H. R. 5005—107
(1) LIABILITY INSURANCE REQUIRED.—Any person or entity
that sells or otherwise provides a qualified anti-terrorism tech-
nology to Federal and non-Federal Government customers
(‘‘Seller’’) shall obtain liability insurance of such types and
in such amounts as shall be required in accordance with this
section and certified by the Secretary to satisfy otherwise
compensable third-party claims arising out of, relating to, or
resulting from an act of terrorism when qualified anti-terrorism
technologies have been deployed in defense against or response
or recovery from such act.
(2) MAXIMUM
AMOUNT.—For the total claims related to
1 such act of terrorism, the Seller is not required to obtain
liability insurance of more than the maximum amount of
liability insurance reasonably available from private sources
on the world market at prices and terms that will not unreason-
ably distort the sales price of Seller’s anti-terrorism tech-
nologies.
(3) SCOPE
OF
COVERAGE.—Liability insurance obtained
pursuant to this subsection shall, in addition to the Seller,
protect the following, to the extent of their potential liability
for involvement in the manufacture, qualification, sale, use,
or operation of qualified anti-terrorism technologies deployed
in defense against or response or recovery from an act of
terrorism:
(A) Contractors, subcontractors, suppliers, vendors and
customers of the Seller.
(B) Contractors, subcontractors, suppliers, and vendors
of the customer.
(4) THIRD PARTY CLAIMS.—Such liability insurance under
this section shall provide coverage against third party claims
arising out of, relating to, or resulting from the sale or use
of anti-terrorism technologies.
(b) RECIPROCAL WAIVER OF CLAIMS.—The Seller shall enter
into a reciprocal waiver of claims with its contractors, subcontrac-
tors, suppliers, vendors and customers, and contractors and sub-
contractors of the customers, involved in the manufacture, sale,
use or operation of qualified anti-terrorism technologies, under
which each party to the waiver agrees to be responsible for losses,
including business interruption losses, that it sustains, or for losses
sustained by its own employees resulting from an activity resulting
from an act of terrorism when qualified anti-terrorism technologies
have been deployed in defense against or response or recovery
from such act.
(c) EXTENT OF LIABILITY.—Notwithstanding any other provision
of law, liability for all claims against a Seller arising out of, relating
to, or resulting from an act of terrorism when qualified anti-ter-
rorism technologies have been deployed in defense against or
response or recovery from such act and such claims result or may
result in loss to the Seller, whether for compensatory or punitive
damages or for contribution or indemnity, shall not be in an amount
greater than the limits of liability insurance coverage required
to be maintained by the Seller under this section.
SEC. 865. DEFINITIONS.
For purposes of this subtitle, the following definitions apply:
(1) QUALIFIED ANTI-TERRORISM TECHNOLOGY.—For purposes
of this subtitle, the term ‘‘qualified anti-terrorism technology’’
H. R. 5005—108
means any product, equipment, service (including support serv-
ices), device, or technology (including information technology)
designed, developed, modified, or procured for the specific pur-
pose of preventing, detecting, identifying, or deterring acts of
terrorism or limiting the harm such acts might otherwise cause,
that is designated as such by the Secretary.
(2) ACT OF TERRORISM.—(A) The term ‘‘act of terrorism’’
means any act that the Secretary determines meets the require-
ments under subparagraph (B), as such requirements are fur-
ther defined and specified by the Secretary.
(B) REQUIREMENTS.—An act meets the requirements of this
subparagraph if the act—
(i) is unlawful;
(ii) causes harm to a person, property, or entity, in
the United States, or in the case of a domestic United
States air carrier or a United States-flag vessel (or a vessel
based principally in the United States on which United
States income tax is paid and whose insurance coverage
is subject to regulation in the United States), in or outside
the United States; and
(iii) uses or attempts to use instrumentalities, weapons
or other methods designed or intended to cause mass
destruction, injury or other loss to citizens or institutions
of the United States.
(3) INSURANCE
CARRIER.—The term ‘‘insurance carrier’’
means any corporation, association, society, order, firm, com-
pany, mutual, partnership, individual aggregation of individ-
uals, or any other legal entity that provides commercial prop-
erty and casualty insurance. Such term includes any affiliates
of a commercial insurance carrier.
(4) LIABILITY INSURANCE.—
(A) IN GENERAL.—The term ‘‘liability insurance’’ means
insurance for legal liabilities incurred by the insured
resulting from—
(i) loss of or damage to property of others;
(ii) ensuing loss of income or extra expense
incurred because of loss of or damage to property of
others;
(iii) bodily injury (including) to persons other than
the insured or its employees; or
(iv) loss resulting from debt or default of another.
(5) LOSS.—The term ‘‘loss’’ means death, bodily injury, or
loss of or damage to property, including business interruption
loss.
(6) NON-FEDERAL
GOVERNMENT
CUSTOMERS.—The term
‘‘non-Federal Government customers’’ means any customer of
a Seller that is not an agency or instrumentality of the United
States Government with authority under Public Law 85–804
to provide for indemnification under certain circumstances for
third-party claims against its contractors, including but not
limited to State and local authorities and commercial entities.
