140
tives and the Senate a report, following a study, con-
taining the following:
(A) Determinations of whether the transfer
of functions from the Immigration and Natu-
ralization Service to the Bureau of Citizenship
and Immigration Services and the Bureau of
Border Security have improved, with respect to
each function transferred, the following:
(i) Operations.
(ii) Management, including account-
ability and communication.
(iii) Financial administration.
(iv) Recordkeeping, including informa-
tion management and technology.
(B) A statement of the reasons for the de-
terminations under subparagraph (A).
(C) Any recommendations for further im-
provements to the Bureau of Citizenship and
Immigration Services and the Bureau of Border
Security.
(3) REPORT ON FEES.—Not later than 1 year
after the date of the enactment of this Act, the
Comptroller General of the United States shall sub-
mit to the Committees on the Judiciary of the
House of Representatives and of the Senate a report
141
examining whether the Bureau of Citizenship and
Immigration Services is likely to derive sufficient
funds from fees to carry out its functions in the ab-
sence of appropriated funds.
SEC. 446. IMMIGRATION FUNCTIONS.
(a) ANNUAL REPORT.—
(1) IN GENERAL.—One year after the date of
the enactment of this Act, and each year thereafter,
the Attorney General shall submit a report to the
President, to the Committees on the Judiciary and
Government Reform of the United States House of
Representatives, and to the Committees on the Judi-
ciary and Government Affairs of the Senate, on the
impact the transfers made by this subtitle has had
on immigration functions.
(2) MATTER INCLUDED.—The report shall ad-
dress the following with respect to the period cov-
ered by the report:
(A) The aggregate number of all immigra-
tion applications and petitions received, and
processed, by the Department;
(B) Region-by-region statistics on the ag-
gregate number of immigration applications and
petitions filed by an alien (or filed on behalf of
142
an alien) and denied, disaggregated by category
of denial and application or petition type.
(C) The quantity of backlogged immigra-
tion applications and petitions that have been
processed, the aggregate number awaiting proc-
essing, and a detailed plan for eliminating the
backlog.
(D) The average processing period for im-
migration 
applications 
and 
petitions,
disaggregated by application or petition type.
(E) The number and types of immigration-
related grievances filed with any official of the
Department of Justice, and if those grievances
were resolved.
(F) Plans to address grievances and im-
prove immigration services.
(G) Whether immigration-related fees were
used consistent with legal requirements regard-
ing such use.
(H) Whether immigration-related questions
conveyed by customers to the Department of
Justice (whether conveyed in person, by tele-
phone, or by means of the Internet) were an-
swered effectively and efficiently.
143
(b) SENSE OF THE CONGRESS REGARDING IMMIGRA-
TION SERVICES.—It is the sense of the Congress that—
(1) the quality and efficiency of immigration
services rendered by the Federal Government should
be improved after the transfers made by this subtitle
take effect; and
(2) the Attorney General should undertake ef-
forts to guarantee that concerns regarding the qual-
ity and efficiency of immigration services are ad-
dressed after such effective date.
Subtitle C—United States Customs
Service
SEC. 451. ESTABLISHMENT; COMMISSIONER OF CUSTOMS.
(a) ESTABLISHMENT.—There is established in the
Department the United States Customs Service, under the
authority of the Under Secretary for Border and Trans-
portation Security, which shall be vested with those func-
tions set forth in section 457(7), and the personnel, assets,
and liabilities attributable to those functions.
(b) COMMISSIONER OF CUSTOMS.—
(1) IN GENERAL.—There shall be at the head
of the Customs Service a Commissioner of Customs,
who shall be appointed by the President, by and
with the advice and consent of the Senate.
144
(2) COMPENSATION.—Section 5314 of title 5,
United States Code, is amended by striking
‘‘Commissioner of Customs, Department of the
Treasury’’
and inserting
‘‘Commissioner of Customs, Department of
Homeland Security.’’.
(3) CONTINUATION IN OFFICE.—The individual
serving as the Commissioner of Customs on the day
before the effective date of this Act may serve as the
Commissioner of Customs on and after such effec-
tive date until a Commissioner of Customs is ap-
pointed under paragraph (1).
SEC. 452. RETENTION OF CUSTOMS REVENUE FUNCTIONS
BY SECRETARY OF THE TREASURY.
(a) RETENTION
BY SECRETARY
OF
THE TREAS-
URY.—
(1) RETENTION
OF
AUTHORITY.—Notwith-
standing sections 401(5), 402(1), and 808(e)(2), au-
thority that was vested in the Secretary of the
Treasury by law before the effective date of this Act
under those provisions of law set forth in paragraph
(2) shall not be transferred to the Secretary by rea-
son of this Act, and on and after the effective date
of this Act, the Secretary of the Treasury may dele-
145
gate any such authority to the Secretary at the dis-
cretion of the Secretary of the Treasury. The Sec-
retary of the Treasury shall consult with the Sec-
retary regarding the exercise of any such authority
not delegated to the Secretary.
(2) STATUTES.—The provisions of law referred
to in paragraph (1) are the following: the Tariff Act
of 1930; section 249 of the Revised Statutes of the
United States (19 U.S.C. 3); section 2 of the Act of
March 4, 1923 (19 U.S.C. 6); section 13031 of the
Consolidated Omnibus Budget Reconciliation Act of
1985 (19 U.S.C. 58c); section 251 of the Revised
Statutes of the United States (19 U.S.C. 66); sec-
tion 1 of the Act of June 26, 1930 (19 U.S.C. 68);
the Foreign Trade Zones Act (19 U.S.C. 81a et
seq.); section 1 of the Act of March 2, 1911 (19
U.S.C. 198); the Trade Act of 1974; the Trade
Agreements Act of 1979; the North American Free
Trade Area Implementation Act; the Uruguay
Round Agreements Act; the Caribbean Basin Eco-
nomic Recovery Act; the Andean Trade Preference
Act; the African Growth and Opportunity Act; and
any other provision of law vesting customs revenue
functions in the Secretary of the Treasury.
146
(b) MAINTENANCE OF CUSTOMS REVENUE FUNC-
TIONS.—
(1) MAINTENANCE
OF
FUNCTIONS.—Notwith-
standing any other provision of this Act, the Sec-
retary may not consolidate, alter, discontinue, or di-
minish those functions described in paragraph (2)
performed by the United States Customs Service (as
established under section 451) on or after the effec-
tive date of this Act, reduce the staffing level, or the
compensation or benefits under title 5, United
States Code, of personnel attributable to such func-
tions, or reduce the resources attributable to such
functions, and the Secretary shall ensure that an ap-
propriate management structure is implemented to
carry out such functions.
