2198 
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 has 
become effective under paragraph 
(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’’
2199 
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 ju-
dicial review’’; 
(B) in paragraph (2), by inserting 
‘‘, amended designation, or determina-
tion in response to a petition for rev-
ocation’’ after ‘‘designation’’; 
(C) in paragraph (3), by inserting 
‘‘, amended designation, or determina-
tion in response to a petition for rev-
ocation’’ after ‘‘designation’’; and 
(D) in paragraph (4), by inserting 
‘‘, amended designation, or determina-
tion in response to a petition for rev-
ocation’’ 
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
2200 
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)). 
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
2201 
(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)— 
(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
2202 
(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 
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
2203 
of United States assistance to Afghanistan 
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 
designation of a coordinator to oversee 
United States assistance for Afghanistan. 
(b) DESIGNATION OF COORDINATOR.—Section 
104(a) of the Afghanistan Freedom Support 
Act of 2002 (22 U.S.C. 7514(a)) is amended in 
the matter preceding paragraph (1) by strik-
ing ‘‘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 Re-
lations and Appropriations of the House of 
Representatives and the Committees on For-
2204 
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 inter-
national community and the Government of 
Afghanistan to ensure that assistance to Af-
ghanistan is implemented in a coherent, con-
sistent, and efficient manner to prevent dupli-
cation and waste. The coordinator designated 
under subsection (a) shall work through the 
Secretary of the Treasury and the United 
States Executive Directors at the international 
financial institutions in order to effectuate 
these responsibilities within the international 
financial institutions. The term ‘international 
financial institution’ has the meaning given in 
section 1701(c)(2) of the International Finan-
cial Institutions Act.’’. 
SEC. 4063. GENERAL PROVISIONS RELATING TO THE AF-
GHANISTAN FREEDOM SUPPORT ACT OF 2002. 
(a) ASSISTANCE TO PROMOTE ECONOMIC, PO-
LITICAL AND SOCIAL DEVELOPMENT.—
2205 
(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-
pressed for the report entitled ‘‘Securing 
Afghanistan’s Future’’ in their Berlin Dec-
laration of April 2004. The United States 
should help enable the growth needed to 
create an economically sustainable Af-
ghanistan capable of the poverty reduc-
tion and social development foreseen in 
the report.
2206 
(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 contributions 
toward securing the peace in Afghani-
stan. 
(B) The United States should continue 
to lead in the security domain by, among 
other things, providing logistical support 
to facilitate those contributions. 
(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
2207 
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 Amend-
ments of 2004, the President shall formu-
late 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 
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, parliamentary
2208 
and democratic development, the judicial 
system and rule of law, human rights, 
education, 
health, 
telecommunications, 
electricity, 
women’s 
rights, 
counter-
narcotics, police, border security, anti-cor-
ruption, and other law-enforcement ac-
tivities. 
‘‘(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 
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 implement the 
strategy developed pursuant to subsection (a). 
Such action plan shall include a description
2209 
and schedule of the program evaluations 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 
‘‘(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.’’.
2210 
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 cre-
ation 
of 
legal 
assistance 
pro-
grams, and other initiatives to 
promote the rule of law in Afghan-
istan;’’; 
(2) in clause (xii), to read as follows: 
‘‘(xii) support for the effective 
administration of justice at the 
national, regional, and local lev-
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
2211 
(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 following: 
‘‘(xv) assistance for the protec-
tion of Afghanistan’s culture, his-
tory, 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: 
‘‘(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
2212 
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 information 
as the Secretary may reasonably require 
to allow the Secretary to prepare and sub-
mit the report required by such para-
graph.’’. 
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.—
2213 
‘‘(1) IN GENERAL.—It shall be the policy 
of the United States to take immediate 
steps to provide active support for the dis-
armament, demobilization, and reintegra-
tion of armed soldiers, particularly child 
soldiers, in Afghanistan, in close con-
sultation with the President of Afghani-
stan. 
‘‘(2) REPORT.—The report required by 
section 206(c)(2) of this Act shall include 
a description of the progress to implement 
paragraph (1).’’. 
(b) INTERNATIONAL PEACEKEEPING AND SE-
CURITY OPERATIONS.—Section 103 of such Act 
(22 U.S.C. 7513(d)), as amended by subsection 
(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—
2214 
‘‘(1) increase the area in which secu-
rity is provided and undertake vital tasks 
related to promoting security, such as dis-
arming 
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.’’. 
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
2215 
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 carried 
out pursuant to subparagraph (A). 
The first report under this subpara-
graph shall be transmitted not later 
than 60 days after the date of the en-
actment of the Afghanistan Freedom 
Support Act Amendments of 2004 and 
subsequent reports shall be trans-
mitted every six months thereafter 
and may be included in the report re-
quired 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—
2216 
(1) by redesignating— 
(A) title III as title IV; and 
(B) sections 301 through 304 as 
sections 401 through 404, respectively; 
and 
(2) by inserting after title II the fol-
lowing: 
‘‘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;
2217 
‘‘(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 
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—
2218 
(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.’’. 
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 prohibition
2219 
on assistance to Afghanistan) is hereby re-
pealed. 
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 peo-
ple and Government of the United States and 
the people and Government of Saudi Arabia in 
order to provide for a reevaluation of, and im-
provements 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.
2220 
(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. 
(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.
2221 
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 promising, 
stable, and secure future for Pakistan, and 
should in particular provide assistance to en-
courage and enable Pakistan— 
(1) to continue and improve upon its 
commitment to combating extremists; 
(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 education 
system; and
2222 
(8) to, in other ways, implement a gen-
eral 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. 
SEC. 4083. EXTENSION OF PAKISTAN WAIVERS. 
The Act entitled ‘‘An Act to authorize the 
President to exercise waivers of foreign assist-
ance restrictions with respect to Pakistan 
through September 30, 2003, and for other pur-
poses’’, approved October 27, 2001 (Public Law 
107–57; 115 Stat. 403), as amended by section 
2213 of the Emergency Supplemental Appro-
priations Act for Defense and for the Recon-
struction of Iraq and Afghanistan, 2004 (Pub-
lic 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
2223 
(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’’. 
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 treaty 
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-
2224 
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 
(2) in the second sentence, by striking 
‘‘Committee on Foreign Affairs’’ and in-
serting ‘‘Committee on International Rela-
tions’’. 
(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—
2225 
‘‘(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 
‘‘(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 following: 
‘‘(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 ac-
2226 
tivities under the arrangement or the arrange-
ment itself. 
‘‘(B) Arrangements that constitute an 
international agreement within the meaning 
of this section (other than subsection (c) of this 
section) include, but are not limited to, the fol-
lowing: 
‘‘(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 Authoriza-
tion Act, Fiscal Years 1988 and 1989 is amend-
ed 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-
2227 
tation Act and shall apply during fiscal years 
2005, 2006, and 2007.’’. 
Subtitle G—Additional Protections 
of United States Aviation System 
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 Homeland 
Security, after consultation with the Sec-
retary of State, may direct the Federal Air 
Marshal Service to provide appropriate
2228 
air marshal training to law enforcement 
personnel of foreign countries. 
‘‘(2) WATCHLIST SCREENING.—The Fed-
eral Air Marshal Service may only provide 
appropriate air marshal training to law 
enforcement personnel of foreign coun-
tries after comparing the identifying in-
formation and records of law enforcement 
personnel of foreign countries against ap-
propriate records in the consolidated and 
integrated terrorist watchlists of the Fed-
eral 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.’’.
2229 
SEC. 
4103. 
MAN-PORTABLE 
AIR 
DEFENSE 
SYSTEMS 
(MANPADS). 
(a) 
UNITED
STATES
POLICY
ON
NON-
PROLIFERATION AND EXPORT CONTROL.— 
(1) TO LIMIT AVAILABILITY AND TRANS-
FER
OF
MANPADS.—The President shall 
pursue, on an urgent basis, further strong 
international diplomatic and cooperative 
efforts, including bilateral and multilat-
eral treaties, in the appropriate forum to 
limit the availability, transfer, and pro-
liferation of MANPADSs worldwide. 
(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 agree-
ment;
2230 
(B) prohibit, except pursuant to 
transfers between governments, the ex-
port of a MANPADS, including any 
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 government 
that approved the original export 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.—
2231 
(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-
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 rec-
ommendations 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 Systems’’. 
(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.
2232 
(b) FAA AIRWORTHINESS CERTIFICATION OF 
MISSILE
DEFENSE
SYSTEMS
FOR
COMMERCIAL 
AIRCRAFT.— 
(1) IN
GENERAL.—As soon as prac-
ticable, but not later than the date of com-
pletion of Phase II of the Department of 
Homeland 
Security’s 
counter-man-port-
able air defense system (MANPADS) devel-
opment and demonstration program, the 
Administrator of the Federal Aviation Ad-
ministration shall establish a process for 
conducting airworthiness and safety cer-
tification of missile defense systems for 
commercial aircraft certified as effective 
and functional by the Department of 
Homeland Security. The process shall re-
quire a certification by the Administrator 
that such systems can be safely integrated 
into aircraft systems and ensure air-
worthiness and aircraft system integrity. 
(2) CERTIFICATION ACCEPTANCE.—Under 
the process, the Administrator shall ac-
cept the certification of the Department of 
Homeland Security that a missile defense 
system is effective and functional to de-
2233 
fend 
commercial 
aircraft 
against 
MANPADSs. 
(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 Avia-
tion Administration shall transmit to the 
Committee on Transportation and Infra-
structure of the House of Representatives 
and the Committee on Commerce, Science, 
and Transportation of the Senate a report 
that contains a detailed description of 
each airworthiness and safety certifi-
cation issued for a missile defense system 
for commercial aircraft. 
