (B), and 
each such State shall, not later than 
the end of the 45-day period begin-
ning on the date after receiving a re-
gional award, pass through to the re-
gion all covered grant funds or re-
sources purchased with such funds, 
except those funds necessary for the 
State to carry out its responsibilities 
with respect to such regional applica-
tion: Provided, That in no such case 
shall the State or States pass through 
to the region less than 80 percent of 
the regional award.
1591 
‘‘(D) 
CERTIFICATIONS
REGARDING 
DISTRIBUTION OF GRANT FUNDS TO RE-
GIONS.—Any State that receives a re-
gional award under subparagraph (C) 
shall certify to the Secretary, by not 
later than 30 days after the expira-
tion of the period described in sub-
paragraph (C) with respect to the 
grant, that the State has made avail-
able to the region the required funds 
and resources in accordance with 
subparagraph (C). 
‘‘(E) 
DIRECT
PAYMENTS
TO
RE-
GIONS.—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 re-
ceive an extension of such period 
under section 1806(h)(2), the region 
may petition the Secretary to receive 
directly the portion of the regional 
award that is required to be passed 
through to such region under sub-
paragraph (C).
1592 
‘‘(F) 
REGIONAL
LIAISONS.—A 
re-
gional liaison designated under para-
graph (4)(E)(iii) shall— 
‘‘(i) coordinate with Federal, 
State, local, regional, and private 
officials within the region con-
cerning terrorism preparedness; 
‘‘(ii) develop a process for re-
ceiving input from Federal, State, 
local, regional, and private sector 
officials within the region to as-
sist in the development of the re-
gional application and to improve 
the region’s access to covered 
grants; and 
‘‘(iii) administer, in consulta-
tion 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 ap-
plicant that is a directly eligible tribe
1593 
must submit its application to each 
State within the boundaries of which 
any part of such tribe is located for 
direct submission to the Department 
along with the application of such 
State or States. 
‘‘(B) OPPORTUNITY FOR STATE COM-
MENT.—Before awarding any covered 
grant to a directly eligible tribe, the 
Secretary shall provide an oppor-
tunity 
to 
each 
State 
within 
the 
boundaries of which any part of such 
tribe is located to comment to the 
Secretary on the consistency of the 
tribe’s application with the State’s 
homeland security plan. Any such 
comments shall be submitted to the 
Secretary concurrently with the sub-
mission of the State and tribal appli-
cations. 
‘‘(C) FINAL
AUTHORITY.—The Sec-
retary shall have final authority to 
determine the consistency of any ap-
plication of a directly eligible tribe 
with the applicable State homeland
1594 
security plan or plans, and to ap-
prove any application of such tribe. 
The Secretary shall notify each State 
within the boundaries of which any 
part of such tribe is located of the ap-
proval of an application by such 
tribe. 
‘‘(D) TRIBAL LIAISON.—A tribal liai-
son 
designated 
under 
paragraph 
(4)(G) shall— 
‘‘(i) coordinate with Federal, 
State, local, regional, and private 
officials 
concerning 
terrorism 
preparedness; 
‘‘(ii) develop a process for re-
ceiving input from Federal, State, 
local, regional, and private sector 
officials to assist in the develop-
ment of the application of such 
tribe and to improve the tribe’s 
access to covered grants; and 
‘‘(iii) administer, in consulta-
tion with State, local, regional, 
and 
private 
officials, 
covered 
grants awarded to such tribe.
1595 
‘‘(E) LIMITATION ON THE NUMBER OF 
DIRECT
GRANTS.—The Secretary may 
make covered grants directly to not 
more than 20 directly eligible tribes 
per fiscal year. 
‘‘(F) TRIBES NOT RECEIVING DIRECT 
GRANTS.—An Indian tribe that does 
not receive a grant directly under 
this section is eligible to receive 
funds under a covered grant from the 
State or States within the boundaries 
of which any part of such tribe is lo-
cated, 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 request pay-
ment under section 1806(h)(3) in the 
same manner as a local government. 
‘‘(7) EQUIPMENT STANDARDS.—If an ap-
plicant 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 ex-
ceed any applicable national voluntary
1596 
consensus standards established by the 
Secretary under section 1807(a), the ap-
plicant shall include in the application an 
explanation of why such equipment or 
systems will serve the needs of the appli-
cant better than equipment or systems 
that meet or exceed such standards. 
‘‘(f) FIRST RESPONDER GRANTS BOARD.— 
‘‘(1) ESTABLISHMENT
OF
BOARD.—The 
Secretary shall establish a First Re-
sponder Grants Board, consisting of— 
‘‘(A) the Secretary; 
‘‘(B) 
the 
Under 
Secretary 
for 
Emergency 
Preparedness 
and 
Re-
sponse; 
‘‘(C) the Under Secretary for Bor-
der and Transportation Security; 
‘‘(D) the Under Secretary for In-
formation Analysis and Infrastruc-
ture Protection; 
‘‘(E) 
the 
Under 
Secretary 
for 
Science and Technology; and 
‘‘(F) the Director of the Office for 
Domestic Preparedness. 
‘‘(2) CHAIRMAN.—
1597 
‘‘(A) IN
GENERAL.—The Secretary 
shall be the Chairman of the Board. 
‘‘(B) EXERCISE OF AUTHORITIES BY 
DEPUTY SECRETARY.—The Deputy Sec-
retary of Homeland Security may ex-
ercise the authorities of the Chair-
man, if the Secretary so directs. 
‘‘(3) 
RANKING
OF
GRANT
APPLICA-
TIONS.— 
‘‘(A) PRIORITIZATION
OF
GRANTS.— 
The Board— 
‘‘(i) shall evaluate and annu-
ally prioritize all pending applica-
tions for covered grants based 
upon the degree to which they 
would, by achieving, maintaining, 
or enhancing the essential capa-
bilities of the applicants on a na-
tionwide basis, lessen the threat 
to, 
vulnerability 
of, 
and 
con-
sequences for persons and critical 
infrastructure; and 
‘‘(ii) in evaluating the threat 
to persons and critical infrastruc-
ture for purposes of prioritizing
1598 
covered grants, shall give greater 
weight to threats of terrorism 
based on their specificity and 
credibility, including any pattern 
of repetition. 
‘‘(B) 
MINIMUM
AMOUNTS.—After 
evaluating and prioritizing grant ap-
plications 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 ap-
proved State homeland security 
plan receives no less than 0.25 
percent of the funds available for 
covered grants for that fiscal year 
for purposes of implementing its 
homeland security plan in accord-
ance 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
1599 
Mariana Islands, that has an ap-
proved State homeland security 
plan and that meets one or both 
of the additional high-risk quali-
fying 
criteria 
under 
subpara-
graph (C) receives no less than 
0.45 percent of the funds available 
for covered grants for that fiscal 
year 
for 
purposes 
of 
imple-
menting its homeland security 
plan 
in 
accordance 
with 
the 
prioritization of needs under sub-
section (c)(1)(C); 
‘‘(iii) the Virgin Islands, Amer-
ican 
Samoa, 
Guam, 
and 
the 
Northern Mariana Islands each 
receives no less than 0.08 percent 
of the funds available for covered 
grants for that fiscal year for pur-
poses of implementing its ap-
proved State homeland security 
plan 
in 
accordance 
with 
the 
prioritization of needs under sub-
section (c)(1)(C); and
1600 
‘‘(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 appli-
cations of such tribes, consistent 
with the homeland security 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 re-
ceives less than 5 applications for 
such fiscal year from such tribes 
under subsection (e)(6)(A) or does 
not approve at least one such ap-
plication. 
‘‘(C) ADDITIONAL
HIGH-RISK
QUALI-
FYING CRITERIA.—For purposes of sub-
paragraph (B)(ii), additional high-risk 
qualifying criteria consist of— 
‘‘(i) having a significant inter-
national land border; or
1601 
‘‘(ii) adjoining a body of water 
within North America through 
which an international 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
SECRE-
TARIES.—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 avail-
able to and considered by the Board. 
‘‘SEC. 1806. USE OF FUNDS AND ACCOUNTABILITY RE-
QUIREMENTS. 
‘‘(a) IN GENERAL.—A covered grant may be 
used for— 
‘‘(1) purchasing or upgrading equip-
ment, including computer software, to en-
hance terrorism preparedness and re-
sponse;
1602 
‘‘(2) exercises to strengthen terrorism 
preparedness and response; 
‘‘(3) training for prevention (includ-
ing detection) of, preparedness for, or re-
sponse to attacks involving weapons of 
mass destruction, including training in 
the use of equipment and computer soft-
ware; 
‘‘(4) developing or updating response 
plans; 
‘‘(5) establishing or enhancing mecha-
nisms for sharing terrorism threat infor-
mation; 
‘‘(6) systems architecture and engi-
neering, program planning and manage-
ment, strategy formulation and strategic 
planning, life-cycle systems design, prod-
uct and technology evaluation, and proto-
type development for terrorism prepared-
ness and response purposes; 
‘‘(7) additional personnel costs result-
ing from— 
‘‘(A) elevations in the threat alert 
level of the Homeland Security Advi-
sory System by the Secretary, or a
1603 
similar elevation in threat alert level 
issued by a State, region, or local gov-
ernment with the approval of the Sec-
retary; 
‘‘(B) travel to and participation in 
exercises and training in the use of 
equipment and on prevention activi-
ties; and 
‘‘(C) the temporary replacement 
of personnel during any period of 
travel to and participation in exer-
cises and training in the use of equip-
ment and on prevention activities; 
‘‘(8) the costs of equipment (including 
software) required to receive, transmit, 
handle, and store classified 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 approved by the Secretary, which
1604 
may not exceed 10 percent of the 
total amount of the covered grant; 
‘‘(10) the costs of commercially avail-
able 
interoperable 
communications 
equipment (which, where applicable, is 
based on national, voluntary consensus 
standards) that the Secretary, in con-
sultation with the Chairman of the Fed-
eral Communications Commission, deems 
best suited to facilitate interoperability, 
coordination, and integration between 
and among emergency communications 
systems, and that complies with pre-
vailing grant guidance of the Department 
for interoperable communications; 
‘‘(11) educational curricula develop-
ment for first responders to ensure that 
they are prepared for terrorist attacks; 
‘‘(12) training and exercises to assist 
public elementary and secondary schools 
in developing and implementing pro-
grams to instruct students regarding age- 
appropriate skills to prepare for and re-
spond to an act of terrorism;
1605 
‘‘(13) paying of administrative ex-
penses 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 covered grant may not be used— 
‘‘(1) to supplant State or local funds; 
‘‘(2) to construct buildings or other 
physical facilities; 
‘‘(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 governments from using cov-
ered grant funds in a manner that also en-
hances first responder preparedness for 
emergencies and disasters unrelated to acts of 
terrorism, if such use assists such govern-
ments in achieving essential capabilities for 
terrorism preparedness established by the 
Secretary under section 1803.
