I
107TH CONGRESS
2D SESSION
H. R. 4660
To establish the Department of National Homeland Security and the National
Office for Combating Terrorism.
IN THE HOUSE OF REPRESENTATIVES
MAY 2, 2002
Mr. THORNBERRY (for himself, Ms. HARMAN, Mrs. TAUSCHER, Mr. GIBBONS,
Mr. DAVIS of Florida, Mr. SHAYS, and Mr. ROEMER) introduced the fol-
lowing bill; which was referred to the Committee on Government Reform
A BILL
To establish the Department of National Homeland Security
and the National Office for Combating Terrorism.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘National Homeland Security and Combating Terrorism
Act of 2002’’.
(b) TABLE OF CONTENTS.—The table of contents is
as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—DEPARTMENT OF NATIONAL HOMELAND SECURITY
Sec. 101. Establishment of the Department of National Homeland Security.
Sec. 102. Transfer of authorities, functions, personnel, and assets to the De-
partment.
Sec. 103. Establishment of directorates.
Sec. 104. Establishment of Office of Science and Technology and Acceleration
Fund for Research and Development of Homeland Security
Technologies.
Sec. 105. Reporting requirements.
Sec. 106. Planning, programming, and budgeting process.
Sec. 107. Environmental protection, safety, and health requirements.
Sec. 108. Savings provisions.
TITLE II—NATIONAL OFFICE FOR COMBATING TERRORISM
Sec. 201. National Office for Combating Terrorism.
Sec. 202. Funding for strategy programs and activities.
TITLE III—NATIONAL STRATEGY FOR COMBATING TERRORISM
AND THE HOMELAND SECURITY RESPONSE
Sec. 301. Strategy.
Sec. 302. National Homeland Security Panel.
TITLE IV—EFFECTIVE DATE
Sec. 401. Effective Date.
SEC. 2. DEFINITIONS.
In this Act:
(1) DIRECTOR.—Except as provided under sec-
tion 104, the term ‘‘Director’’ means the Director of
the National Office for Combating Terrorism.
(2) DEPARTMENT.—The term ‘‘Department’’
means the Department of National Homeland Secu-
rity established under title I.
(3) FEDERAL
TERRORISM
PREVENTION
AND
RESPONSE AGENCY.—The term ‘‘Federal Terrorism
Prevention and Response Agency’’ means any Fed-
eral department or agency charged under the Strat-
egy with responsibilities for carrying out the Strat-
egy.
(4) OFFICE.—The term ‘‘Office’’ means the
National Office for Combating Terrorism established
under title II.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of National Homeland Security.
(6) STRATEGY.—The term ‘‘Strategy’’ means
the National Strategy for Combating Terrorism and
the Homeland Security Response developed under
this Act.
TITLE I—DEPARTMENT OF NA-
TIONAL 
HOMELAND 
SECU-
RITY
SEC. 101. ESTABLISHMENT OF THE DEPARTMENT OF NA-
TIONAL HOMELAND SECURITY.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established the De-
partment of National Homeland Security.
(2) EXECUTIVE DEPARTMENT.—Section 101 of
title 5, United States Code, is amended by adding
at the end the following:
‘‘The Department of National Homeland Secu-
rity.’’.
(b) SECRETARY
OF NATIONAL HOMELAND SECU-
RITY.—
(1) IN GENERAL.—The Secretary of National
Homeland Security shall be the head of the Depart-
ment. The Secretary shall be appointed by the Presi-
dent, by and with the advice and consent of the Sen-
ate.
(2) RESPONSIBILITIES.—The responsibilities of
the Secretary shall be the following:
(A) To develop policies, goals, objectives,
priorities, and plans for the United States for
the promotion of homeland security as it relates
to border security, critical infrastructure protec-
tion, consequence management, and State and
local activities.
(B) To develop, with the Director, a com-
prehensive strategy in accordance with title III.
(C) To develop processes to integrate the
elements and goals of the Strategy into the
strategies and plans of Federal, State, and local
departments and agencies, including inter-
agency and intergovernmental shared policies.
(D) To evaluate the programs of the Fed-
eral Government relating to homeland security
that involve activities of State and local govern-
ments as part of the Strategy.
(E)(i) To advise the Director on the devel-
opment of a comprehensive annual budget for
the programs and activities under the Strategy,
including the budgets of the military depart-
ments and agencies within the National Foreign
Intelligence Program relating to international
terrorism, but excluding military programs,
projects, or activities relating to force protec-
tion.
(ii) To have the budget authority for bor-
der security, critical infrastructure protection,
consequence management, and Federal support
for State and local activities.
(F) To plan, coordinate, and integrate
those United States Government activities relat-
ing to border security, critical infrastructure
protection and emergency preparedness, and to
act as the focal point regarding natural and
manmade crises and emergency planning and
response.
(G) To work and coordinate with State
and local governments and executive agencies in
providing United States homeland security, and
to communicate with and support State and
local officials through the use of regional offices
around the Nation.
(H) To provide overall operational plan-
ning guidance to executive agencies regarding
United States homeland security.