(c) PROGRAMS TO REDUCE MANPADS.—
2234 
(1) IN GENERAL.—The President is en-
couraged to pursue strong programs to re-
duce the number of MANPADSs worldwide 
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 nec-
essary 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
2235 
shall transmit to the Committee on Trans-
portation and Infrastructure of the House 
of Representatives and the Committee on 
Commerce, Science, and Transportation 
of the Senate a report describing the De-
partment of Homeland Security’s plans to 
secure airports and the aircraft arriving 
and departing from airports 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 Department’s 
efforts to conduct MANPADSs vulner-
ability assessments at United States 
airports at which the Department 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 De-
partment has developed in the event
2236 
that it receives intelligence indicating 
a high threat of a MANPADS attack 
on aircraft at or near United States 
airports. 
(D) The feasibility and effective-
ness of implementing public education 
and neighborhood watch programs in 
areas surrounding United States air-
ports in cases in which intelligence re-
ports indicate there is a high risk of 
MANPADS attacks on aircraft. 
(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 Serv-
ices, the Committee on International 
Relations, 
and 
the 
Committee 
on
2237 
Transportation and Infrastructure of 
the House of Representatives; and 
(B) the Committee on Armed Serv-
ices, the Committee on Foreign Rela-
tions, and the Committee on Com-
merce, Science, and Transportation 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 individual 
acting as a crew and portable by sev-
eral individuals.
2238 
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) FINDINGS.—The Congress finds as fol-
lows: 
(1) The global war on terrorism and 
cutting off terrorist financing is a policy 
priority for the United States and its part-
ners, working bilaterally and multilater-
ally through the United Nations (UN), the 
UN Security Council and its Committees, 
such as the 1267 and 1373 Committees, the 
Financial Action Task Force (FATF) and 
various international financial institu-
tions, such as the International Monetary 
Fund (IMF), the International Bank for 
Reconstruction and Development (IBRD), 
and the regional multilateral develop-
ment banks, and other multilateral fora. 
(2) The Secretary of the Treasury has 
engaged the international financial com-
munity in the global fight against ter-
2239 
rorist financing. Specifically, the Depart-
ment of the Treasury helped redirect the 
focus of the Financial Action Task Force 
on the new threat posed by terrorist fi-
nancing to the international financial 
system, resulting in the establishment of 
the FATF’s Eight Special Recommenda-
tions on Terrorist Financing as the inter-
national standard on combating terrorist 
financing. The Secretary of the Treasury 
has engaged the Group of Seven and the 
Group of Twenty Finance Ministers to de-
velop action plans to curb the financing 
of terror. In addition, other economic and 
regional fora, such as the Asia-Pacific 
Economic Cooperation (APEC) Forum, the 
Western Hemisphere Financial Ministers, 
have been used to marshal political will 
and actions in support of countering the 
financing of terrorism (CFT) standards. 
(3) FATF’s Forty Recommendations on 
Money Laundering and the Eight Special 
Recommendations on Terrorist Financing 
are the recognized global standards for 
fighting money laundering and terrorist
2240 
financing. The FATF has engaged in an 
assessment process for jurisdictions based 
on their compliance with these standards. 
(4) In March 2004, the IMF and IBRD 
Boards agreed to make permanent a pilot 
program of collaboration with the FATF 
to assess global compliance with the FATF 
Forty Recommendations on Money Laun-
dering 
and 
the 
Eight 
Special 
Rec-
ommendations on Terrorist Financing. As 
a result, anti-money laundering (AML) 
and combating the financing of terrorism 
(CFT) assessments are now a regular part 
of 
their 
Financial 
Sector 
Assessment 
Progam (FSAP) and Offshore Financial 
Center assessments, which provide for a 
comprehensive analysis of the strength of 
a jurisdiction’s financial system. These re-
views 
assess 
potential 
systemic 
vulnerabilities, consider sectoral develop-
ment needs and priorities, and review the 
state of implementation of and compli-
ance with key financial codes and regu-
latory standards, among them the AML 
and CFT standards.
2241 
(5) To date, 70 FSAPs have been con-
ducted, with over 24 of those incor-
porating AML and CFT assessments. The 
international financial institutions (IFIs), 
the FATF, and the FATF-style regional 
bodies together are expected to assess 
AML and CFT regimes in up to 40 coun-
tries or jurisdictions per year. This will 
help countries and jurisdictions identify 
deficiencies in their AML and CFT re-
gimes and help focus technical assistance 
(TA) efforts. 
(6) TA programs from the United 
States and other nations, coordinated 
with the Department of State and other 
departments and agencies, are playing an 
important role in helping countries and 
jurisdictions 
address 
shortcomings 
in 
their AML and CFT regimes and bringing 
their regimes into conformity with inter-
national standards. Training is coordi-
nated within the United States Govern-
ment, which leverages multilateral orga-
nizations and bodies and international fi-
2242 
nancial institutions to internationalize 
the conveyance of technical assistance. 
(7) In fulfilling its duties in advanc-
ing incorporation of AML and CFT stand-
ards into the IFIs as part of the IFIs’ work 
on protecting the integrity of the inter-
national monetary system, the Depart-
ment of the Treasury, under the guidance 
of the Secretary of the Treasury, has effec-
tively brought together all of the key 
United States Government agencies. In 
particular, 
United 
States 
Government 
agencies continue to work together to fos-
ter broad support for this important un-
dertaking in various multilateral fora, 
and United States Government agencies 
recognize the need for close coordination 
and communication within our own gov-
ernment. 
(b) SENSE OF THE CONGRESS.—It is the sense 
of the Congress that the Secretary of the Treas-
ury should continue to promote the dissemina-
tion of international AML and CFT standards, 
and to press for full implementation of the 
FATF 40 + 8 Recommendations by all countries
2243 
in order to curb financial risks and hinder ter-
rorist financing around the globe. 
SEC. 4112. EXPANDED REPORTING AND TESTIMONY RE-
QUIREMENTS FOR THE SECRETARY OF THE 
TREASURY. 
(a) 
REPORTING
REQUIREMENTS.—Section 
1503(a) of the International Financial Institu-
tions Act (22 U.S.C. 262o–2(a)) is amended by 
adding at the end the following new para-
graph: 
‘‘(15) Work with the International 
Monetary Fund to— 
‘‘(A) foster strong global anti- 
money laundering (AML) and combat 
the financing of terrorism (CFT) re-
gimes; 
‘‘(B) ensure that country perform-
ance under the Financial Action Task 
Force 
anti-money 
laundering 
and 
counter-terrorist financing standards 
is 
effectively 
and 
comprehensively 
monitored; 
‘‘(C) ensure note is taken of AML 
and CFT issues in Article IV reports, 
International 
Monetary 
Fund 
pro-
2244 
grams, and other regular reviews of 
country progress; 
‘‘(D) ensure that effective AML 
and CFT regimes are considered to be 
indispensable elements of sound fi-
nancial systems; and 
‘‘(E) emphasize the importance of 
sound AML and CFT regimes to global 
growth and development.’’. 
(b) TESTIMONY.—Section 1705(b) of such 
Act (22 U.S.C. 262r–4(b)) is amended— 
(1) by striking ‘‘and’’ at the end of 
paragraph (2); 
(2) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’ and 
(3) by adding at the end the following: 
‘‘(4) the status of implementation of 
international anti-money laundering and 
counter-terrorist financing standards by 
the International Monetary Fund, the 
multilateral 
development 
banks, 
and 
other multilateral financial policymaking 
bodies.’’.
2245 
SEC. 4113. COORDINATION OF UNITED STATES GOVERN-
MENT EFFORTS. 
The Secretary of the Treasury, or the des-
ignee of the Secretary as the lead United 
States Government official to the Financial 
Action Task Force (FATF), shall continue to 
convene the interagency United States Govern-
ment FATF working group. This group, which 
includes representatives from all relevant fed-
eral agencies, shall meet at least once a year 
to advise the Secretary on policies to be pur-
sued by the United States regarding the devel-
opment of common international AML and 
CFT standards, to assess the adequacy and im-
plementation of such standards, and to rec-
ommend to the Secretary improved or new 
standards as necessary. 
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) FINANCIAL ACTION TASK FORCE.— 
The term ‘‘Financial Action Task Force’’
2246 
means the international policy-making 
and standard-setting body dedicated to 
combating money laundering and ter-
rorist financing that was created by the 
Group of Seven in 1989. 
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 
they need to respond to a terrorist attack. 
(2) First responder funding is not 
reaching the men and women of our Na-
2247 
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 designed 
to meet pre-September 11 priorities, on the 
other. 
(5) While a discrete homeland security 
grant making process is necessary to en-
sure proper focus on the unique aspects of 
terrorism prevention, preparedness, and 
response, it is essential that State and
2248 
local strategies for utilizing such grants 
be integrated, to the greatest extent prac-
ticable, 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 re-
sources 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. 
(8) An essential prerequisite to achiev-
ing the Nation’s homeland security objec-
tives for first responders is the establish-
ment of well-defined national goals for 
terrorism 
preparedness. 
These 
goals
2249 
should delineate the essential capabilities 
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 na-
ture and extent of State and local first re-
sponder needs, to identify the human and 
financial resources required to fulfill 
them, and to direct funding to meet those 
needs and to measure preparedness levels 
on a national scale. 
(10) To facilitate progress in achiev-
ing, maintaining, and enhancing essen-
tial capabilities for State and local first 
responders, the Department of Homeland 
Security should seek to allocate homeland 
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
2250 
be integrated into State and local plan-
ning efforts to ensure that their capabili-
ties and roles are understood, so as to pro-
vide 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. 