1606 
‘‘(d) REIMBURSEMENT OF COSTS.—In addi-
tion to the activities described in subsection 
(a), a covered grant may be used to provide 
a reasonable stipend to paid-on-call or volun-
teer first responders who are not otherwise 
compensated for travel to or participation in 
training covered by this section. Any such re-
imbursement shall not be considered com-
pensation 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 Sec-
retary may not request that equipment paid 
for, wholly or in part, with funds provided as 
a covered grant be made available for re-
sponding to emergencies in surrounding 
States, regions, and localities, unless the Sec-
retary undertakes to pay the costs directly at-
tributable to transporting and operating such 
equipment during such response. 
‘‘(f) FLEXIBILITY IN UNSPENT HOMELAND SE-
CURITY GRANT FUNDS.—Upon request by the 
recipient of a covered grant, the Secretary 
may authorize the grantee to transfer all or
1607 
part of funds provided as the covered grant 
from uses specified in the grant agreement to 
other uses authorized under this section, if 
the Secretary determines that such transfer is 
in the interests of homeland security. 
‘‘(g) STATE, REGIONAL, AND TRIBAL RESPON-
SIBILITIES.— 
‘‘(1) 
PASS-THROUGH.—The 
Secretary 
shall require a recipient of a covered 
grant that is a State to obligate or other-
wise make available to local govern-
ments, first responders, and other local 
groups, to the extent required under the 
State homeland security plan or plans 
specified in the application for the grant, 
not less than 80 percent of the grant 
funds, 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 
beginning on the date the grant recipient 
receives the grant funds. 
‘‘(2) COST SHARING.—
1608 
‘‘(A) IN
GENERAL.—The Federal 
share of the costs of an activity car-
ried out with a covered grant to a 
State, region, or directly eligible tribe 
awarded after the 2-year period be-
ginning 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 car-
ried out with a covered grant award-
ed before the end of the 2-year period 
beginning on the date of the enact-
ment of this section shall be 100 per-
cent. 
‘‘(C) IN-KIND
MATCHING.—Each re-
cipient of a covered grant may meet 
the matching requirement under sub-
paragraph (A) by making in-kind con-
tributions of goods or services that 
are directly linked with the purpose 
for which the grant is made, includ-
ing, but not limited to, any necessary 
personnel overtime, contractor serv-
ices, administrative costs, equipment
1609 
fuel and maintenance, and rental 
space. 
‘‘(3) CERTIFICATIONS
REGARDING
DIS-
TRIBUTION OF GRANT FUNDS TO LOCAL GOV-
ERNMENTS.—Any State that receives a cov-
ered grant shall certify to the Secretary, 
by not later than 30 days after the expira-
tion 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 para-
graph (1). 
‘‘(4) QUARTERLY REPORT ON HOMELAND 
SECURITY
SPENDING.—The Federal share 
described in paragraph (2)(A) may be in-
creased by up to 2 percent 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)—
1610 
‘‘(A) the amount obligated to that 
recipient in that quarter; 
‘‘(B) the amount expended by that 
recipient in that quarter; and 
‘‘(C) a summary description of the 
items purchased by such recipient 
with such amount. 
‘‘(5) ANNUAL REPORT ON HOMELAND SE-
CURITY
SPENDING.—Each recipient of a 
covered grant shall submit an annual re-
port to the Secretary not later than 60 
days after the end of each fiscal year. 
Each recipient of a covered grant that is 
a region must simultaneously submit its 
report to each State of which any part is 
included in the region. Each recipient of 
a covered grant that is a directly eligible 
tribe must simultaneously submit its re-
port 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 recipi-
ents, and dates of receipt of all funds 
received under the grant during the 
previous fiscal year.
1611 
‘‘(B) The amount and the dates of 
disbursements of all such funds ex-
pended in compliance with para-
graph (1) or pursuant to mutual aid 
agreements or other sharing arrange-
ments that apply within the State, re-
gion, or directly eligible tribe, as ap-
plicable, during the previous fiscal 
year. 
‘‘(C) How the funds were utilized 
by each ultimate recipient or bene-
ficiary during the preceding fiscal 
year. 
‘‘(D) The extent to which essential 
capabilities identified in the applica-
ble State homeland security plan or 
plans were achieved, maintained, or 
enhanced as the result of the expend-
iture of grant funds during the pre-
ceding fiscal year. 
‘‘(E) The extent to which essential 
capabilities identified in the applica-
ble State homeland security plan or 
plans remain unmet.
1612 
‘‘(6) INCLUSION
OF
RESTRICTED
AN-
NEXES.—A recipient of a covered grant 
may submit to the Secretary an annex to 
the annual report under paragraph (5) 
that is subject to appropriate handling 
restrictions, if the recipient believes that 
discussion in the report of unmet needs 
would reveal sensitive but unclassified 
information. 
‘‘(7) PROVISION OF REPORTS.—The Sec-
retary shall ensure that each annual re-
port under paragraph (5) is provided to 
the Under Secretary for Emergency Pre-
paredness and Response and the Director 
of the Office for Domestic Preparedness. 
‘‘(h) INCENTIVES TO EFFICIENT ADMINISTRA-
TION OF HOMELAND SECURITY GRANTS.— 
‘‘(1) PENALTIES FOR DELAY IN PASSING 
THROUGH LOCAL SHARE.—If a recipient of a 
covered grant that is a State fails to pass 
through to local governments, first re-
sponders, and other local groups funds or 
resources required by subsection (g)(1) 
within 45 days after receiving funds 
under the grant, the Secretary may—
1613 
‘‘(A) reduce grant payments to the 
grant recipient from the portion of 
grant funds that is not required to be 
passed 
through 
under 
subsection 
(g)(1); 
‘‘(B) terminate payment of funds 
under the grant to the recipient, and 
transfer the appropriate portion of 
those funds directly to local first re-
sponders that were intended to re-
ceive funding under that grant; or 
‘‘(C) impose additional restric-
tions or burdens 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 re-
cipient to distribute to local gov-
ernment beneficiaries all or a por-
tion of grant funds that are not 
required to be passed through 
under subsection (g)(1); or
1614 
‘‘(iii) for each day that the 
grant 
recipient 
fails 
to 
pass 
through funds or resources in ac-
cordance with subsection (g)(1), 
reducing grant payments to the 
grant recipient from the portion 
of grant funds that is not re-
quired 
to 
be 
passed 
through 
under subsection (g)(1), except 
that the total amount of such re-
duction may not exceed 20 per-
cent of the total amount of the 
grant. 
‘‘(2) EXTENSION OF PERIOD.—The Gov-
ernor of a State may request in writing 
that the Secretary extend the 45-day pe-
riod under section 1805(e)(5)(E) or para-
graph (1) for an additional 15-day period. 
The Secretary may approve such a re-
quest, and may extend such period for 
additional 15-day periods, if the Sec-
retary determines that the resulting 
delay in providing grant funding to the 
local government entities that will re-
ceive funding under the grant will not
1615 
have a significant detrimental impact on 
such entities’ terrorism preparedness ef-
forts. 
‘‘(3) PROVISION OF NON-LOCAL SHARE TO 
LOCAL GOVERNMENT.— 
‘‘(A) IN
GENERAL.—The Secretary 
may upon request by a local govern-
ment pay to the local government a 
portion of the amount of a covered 
grant awarded to a State in which the 
local government is located, if— 
‘‘(i) the local government will 
use the amount paid to expedite 
planned enhancements to its ter-
rorism preparedness as described 
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).
1616 
‘‘(B) SHOWING
REQUIRED.—To re-
ceive a payment under this para-
graph, a local government must dem-
onstrate that— 
‘‘(i) it is identified explicitly 
as an ultimate recipient or in-
tended beneficiary in the ap-
proved grant application; 
‘‘(ii) it was intended by the 
grantee to receive a severable 
portion of the overall grant for a 
specific purpose that is identified 
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 
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.
1617 
‘‘(C) EFFECT
OF
PAYMENT.—Pay-
ment of grant funds to a local govern-
ment under this paragraph— 
‘‘(i) shall not affect any pay-
ment to another local government 
under this paragraph; and 
‘‘(ii) shall not prejudice con-
sideration of a request for pay-
ment under this paragraph that is 
submitted by another local gov-
ernment. 
‘‘(D) DEADLINE FOR ACTION BY SEC-
RETARY.—The Secretary shall approve 
or disapprove each request for pay-
ment under this paragraph by not 
later than 15 days after the date the 
request is received by the Depart-
ment. 