(2) FUNCTIONS.—The functions referred to in
paragraph (1) are those functions performed by the
following personnel, and associated support staff, of
the United States Customs Service on the day before
the effective date of this Act: Import Specialists,
Entry Specialists, Drawback Specialists, National
Import Specialist, Fines and Penalties Specialists,
attorneys of the Office of Regulations and Rulings,
Customs Auditors, International Trade Specialists,
Financial Systems Specialists.
147
(c) NEW PERSONNEL.—The Secretary of the Treas-
ury is authorized to appoint up to 20 new personnel to
work with personnel of the Department in performing cus-
toms revenue functions.
SEC. 453. ESTABLISHMENT AND IMPLEMENTATION OF
COST ACCOUNTING SYSTEM; REPORTS.
(a) ESTABLISHMENT AND IMPLEMENTATION.—
(1) IN GENERAL.—Not later than September
30, 2003, the Commissioner of Customs shall, in ac-
cordance with the audit of the Customs Service’s fis-
cal years 2000 and 1999 financial statements (as
contained in the report of the Office of the Inspector
General of the Department of the Treasury issued
on February 23, 2001), establish and implement a
cost accounting system for expenses incurred in the
operation of the Customs Service.
(2) ADDITIONAL REQUIREMENT.—The cost ac-
counting system described in paragraph (1) shall
provide for an identification of expenses based on
the type of operation, the port at which the oper-
ation took place, the amount of time spent on the
operation by personnel of the Customs Service, and
an identification of expenses based on any other ap-
propriate classification necessary to provide for an
accurate and complete accounting of the expenses.
148
(3) 
USE
OF
MERCHANDISE
PROCESSING
FEES.—The cost accounting system described in
paragraph (1) shall provide for an identification of
all 
amounts 
expended 
pursuant 
to 
section
13031(f)(2) of the Consolidated Omnibus Budget
Reconciliation Act of 1985.
(b) REPORTS.—Beginning on the date of the enact-
ment of this Act and ending on the date on which the
cost accounting system described in subsection (a) is fully
implemented, the Commissioner of Customs shall prepare
and submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate on a quarterly basis a report on the progress
of implementing the cost accounting system pursuant to
subsection (a).
SEC. 454. PRESERVATION OF CUSTOMS FUNDS.
Notwithstanding any other provision of this Act, no
funds available to the United States Customs Service or
collected under paragraphs (1) through (8) of section
13031(a) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 may be transferred for use by any other
agency or office in the Department.
SEC. 455. SEPARATE BUDGET REQUEST FOR CUSTOMS.
The President shall include in each budget trans-
mitted to the Congress under section 1105 of title 31,
149
United States Code, a separate budget request for the
United States Customs Service.
SEC. 456. PAYMENT OF DUTIES AND FEES.
Section 505(a) of the Tariff Act of 1930 (19 U.S.C.
1505(a)) is amended—
(1) in the first sentence—
(A) by striking ‘‘Unless merchandise’’ and
inserting ‘‘Unless the entry of merchandise is
covered by an import activity summary state-
ment, or the merchandise’’; and
(B) by inserting after ‘‘by regulation’’ the
following: ‘‘(but not to exceed 10 working days
after entry or release, whichever occurs first)’’;
and
(2) by striking the second and third sentences
and inserting the following: ‘‘If an import activity
summary statement is filed, the importer of record
shall deposit estimated duties and fees for entries of
merchandise covered by the import activity summary
statement no later than the 15th day of the month
following the month in which the merchandise is en-
tered or released, whichever occurs first.’’.
SEC. 457. DEFINITION.
In this subtitle, the term ‘‘customs revenue function’’
means the following:
150
(1) Assessing and collecting customs duties (in-
cluding antidumping and countervailing duties and
duties imposed under safeguard provisions), excise
taxes, fees, and penalties due on imported merchan-
dise, including classifying and valuing merchandise
for purposes of such assessment.
(2) Processing and denial of entry of persons,
baggage, cargo, and mail, with respect to the assess-
ment and collection of import duties.
(3) Detecting and apprehending persons en-
gaged in fraudulent practices designed to circumvent
the customs laws of the United States.
(4) Enforcing section 337 of the Tariff Act of
1930 and provisions relating to import quotas and
the marking of imported merchandise, and providing
Customs Recordations for copyrights, patents, and
trademarks.
(5) Collecting accurate import data for compila-
tion of international trade statistics.
(6) Enforcing reciprocal trade agreements.
(7) Functions performed by the following per-
sonnel, and associated support staff, of the United
States Customs Service on the day before the effec-
tive date of this Act: Import Specialists, Entry Spe-
cialists, Drawback Specialists, National Import Spe-
151
cialist, Fines and Penalties Specialists, attorneys of
the Office of Regulations and Rulings, Customs
Auditors, International Trade Specialists, Financial
Systems Specialists.
(8) Functions performed by the following of-
fices, with respect to any function described in any
of paragraphs (1) through (7), and associated sup-
port staff, of the United States Customs Service on
the day before the effective date of this Act: the Of-
fice of Information and Technology, the Office of
Laboratory Services, the Office of the Chief Counsel,
the Office of Congressional Affairs, the Office of
International Affairs, and the Office of Training and
Development.
SEC. 458. GAO REPORT TO CONGRESS.
Not later than 3 months after the effective date of
this Act, the Comptroller General of the United States
shall submit to the Congress a report that sets forth all
trade functions performed by the executive branch, speci-
fying each agency that performs each such function.
SEC. 459. ALLOCATION OF RESOURCES BY THE SECRETARY.
(a) IN GENERAL.—The Secretary shall ensure that
adequate staffing is provided to assure that levels of cus-
toms revenue services provided on the day before the effec-
tive date of this Act shall continue to be provided.
152
(b) NOTIFICATION
OF CONGRESS.—The Secretary
shall notify the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate at least 180 days prior to taking any action
which would—
(1) result in any significant reduction in cus-
toms revenue services, including hours of operation,
provided at any office within the Department or any
port of entry;
(2) eliminate or relocate any office of the De-
partment which provides customs revenue services;
or
(3) eliminate any port of entry.
(c) DEFINITION.—In this section, the term ‘‘customs
revenue services’’ means those customs revenue functions
described in paragraphs (1) through (6) and (8) of section
457.
SEC. 460. REPORTS TO CONGRESS.
The United States Customs Service shall, on and
after the effective date of this Act, continue to submit to
the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate
any report required, on the day before such the effective
date of this Act, to be so submitted under any provision
of law.
153
SEC. 461. CUSTOMS USER FEES.