(14) The Department of Homeland Se-
curity should establish, publish, and regu-
larly update national voluntary consensus 
standards for both equipment and train-
ing, in cooperation with both public and 
private sector standard setting organiza-
2251 
tions, to assist State and local govern-
ments 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 
(2) by adding at the end the following: 
‘‘TITLE XVIII—FUNDING FOR 
FIRST RESPONDERS 
‘‘SEC. 1801. DEFINITIONS. 
‘‘In this title:
2252 
‘‘(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 In-
dian 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-De-
termination and Education Assistance 
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 
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;
2253 
‘‘(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 
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-
2254 
aster Relief and Emergency Assistance Act 
(42 U.S.C. 5195a). 
‘‘(6) 
ESSENTIAL
CAPABILITIES.—The 
term ‘essential capabilities’ means the lev-
els, availability, and competence of emer-
gency personnel, planning, training, and 
equipment across a variety of disciplines 
needed to effectively and efficiently pre-
vent, prepare for, and respond to acts of 
terrorism 
consistent 
with 
established 
practices. 
‘‘(7) FIRST RESPONDER.—The term ‘first 
responder’ shall have the same meaning 
as the term ‘emergency response provider’. 
‘‘(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 vil-
lage or regional or village corporation as 
defined 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 serv-
ices provided by the United States to Indi-
ans because of their status as Indians.
2255 
‘‘(9) 
REGION.—The 
term 
‘region’ 
means— 
‘‘(A) any geographic area con-
sisting of all or parts of 2 or more con-
tiguous States, counties, municipali-
ties, 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 
agencies in a mutual aid agreement; 
or 
‘‘(B) any other combination of con-
tiguous local government units (in-
cluding 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-
2256 
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. 
‘‘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 weap-
ons of mass destruction, administered under 
the following:
2257 
‘‘(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. 
‘‘(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
2258 
and 34 of the Federal Fire Prevention and 
Control Act of 1974 (15 U.S.C. 2229, 
2229a). 
‘‘(3) EMERGENCY MANAGEMENT PLANNING 
AND
ASSISTANCE
ACCOUNT
GRANTS.—The 
Emergency 
Management 
Performance 
Grant program and the Urban Search 
and Rescue Grants program authorized 
by title VI of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act 
(42 U.S.C. 5195 et seq.); the Departments 
of Veterans Affairs and Housing and 
Urban 
Development, 
and 
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
2259 
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 In-
frastructure Protection, and Science 
and Technology, and the Director of 
the Office for Domestic Preparedness; 
‘‘(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—
2260 
‘‘(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 es-
sential capabilities available as necessary 
and appropriate to local governments 
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 pos-
2261 
sess, or to which they should have access, 
in order to meet the Department’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 
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 reaching 
nationally 
determined 
terrorism 
pre-
paredness levels within a specified time 
period.
2262 
‘‘(3) 
MEASURABILITY.—The 
establish-
ment of essential capabilities shall be de-
signed to enable measurement of progress 
towards specific terrorism preparedness 
goals. 
‘‘(4) COMPREHENSIVENESS.—The deter-
mination of essential capabilities for ter-
rorism preparedness shall be made within 
the context of a comprehensive State 
emergency management system. 
‘‘(c) FACTORS TO BE CONSIDERED.— 
‘‘(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 In-
frastructure Protection of the threats of 
terrorism against the United States.
2263 
‘‘(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. 
‘‘(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 infrastruc-
ture sectors are listed in this paragraph 
shall not be construed as an order of pri-
ority for consideration of the importance 
of such sectors.
2264 
‘‘(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. 
‘‘(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 con-
strued as an order of priority for consider-
ation of the importance of such threats. 
‘‘(4) 
CONSIDERATION
OF
ADDITIONAL 
FACTORS.—In establishing essential capa-
bilities under subsection (a)(1), the Sec-
2265 
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 
establish an advisory body pursuant to section 
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 Capa-
bilities 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—
2266 
‘‘(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 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
2267 
‘‘(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 ca-
pabilities are, to the extent feasible, con-
sistent with any preparedness goals or 
recommendations of the Federal working 
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-
2268 
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 
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, haz-
ardous materials response, emergency 
medical services, and emergency man-
agement personnel (including public 
works personnel routinely engaged in 
emergency response);
2269 
‘‘(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 oper-
ations; 
‘‘(C) experts from Federal, State, 
and local governments, and the pri-
vate sector, representing standards- 
setting organizations, including rep-
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-
2270 
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, including 
emergency medical professionals, the Sec-
retary shall coordinate the selection with 
the Secretary of Health and Human Serv-
ices. 
‘‘(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 Depart-
ments to serve as ex officio members of the 
Task Force. One of the ex officio members 
from the Department of Homeland Secu-
rity shall be the designated officer of the 
Federal Government for purposes of sub-
section (e) of section 10 of the Federal Ad-
visory 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),
2271 
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, region, 
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 Sec-
retary under section 1803. 
‘‘(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, maintain,
2272 
or enhance the essential capabilities 
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 re-
gional structure the State has es-
tablished for the purpose of orga-
nizing 
homeland 
security 
pre-
paredness activities funded by cov-
ered 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-
2273 
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 emergency 
preparedness of first responders, ad-
dresses the unique aspects of ter-
rorism as part of a comprehensive 
State emergency management plan. 
‘‘(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 con-
sistent and coordinated manner, the applica-
ble State homeland security plan or plans. 
‘‘(e) APPLICATION FOR GRANT.—
2274 
‘‘(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 
the fiscal year for which they are sub-
mitted. The Secretary shall award covered 
grants pursuant to all approved applica-
tions for such fiscal year as soon as prac-
ticable, 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.
2275 
‘‘(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 essential 
capabilities for terrorism prepared-
ness within the State, region, or di-
rectly eligible tribe to which the appli-
cation pertains; 
‘‘(B) a description of how, by ref-
erence to the applicable State home-
land security plan or plans under sub-
section (c), the allocation of grant 
funding proposed in the application, 
including, 
where 
applicable, 
the 
amount not passed through under sec-
tion 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
2276 
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 re-
gions, local governments, and Indian 
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; 
‘‘(ii) a specification of what 
governmental entity within the re-
gion will administer the expendi-
ture of funds under the covered 
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;
2277 
‘‘(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 
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-
2278 
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 Governor 
of such a State notifies the Secretary, 
in writing, that such regional appli-
cation is inconsistent with the State’s 
homeland security plan and provides 
an explanation of the reasons there-
for. 
‘‘(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
2279 
each such State shall, not later than 
the end of the 45-day period beginning 
on the date after receiving a regional 
award, pass through to the region all 
covered grant funds or resources pur-
chased with such funds, except those 
funds necessary for the State to carry 
out its responsibilities with respect to 
such regional application: Provided, 
That in no such case shall the State 
or States pass through to the region 
less than 80 percent of the regional 
award. 
‘‘(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 expi-
ration 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 sub-
paragraph (C).
2280 
‘‘(E) 
DIRECT
PAYMENTS
TO
RE-
GIONS.—If any State fails to pass 
through a regional award to a region 
as required by subparagraph (C) with-
in 45 days after receiving such award 
and does not request or receive an ex-
tension of such period under section 
1806(h)(2), the region may petition the 
Secretary to receive directly the por-
tion of the regional award that is re-
quired to be passed through to such 
region under subparagraph (C). 
‘‘(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
2281 
the region’s access to covered 
grants; and 
‘‘(iii) administer, in consulta-
tion with State, local, regional, 
and private officials within the re-
gion, covered grants awarded to 
the region. 
‘‘(6) TRIBAL APPLICATIONS.— 
‘‘(A) SUBMISSION TO THE STATE OR 
STATES.—To ensure the consistency re-
quired under subsection (d), an appli-
cant that is a directly eligible tribe 
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 bound-
aries of which any part of such tribe 
is located to comment to the Secretary
2282 
on the consistency of the tribe’s appli-
cation with the State’s homeland secu-
rity plan. Any such comments shall be 
submitted to the Secretary concur-
rently with the submission of the State 
and tribal applications. 
‘‘(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 
security plan or plans, and to approve 
any application of such tribe. The Sec-
retary shall notify each State within 
the boundaries of which any part of 
such tribe is located of the approval 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 pre-
paredness;
2283 
‘‘(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 ac-
cess to covered grants; and 
‘‘(iii) administer, in consulta-
tion with State, local, regional, 
and 
private 
officials, 
covered 
grants awarded to such tribe. 
‘‘(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 described
2284 
in subsection (c). If a State fails to 
comply with section 1806(g)(1), the 
tribe may request payment under sec-
tion 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 pro-
vided under the grant, new equipment or 
systems that do not meet or exceed any ap-
plicable 
national 
voluntary 
consensus 
standards established by the Secretary 
under section 1807(a), the applicant shall 
include in the application an explanation 
of why such equipment or systems will 
serve the needs of the applicant 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 Emer-
gency Preparedness and Response;
2285 
‘‘(C) the Under Secretary for Bor-
der and Transportation Security; 
‘‘(D) the Under Secretary for Infor-
mation Analysis and Infrastructure 
Protection; 
‘‘(E) 
the 
Under 
Secretary 
for 
Science and Technology; and 
‘‘(F) the Director of the Office for 
Domestic Preparedness. 
‘‘(2) CHAIRMAN.— 
‘‘(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 exer-
cise the authorities of the Chairman, 
if the Secretary so directs. 