‘‘(i) REPORTS TO CONGRESS.—The Secretary 
shall submit an annual report to the Congress 
by December 31 of each year— 
‘‘(1) describing in detail the amount 
of Federal funds provided as covered 
grants that were directed to each State,
1618 
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 enhanc-
ing the essential capabilities estab-
lished under section 1803(a) as a re-
sult of the expenditure of covered 
grant funds during the preceding fis-
cal year; and 
‘‘(B) an estimate of the amount of 
expenditures 
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 
consultation with the Under Secretaries 
for Emergency Preparedness and Re-
sponse and Science and Technology and 
the Director of the Office for Domestic
1619 
Preparedness, shall, not later than 6 
months after the date of enactment of 
this section, support the development of, 
promulgate, and update as necessary na-
tional voluntary consensus standards for 
the performance, use, and validation of 
first responder equipment for purposes 
of section 1805(e)(7). Such standards— 
‘‘(A) shall be, to the maximum ex-
tent practicable, consistent with any 
existing voluntary consensus stand-
ards; 
‘‘(B) shall take into account, as 
appropriate, new types of terrorism 
threats that may not have been con-
templated when such existing stand-
ards were developed; 
‘‘(C) shall be focused on maxi-
mizing interoperability, interchange-
ability, 
durability, 
flexibility, 
effi-
ciency, efficacy, portability, sustain-
ability, and safety; and 
‘‘(D) shall cover all appropriate 
uses of the equipment.
1620 
‘‘(2) REQUIRED
CATEGORIES.—In car-
rying out paragraph (1), the Secretary 
shall specifically consider the following 
categories of first responder equipment: 
‘‘(A) Thermal imaging equipment. 
‘‘(B) Radiation detection and anal-
ysis equipment. 
‘‘(C) 
Biological 
detection 
and 
analysis equipment. 
‘‘(D) Chemical detection and anal-
ysis equipment. 
‘‘(E) Decontamination and steri-
lization equipment. 
‘‘(F) Personal protective equip-
ment, 
including 
garments, 
boots, 
gloves, and hoods and other protec-
tive clothing. 
‘‘(G) 
Respiratory 
protection 
equipment. 
‘‘(H) 
Interoperable 
communica-
tions, including wireless and wireline 
voice, video, and data networks. 
‘‘(I) Explosive mitigation devices 
and explosive detection and analysis 
equipment.
1621 
‘‘(J) Containment vessels. 
‘‘(K) Contaminant-resistant vehi-
cles. 
‘‘(L) Such other equipment for 
which the Secretary determines that 
national voluntary consensus stand-
ards would be appropriate. 
‘‘(b) TRAINING STANDARDS.— 
‘‘(1) IN
GENERAL.—The Secretary, in 
consultation with the Under Secretaries 
for Emergency Preparedness and Re-
sponse and Science and Technology and 
the Director of the Office for Domestic 
Preparedness, shall support the develop-
ment of, promulgate, and regularly up-
date as necessary national voluntary con-
sensus standards for first responder 
training carried out with amounts pro-
vided under covered grant programs, 
that will enable State and local govern-
ment first responders to achieve optimal 
levels 
of 
terrorism 
preparedness 
as 
quickly as practicable. Such standards 
shall give priority to providing training 
to—
1622 
‘‘(A) enable first responders to 
prevent, prepare for, respond to, and 
mitigate terrorist threats, including 
threats from chemical, biological, nu-
clear, and radiological weapons and 
explosive devices capable of inflicting 
significant human casualties; and 
‘‘(B) familiarize first responders 
with the proper use of equipment, in-
cluding software, developed pursuant 
to the standards established under 
subsection (a). 
‘‘(2) REQUIRED
CATEGORIES.—In car-
rying out paragraph (1), the Secretary 
specifically shall include the following 
categories of first responder activities: 
‘‘(A) Regional planning. 
‘‘(B) Joint exercises. 
‘‘(C) Intelligence collection, anal-
ysis, and sharing. 
‘‘(D) Emergency notification of af-
fected populations. 
‘‘(E) Detection of biological, nu-
clear, 
radiological, 
and 
chemical 
weapons of mass destruction.
1623 
‘‘(F) Such other activities for 
which the Secretary determines that 
national voluntary consensus train-
ing standards would be appropriate. 
‘‘(3) CONSISTENCY.—In carrying out 
this subsection, the Secretary shall en-
sure that such training standards are 
consistent with the principles of emer-
gency preparedness for all hazards. 
‘‘(c) CONSULTATION WITH STANDARDS ORGA-
NIZATIONS.—In establishing national voluntary 
consensus 
standards 
for 
first 
responder 
equipment and training under this section, 
the Secretary shall consult with relevant pub-
lic and private sector groups, including— 
‘‘(1) the National Institute of Stand-
ards and Technology; 
‘‘(2) the National Fire Protection As-
sociation; 
‘‘(3) the National Association of Coun-
ty and City Health Officials; 
‘‘(4) the Association of State and Ter-
ritorial Health Officials; 
‘‘(5) the American National Standards 
Institute;
1624 
‘‘(6) the National Institute of Justice; 
‘‘(7) 
the 
Inter-Agency 
Board 
for 
Equipment Standardization and Inter-
operability; 
‘‘(8) the National Public Health Per-
formance Standards Program; 
‘‘(9) the National Institute for Occupa-
tional Safety and Health; 
‘‘(10) ASTM International; 
‘‘(11) the International Safety Equip-
ment Association; 
‘‘(12) the Emergency Management Ac-
creditation Program; and 
‘‘(13) to the extent the Secretary con-
siders appropriate, other national vol-
untary consensus standards 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 standards under this section for 
first responder equipment or training that in-
volve or relate to health professionals, includ-
ing emergency medical professionals, the Sec-
1625 
retary shall coordinate activities under this 
section with the Secretary of Health and 
Human Services.’’. 
(b) DEFINITION
OF EMERGENCY RESPONSE 
PROVIDERS.—Paragraph (6) of section 2 of the 
Homeland Security Act of 2002 (Public Law 
107–296; 6 U.S.C. 101(6)) is amended by strik-
ing ‘‘includes’’ and all that follows and insert-
ing ‘‘includes Federal, State, and local govern-
mental and nongovernmental emergency pub-
lic safety, law enforcement, fire, emergency 
response, emergency medical (including hos-
pital emergency facilities), and related per-
sonnel, organizations, agencies, and authori-
ties.’’. 
(c) TEMPORARY LIMITATIONS
ON APPLICA-
TION.— 
(1) 1-YEAR DELAY IN APPLICATION.—The 
following provisions of title XVIII of the 
Homeland Security Act of 2002, as amend-
ed by subsection (a), shall not apply dur-
ing 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.
1626 
(B) In section 1805(f)(3)(A), the 
phrase ‘‘, by enhancing the essential 
capabilities of the applicants,’’. 
(2) 2-YEAR DELAY IN APPLICATION.—The 
following provisions of title XVIII of the 
Homeland Security Act of 2002, as amend-
ed by subsection (a), shall not apply dur-
ing the 2-year period beginning on the 
date of the enactment of this Act: 
(A) Subparagraphs (D) and (E) of sec-
tion 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 Homeland Security Act of 2002 (Public 
Law 107–296; 6 U.S.C. 121 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 203. HOMELAND SECURITY ADVISORY SYSTEM. 
‘‘(a) IN GENERAL.—The Secretary shall re-
vise 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 designa-
1627 
tion 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 De-
cember 31 each year regarding the geo-
graphic region-specific warnings and eco-
nomic sector-specific warnings issued during 
the preceding fiscal year under the Homeland 
Security Advisory System referred to in sec-
tion 201(d)(7), and the bases for such warn-
ings. The report shall be submitted in unclas-
sified form and may, as necessary, include a 
classified annex.’’. 
(b) CLERICAL AMENDMENT.—The table of 
contents in section 1(b) of the Homeland Secu-
rity Act of 2002 (6 U.S.C. 101 et seq.) is amend-
ed by inserting after the item relating to sec-
tion 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)
1628 
and inserting ‘‘; and’’, and by adding at the 
end the following: 
‘‘(8) 
coordinating 
industry 
efforts, 
with respect to functions of the Depart-
ment of Homeland Security, to identify 
private sector resources and capabilities 
that could be effective in supplementing 
Federal, State, and local government 
agency efforts to prevent or respond to a 
terrorist attack.’’. 
SEC. 5006. SUPERSEDED PROVISION. 
This subtitle supersedes section 1014 of 
Public Law 107–56. 
SEC. 5007. SENSE OF CONGRESS REGARDING INTEROPER-
ABLE COMMUNICATIONS. 
(a) FINDING.—The Congress finds that— 
(1) many first responders working in 
the same jurisdiction or in different juris-
dictions cannot effectively and efficiently 
communicate with one another; and 
(2) their inability to do so threatens 
the public’s safety and may result in un-
necessary loss of lives and property. 
(b) SENSE OF CONGRESS.—It is the sense of 
the Congress that interoperable emergency
1629 
communications systems and radios should 
continue to be deployed as soon as prac-
ticable for use by the first responder commu-
nity, and that upgraded and new digital com-
munications systems and new digital radios 
must meet prevailing national, voluntary con-
sensus standards for interoperability. 
SEC. 5008. SENSE OF CONGRESS REGARDING CITIZEN 
CORPS COUNCILS. 
(a) FINDING.—The Congress finds that Cit-
izen Corps councils help to enhance local cit-
izen participation in terrorism preparedness 
by coordinating multiple Citizen Corps pro-
grams, developing community action plans, 
assessing possible threats, and identifying 
local resources. 
(b) SENSE OF CONGRESS.—It is the sense of 
the Congress that individual Citizen Corps 
councils should seek to enhance the prepared-
ness and response capabilities of all organiza-
tions participating in the councils, including 
by providing funding to as many of their par-
ticipating organizations as practicable to pro-
mote local terrorism preparedness programs.