Section 13031(f) of the Consolidated Omnibus Budg-
et Reconciliation Act of 1985 (19 U.S.C. 58c(f)) is
amended—
(1) in paragraph (1), by striking subparagraph
(B) and inserting the following:
‘‘(B) amounts deposited into the Customs
Commercial and Homeland Security Automa-
tion Account under paragraph (5).’’;
(2) in paragraph (4), by striking ‘‘(other than
the excess fees determined by the Secretary under
paragraph (5))’’; and
(3) by striking paragraph (5) and inserting the
following:
‘‘(5)(A) There is created within the general fund of
the Treasury a separate account that shall be known as
the ‘Customs Commercial and Homeland Security Auto-
mation Account’. In each of fiscal years 2003, 2004, and
2005 there shall be deposited into the Account from fees
collected under subsection (a)(9)(A), $350,000,000.
‘‘(B) There is authorized to be appropriated from the
Account in fiscal years 2003 through 2005 such amounts
as are available in that Account for the development, es-
tablishment, and implementation of the Automated Com-
mercial Environment computer system for the processing
of merchandise that is entered or released and for other
154
purposes related to the functions of the Department of
Homeland Security. Amounts appropriated pursuant to
this subparagraph are authorized to remain available until
expended.
‘‘(C) In adjusting the fee imposed by subsection
(a)(9)(A) for fiscal year 2006, the Secretary of the Treas-
ury shall reduce the amount estimated to be collected in
fiscal year 2006 by the amount by which total fees depos-
ited to the Account during fiscal years 2003, 2004, and
2005 exceed total appropriations from that Account.’’.
TITLE V—EMERGENCY
PREPAREDNESS AND RESPONSE
SEC. 501. UNDER SECRETARY FOR EMERGENCY PREPARED-
NESS AND RESPONSE.
The Secretary, acting through the Under Secretary
for Emergency Preparedness and Response, shall be re-
sponsible for the following:
(1) Helping to ensure the preparedness of
emergency response providers for terrorist attacks,
major disasters, and other emergencies.
(2) With respect to the Nuclear Incident Re-
sponse Team (regardless of whether it is operating
as an organizational unit of the Department pursu-
ant to this title)—
155
(A) establishing standards and certifying
when those standards have been met;
(B) conducting joint and other exercises
and training and evaluating performance; and
(C) providing funds to the Department of
Energy and the Environmental Protection
Agency, as appropriate, for homeland security
planning, exercises and training, and equip-
ment.
(3) Providing the Federal Government’s re-
sponse to terrorist attacks and major disasters,
including—
(A) managing such response;
(B) directing the Domestic Emergency
Support Team, the Strategic National Stock-
pile, the National Disaster Medical System, and
(when operating as an organizational unit of
the Department pursuant to this title) the Nu-
clear Incident Response Team;
(C) overseeing the Metropolitan Medical
Response System; and
(D) coordinating other Federal response
resources in the event of a terrorist attack or
major disaster.
156
(4) Aiding the recovery from terrorist attacks
and major disasters, including interventions to treat
the psychological consequences of terrorist attacks or
major disasters, and provision for training for men-
tal health workers to allow them to respond effec-
tively to such attacks or disasters.
(5) Building a comprehensive national incident
management system with Federal, State, and local
government personnel, agencies, and authorities, to
respond to such attacks and disasters.
(6) Consolidating existing Federal Government
emergency response plans into a single, coordinated
national response plan.
(7) Developing comprehensive programs for de-
veloping interoperative communications technology,
and helping to ensure that emergency response pro-
viders acquire such technology.
SEC. 502. FUNCTIONS TRANSFERRED.
In accordance with title VIII, there shall be trans-
ferred to the Secretary the functions, personnel, assets,
and obligations of the following:
(1) The Federal Emergency Management Agen-
cy, including the functions of the Director of the
Federal Emergency Management Agency relating
157
thereto, and the Integrated Hazard Information Sys-
tem of the Department of Defense.
(2) The Office of Emergency Preparedness, the
National Disaster Medical System, and the Metro-
politan Medical Response System of the Department
of Health and Human Services, including the func-
tions of the Secretary of Health and Human Serv-
ices and the Assistant Secretary for Public Health
Emergency Preparedness relating thereto.
(3) The Strategic National Stockpile of the De-
partment of Health and Human Services, including
the functions of the Secretary of Health and Human
Services relating thereto.
SEC. 503. NUCLEAR INCIDENT RESPONSE.
(a) NUCLEAR INCIDENT RESPONSE TEAM.—At the
direction of the Secretary (in connection with an actual
or threatened terrorist attack, major disaster, or other
emergency within the United States), the Nuclear Incident
Response Team shall operate as an organizational unit of
the Department. While so operating, the Nuclear Incident
Response Team shall be subject to the direction, authority,
and control of the Secretary.
(b) CONSTRUCTION.—Nothing in this title shall be
understood to limit the ordinary responsibility of the Sec-
retary of Energy and the Administrator of the Environ-
158
mental Protection Agency for organizing, training, equip-
ping, and utilizing their respective entities in the Nuclear
Incident Response Team, or (subject to the provisions of
this title) from exercising direction, authority, and control
over them when they are not operating as a unit of the
Department.
(c) INDEMNIFICATION
OF CONTRACTORS DURING
TRANSITION PERIOD.—(1) To the extent the Department
of Energy has a duty under a covered contract to indem-
nify an element of the Nuclear Incident Response Team,
the Department and the Department of Energy shall each
have that duty, whether or not the Nuclear Incident Re-
sponse Team is operating as an organizational element of
the Department.
(2) Paragraph (1) applies only to a contract in effect
on the date of the enactment of this Act, and not to any
extension or renewal of such contract carried out after the
date of the enactment of this Act.
SEC. 504. DEFINITION.
For purposes of this title, the term ‘‘Nuclear Incident
Response Team’’ means a resource that includes—
(1) those entities of the Department of Energy
that perform nuclear or radiological emergency sup-
port functions (including accident response, search
response, advisory, and technical operations func-
159
tions), radiation exposure functions at the medical
assistance facility known as the Radiation Emer-
gency Assistance/Training Site (REAC/TS), radio-
logical assistance functions, and related functions;
and
(2) those entities of the Environmental Protec-
tion Agency that perform radiological emergency re-
sponse and support functions.
SEC. 505. CONDUCT OF CERTAIN PUBLIC-HEALTH RELATED
ACTIVITIES.
(a) IN GENERAL.—With respect to all public health-
related activities to improve State, local, and hospital pre-
paredness and response to chemical, biological, radio-
logical, and nuclear and other emerging terrorist threats
carried out by the Department of Health and Human
Services (including the Public Health Service), the Sec-
retary of Health and Human Services shall set priorities
and preparedness goals and further develop a coordinated
strategy for such activities in collaboration with the Sec-
retary of Homeland Security.