‘‘(3) RANKING OF GRANT APPLICATIONS.— 
‘‘(A) PRIORITIZATION
OF
GRANTS.— 
The Board— 
‘‘(i) shall evaluate and annu-
ally prioritize all pending appli-
cations for covered grants based 
upon the degree to which they 
would, by achieving, maintaining,
2286 
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 
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
2287 
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 
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 implementing 
its homeland security plan in ac-
cordance with the prioritization of 
needs under subsection (c)(1)(C); 
‘‘(iii) the Virgin Islands, Amer-
ican 
Samoa, 
Guam, 
and 
the 
Northern Mariana Islands each 
receives no less than 0.08 percent
2288 
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 
‘‘(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
2289 
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 
‘‘(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 consid-
ered 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 available to 
and considered by the Board.
2290 
‘‘SEC. 1806. USE OF FUNDS AND ACCOUNTABILITY REQUIRE-
MENTS. 
‘‘(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; 
‘‘(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-
2291 
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 
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 exercises and 
training in the use of equipment 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
2292 
of barriers, fences, gates, and other such 
devices, except that the cost of such meas-
ures 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 
may not exceed 10 percent of the total 
amount of the covered grant; 
‘‘(10) the costs of commercially avail-
able interoperable communications equip-
ment (which, where applicable, is based 
on national, voluntary consensus stand-
ards) that the Secretary, in consultation 
with the Chairman of the Federal Com-
munications Commission, deems best suit-
ed to facilitate interoperability, coordina-
tion, and integration between and among 
emergency communications systems, and 
that complies with prevailing grant guid-
ance of the Department for interoperable 
communications; 
‘‘(11) educational curricula develop-
ment for first responders to ensure that 
they are prepared for terrorist attacks;
2293 
‘‘(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; 
‘‘(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-
2294 
hances first responder preparedness for emer-
gencies and disasters unrelated to acts of ter-
rorism, if such use assists such governments in 
achieving essential capabilities for terrorism 
preparedness established by the Secretary 
under section 1803. 
‘‘(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 volunteer 
first responders who are not otherwise com-
pensated 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-
2295 
tributable to transporting and operating such 
equipment during such response. 
‘‘(f) FLEXIBILITY IN UNSPENT HOMELAND SE-
CURITY GRANT FUNDS.—Upon request by the re-
cipient of a covered grant, the Secretary may 
authorize the grantee to transfer all or 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 inter-
ests 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 governments, 
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, re-
sources purchased with the grant funds 
having a value equal to at least 80 per-
cent of the amount of the grant, or a com-
2296 
bination 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.— 
‘‘(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 begin-
ning on the date of the enactment of 
this section shall not exceed 75 per-
cent. 
‘‘(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
2297 
directly linked with the purpose for 
which the grant is made, including, 
but not limited to, any necessary per-
sonnel overtime, contractor services, 
administrative costs, equipment 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
2298 
report on that fiscal quarter. Each such 
report must include, for each recipient of 
a covered grant or a pass-through under 
paragraph (1)— 
‘‘(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 cov-
ered grant shall submit an annual report 
to the Secretary not later than 60 days 
after the end of each fiscal year. Each re-
cipient 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 report to each 
State within the boundaries of which any 
part of such tribe is located. Each report 
must include the following:
2299 
‘‘(A) The amount, ultimate recipi-
ents, and dates of receipt of all funds 
received under the grant during the 
previous fiscal year. 
‘‘(B) The amount and the dates of 
disbursements of all such funds ex-
pended in compliance with paragraph 
(1) or pursuant to mutual aid agree-
ments or other sharing arrangements 
that apply within the State, region, or 
directly eligible tribe, as applicable, 
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 expendi-
ture of grant funds during the pre-
ceding fiscal year. 
‘‘(E) The extent to which essential 
capabilities identified in the applica-
2300 
ble State homeland security plan or 
plans remain unmet. 
‘‘(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 re-
strictions, if the recipient believes that 
discussion in the report of unmet needs 
would reveal sensitive but unclassified in-
formation. 
‘‘(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)
2301 
within 45 days after receiving funds 
under the grant, the Secretary may— 
‘‘(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 receive 
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 ex-
penses; 
‘‘(ii) requiring the grant re-
cipient to distribute to local gov-
ernment beneficiaries all or a por-
tion of grant funds that are not
2302 
required to be passed through 
under subsection (g)(1); or 
‘‘(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 required to 
be passed through under sub-
section (g)(1), except that the total 
amount of such reduction may not 
exceed 20 percent 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 ad-
ditional 15-day periods, if the Secretary 
determines that the resulting delay in pro-
viding grant funding to the local govern-
ment entities that will receive funding
2303 
under the grant will not have a signifi-
cant detrimental impact on such entities’ 
terrorism preparedness efforts. 
‘‘(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).
2304 
‘‘(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 intended 
beneficiary in the approved grant 
application; 
‘‘(ii) it was intended by the 
grantee to receive a severable por-
tion of the overall grant for a spe-
cific purpose that is identified in 
the grant application; 
‘‘(iii) it petitioned the grantee 
for the funds or resources after ex-
piration 
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 por-
tion of the overall grant that was 
earmarked or designated for its 
use or benefit.
2305 
‘‘(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 govern-
ment. 
‘‘(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 Department. 
‘‘(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, region, 
and directly eligible tribe in the preceding 
fiscal year;
2306 
‘‘(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 capa-
bilities 
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 
Preparedness, shall, not later than 6 
months after the date of enactment of this
2307 
section, support the development of, pro-
mulgate, 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. 
‘‘(2) REQUIRED
CATEGORIES.—In car-
rying out paragraph (1), the Secretary
2308 
shall specifically consider the following 
categories of first responder equipment: 
‘‘(A) Thermal imaging equipment. 
‘‘(B) 
Radiation 
detection 
and 
analysis 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 protective 
clothing. 
‘‘(G) Respiratory protection equip-
ment. 
‘‘(H) 
Interoperable 
communica-
tions, including wireless and wireline 
voice, video, and data networks. 
‘‘(I) Explosive mitigation devices 
and explosive detection and analysis 
equipment. 
‘‘(J) Containment vessels.
2309 
‘‘(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 government 
first responders to achieve optimal levels 
of terrorism preparedness as quickly as 
practicable. Such standards shall give 
priority to providing training to— 
‘‘(A) enable first responders to pre-
vent, prepare for, respond to, and
2310 
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. 
‘‘(F) 
Such 
other 
activities 
for 
which the Secretary determines that
2311 
national voluntary consensus training 
standards would be appropriate. 
‘‘(3) CONSISTENCY.—In carrying out 
this subsection, the Secretary shall ensure 
that such training standards are con-
sistent with the principles of emergency 
preparedness for all hazards. 
‘‘(c) CONSULTATION WITH STANDARDS ORGA-
NIZATIONS.—In 
establishing 
national 
vol-
untary consensus standards for first re-
sponder equipment and training under this 
section, the Secretary shall consult with rel-
evant public and private sector groups, includ-
ing— 
‘‘(1) the National Institute of Stand-
ards and Technology; 
‘‘(2) the National Fire Protection Asso-
ciation; 
‘‘(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; 
‘‘(6) the National Institute of Justice;
2312 
‘‘(7) the Inter-Agency Board for Equip-
ment 
Standardization 
and 
Interoper-
ability; 
‘‘(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-
retary shall coordinate activities under this
2313 
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 re-
sponse, emergency medical (including hospital 
emergency facilities), and related personnel, 
organizations, agencies, and authorities.’’. 
(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.
2314 
(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-
2315 
tion of the geographic regions or economic sec-
tors 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 geographic 
region-specific warnings and economic sector- 
specific warnings issued during the preceding 
fiscal year under the Homeland Security Advi-
sory System referred to in section 201(d)(7), 
and the bases for such warnings. The report 
shall be submitted in unclassified 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)
2316 
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
2317 
communications systems and radios should 
continue to be deployed as soon as practicable 
for use by the first responder community, and 
that upgraded and new digital communica-
tions systems and new digital radios must 
meet prevailing national, voluntary consensus 
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.
2318 
SEC. 5009. STUDY REGARDING NATIONWIDE EMERGENCY 
NOTIFICATION SYSTEM. 
(a) STUDY.—The Secretary of Homeland Se-
curity, in consultation with the heads of other 
appropriate Federal agencies and representa-
tives of providers and participants in the tele-
communications industry, shall conduct a 
study to determine whether it is cost-effective, 
efficient, and feasible to establish and imple-
ment an emergency telephonic alert notifica-
tion 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 consider 
the use of the telephone, wireless communica-
tions, and other existing communications net-
works to provide such notification. 
(c) REPORT.—Not later than 9 months after 
the date of the enactment of this Act, the Sec-
2319 
retary shall submit to the Congress a report re-
garding 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 Coordina-
tion and Preparedness. 
Subtitle B—Government 
Reorganization Authority 
SEC. 5021. AUTHORIZATION OF INTELLIGENCE COMMUNITY 
REORGANIZATION PLANS. 
(a) 
REORGANIZATION
PLANS.—Section 
903(a)(2) of title 5, United States Code, is 
amended to read as follows: 
‘‘(2) the abolition of all or a part of 
the functions of an agency;’’. 
(b) REPEAL OF LIMITATIONS.—Section 905 of 
title 5, United States Code, is amended to read 
as follows:
2320 
‘‘§ 905. Limitation on authority. 
‘‘The authority to submit reorganization 
plans under this chapter is limited to the fol-
lowing organizational units: 
‘‘(1) The Office of the National Intel-
ligence Director. 
‘‘(2) The Central Intelligence Agency. 
‘‘(3) The National Security Agency. 
‘‘(4) The Defense Intelligence Agency. 