1630 
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 rep-
resentatives of providers and participants in 
the telecommunications industry, shall con-
duct a study to determine whether it is cost- 
effective, efficient, and feasible to establish 
and implement an emergency telephonic alert 
notification system that will— 
(1) alert persons in the United States 
of imminent or current hazardous events 
caused by acts of terrorism; and 
(2) provide information to individuals 
regarding appropriate measures that may 
be undertaken to alleviate or minimize 
threats to their safety and welfare posed 
by such events. 
(b) TECHNOLOGIES TO CONSIDER.—In con-
ducting the study, the Secretary shall con-
sider the use of the telephone, wireless com-
munications, and other existing communica-
tions networks to provide such notification. 
(c) REPORT.—Not later than 9 months after 
the date of the enactment of this Act, the Sec-
1631 
retary 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 co-
ordination of Federal efforts to prevent, pre-
pare for, and respond to acts of terrorism and 
other major disasters and emergencies among 
the divisions of the Department of Homeland 
Security, including the Directorate of Emer-
gency Preparedness and Response and the Of-
fice for State and Local Government Coordi-
nation and Preparedness. 
Subtitle B—Restructuring Relating 
to the Department of Homeland 
Security 
and 
Congressional 
Oversight 
SEC. 5021. RESPONSIBILITIES OF counternarcotics OFFICE. 
(a) AMENDMENT.—Section 878 of the Home-
land Security Act of 2002 (6 U.S.C. 458) is 
amended to read as follows: 
‘‘SEC. 878. OFFICE OF counternarcotics ENFORCEMENT. 
‘‘(a) OFFICE.—There shall be in the Depart-
ment an Office of counternarcotics Enforce-
ment, which shall be headed by a Director ap-
1632 
pointed by the President, by and with the ad-
vice and consent of the Senate. 
‘‘(b) ASSIGNMENT OF PERSONNEL.—(1) The 
Secretary shall assign to the Office perma-
nent staff and other appropriate personnel 
detailed from other subdivisions of the De-
partment 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 li-
aison between that subdivision and the Office 
of counternarcotics Enforcement. 
‘‘(c) LIMITATION ON CONCURRENT EMPLOY-
MENT.—Except as provided in subsection (d), 
the Director of the Office of counternarcotics 
Enforcement shall not be employed by, as-
signed to, or serve as the head of, any other 
branch of the Federal Government, any State 
or local government, or any subdivision of the 
Department other than the Office of counter-
narcotics Enforcement. 
‘‘(d) ELIGIBILITY TO SERVE AS THE UNITED 
STATES INTERDICTION COORDINATOR.—The Di-
1633 
rector of the Office of counternarcotics En-
forcement may be appointed as the United 
States Interdiction Coordinator by the Direc-
tor of the Office of National Drug Control Pol-
icy, and shall be the only person at the De-
partment eligible to be so appointed. 
‘‘(e) 
RESPONSIBILITIES.—The 
Secretary 
shall direct the Director of the Office of 
counternarcotics Enforcement— 
‘‘(1) to coordinate policy and oper-
ations within the Department, between 
the Department and other Federal de-
partments and agencies, and between the 
Department and State and local agencies 
with respect to stopping the entry of ille-
gal drugs into the United States; 
‘‘(2) to ensure the adequacy of re-
sources within the Department for stop-
ping the entry of illegal drugs into the 
United States; 
‘‘(3) to recommend the appropriate fi-
nancial and personnel resources nec-
essary to help the Department better ful-
fill its responsibility to stop the entry of 
illegal drugs into the United States;
1634 
‘‘(4) to track and sever connections 
between illegal drug trafficking and ter-
rorism; and 
‘‘(5) to be a representative of the De-
partment on all task forces, committees, 
or other entities whose purpose is to co-
ordinate the counternarcotics enforce-
ment activities of the Department and 
other Federal, state or local agencies. 
‘‘(f) REPORTS TO CONGRESS.— 
‘‘(1) ANNUAL BUDGET REVIEW.—The Di-
rector of the Office of counternarcotics 
Enforcement shall, not later than 30 days 
after the submission by the President to 
Congress of any request for expenditures 
for the Department, submit to the Com-
mittees on Appropriations and the au-
thorizing 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 sub-
part of any request that affects or 
may affect the counternarcotics ac-
1635 
tivities of the Department or any of 
its subdivisions, or that affects the 
ability of the Department or any sub-
division of the Department to meet its 
responsibility to stop the entry of ille-
gal drugs into the United States; 
‘‘(B) describe with particularity 
how such requested funds would be 
or could be expended in furtherance 
of counternarcotics activities; and 
‘‘(C) compare such requests with 
requests 
for 
expenditures 
and 
amounts appropriated by Congress in 
the previous fiscal year. 
‘‘(2) EVALUATION OF COUNTERNARCOTICS 
ACTIVITIES.—The Director of the Office of 
counternarcotics Enforcement shall, not 
later than February 1 of each year, sub-
mit to the Committees on Appropriations 
and the authorizing committees of juris-
diction of the House of Representatives 
and the Senate a review and evaluation 
of the counternarcotics activities of the 
Department for the previous fiscal year. 
The review and evaluation shall—
1636 
‘‘(A) describe the counternarcotics 
activities of the Department and each 
subdivision 
of 
the 
Department 
(whether individually or in coopera-
tion with other subdivisions of the 
Department, or in cooperation with 
other branches of the Federal Gov-
ernment or with State or local agen-
cies), including the methods, proce-
dures, and systems (including com-
puter systems) for collecting, ana-
lyzing, sharing, and disseminating in-
formation concerning narcotics activ-
ity within the Department and be-
tween the Department and other Fed-
eral, State, and local agencies; 
‘‘(B) describe the results of those 
activities, 
using 
quantifiable 
data 
whenever possible; 
‘‘(C) state whether those activities 
were sufficient to meet the responsi-
bility of the Department to stop the 
entry of illegal drugs into the United 
States, including a description of the 
performance measures of effective-
1637 
ness that were used in making that 
determination; and 
‘‘(D) recommend, where appro-
priate, changes to those activities to 
improve the performance of the De-
partment in meeting its responsibility 
to stop the entry of illegal drugs into 
the United States. 
‘‘(3) CLASSIFIED OR LAW ENFORCEMENT 
SENSITIVE INFORMATION.—Any content of a 
review and evaluation described in the 
reports required in this subsection that 
involves information classified under cri-
teria established by an Executive order, 
or whose public disclosure, as deter-
mined by the Secretary, would be detri-
mental to the law enforcement or na-
tional security activities of the Depart-
ment or any other Federal, State, or local 
agency, shall be presented to Congress 
separately from the rest of the review 
and evaluation.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
103(a) of the Homeland Security Act of 2002 
(6 U.S.C. 113(a)) is amended—
1638 
(1) by redesignating paragraphs (8) 
and (9) as paragraphs (9) and (10), respec-
tively; and 
(2) by inserting after paragraph (7) 
the following new paragraph (8): 
‘‘(8) A Director of the Office of 
counternarcotics Enforcement.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Of 
the amounts appropriated for the Department 
of Homeland Security for Departmental man-
agement and operations for fiscal year 2005, 
there is authorized up to $6,000,000 to carry 
out section 878 of the Department of Home-
land Security Act of 2002 (as amended by this 
section). 
SEC. 5022. USE OF counternarcotics ENFORCEMENT ACTIVI-
TIES IN CERTAIN EMPLOYEE PERFORMANCE 
APPRAISALS. 
(a) IN GENERAL.—Subtitle E of title VIII of 
the Homeland Security Act of 2002 (6 U.S.C. 
411 and following) is amended by adding at 
the end the following:
1639 
‘‘SEC. 843. USE OF counternarcotics ENFORCEMENT ACTIVI-
TIES IN CERTAIN EMPLOYEE PERFORMANCE 
APPRAISALS. 
‘‘(a) IN GENERAL.—Each subdivision of the 
Department that is a National Drug Control 
Program Agency shall include as one of the 
criteria in its performance appraisal system, 
for each employee directly or indirectly in-
volved in the enforcement of Federal, State, 
or local narcotics laws, the performance of 
that employee with respect to the enforce-
ment 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 seizures of narcotics and arrests of vio-
lators of Federal, State, or local narcotics 
laws; and 
‘‘(2) the degree to which that em-
ployee cooperated with or contributed to 
the efforts of other employees, either 
within the Department or other Federal, 
State, or local agencies, in counter-
narcotics enforcement. 
‘‘(b) DEFINITIONS.—For purposes of this 
section—
1640 
‘‘(1) the term ‘National Drug Control 
Program Agency’ means— 
‘‘(A) a National Drug Control Pro-
gram Agency, as defined in section 
702(7) of the Office of National Drug 
Control Policy Reauthorization Act of 
1998 (as last in effect); and 
‘‘(B) any subdivision of the De-
partment 
that 
has 
a 
significant 
counternarcotics 
responsibility, 
as 
determined by— 
‘‘(i) the counternarcotics offi-
cer, appointed 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.’’.
1641 
(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 following: 
‘‘Sec. 843. Use of counternarcotics enforcement activities in 
certain employee performance appraisals.’’. 
SEC. 5023. SENSE OF THE HOUSE OF REPRESENTATIVES ON 
ADDRESSING HOMELAND SECURITY FOR THE 
AMERICAN PEOPLE. 