(I) To conduct exercise and training pro-
grams for employees of the Department and
other involved agencies, and establish effective
command and control procedures for the full
range of potential contingencies regarding
United States homeland security, including con-
tingencies that require the substantial support
of military assets.
(J) To annually update a Federal response
plan for homeland security and emergency pre-
paredness with regard to terrorism and other
manmade and natural disasters.
(K) To identify and promote technological
innovation that will enhance homeland security.
(L)(i) To develop and implement within
the Department a coordinating center with rep-
resentatives from other Federal departments or
agencies with homeland security responsibilities.
(ii) To designate departments and agencies
to provide one representative under clause (i)
and require those departments and agencies to
furnish one representative on a permanent,
part-time, or as needed basis, as determined by
the Secretary. Additional personnel may be re-
quested by the Secretary and coordinated with
appropriate departments or agencies.
(iii) To request State and local authorities
to provide representatives to the coordinating
center.
(3) EXECUTIVE
SCHEDULE
LEVEL
I
POSI-
TION.—Section 5312 of title 5, United States Code,
is amended by adding at the end the following:
‘‘Secretary of National Homeland Security.’’.
(4) MEMBERSHIP ON THE NATIONAL SECURITY
COUNCIL.—Section 101(a) of the National Security
Act of 1947 (50 U.S.C. 402(a)) is amended in the
fourth sentence by striking paragraphs (5), (6), and
(7) and inserting the following:
‘‘(5) the Secretary of National Homeland Secu-
rity; and
‘‘(6) each Secretary or Under Secretary of such
other executive department, or of a military depart-
ment, as the President shall designate.’’.
(c) DEPUTY SECRETARY OF NATIONAL HOMELAND
SECURITY.—
(1) IN GENERAL.—There shall be in the De-
partment a Deputy Secretary of National Homeland
Security, who shall be appointed by the President,
by and with the advice and consent of the Senate.
(2) RESPONSIBILITIES.—The Deputy Secretary
of National Homeland Security shall—
(A) assist the Secretary in the administra-
tion and operations of the Department;
(B) perform such responsibilities as the
Secretary shall prescribe; and
(C) act as the Secretary during the ab-
sence or disability of the Secretary or in the
event of a vacancy in the office of the Sec-
retary.
(3) EXECUTIVE
SCHEDULE
LEVEL
II
POSI-
TION.—Section 5313 of title 5, United States Code,
is amended by adding at the end the following:
‘‘Deputy Secretary of National Homeland Secu-
rity.’’.
SEC. 102. TRANSFER OF AUTHORITIES, FUNCTIONS, PER-
SONNEL, AND ASSETS TO THE DEPARTMENT.
The authorities, functions, personnel, and assets of
the following entities are transferred to the Department:
(1) The Federal Emergency Management Agen-
cy, the 10 regional offices of which shall be main-
tained and strengthened by the Department.
(2) The United States Customs Service, which
shall be maintained as a distinct entity within the
Department.
(3) The portions of the Immigration and Natu-
ralization Service responsible for law enforcement
and border management, including the Border Pa-
trol and Divisions of Inspections, Investigations, and
Detention and Removal.
(4) The United States Coast Guard, which shall
be maintained as a distinct entity within the Depart-
ment.
(5) The Critical Infrastructure Assurance Of-
fice.
(6) The National Infrastructure Protection
Center and the National Domestic Preparedness Of-
fice of the Federal Bureau of Investigation.
(7) The Animal Plant Health Inspection Service
of the Department of Agriculture.
SEC. 103. ESTABLISHMENT OF DIRECTORATES.
The following staff directorates are established within
the Department:
(1) DIRECTORATE OF PREVENTION.—The Di-
rectorate of Prevention, which shall be responsible
for the following:
(A) Overseeing and coordinating all United
States border security activities.
(B) Developing border and maritime secu-
rity policy for the United States.
(C) Developing and implementing inter-
national standards for enhanced security in
transportation nodes.
(2) DIRECTORATE
OF
CRITICAL
INFRASTRUC-
TURE PROTECTION.—The Directorate of Critical In-
frastructure Protection, which shall be responsible
for the following:
(A) Acting as the Critical Information
Technology, Assurance, and Security Officer of
the Department to coordinate efforts to address
the vulnerability of the United States to elec-
tronic or physical attacks on critical infrastruc-
ture of the United States, including utilities,
transportation nodes, and energy resources.
(B) Overseeing the protection of such in-
frastructure and the physical assets and infor-
mation networks that make up such infrastruc-
ture.
(C) Ensuring the maintenance of a nucleus
of cyber security experts within the United
States Government.
(D) Enhancing sharing of information re-
garding cyber security and physical security of
the United States, tracking vulnerabilities and
proposing improved risk management policies,
and delineating the roles of various government
agencies in preventing, defending, and recov-
ering from attacks.
(E) Coordinating with the Federal Com-
munications Commission in helping to establish
cyber security policy, standards, and enforce-
ment mechanisms, and working closely with the
Federal Communications Commission on cyber
security issues with respect to international
bodies.
(F) Coordinating the activities of Informa-
tion Sharing and Analysis Centers to share in-
formation on threats, vulnerabilities, individual
incidents, and privacy issues regarding United
States homeland security.