(b) EVALUATION OF PROGRESS.—In carrying out
subsection (a), the Secretary of Health and Human Serv-
ices shall collaborate with the Secretary of Homeland Se-
curity in developing specific benchmarks and outcome
160
measurements for evaluating progress toward achieving
the priorities and goals described in such subsection.
SEC. 506. ROLE OF FEDERAL EMERGENCY MANAGEMENT
AGENCY.
(a) IN GENERAL.—The functions of the Federal
Emergency Management Agency include, but are not lim-
ited to, the following:
(1) All functions and authorities prescribed by
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.).
(2) Carrying out its mission to reduce the loss
of life and property and protect the Nation from all
hazards by leading and supporting the Nation in a
comprehensive, risk-based emergency management
program—
(A) of mitigation, by taking sustained ac-
tions to reduce or eliminate long-term risk to
people and property from hazards and their ef-
fects;
(B) of preparedness, by building the emer-
gency management profession to prepare effec-
tively for, mitigate against, respond to, and re-
cover from any hazard by planning, training,
and exercising;
161
(C) of response, by conducting emergency
operations to save lives and property through
positioning emergency equipment and supplies,
through evacuating potential victims, through
providing food, water, shelter, and medical care
to those in need, and through restoring critical
public services;
(D) of recovery, by rebuilding communities
so individuals, businesses, and governments can
function on their own, return to normal life,
and protect against future hazards; and
(E) of increased efficiencies, by coordi-
nating efforts relating to preparedness and re-
sponse activities to maximize efficiencies.
(b) FEDERAL RESPONSE PLAN.—
(1) ROLE
OF
FEMA.—Notwithstanding any
other provision of this Act, the Federal Emergency
Management Agency shall remain the lead agency
for the Federal Response Plan established under Ex-
ecutive Order 12148 (44 Fed. Reg. 43239) and Ex-
ecutive Order 12656 (53 Fed. Reg. 47491).
(2) REVISION OF RESPONSE PLAN.—Not later
than 60 days after the date of enactment of this
Act, the Director of the Federal Emergency Man-
agement Agency shall revise the Federal Response
162
Plan to reflect the establishment of and incorporate
the Department.
SEC. 507. SENSE OF CONGRESS REGARDING FUNDING OF
TRAUMA SYSTEMS.
It is the sense of the Congress that States should give
particular emphasis to developing and implementing the
trauma care and burn center care components of the State
plans for the provision of emergency medical services
using funds authorized through Public Law 107–188 for
grants to improve State, local, and hospital preparedness
for and response to bioterrorism and other public health
emergencies.
TITLE VI—MANAGEMENT
SEC. 601. UNDER SECRETARY FOR MANAGEMENT.
(a) IN GENERAL.—The Secretary, acting through the
Under Secretary for Management, shall be responsible for
the management and administration of the Department,
including the following:
(1) The budget, appropriations, expenditures of
funds, accounting, and finance.
(2) Procurement.
(3) Human resources and personnel.
(4) Information technology and communications
systems.
163
(5) Facilities, property, equipment, and other
material resources.
(6) Security for personnel, information tech-
nology and communications systems, facilities, prop-
erty, equipment, and other material resources.
(7) Identification and tracking of performance
measures relating to the responsibilities of the De-
partment.
(8) Grants and other assistance management
programs.
(9) The transition and reorganization process,
to ensure an efficient and orderly transfer of func-
tions and personnel to the Department, including
the development of a transition plan.
(10) The conduct of internal audits and man-
agement analyses of the programs and activities of
the Department.
(11) Any other management duties that the
Secretary may designate.
(b) IMMIGRATION ENFORCEMENT.—
(1) IN GENERAL.—In addition to the respon-
sibilities described in subsection (a), the Under Sec-
retary for Management shall be responsible for the
following:
164
(A) Maintenance of all immigration statis-
tical information of the Bureau of Border Secu-
rity. Such statistical information shall include
information and statistics of the type contained
in the publication entitled ‘‘Statistical Yearbook
of the Immigration and Naturalization Service’’
prepared by the Immigration and Naturaliza-
tion Service (as in effect immediately before the
date on which the transfer of functions specified
under section 411 takes effect), including re-
gion-by-region statistics on the aggregate num-
ber of applications and petitions filed by an
alien (or filed on behalf of an alien) and denied
by such bureau, and the reasons for such deni-
als, disaggregated by category of denial and ap-
plication or petition type.
(B) Establishment of standards of reli-
ability and validity for immigration statistics
collected by the Bureau of Border Security.
(2) TRANSFER OF FUNCTIONS.—In accordance
with title VIII, there shall be transferred to the
Under Secretary for Management all functions per-
formed immediately before such transfer occurs by
the Statistics Branch of the Office of Policy and
165
Planning of the Immigration and Naturalization
Service with respect to the following programs:
(A) The Border Patrol program.
(B) The detention and removal program.
(C) The intelligence program.
(D) The investigations program.
(E) The inspections program.
SEC. 602. CHIEF FINANCIAL OFFICER.
Notwithstanding section 902(a)(1) of title 31, United
States Code, the Chief Financial Officer shall report to
the Secretary, or to another official of the Department,
as the Secretary may direct.
SEC. 603. CHIEF INFORMATION OFFICER.
Notwithstanding section 3506(a)(2) of title 44,
United States Code, the Chief Information Officer shall
report to the Secretary, or to another official of the De-
partment, as the Secretary may direct.
SEC. 604. ESTABLISHMENT OF OFFICE FOR CIVIL RIGHTS
AND CIVIL LIBERTIES.
The Secretary shall establish in the Department an
Office for Civil Rights and Civil Liberties, the head of
which shall be the Director for Civil Rights and Civil Lib-
erties. The Director shall—
(1) review and assess information alleging
abuses of civil rights, civil liberties, and racial and
166
ethnic profiling by employees and officials of the De-
partment;
(2) make public through the Internet, radio, tel-
evision, or newspaper advertisements information on
the responsibilities and functions of, and how to con-
tact, the Office; and
(3) submit to the President of the Senate, the
Speaker of the House of Representatives, and the
appropriate committees and subcommittees of the
Congress on a semiannual basis a report on the im-
plementation of this section, including the use of
funds appropriated to carry out this section, and de-
tailing any allegations of abuses described in para-
graph (1) and any actions taken by the Department
in response to such allegations.
SEC. 605. CONSOLIDATION AND CO-LOCATION OF OFFICES.
Not later than 1 year after the date of the enactment
of this Act, the Secretary shall develop and submit to the
Congress a plan for consolidating and co-locating—
(1) any regional offices or field offices of agen-
cies that are transferred to the Department under
this Act, if such officers are located in the same mu-
nicipality; and
(2) portions of regional and field offices of
other Federal agencies, to the extent such offices
167
perform functions that are transferred to the Sec-
retary under this Act.