(a) FINDINGS.—The House of Representa-
tives finds that— 
(1) the House of Representatives cre-
ated a Select Committee on Homeland Se-
curity at the start of the 108th Congress 
to provide for vigorous congressional 
oversight for the implementation and op-
eration of the Department of Homeland 
Security; 
(2) the House of Representatives also 
charged the Select Committee on Home-
land 
Security, 
including 
its 
Sub-
committee on Rules, with undertaking a 
thorough and complete study of the oper-
ation and implementation of the rules of 
the House, including the rule governing 
committee jurisdiction, with respect to
1642 
the issue of homeland security and to 
make their recommendations to the Com-
mittee on Rules; 
(3) on February 11, 2003, the Com-
mittee on Appropriations of the House of 
Representatives 
created 
a 
new 
Sub-
committee on Homeland Security with ju-
risdiction over the Transportation Secu-
rity 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 sev-
eral steps to help ensure its continuity in 
the event of a terrorist attack, includ-
ing— 
(A) adopting H.R. 2844, the Con-
tinuity of Representation Act, a bill to 
require States to hold expedited spe-
cial elections to fill vacancies in the 
House of Representatives not later 
than 45 days after the vacancy is an-
1643 
nounced by the Speaker in extraor-
dinary circumstances; 
(B) granting authority for joint- 
leadership recalls from a period of 
adjournment to an alternate place; 
(C) allowing for anticipatory con-
sent with the Senate to assemble in 
an alternate place; 
(D) establishing the requirement 
that the Speaker submit to the Clerk 
a list of Members in the order in 
which each shall act as Speaker pro 
tempore in the case of a vacancy in 
the Office of Speaker (including phys-
ical inability of the Speaker to dis-
charge his duties) until the election 
of a Speaker or a Speaker pro tem-
pore, 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 re-
cess of the House subject to the call 
of the Chair when notified of an im-
1644 
minent threat to the safety of the 
House; 
(F) granting authority for the 
Speaker, during any recess or ad-
journment of not more than three 
days, in consultation with the Minor-
ity Leader, to postpone the time for 
reconvening or to reconvene before 
the time previously 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, 
disqualification, 
or 
re-
moval of a Member results in an ad-
justment of the quorum of the House, 
which the Speaker shall announce to 
the House and which shall not be sub-
ject to appeal.
1645 
(b) SENSE OF THE HOUSE.—It is the sense of 
the House of Representatives that the Com-
mittee on Rules should act upon the rec-
ommendations provided by the Select Com-
mittee on Homeland Security, and other com-
mittees of existing jurisdiction, regarding the 
jurisdiction over proposed legislation, mes-
sages, petitions, memorials and other matters 
relating to homeland security prior to or at 
the start of the 109th Congress. 
Subtitle C—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 ‘‘, 
including information security risks,’’ 
after ‘‘risks’’ both places it appears; 
(3) in section 11312(b)(1), by striking 
‘‘information 
technology 
investments’’ 
and inserting ‘‘investments in informa-
1646 
tion technology (including information 
security needs)’’; and 
(4) in section 11315(b)(2), by inserting 
‘‘, secure,’’ after ‘‘sound’’. 
Subtitle D—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 activi-
ties of the United States Government that 
are concerned with the protection of the 
Nation 
from 
foreign 
aggression, 
ter-
rorism, or espionage, including develop-
ment of defense plans or policies, intel-
ligence or counterintelligence activities, 
and related activities concerned with the 
preservation of military strength of the 
United States and protection of the home-
land; and
1647 
(2) positions that require regular use 
of, or access to, classified information. 
(b) PUBLICATION
IN
THE
FEDERAL
REG-
ISTER.—Not later than 60 days after the effec-
tive date of this section, the Director of the 
Office of Personnel Management shall publish 
in the Federal Register a list of offices that 
constitute national security positions under 
section (a) for which Senate confirmation is 
required by law, and the Director shall revise 
such list from time to time as appropriate. 
(c) PRESIDENTIAL APPOINTMENTS.—(1) With 
respect to appointment of individuals to of-
fices 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 not-
withstanding any other provision of law, the 
advice and consent of the Senate shall not be 
required, but rather such appointment shall 
be made by the President alone. 
(2) With respect to appointment of indi-
viduals to offices identified under section (b) 
and listed in sections 5313 or 5314 of title 5, 
United States Code, which shall arise after
1648 
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 Sen-
ate without a confirmation vote occurring in 
the Senate, such appointment 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. 
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 secu-
rity position’ shall mean not more than 20 
positions requiring Senate confirmation, 
not to include more than 3 heads of Exec-
1649 
utive Departments, which are designated 
by the President on or after an inaugura-
tion day as positions for which the duties 
involve substantial responsibility for na-
tional security. 
‘‘(b) With respect to any vacancy that ex-
ists during the 60-day period beginning on an 
inauguration day, except 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 in-
auguration day; or 
‘‘(2) 90 days after the date on which 
the vacancy occurs. 
‘‘(c) With respect to any vacancy in any 
specified national security position that exists 
during the 60-day period beginning on an in-
auguration day, the requirements of subpara-
graphs (A) and (B) of section 3345(a)(3) shall 
not apply.’’.
1650 
SEC. 5043. PUBLIC FINANCIAL DISCLOSURE FOR THE IN-
TELLIGENCE COMMUNITY. 
(a) IN GENERAL.—The Ethics in Govern-
ment 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 posi-
tion of an officer or employee described in 
subsection (e), an individual shall file a report 
containing the information described in sec-
tion 302(b) unless the individual has left an-
other position described in subsection (e) 
within 30 days prior to assuming such new po-
sition 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 President to the Senate of the nomination 
of an individual to a position in the executive 
branch, appointment to which requires the 
advice and consent of the Senate, such indi-
vidual shall file a report containing the infor-
mation described in section 302(b). Such indi-
1651 
vidual shall, not later than the date of the first 
hearing to consider the nomination of such 
individual, make current the report filed pur-
suant to this paragraph by filing the informa-
tion required by section 302(a)(1)(A) with re-
spect to income and honoraria received as of 
the date which occurs 5 days before the date 
of such hearing. Nothing in this Act shall pre-
vent any congressional committee from re-
questing, as a condition 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 President-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 described in subsection (e) during 
any calendar year and performs the duties of 
his position or office for a period in excess of 
60 days in that calendar year shall file on or
1652 
before May 15 of the succeeding year a report 
containing the information described in sec-
tion 302(a). 
‘‘(d) Any individual who occupies a posi-
tion described in subsection (e) shall, on or 
before the 30th day after termination of em-
ployment in such position, file a report con-
taining the information described in section 
302(a) covering the preceding calendar year if 
the report required by subsection (c) has not 
been filed and covering the portion of the cal-
endar year in which such termination occurs 
up to the date the individual left such office 
or position, unless such individual has accept-
ed 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 subsections (a), (c), and (d) are those em-
ployed in or under— 
‘‘(1) the Office of the National Intel-
ligence Director; or 
‘‘(2) an element of the intelligence 
community, as defined in section 3(4) of
1653 
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 proce-
dures prescribed by the Office of Government 
Ethics, but the total of such extensions shall 
not exceed 90 days. 
‘‘(2)(A) In the case of an individual who is 
serving in the Armed Forces, or serving in 
support of the Armed Forces, in an area while 
that area is designated by the President by 
Executive order as a combat zone for pur-
poses of section 112 of the Internal Revenue 
Code of 1986, the date for the filing of any re-
port shall be extended so that the date is 180 
days after the later of— 
‘‘(i) the last day of the individual’s 
service in such area during such des-
ignated period; or 
‘‘(ii) the last day of the individual’s 
hospitalization as a result of injury re-
ceived or disease contracted while serv-
ing in such area. 
‘‘(B) The Office of Government Ethics, in 
consultation with the Secretary of Defense,
1654 
may prescribe procedures under this para-
graph. 
‘‘(g) The Director of the Office of Govern-
ment Ethics may grant a publicly available re-
quest for a waiver of any reporting require-
ment under this title with respect to an indi-
vidual 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 Govern-
ment; 
‘‘(3) it is unlikely that such individ-
ual’s outside employment or financial in-
terests will create a conflict of interest; 
and 
‘‘(4) public financial disclosure by 
such individual is not necessary in the 
circumstances. 
‘‘(h)(1) The Director of the Office of Gov-
ernment 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
1655 
financial interests that raise conflict con-
cerns. 
‘‘(2) The actions referenced in paragraph 
(1) may include, but are not limited to, signed 
agreements with the individual’s employing 
agency, the establishment of blind trusts, or 
requirements for divesting interests or hold-
ings while in office. 
‘‘SEC. 302. CONTENTS OF REPORTS. 
‘‘(a) Each report filed pursuant to section 
301 (c) and (d) shall include a full and com-
plete 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 Govern-
ment), received during the preceding cal-
endar 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.
1656 
‘‘(B) The source and description of in-
vestment income which may include but 
is not limited to dividends, rents, inter-
est, and capital gains, received during 
the preceding calendar year which ex-
ceeds $500 in amount or value. 
‘‘(C) The categories for reporting the 
amount for income covered in subpara-
graphs (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 description, 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 report-
1657 
ing individual during the preceding cal-
endar year, except that any food, lodging, 
or entertainment received as personal 
hospitality of an individual need not be 
reported, and any gift with a fair market 
value of $100 or less, as adjusted at the 
same time and by the same percentage as 
the minimal value is adjusted, need not 
be aggregated for purposes of this sub-
paragraph. 
‘‘(B) The identity of the source and a 
brief description (including dates of trav-
el and nature of expenses provided) of re-
imbursements 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 calendar 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
1658 
of the close of the preceding calendar 
year, excluding any personal liability 
owed to the reporting individual by a 
spouse, or by a parent, brother, sister, or 
child of the reporting individual or of the 
reporting individual’s spouse, or any de-
posit accounts aggregating $100,000 or 
less in a financial institution, or any Fed-
eral Government securities aggregating 
$100,000 or less. 
‘‘(4) The identity and category of 
value of the total liabilities owed to any 
creditor other than a spouse, or a parent, 
brother, sister, or child of the reporting 
individual or of the reporting individual’s 
spouse which exceed $20,000 at any time 
during the preceding calendar year, ex-
cluding— 
‘‘(A) any mortgage secured by real 
property which is a personal resi-
dence of the reporting individual or 
his spouse; and 
‘‘(B) any loan secured by a per-
sonal motor vehicle, household fur-
niture, or appliances, which loan does
1659 
not exceed the purchase price of the 
item which secures it. 