(G) Assuming the responsibilities carried
out by the Critical Infrastructure Assurance Of-
fice before the effective date of this title.
(H) Assuming the responsibilities carried
out by the National Infrastructure Protection
Center before the effective date of this title.
(3) DIRECTORATE FOR EMERGENCY PREPARED-
NESS AND RESPONSE.—The Directorate for Emer-
gency Preparedness and Response, which shall be re-
sponsible for the following:
(A) Carrying out all emergency prepared-
ness and response activities carried out by the
Federal Emergency Management Agency before
the effective date of this title.
(B) Assuming the responsibilities carried
out by the National Domestic Preparedness Of-
fice before the effective date of this title.
(C) Organizing and training local entities
to respond to emergencies and providing State
and local authorities with equipment for detec-
tion, protection, and decontamination in an
emergency involving weapons of mass destruc-
tion.
(D) Overseeing Federal, State, and local
emergency preparedness training and exercise
programs in keeping with current intelligence
estimates and providing a single staff for Fed-
eral assistance for any emergency (including
emergencies caused by flood, earthquake, hurri-
cane, disease, or terrorists).
(E) Creating a National Crisis Action Cen-
ter to act as the focal point for monitoring
emergencies and for coordinating Federal sup-
port for State and local governments and the
private sector in crises.
(F) Establishing training and equipment
standards, providing resource grants, and en-
couraging intelligence and information sharing
among the Department of Defense, the Federal
Bureau of Investigation, the Central Intel-
ligence Agency, State emergency management
officials, and local first responders.
(G) Coordinating and integrating oper-
ational activities of the Department of Defense,
the National Guard, and other Federal agencies
into a Federal response plan.
(H) Coordinating activities among private
sector entities, including entities within the
medical community, with respect to recovery,
consequence management, and planning for
continuity of services.
(I) Developing and managing a single re-
sponse system for national incidents in coordi-
nation with the Department of Justice, the
Federal Bureau of Investigation, the Depart-
ment of Health and Human Services, and the
Centers for Disease Control and Prevention.
(J) Maintaining Federal asset databases
and supporting up-to-date State and local data-
bases.
SEC. 104. ESTABLISHMENT OF OFFICE OF SCIENCE AND
TECHNOLOGY 
AND 
ACCELERATION 
FUND
FOR 
RESEARCH 
AND 
DEVELOPMENT 
OF
HOMELAND SECURITY TECHNOLOGIES.
(a) DEFINITIONS.—In this section:
(1) FUND.—The term ‘‘Fund’’ means the Ac-
celeration Fund for Research and Development of
Homeland Security Technologies established under
this section.
(2) HOMELAND SECURITY RESEARCH AND DE-
VELOPMENT.—The term ‘‘homeland security re-
search and development’’ means research and devel-
opment of technologies that are applicable in the de-
tection of, prevention of, protection against, response
to, and recovery from homeland security threats,
particularly acts of terrorism.
(b) ESTABLISHMENT OF OFFICE OF SCIENCE AND
TECHNOLOGY.—
(1) IN GENERAL.—There is established in the
Department an Office of Science and Technology.
(2) PURPOSE.—The Office of Science and
Technology shall advise the Secretary regarding re-
search and development efforts and priorities for the
directorates established in section 103.
(3) DIRECTOR.—The head of the Office shall be
the Director of Science and Technology.
(c) PURPOSES.—The purposes of this section are
to—
(1) establish the responsibilities of the Director
of the Office of Science and Technology relating to
homeland security research and development; and
(2) establish a fund to leverage existing re-
search and development and accelerate the deploy-
ment of technology that will serve to enhance home-
land defense.
(d) DUTIES OF DIRECTOR OF SCIENCE AND TECH-
NOLOGY.—The Director of Science and Technology
shall—
(1) assist the Secretary, the directorates, and
cooperating agencies in—
(A) assessing and testing homeland secu-
rity vulnerabilities and possible threats;
(B) evaluating and advising on maintain-
ing talent resources in key technology and skill
areas required for homeland security, including
information security experts;
(C) developing a system for sharing key
homeland security research and technology de-
velopments and opportunities with appropriate
Federal, State, local, and private sector entities;
and
(D) proposing risk management strategies
based on technology developments;
(2) assist the Directorate of Critical Infrastruc-
ture Protection in the responsibilities of that direc-
torate;
(3) with respect to expenditures from the Fund,
exercise acquisition authority consistent with the au-
thority described under section 2371 of title 10,
United States Code, relating to authorizing coopera-
tive agreements and other transactions; and
(4) in hiring personnel to assist in the adminis-
tration of the Office of Science and Technology,
have and use the authority to exercise the personnel
hiring and management authorities described in sec-
tion 1101 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law
105–261; 5 U.S.C. 3104 note).
(e) STEERING GROUP
AND COORDINATION COM-
MITTEE.—
(1) PLAN.—Not later than one year after the
date of the enactment of this Act, the President
shall submit to Congress plans to establish a steer-
ing group and coordination committee for the Office
of Science and Technology.