TITLE VII—MISCELLANEOUS
Subtitle A—Inspector General
SEC. 701. AUTHORITY OF THE SECRETARY.
(a) IN GENERAL.—Notwithstanding the last two sen-
tences of section 3(a) of the Inspector General Act of
1978, the Inspector General shall be under the authority,
direction, and control of the Secretary with respect to au-
dits or investigations, or the issuance of subpoenas, that
require access to sensitive information concerning—
(1) 
intelligence, 
counterintelligence, 
or
counterterrorism matters;
(2) ongoing criminal investigations or pro-
ceedings;
(3) undercover operations;
(4) the identity of confidential sources, includ-
ing protected witnesses;
(5) other matters the disclosure of which would,
in the Secretary’s judgment, constitute a serious
threat to the protection of any person or property
authorized protection by section 3056 of title 18,
United States Code, section 202 of title 3 of such
Code, or any provision of the Presidential Protection
Assistance Act of 1976; or
168
(6) other matters the disclosure of which would,
in the Secretary’s judgment, constitute a serious
threat to national security.
(b) PROHIBITION OF CERTAIN INVESTIGATIONS.—
With respect to the information described in subsection
(a), the Secretary may prohibit the Inspector General
from carrying out or completing any audit or investiga-
tion, or from issuing any subpoena, after such Inspector
General has decided to initiate, carry out, or complete
such audit or investigation or to issue such subpoena, if
the Secretary determines that such prohibition is nec-
essary to prevent the disclosure of any information de-
scribed in subsection (a), to preserve the national security,
or to prevent a significant impairment to the interests of
the United States.
(c) NOTIFICATION REQUIRED.—If the Secretary ex-
ercises any power under subsection (a) or (b), the Sec-
retary shall notify the Inspector General of the Depart-
ment in writing stating the reasons for such exercise.
Within 30 days after receipt of any such notice, the In-
spector General shall transmit a copy of such notice and
a written response thereto that includes (1) a statement
as to whether the Inspector General agrees or disagrees
with such exercise and (2) the reasons for any disagree-
ment, to the President of the Senate and the Speaker of
169
the House of Representatives and to appropriate commit-
tees and subcommittees of the Congress.
(d) ACCESS TO INFORMATION BY CONGRESS.—The
exercise of authority by the Secretary described in sub-
section (b) should not be construed as limiting the right
of Congress or any committee of Congress to access any
information it seeks.
(e) OVERSIGHT
RESPONSIBILITY—The Inspector
General Act of 1978 (5 U.S.C. App.) is amended by insert-
ing after section 8I the following:
‘‘SPECIAL PROVISIONS CONCERNING THE DEPARTMENT
OF HOMELAND SECURITY
‘‘SEC. 8J. Notwithstanding any other provision of
law, in carrying out the duties and responsibilities speci-
fied in this Act, the Inspector General of the Department
of Homeland Security shall have oversight responsibility
for the internal investigations performed by the Office of
Internal Affairs of the United States Customs Service and
the Office of Inspections of the United States Secret Serv-
ice. The head of each such office shall promptly report
to the Inspector General the significant activities being
carried out by such office.’’.
170
Subtitle B—United States Secret
Service
SEC. 711. FUNCTIONS TRANSFERRED.
In accordance with title VIII, there shall be trans-
ferred to the Secretary the functions, personnel, assets,
and obligations of the United States Secret Service, which
shall be maintained as a distinct entity within the Depart-
ment, including the functions of the Secretary of the
Treasury relating thereto.
Subtitle C—Critical Infrastructure
Information
SEC. 721. SHORT TITLE.
This subtitle may be cited as the ‘‘Critical Infrastruc-
ture Information Act of 2002’’.
SEC. 722. DEFINITIONS.
In this subtitle:
(1) AGENCY.—The term ‘‘agency’’ has the
meaning given it in section 551 of title 5, United
States Code.
(2) COVERED
FEDERAL
AGENCY.—The term
‘‘covered Federal agency’’ means the Department of
Homeland Security.
(3) 
CRITICAL
INFRASTRUCTURE
INFORMA-
TION.—The term ‘‘critical infrastructure informa-
tion’’ means information not customarily in the pub-
171
lic domain and related to the security of critical in-
frastructure or protected systems—
(A) actual, potential, or threatened inter-
ference with, attack on, compromise of, or inca-
pacitation of critical infrastructure or protected
systems by either physical or computer-based
attack or other similar conduct (including the
misuse of or unauthorized access to all types of
communications and data transmission systems)
that violates Federal, State, or local law, harms
interstate commerce of the United States, or
threatens public health or safety;
(B) the ability of any critical infrastruc-
ture or protected system to resist such inter-
ference, compromise, or incapacitation, includ-
ing any planned or past assessment, projection,
or estimate of the vulnerability of critical infra-
structure or a protected system, including secu-
rity testing, risk evaluation thereto, risk man-
agement planning, or risk audit; or
(C) any planned or past operational prob-
lem or solution regarding critical infrastructure
or protected systems, including repair, recovery,
reconstruction, insurance, or continuity, to the
172
extent it is related to such interference, com-
promise, or incapacitation.
(4) CRITICAL
INFRASTRUCTURE
PROTECTION
PROGRAM.—The term ‘‘critical infrastructure protec-
tion program’’ means any component or bureau of a
covered Federal agency that has been designated by
the President or any agency head to receive critical
infrastructure information.
(5) INFORMATION SHARING AND ANALYSIS OR-
GANIZATION.—The term ‘‘Information Sharing and
Analysis Organization’’ means any formal or infor-
mal entity or collaboration created or employed by
public or private sector organizations, for purposes
of—
(A) gathering and analyzing critical infra-
structure information in order to better under-
stand security problems and interdependencies
related to critical infrastructure and protected
systems, so as to ensure the availability, integ-
rity, and reliability thereof;
(B) communicating or disclosing critical
infrastructure information to help prevent, de-
tect, mitigate, or recover from the effects of a
interference, compromise, or a incapacitation
173
problem related to critical infrastructure or pro-
tected systems; and
(C) voluntarily disseminating critical infra-
structure information to its members, State,
local, and Federal Governments, or any other
entities that may be of assistance in carrying
out the purposes specified in subparagraphs (A)
and (B).
(6) PROTECTED SYSTEM.—The term ‘‘protected
system’’—
(A) means any service, physical or com-
puter-based system, process, or procedure that
directly or indirectly affects the viability of a fa-
cility of critical infrastructure; and
(B) includes any physical or computer-
based system, including a computer, computer
system, computer or communications network,
or any component hardware or element thereof,
software program, processing instructions, or
information or data in transmission or storage
therein, irrespective of the medium of trans-
mission or storage.