‘‘(5) The National Geospatial-Intel-
ligence Agency. 
‘‘(6) The National Reconnaissance Of-
fice. 
‘‘(7) Other offices within the Depart-
ment of Defense for the collection of spe-
cialized national intelligence through re-
connaissance programs. 
‘‘(8) The intelligence elements of the 
Army, the Navy, the Air Force, the Marine 
Corps, the Federal Bureau of Investiga-
tion, and the Department of Energy. 
‘‘(9) The Bureau of Intelligence and 
Research of the Department of State. 
‘‘(10) The Office of Intelligence Anal-
ysis of the Department of Treasury.
2321 
‘‘(11) The elements of the Department 
of Homeland Security concerned with the 
analysis of intelligence information, in-
cluding the Office of Intelligence of the 
Coast Guard. 
‘‘(12) Such other elements of any other 
department or agency as may be des-
ignated by the President, or designated 
jointly by the National Intelligence Direc-
tor and the head of the department or 
agency concerned, as an element of the in-
telligence community.’’. 
(c) REORGANIZATION PLANS.—Section 903(a) 
of title 5, United States Code, is amended— 
(1) in paragraph (5), by striking ‘‘or’’ 
after the semicolon; 
(2) in paragraph (6), by striking the 
period and inserting ‘‘; or’’; and 
(3) by inserting after paragraph (6) 
the following: 
‘‘(7) the creation of an agency.’’. 
(d) APPLICATION OF CHAPTER.—Chapter 9 of 
title 5, United States Code, is amended by add-
ing at the end the following:
2322 
‘‘§ 913. Application of chapter 
‘‘This chapter shall apply to any reorga-
nization plan transmitted to Congress in ac-
cordance with section 903(b) on or after the 
date of enactment of this section.’’. 
(e) TECHNICAL
AND CONFORMING AMEND-
MENTS.— 
(1) TABLE OF SECTIONS.—The table of 
sections for chapter 9 of title 5, United 
States Code, is amended by adding after 
the item relating to section 912 the fol-
lowing: 
‘‘913. Application of chapter.’’. 
(2) REFERENCES.—Chapter 9 of title 5, 
United States Code, is amended— 
(A) in section 908(1), by striking 
‘‘on or before December 31, 1984’’; and 
(B) in section 910, by striking 
‘‘Government Operations’’ each place 
it appears and inserting ‘‘Government 
Reform’’. 
(3) DATE MODIFICATION.—Section 909 of 
title 5, United States Code, is amended in 
the first sentence by striking ‘‘19’’ and in-
serting ‘‘20’’.
2323 
Subtitle C—Restructuring Relating 
to the Department of Homeland 
Security 
and 
Congressional 
Oversight 
SEC. 5025. 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-
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 permanent 
staff and other appropriate personnel detailed 
from other subdivisions of the Department 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.
2324 
‘‘(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-
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 Depart-
ment 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 depart-
ments and agencies, and between the De-
partment and State and local agencies
2325 
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 il-
legal drugs into the United States; 
‘‘(4) to track and sever connections be-
tween 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
2326 
Congress of any request for expenditures 
for the Department, submit to the Commit-
tees on Appropriations and the author-
izing 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 activities 
of the Department or any of its sub-
divisions, or that affects the ability of 
the Department or any subdivision of 
the Department to meet its responsi-
bility to stop the entry of illegal 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.
2327 
‘‘(2) EVALUATION OF COUNTERNARCOTICS 
ACTIVITIES.—The Director of the Office of 
counternarcotics Enforcement shall, not 
later than February 1 of each year, submit 
to the Committees on Appropriations and 
the authorizing committees of jurisdiction 
of the House of Representatives and the 
Senate a review and evaluation of the 
counternarcotics activities of the Depart-
ment for the previous fiscal year. The re-
view and evaluation shall— 
‘‘(A) describe the counternarcotics 
activities of the Department and each 
subdivision of the Department (wheth-
er individually or in cooperation with 
other subdivisions of the Department, 
or in cooperation with other branches 
of the Federal Government or with 
State or local agencies), including the 
methods, procedures, and systems (in-
cluding computer systems) for col-
lecting, analyzing, sharing, and dis-
seminating 
information 
concerning 
narcotics activity within the Depart-
ment and between the Department
2328 
and other Federal, 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 effectiveness 
that were used in making that deter-
mination; 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 re-
ports required in this subsection that in-
volves information classified under cri-
teria established by an Executive order, or
2329 
whose public disclosure, as determined by 
the Secretary, would be detrimental to the 
law enforcement or national security ac-
tivities of the Department 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— 
(1) by redesignating paragraphs (8) 
and (9) as paragraphs (9) and (10), re-
spectively; 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 Homeland 
Security Act of 2002 (as amended by this sec-
tion).
2330 
SEC. 5026. 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: 
‘‘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 enforcement 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
2331 
‘‘(2) the degree to which that employee 
cooperated with or contributed to the ef-
forts of other employees, either within the 
Department or other Federal, State, or 
local agencies, in counternarcotics en-
forcement. 
‘‘(b) DEFINITIONS.—For purposes of this sec-
tion— 
‘‘(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 de-
termined by— 
‘‘(i) the counternarcotics offi-
cer, appointed under section 878; 
or 
‘‘(ii) if applicable, the counter-
narcotics 
officer’s 
successor 
in
2332 
function (as determined by the 
Secretary); and 
‘‘(2) the term ‘performance appraisal 
system’ means a system under which peri-
odic appraisals of job performance of em-
ployees are made, whether under chapter 
43 of title 5, United States Code, or other-
wise.’’. 
(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 cer-
tain employee performance appraisals.’’. 
SEC. 5027. 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 over-
sight for the implementation and oper-
ation of the Department of Homeland Se-
curity;
2333 
(2) the House of Representatives also 
charged the Select Committee on Home-
land Security, including its Subcommittee 
on Rules, with undertaking a thorough 
and complete study of the operation and 
implementation of the rules of the House, 
including the rule governing committee 
jurisdiction, with respect to the issue of 
homeland security and to make their rec-
ommendations to the Committee 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 in-
tegration of the Department of Homeland 
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, including—
2334 
(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-
nounced by the Speaker in extraor-
dinary circumstances; 
(B) granting authority for joint- 
leadership recalls from a period of ad-
journment 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 physical inabil-
ity of the Speaker to discharge his du-
ties) until the election of a Speaker or 
a Speaker pro tempore, exercising 
such authorities of the Speaker as
2335 
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 immi-
nent 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 re-
convening or to reconvene before the 
time previously appointed solely to de-
clare 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-
2336 
justment of the quorum of the House, 
which the Speaker shall announce to 
the House and which shall not be sub-
ject to appeal. 
(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 D—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,’’;
2337 
(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 
information 
technology (including information secu-
rity needs)’’; and 
(4) in section 11315(b)(2), by inserting 
‘‘, secure,’’ after ‘‘sound’’. 
Subtitle E—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, terrorism, 
or espionage, including development of 
defense plans or policies, intelligence or
2338 
counterintelligence activities, and related 
activities concerned with the preservation 
of military strength of the United States 
and protection of the homeland; and 
(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 Of-
fice of Personnel Management shall publish in 
the Federal Register a list of offices that con-
stitute national security positions under sec-
tion (a) for which Senate confirmation is re-
quired 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 notwith-
standing any other provision of law, the advice 
and consent of the Senate shall not be re-
quired, but rather such appointment shall be 
made by the President alone.
2339 
(2) With respect to appointment of individ-
uals to offices identified under section (b) and 
listed in sections 5313 or 5314 of title 5, United 
States Code, which shall arise after the publi-
cation 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 Senate without 
a confirmation vote occurring in the Senate, 
such appointment shall be made by the Presi-
dent 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
2340 
‘‘(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-
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 exists 
during the 60-day period beginning on an in-
auguration 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-
2341 
auguration day, the requirements of subpara-
graphs (A) and (B) of section 3345(a)(3) shall 
not apply.’’. 
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 sub-
section (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) with-
in 30 days prior to assuming such new position 
or has already filed a report under this title 
with respect to nomination for the new posi-
tion 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
2342 
branch, appointment to which requires the ad-
vice and consent of the Senate, such indi-
vidual shall file a report containing the infor-
mation described in section 302(b). Such indi-
vidual shall, not later than the date of the first 
hearing to consider the nomination of such in-
dividual, make current the report filed pursu-
ant 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.
2343 
‘‘(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 
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 be-
fore the 30th day after termination of employ-
ment in such position, file a report containing 
the information described in section 302(a) 
covering the preceding calendar year if the re-
port required by subsection (c) has not been 
filed and covering the portion of the calendar 
year in which such termination occurs up to 
the date the individual left such office or posi-
tion, unless such individual has accepted em-
ployment in or takes the oath of office for an-
other 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—
2344 
‘‘(1) the Office of the National Intel-
ligence Director; or 
‘‘(2) an element of the intelligence 
community, as defined in section 3(4) of 
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 sup-
port of the Armed Forces, in an area while that 
area is designated by the President by Execu-
tive order as a combat zone for purposes of sec-
tion 112 of the Internal Revenue Code of 1986, 
the date for the filing of any report 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-
2345 
ceived or disease contracted while serving 
in such area. 
‘‘(B) The Office of Government Ethics, in 
consultation with the Secretary of Defense, 
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
2346 
under which an incoming individual can take 
actions to avoid conflicts of interest while in 
office if the individual has holdings or other 
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 re-
quirements for divesting interests or holdings 
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
2347 
the source, the exact amount and the date 
it was received. 