(2) STEERING
GROUP.—The steering group
shall assist the Director of Science and Technology
in establishing priorities and forwarding rec-
ommendations on homeland security technology to
the Secretary. The steering group shall be composed
of senior research and development officials rep-
resenting all appropriate Federal departments and
independent agencies that conduct research and de-
velopment relevant for homeland security and com-
bating terrorism, the Defense Advanced Research
Projects Agency, the National Nuclear Security Ad-
ministration, and the Technical Support Working
Group.
(3) COORDINATION COMMITTEE.—The Coordi-
nation Committee shall—
(A) be a working level group composed of
representatives managing relevant agency re-
search and development portfolios, appointed by
the head of each department or agency rep-
resented in the steering group;
(B) 
facilitate 
effective 
communication
among departments, agencies, and other enti-
ties of the Federal Government with respect to
the conduct of research and development re-
lated to homeland security;
(C) identify specific technology areas for
which the Fund shall be used to rapidly transi-
tion homeland security research and develop-
ment into deployed technology and reduce iden-
tified homeland security vulnerabilities; and
(D) assist the Director of Science and
Technology in administering the Fund.
(f) FUND.—
(1) ESTABLISHMENT.—There is established the
Acceleration Fund for Research and Development of
Homeland Security Technologies.
(2) USE OF FUND.—The Fund may be used
to—
(A) accelerate research, development, test-
ing, and evaluation of critical homeland security
technologies either within or outside of the Fed-
eral Government; and
(B) support homeland security research
and development.
(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There 
are 
authorized 
to 
be 
appropriated
$200,000,000 to the Fund for fiscal year 2003.
SEC. 105. REPORTING REQUIREMENTS.
(a) BIENNIAL REPORTS.—Every 2 years the Sec-
retary shall submit to Congress—
(1) a report assessing the resources and re-
quirements of executive agencies relating to border
security and emergency preparedness issues; and
(2) a report certifying the preparedness of the
United States to prevent, protect against, and re-
spond to natural disasters, cyber attacks, and inci-
dents involving weapons of mass destruction.
(b) ADDITIONAL REPORT.—Not later than 1 year
after the effective date of this title, the Secretary shall
submit to Congress a report—
(1) assessing the progress of the Department
in—
(A) implementing this title; and
(B) ensuring the core functions of each en-
tity transferred to the Department are main-
tained and strengthened; and
(2) recommending any conforming changes in
law necessary as a result of the enactment and im-
plementation of this title.
SEC. 106. PLANNING, PROGRAMMING, AND BUDGETING
PROCESS.
The Secretary shall establish procedures to ensure
that the planning, programming, budgeting, and financial
activities of the Department comport with sound financial
and fiscal management principles. At a minimum, those
procedures shall provide for the planning, programming,
and budgeting of activities of the Department using funds
that are available for obligation for a limited number of
years.
SEC. 107. ENVIRONMENTAL PROTECTION, SAFETY, AND
HEALTH REQUIREMENTS.
The Secretary shall—
(1) ensure that the Department complies with
all applicable environmental, safety, and health stat-
utes and substantive requirements; and
(2) develop procedures for meeting such re-
quirements.
SEC. 108. SAVINGS PROVISIONS.
(a) CONTINUING EFFECT OF LEGAL DOCUMENTS.—
All orders, determinations, rules, regulations, permits,
agreements, grants, contracts, recognitions of labor orga-
nizations, collective bargaining agreements, certificates, li-
censes, registrations, privileges, and other administrative
actions—
(1) which have been issued, made, granted, or
allowed to become effective by the President, any
Federal agency or official thereof, or by a court of
competent jurisdiction, in the performance of func-
tions which are transferred under this title; and
(2) which are in effect at the time this title
takes effect, or were final before the effective date
of this title and are to become effective on or after
the effective date of this title,
shall, to the extent related to such functions, continue in
effect according to their terms until modified, terminated,
superseded, set aside, or revoked in accordance with law
by the President, the Secretary of National Homeland Se-
curity or other authorized official, a court of competent
jurisdiction, or by operation of law.
(b) PROCEEDINGS NOT AFFECTED.—The provisions
of this title shall not affect any proceedings, including no-
tices of proposed rulemaking, or any application for any
license, permit, certificate, or financial assistance pending
such individual as an officer of an agency, shall abate by
reason of the enactment of this title.
(e) ADMINISTRATIVE ACTIONS RELATING TO PRO-
MULGATION OF REGULATIONS.—Any administrative ac-
tion relating to the preparation or promulgation of a regu-
lation by an agency relating to a function transferred
under this title may be continued by the Department of
National Homeland Security with the same effect as if this
title had not been enacted.
(f) EMPLOYMENT AND PERSONNEL.—
(1) INTERIM
AUTHORITY
FOR
APPOINTMENT
AND COMPENSATION.—Funds available to any offi-
cial or component of any entity the functions of
which are transferred to the Department, may with
the approval of the Director of the Office of Man-
agement and Budget, be used to pay the compensa-
tion and expenses of any officer or employee under
this title until such time as funds for that purpose
are otherwise available.
