I
107TH CONGRESS
2D SESSION
H. R. 3639
To amend the Internal Revenue Code of 1986 to allow taxpayers to designate
$3 of their income tax liability for purposes of homeland security and
further to establish an Office of Homeland Security within the Executive
Office of the President.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 29, 2002
Mr. PASCRELL introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Govern-
ment Reform, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to allow tax-
payers to designate $3 of their income tax liability for
purposes of homeland security and further to establish
an Office of Homeland Security within the Executive
Office of the President.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Homeland Security
Fund Act of 2002’’.
TITLE 
I—DESIGNATION 
OF
AMOUNTS 
FOR 
HOMELAND
SECURITY; HOMELAND SECU-
RITY FUND
SEC. 101. DESIGNATION OF AMOUNTS FOR HOMELAND SE-
CURITY.
(a) IN GENERAL.—Subchapter A of chapter 61 of the
Internal Revenue Code of 1986 (relating to returns and
records) is amended by adding at the end the following
new part:
‘‘PART IX—DESIGNATION FOR HOMELAND
SECURITY
‘‘Sec. 6097. Designation.
‘‘SEC. 6097. DESIGNATION.
‘‘(a) IN GENERAL.—Every taxpayer whose adjusted
income tax liability for the taxable year is $3 or more may
designate that $3 be paid over to the Homeland Security
Fund.
‘‘(b) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect
to any taxable year—
‘‘(1) at the time of filing the return of the tax
imposed by chapter 1 for such taxable year, or
‘‘(2) at any other time (after the time of filing
the return of the tax imposed by chapter 1 for such
taxable year) specified in regulations prescribed by
the Secretary.
Such designation shall be made in such manner as the
Secretary prescribes by regulations except that, if such
designation is made at the time of filing the return of the
tax imposed by chapter 1 for such taxable year, such des-
ignation shall be made either on the first page of the re-
turn or on the page bearing the taxpayer’s signature.
‘‘(c) SPECIAL RULES.—
‘‘(1) DESIGNATION
OF
INCOME
TAX
LIABIL-
ITY.—
‘‘(A) JOINT RETURNS.—In the case of a
joint return having an adjusted income tax li-
ability of $6 or more, each spouse may des-
ignate that $3 be paid over to the Homeland
Security Fund.
‘‘(B) ADJUSTED INCOME TAX LIABILITY.—
For purposes of this section, the term ‘adjusted
income tax liability’ means income tax liability
(as defined in section 6096(b)) reduced by any
amount designated under section 6096 (relating
to designation of income tax payments to Presi-
dential Election Campaign Fund).’’
tion Acts, for making expenditures before January 1,
2007, for purposes of—
‘‘(1) adapting public health infrastructure to
new threats,
‘‘(2) securing all modes of transportation,
‘‘(3) protecting America’s physical and informa-
tional infrastructure,
‘‘(4) providing law enforcement with the tech-
nology to effectively combat terrorism,
‘‘(5) improving interagency and intergovern-
mental coordination, prevention and response, and
‘‘(6) preventing proliferation of weapons of
mass destruction and preparing the military to effec-
tively fight terrorism.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subchapter is amended by adding at the end the
following new item:
‘‘Sec. 9511. Homeland Security Fund.’’
TITLE II—OFFICE OF HOMELAND
SECURITY
SEC. 201. OFFICE OF HOMELAND SECURITY.
There is established within the Executive Office of
the President an office to be known as the ‘‘Office of
Homeland Security’’ (in this title referred to as the ‘‘Of-
fice’’).
SEC. 202. DIRECTOR OF HOMELAND SECURITY.
(a) DIRECTOR.—The head of the Office shall be the
Director of the Office of Homeland Security, who shall
be appointed by the President, by and with the advice and
consent of the Senate. The President shall ensure that the
Director functions as a cabinet-level official.
(b) EXECUTIVE SCHEDULE I PAY RATE FOR DIREC-
TOR.—Section 5312 of title 5, United States Code, is
amended by inserting after the item relating to the Direc-
tor of National Drug Control Policy the following new
item:
‘‘Director of the Office of Homeland Security.’’.
SEC. 203. RESPONSIBILITIES.
Subject to the direction and control of the President,
the responsibilities of the Director shall include the fol-
lowing:
(1) Directing, in consultation with appropriate
Federal and State agencies and Congress, the cre-
ation of a national strategy for homeland security,
as provided in section 204, to include all aspects of
prevention and response to terrorist activities.
(2) Developing, reviewing, and approving, in
collaboration with the Director of the Office of Man-
agement and Budget, a national budget for home-
land security and the allocation of amounts in the
Homeland Security Fund among the purposes speci-
fied in section 9511(c) of the Internal Revenue Code
of 1986.
(3) Reviewing programs, plans and activities of
the relevant Federal agencies to insure effective im-
plementation of the national homeland security
strategy.
(4) Coordinating the planning and implementa-
tion of all Federal homeland security activities with
relevant Federal agencies for the purposes of remov-
ing 
unnecessary 
duplication 
and 
gaps 
in
counterterrorism activities.
(5) Certifying as part of the budget submission
of the President to Congress the relevance and accu-
racy of counterterrorism budgets from Federal agen-
cies and rejecting budget requests not consistent
with the national homeland security strategy.
(6) Directing and reviewing the development of
a comprehensive national assessment on the threat
to homeland security, which shall be conducted by
the heads of relevant Federal agencies.
(7) Overseeing the appropriate sharing of infor-
mation among Federal, State, and local agencies in-
volved in intelligence collection and law enforcement
for the purpose of protecting homeland security.
(8) Establishing a center within the Office to
analyze and publicize as appropriate lessons learned
from homeland security exercises conducted by Fed-
eral, State, and local government agencies and other
organizations involved in terrorism response.
(9) Consulting regularly with Congress on all
issues relating to homeland security.
(10) Attending meetings of the President’s cab-
inet and the National Security Council relating to
counterterrorism and homeland security.
(11) Serving as the President’s principal
spokesperson on issues relevant to homeland secu-
rity.
SEC. 204. NATIONAL HOMELAND SECURITY STRATEGY.
The national homeland security strategy created
under section 203 shall include the following:
(1) A comprehensive research, development, and
procurement plan for supporting homeland security.
(2) Mechanisms to insure the flexibility and mo-
bility in Federal personnel policies and practices to
achieve maximum effective use of personnel among
all concerned agencies.
(3) Policies and procedures to maximize the col-
lection, analysis, translation, exploitation, and dis-
semination of, throughout the Federal Government
and with State and local authorities, information rel-
evant to homeland security concerns.
(4) Plans for improving the resources of, co-
ordination among, and effectiveness of health and
medical sectors for detecting and responding to ter-
rorist attacks on the homeland.
(5) Specific measures to enhance cooperative ef-
forts between the public and private sectors in pro-
tecting homeland security.
SEC. 205. OFFICERS AND STAFF OF OFFICE.
(a) OFFICERS.—The President shall assign to the Of-
fice such officers in addition to the Director, if any, as
the President, in consultation with the Director, considers
appropriate to discharge the responsibilities of the Office.
(b) STAFF.—The Director may appoint such employ-
ees, and may detail employees from other agencies, as nec-
essary to carry out the functions of the Office. Such em-
ployees shall include individuals with relevant State and
local expertise.
SEC. 206. ANNUAL REPORTS.
The Director shall submit to the Congress annual re-
ports of the activities of the Office in carrying out the
responsibilities specified in section 203.
SEC. 207. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such
amounts as are necessary to carry out this title.
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