‘‘(B) The source and description of in-
vestment income which may include but is 
not limited to dividends, rents, interest, 
and capital gains, received during the 
preceding calendar year which exceeds 
$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
2348 
is greater, received from any source other 
than a relative of the reporting individual 
during the preceding calendar year, ex-
cept that any food, lodging, or entertain-
ment 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 subparagraph. 
‘‘(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 pre-
ceding 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 produc-
tion of income, which has a fair market
2349 
value which exceeds $5,000 as of the close 
of the preceding calendar year, excluding 
any personal liability owed to the report-
ing 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 deposit accounts aggre-
gating $100,000 or less in a financial in-
stitution, or any Federal Government se-
curities 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, excluding— 
‘‘(A) any mortgage secured by real 
property which is a personal residence 
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
2350 
not exceed the purchase price of the 
item which secures it. 
With respect to revolving charge accounts, 
only those with an outstanding liability 
which exceeds $20,000 as of the close of 
the preceding calendar year need be re-
ported under this paragraph. Notwith-
standing the preceding sentence, individ-
uals required to file pursuant to section 
301(b) shall also report the aggregate sum 
of the outstanding balances of all revolv-
ing charge accounts as of any date that is 
within 30 days of the date of filing if the 
aggregate sum of those balances exceeds 
$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;
2351 
‘‘(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 para-
graph (1)(B) or as an asset pursuant 
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 calendar 
year) as an officer, director, trustee, part-
ner, proprietor, representative, employee, 
or consultant of any corporation, com-
pany, firm, partnership, or other business 
enterprise, any nonprofit organization, 
any labor organization, or any edu-
cational or other institution other than 
the United States Government. This sub-
paragraph shall not require the reporting 
of positions held in any religious, social, 
fraternal, or political entity and positions 
solely of an honorary nature.
2352 
‘‘(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 individual 
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 infor-
mation which the person for whom the 
services are provided has a reasonable ex-
pectation of privacy, nor shall it require
2353 
an individual to report any information 
with respect to any person for whom serv-
ices were provided by any firm or associa-
tion of which such individual was a mem-
ber, partner, or employee unless such indi-
vidual was directly involved in the provi-
sion 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 serv-
ice; (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 in-
clude the date on which that agreement 
was entered into. 
‘‘(8) The category of the total cash 
value of any interest of the reporting indi-
vidual in a qualified blind trust.
2354 
‘‘(b)(1) Each report filed pursuant to sub-
sections (a) and (b) of section 301 shall include 
a full and complete statement with respect 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 Government 
Ethics or pursuant to a specific written deter-
mination by the Director of the Office of Gov-
ernment 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-
2355 
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 Govern-
ment Ethics may by regulation require a re-
porting 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 employ-
ment. 
‘‘(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;
2356 
‘‘(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, ad-
justed to reflect the market value of the prop-
erty used for the assessment if the assessed 
value is computed at less than 100 percent of 
such market value, but such individual shall 
include in his report a full and complete de-
scription of the method used to determine such 
assessed value, instead of specifying a cat-
egory of value pursuant to paragraph (1). If 
the current value of any other item required to 
be reported under subsection (a)(3) is not as-
certainable without an appraisal, such indi-
vidual may list the book value of a corporation 
whose stock is not publicly traded, the net 
worth of a business partnership, the equity
2357 
value of an individually owned business, or 
with respect to other holdings, any recognized 
indication of value, but such individual shall 
include in his report a full and complete de-
scription 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 assessment if the assessed value 
is computed at less than 100 percent of such 
market value, but a full and complete descrip-
tion 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.
2358 
‘‘(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 profes-
sion need be reported. 
‘‘(B) All information required to be re-
ported in subsection (a)(1)(B) with respect 
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 re-
lationship 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,
2359 
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 individual cer-
tifies (i) represent the spouse’s or depend-
ent child’s sole financial interest or re-
sponsibility and which the reporting indi-
vidual has no knowledge of, (ii) are not in 
any way, past or present, derived from the 
income, assets, or activities of the report-
ing individual, and (iii) that he neither 
derives, nor expects to derive, any finan-
cial or economic benefit.
2360 
‘‘(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 in-
come is received by, or with respect to which 
a beneficial interest in principal or income is 
held by, such individual, his spouse, or any de-
pendent child.
2361 
‘‘(2) A reporting individual need not report 
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 directly 
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:
2362 
‘‘(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 trust-
ee 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
2363 
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 Eth-
ics. 
‘‘(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;
2364 
‘‘(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 inter-
ested 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 com-
plete an interested party’s tax return), 
shall not be disclosed to any inter-
ested 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 calendar
2365 
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 nec-
essary to enable the interested party to 
complete an individual tax return re-
quired by law or to provide the infor-
mation required by subsection (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 general 
financial interest and needs of the in-
terested party (including, but not lim-
ited to, an interest in maximizing in-
come or long-term capital gain), (II) 
to the notification of the trustee of a 
law or regulation subsequently appli-
2366 
cable to the reporting individual 
which prohibits the interested party 
from holding an asset, which notifica-
tion directs that the asset not be held 
by the trust, or (III) to directions to 
the trustee to sell all of an asset ini-
tially placed in the trust by an inter-
ested party which in the determina-
tion of the reporting individual cre-
ates a conflict of interest or the ap-
pearance thereof due to the subse-
quent assumption of duties by the re-
porting individual (but nothing here-
in shall require any such direction); 
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 infor-
mation relating thereto except as oth-
erwise provided in this subsection. 
‘‘(D) The proposed trust instrument 
and the proposed trustee is approved by 
the Office of Government Ethics.
2367 
‘‘(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 de-
termined under regulations prescribed by 
the supervising ethics office, is generally 
involved in his role as such an adviser 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 
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
2368 
spouse, dependent child, or minor child of 
such a person, if the Office of Government Eth-
ics 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 secu-
rities of entities having substantial activi-
ties in the area of the reporting individ-
ual’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 securities; 
‘‘(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-
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
2369 
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 
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
2370 
‘‘(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, with-
in 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. 
‘‘(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
2371 
section 305 and the provisions of that section 
shall apply with respect to such documents 
and lists. 
‘‘(E) A copy of each written communication 
with respect to the trust under paragraph 
(3)(C)(vi) shall be filed by the person initiating 
the communication with the Office of Govern-
ment 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) solicit 
advice from any interested party with respect 
to such trust, which solicitation is prohibited 
by paragraph (3) or the trust agreement; or 
(iv) fail to file any document required 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 inter-
2372 
ested party that may not be disclosed under 
paragraph (3)(C) or (ii) fail to file any docu-
ment 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 provisions 
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. 
‘‘(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
2373 
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 (ex-
cept testamentary provisions) and a copy 
of the agreement referred to in subpara-
graph (A), and a list of the assets held by 
the trust at the time of approval by the Of-
fice of Government Ethics, including the 
category of value of each asset as deter-
mined under subsection (d), are filed with 
such office and made available 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
2374 
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 investment 
company, pension or deferred compensation 
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 
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 re-
2375 
quired to be reported by the reporting in-
dividual 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 commitment to 
divest the interest in the trust or invest-
ment 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 include 
a listing of the holdings or sources of income 
from this trust or investment fund. 
‘‘(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 report,
2376 
such as through marriage or inheritance, 
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 immediate 
requirement to report as specified in para-
graph (1). 
‘‘(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
2377 
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 
members of the uniformed services; or 
‘‘(2) benefits received under the Social 
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
2378 
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 Government 
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 waiv-
er is granted. 
‘‘(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
2379 
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 re-
ceipt of any supplemental report) shall be 
noted on such report by such official. 
‘‘(b) Reports required to be filed under this 
title by the Director of the Office of Govern-
ment Ethics shall be filed in the Office of Gov-
ernment 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. 
‘‘(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
2380 
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 agen-
cy 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—
2381 
‘‘(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 Govern-
ment Ethics, pay a filing fee of $500. All 
such fees shall be deposited in the mis-
cellaneous receipts of the Treasury. The 
authority under this paragraph to direct 
the payment of a filing fee may be dele-
gated by the Office of Government Ethics 
to other agencies in the executive branch. 
‘‘(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 pur-
suant 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
2382 
such 6-year period the report shall be de-
stroyed unless needed in an ongoing investiga-
tion, except that in the case of an individual 
who filed the report pursuant to section 301(b) 
and was not subsequently confirmed by the 
Senate, such reports shall be destroyed 1 year 
after the individual is no longer under consid-
eration by the Senate, unless needed in an on-
going 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 Di-
rector of the Office of Government Ethics shall 
review only those reports required to be trans-
mitted 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 in-
2383 
dividual submitting such report is in compli-
ance 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 interest 
analysis, he shall notify the individual 
submitting such report what additional 
information is required and the time by 
which it must be submitted, or 
‘‘(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 in-
2384 
dividual 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 prac-
ticable), determine and notify the individual 
of which steps, if any, would in the opinion of 
such official be appropriate for assuring com-
pliance with such laws and regulations and 
the date by which such steps should be taken. 