(2) EMPLOYEE RIGHTS.—
(A) IN GENERAL.—The Department or a
subdivision within the Department shall not be
excluded under section 7103(b)(1) of title 5,
United States Code, from coverage under chap-
ter 71 of that title unless the President deter-
mines that a majority of employees within the
Department or applicable subdivision have, as
their primary job duty, intelligence, counter-
intelligence, or investigative work directly re-
lated to terrorism investigation.
(B) NATIONAL
SECURITY
POSITIONS.—
Employees transferred under this title shall not
be considered to perform work which directly
affects national security within the meaning of
section 7112(b)(6) of title 5, United States
Code, unless their primary job duty involves in-
telligence, counterintelligence, or investigative
duties directly related to terrorism investiga-
tion. All employees transferred under this title
who are not in the counterterrorism positions
described in the preceding sentence shall con-
tinue to be afforded the full rights and protec-
tions under chapter 71 of title 5, United States
Code.
(g) REFERENCES.—Any reference in any other Fed-
eral law, Executive order, rule, regulation, or delegation
of authority, or any document of or pertaining to a depart-
ment, agency, or office from which a function is trans-
ferred by this title—
(1) to the head of such department, agency, or
office is deemed to refer to the Secretary of National
Homeland Security; or
(2) to such department, agency, or office is
deemed to refer to the Department of National
Homeland Security.
TITLE II—NATIONAL OFFICE
FOR COMBATING TERRORISM
SEC. 201. NATIONAL OFFICE FOR COMBATING TERRORISM.
(a) ESTABLISHMENT.—There is established within
the Executive Office of the President the National Office
for Combating Terrorism.
(b) OFFICERS.—
(1) DIRECTOR.—The head of the Office shall be
the Director of the National Office for Combating
Terrorism, who shall be appointed by the President,
by and with the advice and consent of the Senate.
(2) EXECUTIVE
SCHEDULE
LEVEL
I
POSI-
TION.—Section 5312 of title 5, United States Code,
is amended by adding at the end the following:
‘‘Director of the National Office for Combating
Terrorism.’’.
(3) OTHER OFFICERS.—The President shall as-
sign to the Office such other officers as the Presi-
dent, in consultation with the Director, considers ap-
propriate to discharge the responsibilities of the Of-
fice.
(c) RESPONSIBILITIES.—Subject to the direction and
control of the President, the responsibilities of the Office
shall include the following:
(1) To develop national objectives and policies
for combating terrorism and those homeland security
efforts outside the specific control of the Secretary
as outlined in title I.
(2) To direct and review the development of a
comprehensive national assessment of terrorist
threats and vulnerabilities to those threats, which
shall be conducted by the heads of relevant Federal
agencies, and to provide the Secretary of National
Homeland Security with a national threat and vul-
nerability assessment.
(3) To develop with the Secretary of National
Homeland Security, the Strategy under title III.
(4) To coordinate, oversee, and evaluate the im-
plementation and execution of the Strategy by agen-
cies of the Federal Government with responsibilities
for combating terrorism under the Strategy, and
those homeland security efforts outside the specific
control of the Secretary as outlined in title I, par-
ticularly those involving military, intelligence, law
enforcement, and diplomatic assets.
(5)(A) To coordinate, with the advice of the
Secretary, the development of a comprehensive an-
nual budget for the programs and activities under
the Strategy, including the budgets of the military
departments and agencies within the National For-
eign Intelligence Program relating to international
terrorism, but excluding military programs, projects,
or activities relating to force protection.
(B) To have the lead responsibility for budget
recommendations relating to military, intelligence,
law enforcement, and diplomatic assets.
(6) To exercise funding authority for Federal
Terrorism Prevention and Response Agencies in ac-
cordance with section 202.
(d) RESOURCES.—In consultation with the Director,
the President shall assign or allocate to the Office such
resources, including funds, personnel, and other resources,
as the President considers appropriate in order to facili-
tate the discharge of the responsibilities of the Office.
(e) OVERSIGHT BY CONGRESS.—The establishment
of the Office within the Executive Office of the President
shall not be construed as affecting access by Congress, or
any committee of Congress, to—
(1) any information, document, record, or paper
in the possession of the Office or any study con-
ducted by or at the direction of the Director; or
(2) any personnel of the Office.
SEC. 202. FUNDING FOR STRATEGY PROGRAMS AND AC-
TIVITIES.
(a) BUDGET REVIEW.—In consultation with the Di-
rector of the Office of Management and Budget, the Sec-
retary of National Homeland Security, and the heads of
other executive departments and agencies, the Director
shall—
(1) identify programs that contribute to the
Strategy; and
(2) in the development of the budget submitted
by the President to Congress under section 1105 of
title 31, United States Code, review and provide ad-
vice to the heads of executive departments and agen-
cies on the amount and use of funding for programs
identified under paragraph (1).
(b) SUBMITTAL OF PROPOSED BUDGETS TO THE DI-
RECTOR.—
(1) IN GENERAL.—The head of each Federal
Terrorism Prevention and Response Agency shall
submit to the Director each year the proposed budg-
et of that agency for the fiscal year beginning in
that year for programs and activities of that agency
under the Strategy during that fiscal year.