H. R. 5005—109
Subtitle H—Miscellaneous Provisions
SEC. 871. ADVISORY COMMITTEES.
(a) IN GENERAL.—The Secretary may establish, appoint mem-
bers of, and use the services of, advisory committees, as the Sec-
retary may deem necessary. An advisory committee established
under this section may be exempted by the Secretary from Public
Law 92–463, but the Secretary shall publish notice in the Federal
Register announcing the establishment of such a committee and
identifying its purpose and membership. Notwithstanding the pre-
ceding sentence, members of an advisory committee that is
exempted by the Secretary under the preceding sentence who are
special Government employees (as that term is defined in section
202 of title 18, United States Code) shall be eligible for certifications
under subsection (b)(3) of section 208 of title 18, United States
Code, for official actions taken as a member of such advisory com-
mittee.
(b) TERMINATION.—Any advisory committee established by the
Secretary shall terminate 2 years after the date of its establishment,
unless the Secretary makes a written determination to extend the
advisory committee to a specified date, which shall not be more
than 2 years after the date on which such determination is made.
The Secretary may make any number of subsequent extensions
consistent with this subsection.
SEC. 872. REORGANIZATION.
(a) REORGANIZATION.—The Secretary may allocate or reallocate
functions among the officers of the Department, and may establish,
consolidate, alter, or discontinue organizational units within the
Department, but only—
(1) pursuant to section 1502(b); or
(2) after the expiration of 60 days after providing notice
of such action to the appropriate congressional committees,
which shall include an explanation of the rationale for the
action.
(b) LIMITATIONS.—
(1) IN GENERAL.—Authority under subsection (a)(1) does
not extend to the abolition of any agency, entity, organizational
unit, program, or function established or required to be main-
tained by this Act.
(2) ABOLITIONS.—Authority under subsection (a)(2) does
not extend to the abolition of any agency, entity, organizational
unit, program, or function established or required to be main-
tained by statute.
SEC. 873. USE OF APPROPRIATED FUNDS.
(a) DISPOSAL OF PROPERTY.—
(1) STRICT COMPLIANCE.—If specifically authorized to dis-
pose of real property in this or any other Act, the Secretary
shall exercise this authority in strict compliance with section
204 of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 485).
(2) DEPOSIT
OF
PROCEEDS.—The Secretary shall deposit
the proceeds of any exercise of property disposal authority
into the miscellaneous receipts of the Treasury in accordance
with section 3302(b) of title 31, United States Code.
H. R. 5005—110
(b) GIFTS.—Gifts or donations of services or property of or
for the Department may not be accepted, used, or disposed of
unless specifically permitted in advance in an appropriations Act
and only under the conditions and for the purposes specified in
such appropriations Act.
(c) BUDGET REQUEST.—Under section 1105 of title 31, United
States Code, the President shall submit to Congress a detailed
budget request for the Department for fiscal year 2004, and for
each subsequent fiscal year.
SEC. 874. FUTURE YEAR HOMELAND SECURITY PROGRAM.
(a) IN GENERAL.—Each budget request submitted to Congress
for the Department under section 1105 of title 31, United States
Code, shall, at or about the same time, be accompanied by a
Future Years Homeland Security Program.
(b) CONTENTS.—The Future Years Homeland Security Program
under subsection (a) shall be structured, and include the same
type of information and level of detail, as the Future Years Defense
Program submitted to Congress by the Department of Defense
under section 221 of title 10, United States Code.
(c) EFFECTIVE DATE.—This section shall take effect with respect
to the preparation and submission of the fiscal year 2005 budget
request for the Department and for any subsequent fiscal year,
except that the first Future Years Homeland Security Program
shall be submitted not later than 90 days after the Department’s
fiscal year 2005 budget request is submitted to Congress.
SEC. 875. MISCELLANEOUS AUTHORITIES.
(a) SEAL.—The Department shall have a seal, whose design
is subject to the approval of the President.
(b) PARTICIPATION OF MEMBERS OF THE ARMED FORCES.—With
respect to the Department, the Secretary shall have the same
authorities that the Secretary of Transportation has with respect
to the Department of Transportation under section 324 of title
49, United States Code.
(c) REDELEGATION OF FUNCTIONS.—Unless otherwise provided
in the delegation or by law, any function delegated under this
Act may be redelegated to any subordinate.
SEC. 876. MILITARY ACTIVITIES.
Nothing in this Act shall confer upon the Secretary any
authority to engage in warfighting, the military defense of the
United States, or other military activities, nor shall anything in
this Act limit the existing authority of the Department of Defense
or the Armed Forces to engage in warfighting, the military defense
of the United States, or other military activities.
SEC. 877. REGULATORY AUTHORITY AND PREEMPTION.
(a) REGULATORY AUTHORITY.—Except as otherwise provided in
sections 306(c), 862(c), and 1706(b), this Act vests no new regulatory
authority in the Secretary or any other Federal official, and trans-
fers to the Secretary or another Federal official only such regulatory
authority as exists on the date of enactment of this Act within
any agency, program, or function transferred to the Department
pursuant to this Act, or that on such date of enactment is exercised
by another official of the executive branch with respect to such
agency, program, or function. Any such transferred authority may
not be exercised by an official from whom it is transferred upon