I 
109TH CONGRESS 
2D SESSION 
H. R. 6378 
To amend the Homeland Security Act of 2002 to direct the Secretary of 
Homeland Security to ensure all agencies of the Department of Home-
land Security that administer Federal assistance develop and maintain 
proper internal management controls to prevent and detect waste, fraud, 
and abuse, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 6, 2006 
Mr. ROGERS of Alabama (for himself, Mr. MEEK of Florida, Mr. KING of New 
York, Mr. THOMPSON of Mississippi, Mr. PASCRELL, Mr. MCCAUL of 
Texas, Mr. PEARCE, Mr. SOUDER, Ms. JACKSON-LEE of Texas, Mr. 
JINDAL, and Ms. HARRIS) introduced the following bill; which was re-
ferred to the Committee on Homeland Security, and in addition to the 
Committee on Small Business, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To amend the Homeland Security Act of 2002 to direct 
the Secretary of Homeland Security to ensure all agen-
cies of the Department of Homeland Security that ad-
minister Federal assistance develop and maintain proper 
internal management controls to prevent and detect 
waste, fraud, and abuse, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘September 11th Les-
sons Learned in Preventing Waste, Fraud, and Abuse Im-
plementation Act of 2006’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) A number of allegations have been raised 
publicly regarding the waste, fraud, abuse, and lax 
management of Federal assistance funds provided to 
help New York City respond to and recover from the 
terrorist attacks of September 11, 2001. 
(2) In order to review these allegations, House 
of Representatives Committee on Homeland Security 
Chairman Peter T. King of New York requested an 
examination by the Homeland Security Sub-
committee on Management, Integration, and Over-
sight. 
(3) Under the leadership of the Homeland Se-
curity Subcommittee on Management, Integration, 
and Oversight Chairman Mike Rogers of Alabama 
and Ranking Member Kendrick B. Meek of Florida, 
the Subcommittee conducted a six-month bipartisan 
review, including a retrospective examination of 
funding already expended on initial response and re-
covery, and a prospective review of fraud controls in 
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place for the balance of funding to be used on re-
building Lower Manhattan’s infrastructure. 
(4) As part of its review, the Subcommittee 
held a series of three hearings focusing on Response, 
Recovery, and Rebuilding on July 12 through 13, 
2006. Committee Members received testimony from 
senior Federal officials, Inspectors General, State 
and city development agencies, local investigators, 
private integrity monitors, Federal and local pros-
ecutors, the American Red Cross, community advo-
cates, and a victims’ organization. 
(5) The Subcommittee submitted a report of its 
findings to the Committee on Homeland Security in 
August 2006 for official publication. 
(6) This Act reflects the lessons learned 
through the Subcommittee’s examination of the ad-
ministration of Federal financial assistance to New 
York to respond to and recover from the terrorist at-
tacks of September 11, 2001. 
(7) This Act includes disaster assistance re-
forms that will significantly contribute to controlling 
fraud and saving taxpayers’ dollars in the future. 
SEC. 3. WASTE, FRAUD, AND ABUSE CONTROLS. 
(a) IN GENERAL.—Title VII of the Homeland Secu-
rity Act of 2002 (6 U.S.C. 341 et seq.) is amended— 
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(1) by inserting before section 701 the fol-
lowing: 
‘‘Subtitle A—General Provisions’’; 
and 
(2) by adding at the end the following: 
‘‘Subtitle B—Waste, Fraud, and 
Abuse Controls 
‘‘SEC. 721. REQUIREMENT TO ESTABLISH FRAUD CON-
TROLS. 
‘‘(a) IN GENERAL.—The Secretary shall take such 
actions as are necessary to ensure that— 
‘‘(1) all agencies of the Department admin-
istering Federal assistance to respond to acts of ter-
rorism, natural disasters, or other emergencies shall 
develop and maintain proper internal management 
controls to detect, prevent, and deter waste, fraud, 
and abuse; 
‘‘(2) databases used by the Department to col-
lect information on eligible recipients of such Fed-
eral assistance must be integrated with disbursement 
and payment records; and 
‘‘(3) such integration is designed to identify in-
eligible applications. 
‘‘(b) AUDITS AND REVIEWS REQUIRED.—Not later 
than one year after the date of enactment of this section, 
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the Inspector General of the Department shall review each 
relevant database for Federal assistance programs admin-
istered by the Department in effect on the date of the en-
actment of this section to assess the implementation of 
the internal controls required under this section. The In-
spector General of the Department shall immediately re-
port to Congress each recommendation or finding under 
this subsection. 
‘‘(c) CERTIFICATION
REQUIRED.—The Secretary 
shall certify to Congress on a biennial basis that internal 
controls required under this section are in place and oper-
ational. The first such certification shall be made within 
90 days after the date of enactment of this section. 
‘‘SEC. 722. ENHANCED ACCOUNTABILITY FOR FEDERAL AS-
SISTANCE. 
‘‘(a) RECIPIENTS OF FEDERAL ASSISTANCE.—Each 
State, local, tribal, and non-profit entity that receives Fed-
eral assistance funds in response to an act of terrorism, 
natural disaster, or other emergency shall report to the 
disbursing Federal agency six months after the initial dis-
bursement of resources and every six months thereafter 
regarding the expenditure of such funds. 
‘‘(b) CONTENTS.—The report shall include a descrip-
tion of— 
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