(2) DATE
FOR
SUBMISSION.—The proposed
budget of an agency for a fiscal year under para-
graph (1) shall be submitted to the Director—
(A) not later than the date on which the
agency completes the collection of information
for purposes of the submission by the President
of a budget to Congress for that fiscal year
under section 1105 of title 31, United States
Code; and
(B) before that information is submitted to
the Director of the Office of Management and
Budget for such purposes.
(3) FORMAT.—In consultation with the Director
of the Office of Management and Budget, the Direc-
tor shall specify the format for the submittal of pro-
posed budgets under paragraph (1).
(c) REVIEW OF PROPOSED BUDGETS.—
(1) IN
GENERAL.—The Director shall review
each proposed budget submitted to the Director
under subsection (b).
(2) INADEQUATE FUNDING DETERMINATION.—
If the Director determines under paragraph (1) that
the proposed budget of an agency for a fiscal year
under subsection (b) is inadequate, in whole or in
part, to permit the implementation by the agency
during the fiscal year of the goals of the Strategy
applicable to the agency during the fiscal year, the
Director shall submit to the head of the agency—
(A) a notice in writing of the determina-
tion; and
(B) a statement of the proposed funding,
and any specific initiatives, that would (as de-
termined by the Director) permit the implemen-
tation by the agency during the fiscal year of
the goals of the Strategy applicable to the agen-
cy during the fiscal year.
(3) ADEQUATE FUNDING DETERMINATION.—If
the Director determines under paragraph (1) that
the proposed budget of an agency for a fiscal year
under subsection (b) is adequate to permit the im-
plementation by the agency during the fiscal year of
the goals of the Strategy applicable to the agency
during the fiscal year, the Director shall submit to
the head of the agency a notice in writing of that
determination.
(4) MAINTENANCE OF RECORDS.—The Director
shall maintain a record of—
(A) each notice submitted under paragraph
(2), including any statement accompanying
such notice; and
(B) each notice submitted under paragraph
(3).
(d) AGENCY RESPONSE TO REVIEW OF PROPOSED
BUDGETS.—
(1) INCORPORATION OF PROPOSED FUNDING.—
The head of a Federal Terrorism Prevention and
Response Agency that receives a notice under sub-
section (c)(2) with respect to the proposed budget of
the agency for a fiscal year shall incorporate the
proposed funding, and any initiatives, set forth in
the statement accompanying the notice into the in-
formation submitted to the Office of Management
and Budget in support of the proposed budget for
the agency for the fiscal year under section 1105 of
title 31, United States Code.
(2) ADDITIONAL INFORMATION.—The head of
each agency described under paragraph (1) for a fis-
cal year shall include as an appendix to the informa-
tion submitted to the Office of Management and
Budget under that paragraph for the fiscal year the
following:
(A) A summary of any modifications in the
proposed budget of such agency for the fiscal
year under that paragraph.
(B) An assessment of the effect of such
modifications on the capacity of such agency to
perform its responsibilities during the fiscal
year other than its responsibilities under the
Strategy.
(3) SUBMISSION TO CONGRESS.—The head of
each agency described by paragraph (1) for a fiscal
year shall submit to Congress a copy of the appendix
submitted to the Office of Management and Budget
for the fiscal year under paragraph (2) at the same
time the budget of the President for the fiscal year
is submitted to Congress under section 1105 of title
31, United States Code.
(e) SUBMITTAL OF REVISED PROPOSED BUDGETS.—
(1) IN GENERAL.—At the same time the head
of a Federal Terrorism Prevention and Response
Agency submits its proposed budget for a fiscal year
to the Office of Management and Budget for pur-
poses of the submission by the President of a budget
to Congress for the fiscal year under section 1105
of title 31, United States Code, the head of the
agency shall submit a copy of the proposed budget
to the Director.
(2) REVIEW
AND
DECERTIFICATION
AUTHOR-
ITY.—The Director of the National Office for Com-
bating Terrorism—
(A) shall review each proposed budget sub-
mitted under paragraph (1); and
(B) in the case of a proposed budget for a
fiscal year to which subsection (c)(2) applies in
the fiscal year, if the Director determines as a
result of the review that the proposed budget
does not include the proposed funding, and any
initiatives, set forth in the notice under that
subsection 
with 
respect 
to 
the 
proposed
budget—
(i) may decertify the proposed budget;
and
(ii) with respect to any proposed
budget so decertified, shall submit to
Congress—
(I) a notice of the decertification;
(II) a copy of the notice sub-
mitted to the agency concerned for
the 
fiscal 
year 
under 
subsection
(c)(2)(B); and
(III) the budget recommenda-
tions made under this section.
(f) NATIONAL TERRORISM PREVENTION AND RE-
SPONSE PROGRAM BUDGET.—
(1) IN
GENERAL.—For each fiscal year, fol-
lowing the submittal of proposed budgets to the Di-
rector under subsection (b), the Director shall, in
consultation with the Secretary of National Home-
land Security and the head of each Federal Ter-
rorism 
Prevention 
and 
Response 
Agency
concerned—
(A) develop a consolidated proposed budget
for such fiscal year for all programs and activi-
ties under the Strategy for such fiscal year; and
(B) submit the consolidated proposed
budget to the President and to Congress.