With respect to revolving charge ac-
counts, only those with an outstanding li-
ability which exceeds $20,000 as of the 
close of the preceding calendar year need 
be reported under this paragraph. Not-
withstanding the preceding sentence, in-
dividuals required to file pursuant to sec-
tion 301(b) shall also report the aggregate 
sum of the outstanding balances of all re-
volving charge accounts as of any date 
that is within 30 days of the date of filing 
if the aggregate sum of those balances ex-
ceeds $20,000. 
‘‘(5) Except as provided in this para-
graph, a brief description of any real 
property, other than 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 
ex-
changed during the preceding cal-
endar year;
1660 
‘‘(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 pursu-
ant 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 cal-
endar year) as an officer, director, trust-
ee, partner, proprietor, representative, 
employee, or consultant of any corpora-
tion, company, firm, partnership, or other 
business enterprise, any nonprofit orga-
nization, any labor organization, or any 
educational or other institution other 
than the United States Government. This 
subparagraph shall not require the re-
porting of positions held in any religious, 
social, fraternal, or political entity and 
positions solely of an honorary nature.
1661 
‘‘(B) If any person, other than a per-
son reported as a source of income under 
paragraph (1)(A) or the United States 
Government, paid a nonelected reporting 
individual compensation in excess of 
$25,000 in the calendar year in which, or 
the calendar year prior to the calendar 
year in which, the individual files his 
first report under this title, the indi-
vidual shall include in the report— 
‘‘(i) the identity of each source of 
such compensation; and 
‘‘(ii) a brief description of the na-
ture of the duties performed or serv-
ices rendered by the reporting indi-
vidual for each such source. 
The preceding sentence shall not require 
any individual to include in such report 
any information which is considered con-
fidential as a result of a privileged rela-
tionship, established by law, between 
such individual and any person or any in-
formation which the person for whom the 
services are provided has a reasonable 
expectation of privacy, nor shall it re-
1662 
quire 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 individual 
was a member, partner, or employee un-
less such 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 welfare 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 in-
dividual in a qualified blind trust.
1663 
‘‘(b)(1) Each report filed pursuant to sub-
sections (a) and (b) of section 301 shall in-
clude a full and complete statement with re-
spect to the information required by— 
‘‘(A) paragraphs (1) and (6) of sub-
section (a) for the year of filing and the 
preceding calendar year, 
‘‘(B) paragraphs (3) and (4) of sub-
section (a) as of the date specified in the 
report but which is less than 31 days be-
fore the filing date, and 
‘‘(C) paragraph (7) of subsection (a) as 
of the filing date but for periods de-
scribed in such paragraph. 
‘‘(2)(A) In lieu of filling out 1 or more 
schedules of a financial disclosure form, an 
individual may supply the required informa-
tion in an alternative format, pursuant to ei-
ther rules adopted by the Office of Govern-
ment Ethics or pursuant to a specific written 
determination by the Director 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 indi-
1664 
vidual may indicate the exact dollar amount 
of such item. 
‘‘(c)(1) In the case of any individual re-
ferred to in section 301(c), the Office of Gov-
ernment 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 otherwise be covered by any 
public report filed pursuant to this title. 
‘‘(2) In the case of any individual referred 
to in section 301(d), any reference to the pre-
ceding calendar year shall be considered also 
to include that part of the calendar year of fil-
ing up to the date of the termination of em-
ployment. 
‘‘(d)(1) The categories for reporting the 
amount or value of the items covered in sub-
section (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;
1665 
‘‘(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 current value of an interest in real prop-
erty (or an interest in a real estate partner-
ship) is not ascertainable without an ap-
praisal, an individual may list (A) the date of 
purchase and the purchase price of the inter-
est 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 as-
sessed value is computed at less than 100 per-
cent of such market value, but such indi-
vidual 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 pursuant to 
paragraph (1). If the current value of any 
other item required to be reported under sub-
section (a)(3) is not ascertainable without an 
appraisal, such individual may list the book 
value of a corporation whose stock is not pub-
licly traded, the net worth of a business part-
1666 
nership, the equity value of an individually 
owned business, or with respect to other hold-
ings, any recognized indication of value, but 
such individual shall include in his report a 
full and complete description of the method 
used in determining such value. In lieu of any 
value referred to in the preceding sentence, 
an individual may list the assessed value of 
the item for tax purposes, adjusted to reflect 
the market value of the item used for the as-
sessment 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 para-
graphs (4) and (8) of subsection (a) are— 
‘‘(A) greater than $20,000 but not 
more than $100,000; 
‘‘(B) greater than $100,000 but not 
more than $500,000; 
‘‘(C) greater than $500,000 but not 
more than $1,000,000; and 
‘‘(D) greater than $1,000,000.
1667 
‘‘(e)(1) Except as provided in subpara-
graph (F), each report required by section 301 
shall also contain information listed in para-
graphs (1) through (5) of subsection (a) re-
specting 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 except that, with re-
spect to earned income if the spouse is 
self-employed in business or a profession, 
only the nature of such business or pro-
fession need be reported. 
‘‘(B) All information required to be re-
ported in subsection (a)(1)(B) with re-
spect to investment income 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 totally independent of the 
relationship of the spouse or dependent 
child to the reporting individual, the 
identity of the source and a brief descrip-
tion of gifts of transportation, lodging,
1668 
food, or entertainment and a brief de-
scription and the value of other gifts. 
‘‘(D) In the case of any reimburse-
ments received by a spouse or dependent 
child which are not received totally inde-
pendent of the relationship of the spouse 
or dependent child to the reporting indi-
vidual, the identity of the source and a 
brief description of each such reimburse-
ment. 
‘‘(E) In the case of items described in 
paragraphs (3) through (5) of subsection 
(a), all information required to be re-
ported under these paragraphs other 
than items which the reporting indi-
vidual certifies (i) represent the spouse’s 
or dependent child’s sole financial inter-
est or responsibility and which the re-
porting individual has no knowledge of, 
(ii) are not in any way, past or present, 
derived from the income, assets, or activi-
ties of the reporting individual, and (iii) 
that he neither derives, nor expects to de-
rive, any financial or economic benefit.
1669 
‘‘(F) Reports required by subsections 
(a), (b), and (c) of section 301 shall, with 
respect to the spouse and dependent 
child of the reporting individual, only 
contain information listed in paragraphs 
(1), (3), and (4) of subsection (a). 
‘‘(2) No report shall be required with re-
spect to a spouse living separate and apart 
from the reporting individual with the inten-
tion of terminating the marriage or providing 
for permanent separation, or with respect to 
any income or obligations of an individual 
arising from the dissolution of his marriage or 
the permanent separation from his spouse. 
‘‘(f)(1) Except as provided in paragraph 
(2), each reporting individual shall report the 
information required to be reported pursuant 
to subsections (a), (b), and (c) with respect to 
the holdings of and the income from a trust 
or other financial arrangement from which 
income is received by, or with respect to 
which a beneficial interest in principal or in-
come is held by, such individual, his spouse, 
or any dependent child.
1670 
‘‘(2) A reporting individual need not re-
port the holdings of or the source of income 
from any of the holdings of— 
‘‘(A) any qualified blind trust (as de-
fined in paragraph (3)); 
‘‘(B) a trust— 
‘‘(i) which was not created di-
rectly by such individual, his spouse, 
or any dependent child, and 
‘‘(ii) the holdings or sources of in-
come of which such individual, his 
spouse, and any dependent child have 
no knowledge; or 
‘‘(C) an entity described under the 
provisions of paragraph (8), but such in-
dividual 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 ‘qualified 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:
1671 
‘‘(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 attorney, a cer-
tified public accountant, a broker, or an 
investment advisor who— 
‘‘(I) is independent of and not as-
sociated with any interested party so 
that the trustee or other person can-
not be controlled or influenced in the 
administration of the trust by any in-
terested party; 
‘‘(II) is not and has not been an 
employee of or affiliated with any in-
terested party and is not a partner of, 
or involved in any joint venture or 
other investment with, any interested 
party; and 
‘‘(III) is not a relative of any inter-
ested 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 as-
sociated with any interested party so
1672 
that such officer or employee cannot 
be controlled or influenced in the ad-
ministration of the trust by any inter-
ested party; 
‘‘(II) is not a partner of, or in-
volved in any joint venture or other 
investment 
with, 
any 
interested 
party; and 
‘‘(III) is not a relative of any inter-
ested party. 
‘‘(B) Any asset transferred to the trust 
by an interested party is free of any re-
striction with respect to its transfer or 
sale unless such restriction is expressly 
approved by the Office of Government 
Ethics. 
‘‘(C) The trust instrument which es-
tablishes the trust provides that— 
‘‘(i) except to the extent provided 
in subparagraph (B), the trustee in 
the exercise of his authority and dis-
cretion to manage and control the as-
sets of the trust shall not consult or 
notify any interested party;
1673 
‘‘(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 
Government 
Ethics 
when the holdings of any particular 
asset transferred to the trust by any 
interested party are disposed of or 
when the value of such holding is less 
than $1,000; 
‘‘(iv) the trust tax return shall be 
prepared by the trustee or his des-
ignee, and such return and any infor-
mation relating thereto (other than 
the trust income summarized in ap-
propriate 
categories 
necessary 
to 
complete an interested party’s tax re-
turn), shall not be disclosed to any in-
terested party; 
‘‘(v) an interested party shall not 
receive any report on the holdings 
and sources of income of the trust, 
except a report at the end of each cal-
1674 
endar 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 inter-
ested party to complete an individual 
tax return required by law or to pro-
vide the information required by sub-
section (a)(1) of this section, but such 
report shall not identify any asset or 
holding; 
‘‘(vi) except for communications 
which solely consist of requests for 
distributions of cash or other unspec-
ified assets of the trust, there shall be 
no direct or indirect communication 
between the trustee and an interested 
party with respect to the trust unless 
such communication is in writing and 
unless it relates only (I) to the gen-
eral financial interest and needs of 
the interested party (including, but 
not limited to, an interest in maxi-
mizing income or long-term capital 
gain), (II) to the notification of the
1675 
trustee of a law or regulation subse-
quently applicable to the reporting 
individual which prohibits the inter-
ested party from holding an asset, 
which notification directs that the 
asset not be held by the trust, or (III) 
to directions to the trustee to sell all 
of an asset initially placed in the 
trust by an interested party which in 
the determination of the reporting in-
dividual creates a conflict of interest 
or the appearance thereof due to the 
subsequent assumption of duties by 
the reporting individual (but nothing 
herein shall require any such direc-
tion); 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 in-
formation relating thereto except as 
otherwise 
provided 
in 
this 
sub-
section.