(7) VOLUNTARY.—
(A) IN GENERAL.—The term ‘‘voluntary’’,
in the case of any submittal of critical infra-
174
structure information to a covered Federal
agency, means the submittal thereof in the ab-
sence of such agency’s exercise of legal author-
ity to compel access to or submission of such
information and may be accomplished by a sin-
gle entity or an Information Sharing and Anal-
ysis Organization on behalf of itself or its mem-
bers.
(B) 
EXCLUSIONS.—The 
term
‘‘voluntary’’—
(i) in the case of any action brought
under the securities laws as is defined in
section 3(a)(47) of the Securities Ex-
change 
Act 
of 
1934 
(15 
U.S.C.
78c(a)(47))—
(I) does not include information
or statements contained in any docu-
ments or materials filed with the Se-
curities and Exchange Commission, or
with Federal banking regulators, pur-
suant to section 12(i) of the Securities
Exchange Act of 1934 (15 U.S.C.
781(I)); and
(II) with respect to the submittal
of critical infrastructure information,
175
does not include any disclosure or
writing that when made accompanied
the solicitation of an offer or a sale of
securities; and
(ii) does not include information or
statements submitted or relied upon as a
basis for making licensing or permitting
determinations, or during regulatory pro-
ceedings.
SEC. 723. DESIGNATION OF CRITICAL INFRASTRUCTURE
PROTECTION PROGRAM.
A critical infrastructure protection program may be
designated as such by one of the following:
(1) The President.
(2) The Secretary of Homeland Security.
SEC. 724. PROTECTION OF VOLUNTARILY SHARED CRIT-
ICAL INFRASTRUCTURE INFORMATION.
(a) PROTECTION.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, critical infrastructure information
(including the identity of the submitting person or
entity) that is voluntarily submitted to a covered
Federal agency for use by that agency regarding the
security of critical infrastructure and protected sys-
tems, if analysis, warning, interdependency study,
176
recovery, reconstitution, or other informational pur-
pose, when accompanied by an express statement
specified in paragraph (2)—
(A) shall be exempt from disclosure under
section 552 of title 5, United States Code (com-
monly referred to as the Freedom of Informa-
tion Act);
(B) shall not be subject to any agency
rules or judicial doctrine regarding ex parte
communications with a decision making official;
(C) shall not, without the written consent
of the person or entity submitting such infor-
mation, be used directly by such agency, any
other Federal, State, or local authority, or any
third party, in any civil action arising under
Federal or State law if such information is sub-
mitted in good faith;
(D) shall not, without the written consent
of the person or entity submitting such infor-
mation, be used or disclosed by any officer or
employee of the United States for purposes
other than the purposes of this subtitle,
except—
(i) in furtherance of an investigation
or the prosecution of a criminal act; or
177
(ii) when disclosure of the information
would be—
(I) to either House of Congress,
or to the extent of matter within its
jurisdiction, any committee or sub-
committee thereof, any joint com-
mittee thereof or subcommittee of any
such joint committee; or
(II) to the Comptroller General,
or any authorized representative of
the Comptroller General, in the course
of the performance of the duties of
the General Accounting Office.
(E) shall not, if provided to a State or
local government or government agency—
(i) be made available pursuant to any
State or local law requiring disclosure of
information or records;
(ii) otherwise be disclosed or distrib-
uted to any party by said State or local
government or government agency without
the written consent of the person or entity
submitting such information; or
(iii) be used other than for the pur-
pose of protecting critical infrastructure or
178
protected systems, or in furtherance of an
investigation or the prosecution of a crimi-
nal act; and
(F) does not constitute a waiver of any ap-
plicable privilege or protection provided under
law, such as trade secret protection.
(2) EXPRESS
STATEMENT.—For purposes of
paragraph (1), the term ‘‘express statement’’, with
respect to information or records, means—
(A) in the case of written information or
records, a written marking on the information
or records substantially similar to the following:
‘‘This information is voluntarily submitted to
the Federal Government in expectation of pro-
tection from disclosure as provided by the provi-
sions of the Critical Infrastructure Information
Act of 2002.’’; or
(B) in the case of oral information, a simi-
lar written statement submitted within a rea-
sonable period following the oral communica-
tion.
(b) LIMITATION.—No communication of critical in-
frastructure information to a covered Federal agency
made pursuant to this subtitle shall be considered to be
179
an action subject to the requirements of the Federal Advi-
sory Committee Act (5 U.S.C. App. 2).
(c) INDEPENDENTLY OBTAINED INFORMATION.—
Nothing in this section shall be construed to limit or other-
wise affect the ability of a State, local, or Federal Govern-
ment entity, agency, or authority, or any third party,
under applicable law, to obtain critical infrastructure in-
formation in a manner not covered by subsection (a), in-
cluding any information lawfully and properly disclosed
generally or broadly to the public and to use such informa-
tion in any manner permitted by law.
(d) TREATMENT OF VOLUNTARY SUBMITTAL OF IN-
FORMATION.—The voluntary submittal to the Government
of information or records that are protected from disclo-
sure by this subtitle shall not be construed to constitute
compliance with any requirement to submit such informa-
tion to a Federal agency under any other provision of law.
(e) PROCEDURES.—
(1) IN GENERAL.—The Secretary of the De-
partment of Homeland Security shall, in consulta-
tion with appropriate representatives of the National
Security Council and the Office of Science and Tech-
nology Policy, establish uniform procedures for the
receipt, care, and storage by Federal agencies of
critical infrastructure information that is voluntarily
180
submitted to the Government. The procedures shall
be established not later than 90 days after the date
of the enactment of this subtitle.
(2) ELEMENTS.—The procedures established
under paragraph (1) shall include mechanisms
regarding—
(A) the acknowledgement of receipt by
Federal agencies of critical infrastructure infor-
mation that is voluntarily submitted to the Gov-
ernment;
(B) the maintenance of the identification
of such information as voluntarily submitted to
the Government for purposes of and subject to
the provisions of this subtitle;
(C) the care and storage of such informa-
tion; and
(D) the protection and maintenance of the
confidentiality of such information so as to per-
mit the sharing of such information within the
Federal Government and with State and local
governments, and the issuance of notices and
warnings related to the protection of critical in-
frastructure and protected systems, in such
manner as to protect from public disclosure the
identity of the submitting person or entity, or
181
information that is proprietary, business sen-
sitive, relates specifically to the submitting per-
son or entity, and is otherwise not appropriately
in the public domain.