Such steps may include, as appropriate— 
‘‘(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
2385 
‘‘(E) voluntary request for transfer, re-
assignment, 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 
referred to the head of the appropriate agency 
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
2386 
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 exec-
utive branch (including special Government 
employees as defined in section 202 of title 18, 
United States Code) to file confidential finan-
cial disclosure reports, in such form as it may 
prescribe. The information required to be re-
ported under this subsection by the officers 
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 necessary and appro-
priate in light of sections 202 through 209 of 
title 18, United States Code, regulations pro-
2387 
mulgated thereunder, or the authorized activi-
ties of such officers or employees. Any indi-
vidual required to file a report pursuant to 
section 301 shall not be required to file a con-
fidential report pursuant to this subsection, 
except with respect to information which is 
more extensive than information otherwise re-
quired by this title. Section 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-
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 purposes 
of preventing conflicts of interest or apparent 
conflicts of interest. Such provisions of this
2388 
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 posi-
tions; 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— 
‘‘(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
2389 
‘‘(B) is a dependent of such report-
ing individual within the meaning of 
section 152 of the Internal Revenue 
Code of 1986 (26 U.S.C. 152); 
‘‘(2) the term ‘designated agency ethics 
official’ means an officer or employee who 
is designated to administer the provisions 
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; 
‘‘(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;
2390 
‘‘(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 offices 
of a reporting individual, including 
subscriptions to newspapers and peri-
odicals; or 
‘‘(F) items that are accepted pur-
suant to or are required to be reported 
by the reporting individual under sec-
tion 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;
2391 
‘‘(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 part-
nership income; and income from an in-
terest in an estate or trust; 
‘‘(7) the term ‘personal hospitality of 
any individual’ means hospitality ex-
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-
2392 
ceived by the reporting individual, other 
than gifts, to cover travel-related expenses 
of such individual other than those which 
are— 
‘‘(A) provided by the United States 
Government, the District of Columbia, 
or a State or local government or po-
litical subdivision thereof; 
‘‘(B) required to be reported by the 
reporting individual under section 
7342 of title 5, United States Code; or 
‘‘(C) required to be reported under 
section 304 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 434); 
‘‘(9) the term ‘relative’ means an indi-
vidual who is related to the reporting in-
dividual, as father, mother, son, daughter, 
brother, sister, uncle, aunt, great aunt, 
great uncle, first cousin, nephew, niece, 
husband, wife, grandfather, grandmother, 
grandson, granddaughter, father-in-law, 
mother-in-law, 
son-in-law, 
daughter-in- 
law, brother-in-law, sister-in-law, step-
father, stepmother, stepson, stepdaughter, 
stepbrother, stepsister, half brother, half
2393 
sister, or who is the grandfather or grand-
mother of the spouse of the reporting indi-
vidual, and shall be deemed to include 
the fiance´ or fiance´e of the reporting indi-
vidual; 
‘‘(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. 
‘‘SEC. 310. NOTICE OF ACTIONS TAKEN TO COMPLY WITH 
ETHICS AGREEMENTS. 
‘‘(a) In any case in which an individual 
agrees with that individual’s designated agen-
cy ethics official, the Office of Government 
Ethics, or a Senate confirmation committee, to 
take any action to comply with this Act or any 
other law or regulation governing conflicts of 
interest of, or establishing standards of con-
duct applicable with respect to, officers or em-
ployees of the Government, that individual 
shall notify in writing the designated agency
2394 
ethics official, the Office of Government Eth-
ics, or the appropriate committee of the Sen-
ate, as the case may be, of any action taken by 
the individual pursuant to that agreement. 
Such notification shall be made not later than 
the date specified in the agreement by which 
action by the individual must be taken, or not 
later than 3 months after the date of the agree-
ment, if no date for action is so specified. If all 
actions agreed to have not been completed by 
the date of this notification, such notification 
shall continue on a monthly basis thereafter 
until the individual has met the terms of the 
agreement. 
‘‘(b) If an agreement described in sub-
section (a) requires that the individual recuse 
himself or herself from particular categories 
of agency or other official action, the indi-
vidual shall reduce to writing those subjects 
regarding which the recusal agreement will 
apply and the process by which it will be deter-
mined whether the individual must recuse 
himself or herself in a specific instance. An in-
dividual shall be considered to have complied 
with the requirements of subsection (a) with
2395 
respect to such recusal agreement if such indi-
vidual files a copy of the document setting 
forth the information described in the pre-
ceding sentence with such individual’s des-
ignated agency ethics official or the Office of 
Government Ethics within the time prescribed 
in the penultimate sentence of subsection (a). 
‘‘SEC. 311. ADMINISTRATION OF PROVISIONS. 
‘‘The Office of Government Ethics shall 
issue regulations, develop forms, and provide 
such guidance as is necessary to implement 
and interpret this title.’’. 
(b) EXEMPTION FROM PUBLIC ACCESS TO FI-
NANCIAL
DISCLOSURES.—Section 105(a)(1) of 
such Act is amended by inserting ‘‘the Office 
of the National Intelligence Director,’’ before 
‘‘the Central Intelligence Agency’’. 
(c) 
CONFORMING
AMENDMENT.—Section 
101(f) of such Act is amended— 
(1) in paragraph (12), by striking the 
period at the end and inserting a semi-
colon; and 
(2) by adding at the end the following:
2396 
‘‘but do not include any officer or employee of 
any department or agency listed in section 
301(e).’’. 
SEC. 5044. REDUCTION OF POSITIONS REQUIRING APPOINT-
MENT WITH SENATE CONFIRMATION. 
(a) DEFINITION.—In this section, the term 
‘‘agency’’ means an Executive agency, as de-
fined under section 105 of title 5, United States 
Code. 
(b) REDUCTION PLAN.— 
(1) IN
GENERAL.—Not later than 180 
days after the date of enactment of this 
Act, the head of each agency shall submit 
a 
Presidential 
appointment 
reduction 
plan to— 
(A) the President; 
(B) the Committee on Govern-
mental Affairs of the Senate; and 
(C) the Committee on Government 
Reform of the House of Representa-
tives. 
(2) CONTENT.—The plan under this 
subsection shall provide for the reduction 
of—
2397 
(A) the number of positions within 
that agency that require an appoint-
ment by the President, by and with the 
advice and consent of the Senate; and 
(B) the number of levels of such 
positions within that agency. 
SEC. 5045. EFFECTIVE DATES. 
(a) SECTION 5043.— 
(1) IN GENERAL.—Subject to paragraph 
(2), the amendments made by section 5043 
shall take effect on January 1 of the year 
following the year in which occurs the 
date of enactment of this Act. 
(2) LATER DATE.—If this Act is enacted 
on or after July 1 of a year, the amend-
ments made by section 301 shall take ef-
fect on July 1 of the following year. 
(b) SECTION 5044.—Section 5044 shall take 
effect on the date of enactment of this Act. 
CHAPTER 2—FEDERAL BUREAU OF 
INVESTIGATION REVITALIZATION 
SEC. 5051. MANDATORY SEPARATION AGE. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.— 
Section 8335(b) of title 5, United States Code, 
is amended—
2398 
(1) by striking ‘‘(b)’’ and inserting 
‘‘(b)(1)’’; and 
(2) by adding at the end the following: 
‘‘(2) In the case of employees of the Federal 
Bureau of Investigation, the second sentence of 
paragraph (1) shall be applied by substituting 
‘65 years of age’ for ‘60 years of age’. The au-
thority to grant exemptions in accordance 
with the preceding sentence shall cease to be 
available after December 31, 2009.’’. 
(b) FEDERAL EMPLOYEES’ RETIREMENT SYS-
TEM.—Section 8425(b) of title 5, United States 
Code, is amended— 
(1) by striking ‘‘(b)’’ and inserting 
‘‘(b)(1)’’; and 
(2) by adding at the end the following: 
‘‘(2) In the case of employees of the Federal 
Bureau of Investigation, the second sentence of 
paragraph (1) shall be applied by substituting 
‘65 years of age’ for ‘60 years of age’. The au-
thority to grant exemptions in accordance 
with the preceding sentence shall cease to be 
available after December 31, 2009.’’.
2399 
SEC. 5052. RETENTION AND RELOCATION BONUSES. 
(a) IN GENERAL.—Subchapter IV of chapter 
57 of title 5, United States Code, is amended 
by adding at the end the following: 
‘‘§ 5759. Retention and relocation bonuses for the Fed-
eral Bureau of Investigation 
‘‘(a) AUTHORITY.—The Director of the Fed-
eral Bureau of Investigation, after consulta-
tion with the Director of the Office of Per-
sonnel Management, may pay, on a case-by- 
case basis, a bonus under this section to an 
employee of the Bureau if— 
‘‘(1)(A) the unusually high or unique 
qualifications of the employee or a special 
need of the Bureau for the employee’s serv-
ices makes it essential to retain the em-
ployee; and 
‘‘(B) the Director of the Federal Bu-
reau of Investigation determines that, in 
the absence of such a bonus, the employee 
would be likely to leave— 
‘‘(i) the Federal service; or 
‘‘(ii) for a different position in the 
Federal service; or 
‘‘(2) the individual is transferred to a 
different geographic area with a higher
2400 
cost of living (as determined by the Direc-
tor of the Federal Bureau of Investiga-
tion). 
‘‘(b) SERVICE AGREEMENT.—Payment of a 
bonus under this section is contingent upon 
the employee entering into a written service 
agreement with the Bureau to complete a pe-
riod of service with the Bureau. Such agree-
ment shall include— 
‘‘(1) the period of service the indi-
vidual shall be required to complete in re-
turn for the bonus; and 
‘‘(2) the conditions under which the 
agreement may be terminated before the 
agreed-upon service period has been com-
pleted, and the effect of the termination. 
‘‘(c) LIMITATION
ON AUTHORITY.—A bonus 
paid under this section may not exceed 50 per-
cent of the employee’s basic pay. 
‘‘(d) IMPACT
ON BASIC PAY.—A retention 
bonus is not part of the basic pay of an em-
ployee for any purpose. 
‘‘(e) TERMINATION OF AUTHORITY.—The au-
thority to grant bonuses under this section
2401 
shall cease to be available after December 31, 
2009.’’. 