(2) DESIGNATION
OF
CONSOLIDATED
PRO-
POSED BUDGET.—The consolidated proposed budget
for a fiscal year under this subsection shall be
known as the National Terrorism Prevention and
Response Program Budget for the fiscal year.
(g) REPROGRAMMING AND TRANSFER REQUESTS.—
(1) APPROVAL BY THE DIRECTOR.—The head
of a Federal Terrorism Prevention and Response
Agency may not submit to Congress a request for
the reprogramming or transfer of any funds speci-
fied in the National Terrorism Prevention and Re-
sponse Program Budget for programs or activities of
the agency under the Strategy for a fiscal year in
excess of $5,000,000 without the approval of the Di-
rector.
(2) APPROVAL
BY
THE
PRESIDENT.—The
President may, upon the request of the head of the
agency concerned, permit the submittal to Congress
of a request previously disapproved by the Director
under paragraph (1) if the President determines
that the submittal of the request to Congress will
further the purposes of the National Strategy for
Combating Terrorism.
TITLE III—NATIONAL STRATEGY
FOR COMBATING TERRORISM
AND THE HOMELAND SECU-
RITY RESPONSE
SEC. 301. STRATEGY.
(a) DEVELOPMENT.—There shall be a National
Strategy for Combating Terrorism and Homeland Secu-
rity Response for detection, prevention, protection, re-
sponse, and recovery to counter terrorist threats, including
the plans, policies, training, exercises, evaluation, and
interagency cooperation that address each such action re-
lating to such threats.
(b) RESPONSIBILITIES.—
(1) RESPONSIBILITIES OF THE SECRETARY.—
The Secretary shall have responsibility for portions
of the Strategy addressing border security, critical
infrastructure protection, consequence management,
and integrating State and local efforts with activities
of the Federal Government.
(2) RESPONSIBILITIES
OF
THE
DIRECTOR.—
The Director shall have overall responsibility for de-
velopment of the Strategy.
(c) CONTENTS.—The contents of the Strategy shall
include—
(1) policies and procedures to maximize the col-
lection, translation, analysis, exploitation, and dis-
semination of information relating to combating ter-
rorism and the homeland security response through-
out the Federal Government and with State and
local authorities;
(2) plans for countering chemical, biological, ra-
diological, nuclear and explosives, and cyber threats;
(3) plans for improving the resources of, coordi-
nation among, and effectiveness of health and med-
ical sectors for detecting and responding to terrorist
attacks on the homeland;
(4) specific measures to enhance cooperative ef-
forts between the public and private sectors in pro-
tecting against terrorist attacks;
(5) a review of measures needed to enhance
transportation security with respect to potential ter-
rorist attacks; and
(6) other critical areas.
(d) COOPERATION.—At the request of the Director,
departments and agencies shall provide necessary informa-
tion or planning documents relating to the Strategy.
(e) INTERAGENCY COUNCIL.—
(1) ESTABLISHMENT.—There is established the
National Combating Terrorism and Homeland Secu-
rity Council to assist with preparation and imple-
mentation of the Strategy.
(2) MEMBERSHIP.—The members of the Coun-
cil shall be the heads of the Federal Terrorism Pre-
vention and Response Agencies or their designees.
The Secretary and Director shall designate such
agencies.
(3) CO-CHAIRS AND MEETINGS.—The Secretary
and Director shall co-chair the Council, which shall
meet at their direction.
(f) SUBMISSION TO CONGRESS.—Not later than De-
cember 1, 2003, and each year thereafter in which a Presi-
dent is inaugurated, the Secretary and the Director shall
submit the Strategy to Congress.
(g) UPDATING.—Not later than December 1, 2005,
and on December 1, of every 2 years thereafter, the Sec-
retary and the Director shall submit to Congress an up-
dated version of the Strategy.
(h) PROGRESS REPORTS.—Not later than December
1, 2004, and on December 1, of each year thereafter, the
Secretary and the Director may submit to Congress a re-
port that—
(1) describes the progress on implementation of
the Strategy; and
(2) provides recommendations for improvement
of the Strategy and the implementation of the Strat-
egy.
SEC. 302. NATIONAL HOMELAND SECURITY PANEL.
(a) ESTABLISHMENT.—The Secretary and the Direc-
tor shall establish a nonpartisan, independent panel to be
known as the National Homeland Security Panel (in this
section referred to as the ‘‘Panel’’).
(b) MEMBERSHIP.—
(1) APPOINTMENT.—The Panel shall be com-
posed of a chairperson and 8 other individuals ap-
pointed by the Secretary and the Director, in con-
sultation with the majority and minority leaders in
the Senate and the House of Representatives, from
among individuals in the private sector who are rec-
ognized experts in matters relating to the homeland
security of the United States.
(2) TERMS.—
(A) IN GENERAL.—An individual shall be
appointed to the Panel for an 18-month term.
(B) TERM PERIODS.—Terms on the Panel
shall not be continuous. All terms shall be for
the 18-month period which begins 12 months
before each date a report is required to be sub-
mitted under subsection (l)(2)(A).