(f) PENALTIES.—Whoever, being an officer or em-
ployee of the United States or of any department or agen-
cy thereof, knowingly publishes, divulges, discloses, or
makes known in any manner or to any extent not author-
ized by law, any critical infrastructure information pro-
tected from disclosure by this subtitle coming to him in
the course of this employment or official duties or by rea-
son of any examination or investigation made by, or re-
turn, report, or record made to or filed with, such depart-
ment or agency or officer or employee thereof, shall be
fined under title 18 of the United States Code, imprisoned
not more that one year, or both, and shall be removed
from office or employment.
(g) AUTHORITY TO ISSUE WARNINGS.—The Federal
Government may provide advisories, alerts, and warnings
to relevant companies, targeted sectors, other govern-
mental entities, or the general public regarding potential
threats to critical infrastructure as appropriate. In issuing
a warning, the Federal Government shall take appropriate
actions to protect from disclosure—
182
(1) the source of any voluntarily submitted crit-
ical infrastructure information that forms the basis
for the warning; or
(2) information that is proprietary, business
sensitive, relates specifically to the submitting per-
son or entity, or is otherwise not appropriately in
the public domain.
(h) AUTHORITY TO DELEGATE.—The President may
delegate authority to a critical infrastructure protection
program, designated under subsection (e), to enter into
a voluntary agreement to promote critical infrastructure
security, including with any Information Sharing and
Analysis Organization, or a plan of action as otherwise
defined in section 708 of the Defense Production Act of
1950 (50 U.S.C. App. 2158).
SEC. 725. NO PRIVATE RIGHT OF ACTION.
Nothing in this subtitle may be construed to create
a private right of action for enforcement of any provision
of this Act.
Subtitle D—Acquisitions
SEC. 731. RESEARCH AND DEVELOPMENT PROJECTS.
(a) AUTHORITY.—During the five-year period fol-
lowing the effective date of this Act, the Secretary may
carry out a pilot program under which the Secretary may
exercise the following authorities:
183
(1)(A) In carrying out basic, applied, and ad-
vanced research and development projects for re-
sponse to existing or emerging terrorist threats, the
Secretary may exercise the same authority (subject
to the same limitations and conditions) with respect
to such research and projects as the Secretary of
Defense may exercise under section 2371 of title 10,
United States Code (except for subsections (b) and
(f) of such section), after making a determination
that—
(i) the use of a contract, grant, or coopera-
tive agreement for such projects is not feasible
or appropriate; and
(ii) use of other authority to waive Federal
procurement laws or regulations would not be
feasible or appropriate to accomplish such
projects.
(B) The annual report required under sub-
section (h) of such section 2371, as applied to the
Secretary by this paragraph, shall be submitted to
the President of the Senate and the Speaker of the
House of Representatives.
(2)(A) Under the authority of paragraph (1)
and subject to the limitations of such paragraph, the
Secretary may carry out prototype projects, in ac-
184
cordance with the requirements and conditions pro-
vided for carrying out prototype projects under sec-
tion 845 of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103–160; 10
U.S.C. 2371 note).
(B) In applying the authorities of such section
845—
(i) subsection (c) thereof shall apply with
respect to prototype projects under this para-
graph, except that in applying such subsection
any reference in such subsection to the Comp-
troller General shall be deemed to refer to the
Comptroller General and the Inspector General
of the Department; and
(ii) the Secretary shall perform the func-
tions of the Secretary of Defense under sub-
section (d) thereof.
(b) REPORT.—Not later than one year after the effec-
tive date of this Act, and annually thereafter, the Comp-
troller General shall report to the Committee on Govern-
ment Reform of the House of Representatives and the
Committee on Governmental Affairs of the Senate on—
(1) whether use of the authorities described in
subsection (a) attracts nontraditional Government
185
contractors and results in the acquisition of needed
technologies; and
(2) if such authorities were to be made perma-
nent, whether additional safeguards are needed with
respect to the use of such authorities.
(c) DEFINITION OF NONTRADITIONAL GOVERNMENT
CONTRACTOR.—In this section, the term ‘‘nontraditional
Government contractor’’ has the same meaning as the
term ‘‘nontraditional defense contractor’’ as defined in
section 845(e) of the National Defense Authorization Act
for Fiscal Year 1994 (Public Law 103–160; 10 U.S.C.
2371 note).
SEC. 732. PERSONAL SERVICES.
The Secretary—
(1) may procure the temporary or intermittent
services of experts or consultants (or organizations
thereof) in accordance with section 3109 of title 5,
United States Code; and
(2) may, whenever necessary due to an urgent
homeland security need, procure temporary (not to
exceed 1 year) or intermittent personal services, in-
cluding the services of experts or consultants (or or-
ganizations thereof), without regard to the pay limi-
tations of such section 3109.
186
SEC. 733. SPECIAL STREAMLINED ACQUISITION AUTHOR-
ITY.
(a) AUTHORITY.—(1) The Secretary may use the au-
thorities set forth in this section with respect to any pro-
curement made during the period beginning on the effec-
tive date of this Act and ending September 30, 2007, if
the Secretary determines in writing that the mission of
the Department (as described in section 101) would be
seriously impaired without the use of such authorities.
(2) The authority to make the determination de-
scribed in paragraph (1) may not be delegated by the Sec-
retary to an officer of the Department who is not ap-
pointed by the President with the advice and consent of
the Senate.
(3) Not later than the date that is seven days after
the date of any determination under paragraph (1), the
Secretary shall submit to the Committee on Government
Reform of the House of Representatives and the Com-
mittee on Governmental Affairs of the Senate—
(A) notification of such determination; and
(B) the justification for such determination.
(b) INCREASED MICRO-PURCHASE THRESHOLD FOR
CERTAIN PROCUREMENTS.—(1) The Secretary may des-
ignate certain employees of the Department to make pro-
curements described in subsection (a) for which in the ad-
ministration of section 32 of the Office of Federal Pro-
187
curement Policy Act (41 U.S.C. 428) the amount specified
in subsections (c), (d), and (f) of such section 32 shall
be deemed to be $5,000.
(2) The number of employees designated under para-
graph (1) shall be—
(A) fewer than the number of employees of the
Department who are authorized to make purchases
without obtaining competitive quotations, pursuant
to section 32(c) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 428(c));
(B) sufficient to ensure the geographic dispersal
of the availability of the use of the procurement au-
thority under such paragraph at locations reasonably
considered to be potential terrorist targets; and
(C) sufficiently limited to allow for the careful
monitoring of employees designated under such
paragraph.
(3) Procurements made under the authority of this
subsection shall be subject to review by a designated su-
pervisor on not less than a monthly basis. The supervisor
responsible for the review shall be responsible for no more
than 7 employees making procurements under this sub-
section.
(c) SIMPLIFIED
ACQUISITION
PROCEDURES.—(1)
With respect to a procurement described in subsection (a),
188
the Secretary may deem the simplified acquisition thresh-
old referred to in section 4(11) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(11)) to be
$175,000.