1676 
‘‘(D) The proposed trust instrument 
and the proposed trustee is approved by 
the Office of Government Ethics. 
‘‘(E) For purposes of this subsection, 
‘interested party’ means a reporting indi-
vidual, his spouse, and any minor or de-
pendent child; ‘broker’ has the meaning 
set forth in section 3(a)(4) of the Securi-
ties and Exchange Act of 1934 (15 U.S.C. 
78c(a)(4)); and ‘investment adviser’ in-
cludes any investment adviser who, as 
determined under regulations prescribed 
by the supervising ethics office, is gen-
erally involved in his role as such an ad-
viser in the management or control of 
trusts. 
‘‘(4)(A) An asset placed in a trust by an in-
terested party shall be considered a financial 
interest of the reporting 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 re-
porting individual is notified by the trustee
1677 
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 con-
sist of a well-diversified portfolio of read-
ily marketable securities; 
‘‘(II) none of the assets consist of se-
curities of entities having substantial ac-
tivities in the area of the reporting indi-
vidual’s primary area of responsibility; 
‘‘(III) the trust instrument prohibits 
the trustee, notwithstanding the provi-
sions of paragraph (3)(C) (iii) and (iv), 
from making public or informing any in-
terested party of the sale of any securi-
ties; 
‘‘(IV) the trustee is given power of at-
torney, notwithstanding the provisions of 
paragraph (3)(C)(v), to prepare on behalf 
of any interested party the personal in-
1678 
come tax returns and similar returns 
which may contain information relating 
to the trust; and 
‘‘(V) except as otherwise provided in 
this paragraph, the trust instrument pro-
vides (or in the case of a trust which by 
its terms does not 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). 
‘‘(ii) In any instance covered by subpara-
graph (B) in which the reporting individual is 
an individual whose nomination is being con-
sidered by a congressional committee, the re-
porting individual shall inform the congres-
sional committee considering his nomination 
before or during the period of such individ-
ual’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
1679 
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 testamentary disposi-
tion of the trust assets), and 
‘‘(ii) a list of the assets which were 
transferred to such trust, including the 
category of value of each asset as deter-
mined under subsection (d). 
This subparagraph shall not apply with re-
spect 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 Government 
Ethics of the identity of each such asset and 
the category of value of each asset as deter-
mined under subsection (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.
1680 
‘‘(D) Documents filed under subpara-
graphs (A), (B), and (C) and the lists provided 
by the trustee of assets placed in the trust by 
an interested party which have been sold 
shall be made available to the public in the 
same manner as a report is made available 
under section 305 and the provisions of that 
section shall apply with respect to such docu-
ments and lists. 
‘‘(E) A copy of each written communica-
tion with respect to the trust under para-
graph (3)(C)(vi) shall be filed by the person 
initiating the communication with the Office 
of Government Ethics within 5 days of the 
date of the communication. 
‘‘(6)(A) A trustee of a qualified blind trust 
shall not knowingly and willfully, or neg-
ligently, (i) disclose any information to an in-
terested party with respect to such trust that 
may not be disclosed under paragraph (3); (ii) 
acquire any holding the ownership of which 
is prohibited by the trust instrument; (iii) so-
licit advice from any interested party with re-
spect to such trust, which solicitation is pro-
hibited by paragraph (3) or the trust agree-
1681 
ment; or (iv) fail to file any document re-
quired by this subsection. 
‘‘(B) A reporting individual shall not 
knowingly and willfully, or negligently, (i) so-
licit or receive any information with respect 
to a qualified blind trust of which he is an in-
terested 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 provi-
sions 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 any individual who neg-
ligently violates the provisions of subpara-
graph (A) or (B). The court in which such ac-
tion is brought may assess against such indi-
vidual a civil penalty in any amount not to ex-
ceed $5,000.
1682 
‘‘(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 para-
graph (3) or, in the case of a trust instru-
ment which does not by its terms permit 
amendment, the trustee, the reporting in-
dividual, and any other interested party 
agree in writing that the trust shall be 
administered in accordance with the re-
quirements of this subsection and the 
trustee of such trust meets the require-
ments 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 re-
ferred to in this subparagraph; 
‘‘(B) a copy of the trust instrument 
(except testamentary provisions) and a 
copy of the agreement referred to in sub-
paragraph (A), and a list of the assets 
held by the trust at the time of approval 
by the Office of Government Ethics, in-
cluding the category of value of each 
asset as determined under subsection (d),
1683 
are filed with such office and made avail-
able to the public as provided under 
paragraph (5)(D); and 
‘‘(C) the Director of the Office of Gov-
ernment Ethics determines that approval 
of the trust arrangement as a qualified 
blind trust is in the particular case ap-
propriate to assure compliance with ap-
plicable laws and regulations. 
‘‘(8) A reporting individual shall not be re-
quired to report the financial interests held 
by a widely held investment fund (whether 
such fund is a mutual fund, regulated invest-
ment company, pension or deferred com-
pensation plan, or other investment fund), if— 
‘‘(A)(i) the fund is publicly traded; or 
‘‘(ii) the assets of the fund are widely 
diversified; and 
‘‘(B) the reporting individual neither 
exercises control over nor has the ability 
to exercise control over the financial in-
terests held by the fund. 
‘‘(9)(A)(i) A reporting individual described 
in subsection (a) or (b) of section 301 shall not 
be required to report the holdings or sources
1684 
of income of any trust or investment fund 
where— 
‘‘(I) reporting would result in the dis-
closure of assets or sources of income of 
another person whose interests are not 
required to be reported by the reporting 
individual under this title; 
‘‘(II) the disclosure of such assets and 
sources of income is prohibited by con-
tract or the assets and sources of income 
are not otherwise publicly available; and 
‘‘(III) the reporting individual has ex-
ecuted a written ethics agreement which 
contains a general description of the 
trust or investment fund and a commit-
ment to divest the interest in the trust or 
investment 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 finan-
cial disclosure which would otherwise in-
clude a listing of the holdings or sources of in-
come from this trust or investment fund.
1685 
‘‘(B)(i) The provisions of subparagraph (A) 
shall apply to an individual described in sub-
section (c) or (d) of section 301 if— 
‘‘(I) the interest in the trust or invest-
ment fund is acquired involuntarily dur-
ing the period to be covered by the re-
port, such as through marriage or inher-
itance, and 
‘‘(II) for an individual described in 
subsection (c), the individual executes a 
written ethics agreement 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 imme-
diate requirement to report as specified in 
paragraph (1).
1686 
‘‘(g) Political campaign funds, including 
campaign receipts and expenditures, need not 
be included in any report filed pursuant to 
this title. 
‘‘(h) A report filed pursuant to subsection 
(a), (c), or (d) of section 301 need not contain 
the information described in subparagraphs 
(A), (B), and (C) of subsection (a)(2) with re-
spect to gifts and reimbursements received in 
a period when the reporting individual was 
not an officer or employee of the Federal Gov-
ernment. 
‘‘(i) A reporting individual shall not be re-
quired under this title to report— 
‘‘(1) financial interests in or income 
derived from— 
‘‘(A) any retirement system under 
title 5, United States Code (including 
the Thrift Savings Plan under sub-
chapter III of chapter 84 of such 
title); or 
‘‘(B) any other retirement system 
maintained by the United States for 
officers or employees of the United 
States, including the President, or for
1687 
members of the uniformed services; 
or 
‘‘(2) benefits received under the So-
cial Security Act (42 U.S.C. 301 et seq.). 
‘‘(j)(1) Every month, each designated agen-
cy 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 
confidential. 
‘‘(2) Every month, the Office of Govern-
ment Ethics shall make publicly available on 
the Internet— 
‘‘(A) all notifications of waivers sub-
mitted under paragraph (1) in the pre-
ceding month; and 
‘‘(B) notification of all waivers grant-
ed by the Office of Government Ethics in 
the preceding month. 
‘‘(k) A full copy of any waiver of criminal 
conflict of interest laws granted shall be in-
cluded with any filing required under this 
title with respect to the year in which the 
waiver is granted.
1688 
‘‘(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 reporting individual with 
the designated agency ethics official at the 
agency by which he is employed (or in the 
case of an individual described in section 
301(d), was employed) or in which he will 
serve. The date any report is received (and 
the date of receipt of any supplemental re-
port) shall be noted on such report by such of-
ficial. 
‘‘(b) Reports required to be filed under 
this title by the Director of the Office of Gov-
ernment 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 Sec-
retary concerned.
1689 
‘‘(d) The Office of Government Ethics shall 
develop and make available forms for report-
ing 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 know-
ingly and willfully fails to file or report any 
information 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 Sec-
retary concerned, or the Director of the Office 
of Government Ethics, as the case may be, 
shall refer to the Attorney General the name 
of any individual which such official has rea-
sonable cause to believe has willfully failed to 
file a report or has willfully falsified or will-
fully failed to file information required to be 
reported. 