(C) MULTIPLE TERMS.—An individual may
serve more than 1 term.
(c) DUTIES.—The Panel shall—
(1) conduct and submit to the Secretary and
the Director the assessment of the Strategy; and
(2) conduct the independent, alternative assess-
ment of homeland security and combating terrorism
measures required under this section.
(d) ALTERNATIVE ASSESSMENT.—The Panel shall
submit to the Secretary an independent assessment of the
optimal policies and programs to enhance homeland secu-
rity and combating terrorism. As part of the assessment,
the Panel shall, to the extent practicable, estimate the
funding required by fiscal year to achieve these optimal
approaches.
(e) INFORMATION FROM FEDERAL AGENCIES.—The
Panel may secure directly from any Federal department
or agency such information as the Panel considers nec-
essary to carry out this section. Upon request of the
Chairperson, the head of such department or agency shall
furnish such information to the Panel.
(f) COMPENSATION OF MEMBERS.—Each member of
the Panel shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for
level IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day (including travel
time) during which such member is engaged in the per-
formance of the duties of the Panel.
(g) TRAVEL EXPENSES.—The members of the Panel
shall be allowed travel expenses, including per diem in lieu
of subsistence, at rates authorized for employees of agen-
cies under subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or regular
places of business in the performance of services for the
Panel.
(h) STAFF.—
(1) IN
GENERAL.—The Chairperson of the
Panel may, without regard to the civil service laws
and regulations, appoint and terminate an executive
director and such other additional personnel as may
be necessary to enable the Panel to perform its du-
ties. The employment of an executive director shall
be subject to confirmation by the Panel.
(2) COMPENSATION.—The Chairperson of the
Panel may fix the compensation of the executive di-
rector and other personnel without regard to chapter
51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification of posi-
tions and General Schedule pay rates, except that
the rate of pay for the executive director and other
personnel may not exceed the rate payable for level
V of the Executive Schedule under section 5316 of
such title.
(3) PERSONNEL AS FEDERAL EMPLOYEES.—
(A) IN GENERAL.—The executive director
and any personnel of the Panel who are employ-
ees shall be employees under section 2105 of
title 5, United States Code, for purposes of
chapters 63, 81, 83, 84, 85, 87, 89, and 90 of
that title.
(B) MEMBERS OF PANEL.—Subparagraph
(A) shall not be construed to apply to members
of the Panel.
(4) REDUCTION
OF
STAFF.—During periods
that members are not serving terms on the Panel,
the executive director shall reduce the number and
hours of employees to the minimum necessary to—
(A) provide effective continuity of the
Panel; and
(B) minimize personnel costs of the Panel.
(i) DETAIL
OF GOVERNMENT EMPLOYEES.—Any
Federal Government employee may be detailed to the
Panel without reimbursement, and such detail shall be
without interruption or loss of civil service status or privi-
lege.
(j) ADMINISTRATIVE PROVISIONS.—
(1) USE OF MAIL AND PRINTING.—The Panel
may use the United States mails and obtain printing
and binding services in the same manner and under
the same conditions as other departments and agen-
cies of the Federal Government.
(2) SUPPORT SERVICES.—The Secretary shall
furnish the Panel any administrative and support
services requested by the Panel.
(3) GIFTS.—The Panel may accept, use, and
dispose of gifts or donations of services or property.
(k) PAYMENT
OF PANEL EXPENSES.—The com-
pensation, travel expenses, and per diem allowances of
members and employees of the Panel shall be paid out of
funds available to the Department for the payment of
compensation, travel allowances, and per diem allowances,
respectively, of civilian employees of the Department. The
other expenses of the Panel shall be paid out of funds
available to the Department for the payment of similar
expenses incurred by the Department.
(l) REPORTS.—
(1) PRELIMINARY REPORT.—
(A) REPORT
TO
SECRETARY.—Not later
than July 1, 2004, the Panel shall submit to
the Secretary and the Director a preliminary
report setting forth the activities and the find-
ings and recommendations of the Panel under
subsection (d), including any recommendations
for legislation that the Panel considers appro-
priate.
(B) REPORT
TO
CONGRESS.—Not later
than 30 days after the submission of the report
under subparagraph (A), the Secretary and the
Director shall submit to the committees re-
ferred to under subsection (b) a copy of that re-
port with the comments of the Secretary on the
report.
(2) QUADRENNIAL REPORTS.—
(A) REPORTS TO SECRETARY.—Not later
than December 1, 2004, and not later than De-
cember 1 every 4 years thereafter, the Panel
shall submit to the Secretary and the Director
a report setting forth the activities and the
findings and recommendations of the Panel
under subsection (d), including any rec-
ommendations for legislation that the Panel
considers appropriate.
(B) REPORTS
TO
CONGRESS.—Not later
than 60 days after each report is submitted
under subparagraph (A), the Secretary shall
submit to the committees referred to under sub-
section (b) a copy of the report with the com-
ments of the Secretary and the Director on the
report.
TITLE IV—EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
This Act shall take effect 180 days after the date of
enactment of this Act.
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