(b) CLERICAL AMENDMENT.—The analysis 
for chapter 57 of title 5, United States Code, is 
amended by adding at the end the following: 
‘‘5759. Retention and relocation bonuses for the Federal Bureau 
of Investigation.’’. 
SEC. 5053. FEDERAL BUREAU OF INVESTIGATION RESERVE 
SERVICE. 
(a) IN GENERAL.—Chapter 35 of title 5, 
United States Code, is amended by adding at 
the end the following: 
‘‘SUBCHAPTER VII—RETENTION OF RE-
TIRED SPECIALIZED EMPLOYEES AT 
THE FEDERAL BUREAU OF INVESTIGA-
TION 
‘‘§ 3598. Federal Bureau of Investigation Reserve Serv-
ice 
‘‘(a) ESTABLISHMENT.—The Director of the 
Federal Bureau of Investigation may provide 
for the establishment and training of a Fed-
eral Bureau of Investigation Reserve Service 
(hereinafter in this section referred to as the 
‘FBI Reserve Service’) for temporary reemploy-
ment of employees in the Bureau during peri-
2402 
ods of emergency, as determined by the Direc-
tor. 
‘‘(b) MEMBERSHIP.—Membership in the FBI 
Reserve Service shall be limited to individuals 
who previously served as full-time employees of 
the Bureau. 
‘‘(c) ANNUITANTS.—If an individual receiv-
ing an annuity from the Civil Service Retire-
ment and Disability Fund on the basis of such 
individual’s service becomes temporarily reem-
ployed pursuant to this section, such annuity 
shall not be discontinued thereby. An indi-
vidual so reemployed shall not be considered 
an employee for the purposes of chapter 83 or 
84. 
‘‘(d) NO IMPACT
ON BUREAU PERSONNEL 
CEILING.—FBI Reserve Service members reem-
ployed on a temporary basis pursuant to this 
section shall not count against any personnel 
ceiling applicable to the Bureau. 
‘‘(e) EXPENSES.—The Director may provide 
members of the FBI Reserve Service transpor-
tation and per diem in lieu of subsistence, in 
accordance with applicable provisions of this 
title, for the purpose of participating in any
2403 
training that relates to service as a member of 
the FBI Reserve Service. 
‘‘(f) LIMITATION ON MEMBERSHIP.—Member-
ship of the FBI Reserve Service is not to exceed 
500 members at any given time.’’. 
(b) CLERICAL AMENDMENT.—The analysis 
for chapter 35 of title 5, United States Code, is 
amended by adding at the end the following: 
‘‘SUBCHAPTER VII—RETENTION OF RETIRED SPECIALIZED EMPLOYEES 
AT THE FEDERAL BUREAU OF INVESTIGATION 
‘‘3598. Federal Bureau of Investigation Reserve Service.’’. 
SEC. 5054. CRITICAL POSITIONS IN THE FEDERAL BUREAU 
OF INVESTIGATION INTELLIGENCE DIREC-
TORATE. 
Section 5377(a)(2) of title 5, United States 
Code, is amended— 
(1) by striking ‘‘and’’ at the end of sub-
paragraph (E); 
(2) by striking the period at the end of 
subparagraph (F) and inserting ‘‘; and’’; 
and 
(3) by inserting after subparagraph 
(F) the following: 
‘‘(G) a position at the Federal Bu-
reau of Investigation, the primary du-
ties and responsibilities of which re-
2404 
late to intelligence functions (as deter-
mined by the Director of the Federal 
Bureau of Investigation).’’. 
CHAPTER 3—MANAGEMENT AUTHORITY 
SEC. 5061. MANAGEMENT AUTHORITY. 
(a) 
MANAGEMENT
AUTHORITY.—Section 
7103(b)(1)(A) of title 5, United States Code, is 
amended by adding ‘‘homeland security,’’ after 
‘‘investigative,’’. 
(b) EXCLUSIONARY AUTHORITY.—Section 842 
of the Homeland Security Act (Public Law 107– 
296; 6 U.S.C. 412) is repealed. 
Subtitle F—Security Clearance 
Modernization 
SEC. 5071. DEFINITIONS. 
In this subtitle: 
(1) The term ‘‘Director’’ means the Na-
tional Intelligence Director. 
(2) The term ‘‘agency’’ means— 
(A) an executive agency, as de-
fined in section 105 of title 5, United 
States Code; 
(B) a military department, as de-
fined in section 102 of title 5, United 
States Code; and
2405 
(C) elements of the intelligence 
community, as defined in section 3(4) 
of the National Security Act of 1947 
(50 U.S.C. 401a(4)). 
(3) The term ‘‘authorized investigative 
agency’’ means an agency authorized by 
law, regulation or direction of the Direc-
tor to conduct a counterintelligence inves-
tigation or investigation of persons who 
are proposed for access to classified infor-
mation to ascertain whether such persons 
satisfy the criteria for obtaining and re-
taining access to such information. 
(4) The term ‘‘authorized adjudicative 
agency’’ means an agency authorized by 
law, regulation or direction of the Direc-
tor to determine eligibility for access to 
classified information in accordance with 
Executive Order 12968. 
(5) The term ‘‘highly sensitive pro-
gram’’ means— 
(A) a government program des-
ignated as a Special Access Program 
(as defined by section 4.1(h) of Execu-
tive Order 12958); and
2406 
(B) a government program that 
applies restrictions required for— 
(i) Restricted Data (as defined 
by section 11 y. of the Atomic En-
ergy 
Act 
of 
1954 
(42 
U.S.C. 
2014(y)); or 
(ii) other information com-
monly referred to as ‘‘Sensitive 
Compartmented Information’’. 
(6) The term ‘‘current investigation 
file’’ means, with respect to a security 
clearance, a file on an investigation or 
adjudication that has been conducted 
during— 
(A) the 5-year period beginning on 
the date the security clearance was 
granted, in the case of a Top Secret 
Clearance, or the date access was 
granted to a highly sensitive program; 
(B) the 10-year period beginning 
on the date the security clearance was 
granted in the case of a Secret Clear-
ance; and 
(C) the 15-year period beginning 
on the date the security clearance was
2407 
granted in the case of a Confidential 
Clearance. 
(7) The term ‘‘personnel security inves-
tigation’’ means any investigation re-
quired for the purpose of determining the 
eligibility of any military, civilian, or gov-
ernment contractor personnel to access 
classified information. 
(8) The term ‘‘periodic reinvestiga-
tions’’ means— 
(A) investigations conducted for 
the purpose of updating a previously 
completed background investigation— 
(i) every five years in the case 
of a Top Secret Clearance or ac-
cess to a highly sensitive program; 
(ii) every 10 years in the case 
of a Secret Clearance; and 
(iii) every 15 years in the case 
of a Confidential Clearance; 
(B) 
on-going 
investigations 
to 
identify personnel security risks as 
they 
develop, 
pursuant 
to 
section 
105(c).
2408 
(9) The term ‘‘appropriate committees 
of Congress’’ means— 
(A) the Permanent Select Com-
mittee on Intelligence and the Com-
mittees on Armed Services, Judiciary, 
and Government Reform of the House 
of Representatives; and 
(B) the Select Committee on Intel-
ligence and the Committees on Armed 
Services, 
Judiciary, 
and 
Govern-
mental Affairs of the Senate. 
SEC. 5072. SECURITY CLEARANCE AND INVESTIGATIVE PRO-
GRAMS OVERSIGHT AND ADMINISTRATION. 
The Deputy National Intelligence Director 
for Community Management and Resources 
shall have responsibility for the following: 
(1) Directing day-to-day oversight of 
investigations and adjudications for per-
sonnel security clearances to highly sen-
sitive programs throughout the Federal 
Government. 
(2) Developing and implementing uni-
form and consistent policies and proce-
dures to ensure the effective, efficient, and 
timely completion of security clearances
2409 
and determinations for access to highly 
sensitive programs, including the stand-
ardization of security questionnaires, fi-
nancial disclosure requirements for secu-
rity clearance applicants, and polygraph 
policies and procedures. 
(3) Serving as the final authority to 
designate 
an 
authorized 
investigative 
agency or authorized adjudicative agency 
pursuant to section 5074(d). 
(4) Ensuring reciprocal recognition of 
access to classified information among 
agencies, including acting as the final au-
thority to arbitrate and resolve disputes 
involving the reciprocity of security clear-
ances and access to highly sensitive pro-
grams. 
(5) Ensuring, to the maximum extent 
practicable, that sufficient resources are 
available in each agency to achieve clear-
ance and investigative program goals. 
(6) Reviewing and coordinating the 
development of tools and techniques for 
enhancing the conduct of investigations 
and granting of clearances.
2410 
SEC. 5073. RECIPROCITY OF SECURITY CLEARANCE AND AC-
CESS DETERMINATIONS. 
(a) REQUIREMENT FOR RECIPROCITY.—(1) All 
security clearance background investigations 
and determinations completed by an author-
ized investigative agency or authorized adju-
dicative agency shall be accepted by all agen-
cies. 
(2) All security clearance background in-
vestigations initiated by an authorized inves-
tigative agency shall be transferable to any 
other authorized investigative agency. 
(b) PROHIBITION
ON
ESTABLISHING
ADDI-
TIONAL REQUIREMENTS.—(1) An authorized in-
vestigative agency or authorized adjudicative 
agency may not establish additional investiga-
tive or adjudicative requirements (other than 
requirements for the conduct of a polygraph 
examination) that exceed requirements speci-
fied in Executive Orders establishing security 
requirements for access to classified informa-
tion. 
(2) Notwithstanding the paragraph (1), 
the Director may establish additional require-
ments as needed for national security pur-
poses.