‘‘(c) The President, the Vice President, the 
Secretary concerned, or the head of each
1690 
agency may take any appropriate personnel 
or other action in accordance with applicable 
law or regulation against any individual fail-
ing to file a report or falsifying or failing to 
report information required to be reported. 
‘‘(d)(1) Any individual who files a report 
required to be filed under this title more than 
30 days after the later of— 
‘‘(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 individual under section 301(g), the 
last day of the filing extension period, 
shall, at the direction of and pursuant to 
regulations issued by the Office of Gov-
ernment Ethics, pay a filing fee of $500. 
All such fees shall be deposited in the 
miscellaneous receipts of the Treasury. 
The authority under this paragraph to di-
rect the payment of a filing fee may be 
delegated by the Office of Government 
Ethics to other agencies in the executive 
branch.
1691 
‘‘(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 pe-
riod of 6 years after receipt of the report. 
After such 6-year period the report shall be 
destroyed unless needed in an ongoing inves-
tigation, except that in the case of an indi-
vidual who filed the report pursuant to sec-
tion 301(b) and was not subsequently con-
firmed by the Senate, such reports shall be de-
stroyed 1 year after the individual is no 
longer under consideration by the Senate, un-
less needed in an ongoing investigation. 
‘‘SEC. 306. REVIEW OF REPORTS. 
‘‘(a) Each designated agency ethics official 
or Secretary concerned shall make provisions 
to ensure that each report filed with him 
under this title is reviewed within 60 days 
after the date of such filing, except that the 
Director of the Office of Government Ethics
1692 
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 official, as the 
case may be, is of the opinion that on the basis 
of information contained in such report the 
individual submitting such report is in com-
pliance 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 Govern-
ment Ethics, the Secretary concerned, or the 
designated agency ethics official after review-
ing any report under subsection (a)— 
‘‘(A) believes additional information 
is required to be submitted to complete 
the form or to perform a conflict of inter-
est analysis, he shall notify the individual 
submitting such report what additional 
information is required and the time by 
which it must be submitted, or
1693 
‘‘(B) is of the opinion, on the basis of 
information submitted, that the indi-
vidual is not in compliance with applica-
ble laws and regulations, he shall notify 
the individual, afford a reasonable oppor-
tunity for a written or oral response, and 
after consideration of such response, 
reach an opinion as to whether or not, on 
the basis of information submitted, the 
individual is in compliance with such 
laws and regulations. 
‘‘(3) If the Director of the Office of Govern-
ment Ethics, the Secretary concerned, or the 
designated agency ethics official reaches an 
opinion under paragraph (2)(B) that an indi-
vidual is not in compliance with applicable 
laws and regulations, the official shall notify 
the individual of that opinion and, after an 
opportunity for personal consultation (if 
practicable), determine and notify the indi-
vidual of which steps, if any, would in the 
opinion of such official be appropriate for as-
suring compliance with such laws and regula-
tions and the date by which such steps should
1694 
be taken. Such steps may include, as appro-
priate— 
‘‘(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, 
reassignment, limitation of duties, or res-
ignation. 
The use of any such steps shall be in accord-
ance with such rules or regulations as the Of-
fice 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 mem-
ber of the Foreign Service or the uniformed 
services, the Secretary concerned shall take 
appropriate 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
1695 
referred to the head of the appropriate agen-
cy 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 advisory 
opinion is rendered in accordance with this 
paragraph, and any other individual covered 
by this title who is involved in a fact situation 
which is indistinguishable in all material as-
pects, and who acts in good faith in accord-
ance with the provisions and findings of such 
advisory opinion shall not, as a result of such 
act, be subject to any penalty or sanction pro-
vided 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 ex-
ecutive branch (including special Govern-
ment employees as defined in section 202 of 
title 18, United States Code) to file confiden-
tial financial disclosure reports, in such form 
as it may prescribe. The information required 
to be reported under this subsection by the of-
1696 
ficers 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 nec-
essary and appropriate in light of sections 202 
through 209 of title 18, United States Code, 
regulations promulgated thereunder, or the 
authorized activities of such officers or em-
ployees. Any individual required to file a re-
port pursuant to section 301 shall not be re-
quired to file a confidential report pursuant 
to this subsection, except with respect to in-
formation which is more extensive than infor-
mation otherwise required by this title. Sec-
tion 305 shall not apply with respect to any 
such report. 
‘‘(2) Any information required to be pro-
vided by an individual under this subsection 
shall be confidential and shall not be dis-
closed to the public. 
‘‘(3) Nothing in this subsection exempts 
any individual otherwise covered by the re-
1697 
quirement to file a public financial disclosure 
report under this title from such requirement. 
‘‘(b) The provisions of this title requiring 
the reporting of information shall supersede 
any general requirement under any other pro-
vision of law or regulation with respect to the 
reporting of information required for pur-
poses of preventing conflicts of interest or ap-
parent conflicts of interest. Such provisions of 
this title shall not supersede the requirements 
of section 7342 of title 5, United States Code. 
‘‘(c) Nothing in this Act requiring report-
ing of information shall be deemed to author-
ize the receipt of income, gifts, or reimburse-
ments; the holding of assets, liabilities, or po-
sitions; or the participation in transactions 
that are prohibited by law, Executive order, 
rule, or regulation. 
‘‘SEC. 308. AUTHORITY OF COMPTROLLER GENERAL. 
‘‘The Comptroller General shall have ac-
cess to financial disclosure reports filed 
under this title for the purposes of carrying 
out his statutory responsibilities. 
‘‘SEC. 309. DEFINITIONS. 
‘‘For the purposes of this title—
1698 
‘‘(1) the term ‘dependent child’ means, 
when used with respect to any reporting 
individual, any individual who is a son, 
daughter, stepson, or stepdaughter and 
who— 
‘‘(A) is unmarried and under age 
21 and is living in the household of 
such reporting individual; or 
‘‘(B) is a dependent of such re-
porting individual within the mean-
ing of section 152 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 152); 
‘‘(2) the term ‘designated agency eth-
ics official’ means an officer or employee 
who is designated to administer the pro-
visions of this title within an agency; 
‘‘(3) the term ‘executive branch’ in-
cludes— 
‘‘(A) each Executive agency (as de-
fined in section 105 of title 5, United 
States Code), other than the General 
Accounting Office; and 
‘‘(B) any other entity or adminis-
trative unit in the executive branch;
1699 
‘‘(4) the term ‘gift’ means a payment, 
advance, forbearance, rendering, or de-
posit of money, or any thing of value, un-
less consideration of equal or greater 
value is received by the donor, but does 
not include— 
‘‘(A) bequests and other forms of 
inheritance; 
‘‘(B) suitable mementos of a func-
tion honoring the reporting indi-
vidual; 
‘‘(C) food, lodging, transportation, 
and entertainment provided by a for-
eign government within a foreign 
country or by the United States Gov-
ernment, the District of Columbia, or 
a State or local government or polit-
ical subdivision thereof; 
‘‘(D) food and beverages which 
are not consumed in connection with 
a gift of overnight lodging; 
‘‘(E) communications to the of-
fices of a reporting individual, includ-
ing subscriptions to newspapers and 
periodicals; or
1700 
‘‘(F) items that are accepted pur-
suant to or are required to be re-
ported by the reporting individual 
under section 7342 of title 5, United 
States Code. 
‘‘(5) the term ‘honorarium’ means a 
payment of money or anything of value 
for an appearance, speech, or article; 
‘‘(6) the term ‘income’ means all in-
come from whatever source derived, in-
cluding but not limited to the following 
items: compensation for services, includ-
ing fees, commissions, and similar items; 
gross income derived from business (and 
net income if the individual elects to in-
clude it); gains derived from dealings in 
property; interest; rents; royalties; prizes 
and awards; dividends; annuities; income 
from life insurance and endowment con-
tracts; pensions; income from discharge 
of indebtedness; distributive share of 
partnership income; and income from an 
interest in an estate or trust; 
‘‘(7) the term ‘personal hospitality of 
any individual’ means hospitality ex-
1701 
tended for a nonbusiness purpose by an 
individual, not a corporation or organiza-
tion, at the personal residence of that in-
dividual or his family or on property or 
facilities owned by that individual or his 
family; 
‘‘(8) the term ‘reimbursement’ means 
any payment or other thing of value re-
ceived by the reporting individual, other 
than gifts, to cover travel-related ex-
penses of such individual other than 
those which are— 
‘‘(A) 
provided 
by 
the 
United 
States Government, the District of 
Columbia, or a State or local govern-
ment or political subdivision thereof; 
‘‘(B) required to be reported by 
the reporting individual under sec-
tion 7342 of title 5, United States 
Code; or 
‘‘(C) 
required 
to 
be 
reported 
under section 304 of the Federal Elec-
tion Campaign Act of 1971 (2 U.S.C. 
434);
1702 
‘‘(9) the term ‘relative’ means an indi-
vidual who is related to the reporting in-
dividual, as father, mother, son, daugh-
ter, brother, sister, uncle, aunt, great 
aunt, great uncle, first cousin, nephew, 
niece, husband, wife, grandfather, grand-
mother, grandson, granddaughter, father- 
in-law, mother-in-law, son-in-law, daugh-
ter-in-law, brother-in-law, sister-in-law, 
stepfather, 
stepmother, 
stepson, 
step-
daughter, stepbrother, stepsister, half 
brother, half sister, or who is the grand-
father or grandmother of the spouse of 
the reporting individual, and shall be 
deemed to include the fiance´ or fiance´e 
of the reporting individual; 
‘‘(10) the term ‘Secretary concerned’ 
has the meaning set forth in section 
101(a)(9) of title 10, United States Code; 
and 
‘‘(11) the term ‘value’ means a good 
faith estimate of the dollar value if the 
exact value is neither known nor easily 
obtainable by the reporting individual.