(2) Section 18(c)(1) of the Office of Federal Procure-
ment Policy Act is amended—
(A) by striking ‘‘or’’ at the end of suparagraph
(F);
(B) by striking the period at the end of sub-
paragraph (G) and inserting ‘‘; or’’; and
(C) by adding at the end the following new sub-
paragraph:
‘‘(H) the procurement is by the Secretary of
Homeland Security pursuant to the special proce-
dures provided in section 733(c) of the Homeland
Security Act of 2002.’’.
(d) APPLICATION OF CERTAIN COMMERCIAL ITEMS
AUTHORITIES.—(1) With respect to a procurement de-
scribed in subsection (a), the Secretary may deem any
item or service to be a commercial item for the purpose
of Federal procurement laws.
(2) The $5,000,000 limitation provided in section
31(a)(2) of the Office of Federal Procurement Policy Act
(41 U.S.C. 427(a)(2)) and section 303(g)(1)(B) of the
Federal Property and Administrative Services Act of 1949
189
(41 U.S.C. 253(g)(1)(B)) shall be deemed to be
$7,500,000 for purposes of property or services under the
authority of this subsection.
(3) Authority under a provision of law referred to in
paragraph (2) that expires under section 4202(e) of the
Clinger-Cohen Act of 1996 (divisions D and E of Public
Law 104–106; 10 U.S.C. 2304 note) shall, notwith-
standing such section, continue to apply for a procurement
described in subsection (a).
(e) REPORT.—Not later than 180 days after the end
of fiscal year 2005, the Comptroller General shall submit
to the Committee on Governmental Affairs of the Senate
and the Committee on Government Reform of the House
of Representatives a report on the use of the authorities
provided in this section. The report shall contain the fol-
lowing:
(1) An assessment of the extent to which prop-
erty and services acquired using authorities provided
under this section contributed to the capacity of the
Federal workforce to facilitate the mission of the
Department as described in section 101.
(2) An assessment of the extent to which prices
for property and services acquired using authorities
provided under this section reflected the best value.
190
(3) The number of employees designated by
each executive agency under subsection (b)(1).
(4) An assessment of the extent to which the
Department has implemented subsections (b)(2) and
(b)(3) to monitor the use of procurement authority
by employees designated under subsection (b)(1).
(5) Any recommendations of the Comptroller
General for improving the effectiveness of the imple-
mentation of the provisions of this section.
SEC. 734. PROCUREMENTS FROM SMALL BUSINESSES.
(a) OFFICE OF SMALL AND DISADVANTAGED BUSI-
NESS UTILIZATION.—There is established in the Depart-
ment an office to be known as the ‘‘Office of Small and
Disadvantaged Business Utilization’’. The management of
such office shall be vested in the manner described in sec-
tion 15(k) of the Small Business Act (15 U.S.C. 644(k))
and shall carry out the functions described in such section.
(b) SMALL BUSINESS PROCUREMENT GOALS.—
(1) IN GENERAL.—The Secretary shall annually
establish goals for the participation by small busi-
ness concerns, by small business concerns owned and
controlled by service-disabled veterans, by qualified
HUBZone small business concerns, by small busi-
ness concerns owned and controlled by socially and
economically disadvantaged individuals, and by small
191
business concerns owned and controlled by women
(as such terms are defined pursuant to the Small
Business Act (15 U.S.C. 631 et seq.) and relevant
regulations promulgated thereunder) in procurement
contracts of the Department.
(2) DEPARTMENT GOALS NOT LESS THAN GOV-
ERNMENT-WIDE
GOALS.—Notwithstanding section
15(g) of the Small Business Act (15 U.S.C. 644(g)),
each goal established under paragraph (1) shall be
equal to or greater than the corresponding Govern-
ment-wide goal established by the President under
section 15(g)(1) of the Small Business Act (15
U.S.C. 644(g)(1)).
(3) INCENTIVE
FOR
GOAL
ACHIEVEMENT.—
Achievement of the goals established under para-
graph (1) shall be an element in the performance
standards for employees of the Department who
have the authority and responsibility for achieving
such goals.
SEC. 735. PROHIBITION ON CONTRACTING WITH COR-
PORATE EXPATRIATES.
(a) IN GENERAL.—The Secretary may not enter into
any contract with a subsidiary of a publicly traded cor-
poration if the corporation is incorporated in a tax haven
192
country but the United States is the principal market for
the public trading of the corporation’s stock.
(b) TAX HAVEN COUNTRY DEFINED.—For purposes
of subsection (a), the term ‘‘tax haven country’’ means
each of the following: Barbados, Bermuda, British Virgin
Islands, Cayman Islands, Commonwealth of the Bahamas,
Cyprus, Gibraltar, Isle of Man, the Principality of
Monaco, and the Republic of the Seychelles.
(c) WAIVER.—The President may waive subsection
(a) with respect to any specific contract if the President
certifies to the Congress that the waiver is required in the
interest of national security.
Subtitle E—Property
SEC. 741. DEPARTMENT HEADQUARTERS.
(a) IN GENERAL.—Subject to the requirements of the
Public Buildings Act of 1959 (40 U.S.C. 601 et seq.), the
Administrator of General Services shall construct a public
building to serve as the headquarters for the Department.
(b) LOCATION AND CONSTRUCTION STANDARDS.—
The headquarters facility shall be constructed to such
standards and specifications and at such a location as the
Administrator of General Services decides. In selecting a
site for the headquarters facility, the Administrator shall
give preference to parcels of land that are federally owned.
193
(c) USE OF HEADQUARTERS FACILITY.—The Admin-
istrator of General Services shall make the headquarter
facility, as well as other Government-owned or leased fa-
cilities, available to the Secretary pursuant to the Admin-
istrator’s authorities under section 210 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 490 et seq.) and there is authorized to be appro-
priated to the Secretary such amounts as may be nec-
essary to pay the annual charges for General Services Ad-
ministration furnished space and services.
Subtitle F—Support Anti-terrorism
by 
Fostering 
Effective 
Tech-
nologies Act of 2002 (the SAFE-
TY Act)
SEC. 751. SHORT TITLE.
This subtitle may be cited as the ‘‘Support Anti-ter-
rorism by Fostering Effective Technologies Act of 2002’’
or the ‘‘SAFETY Act’’.
SEC. 752. ADMINISTRATION.
(a) IN GENERAL.—The Secretary shall be responsible
for the administration of this subtitle.
(b) DESIGNATION OF QUALIFIED ANTI-TERRORISM
TECHNOLOGIES.—The Secretary may designate anti-ter-
rorism technologies that qualify for protection under the
system of risk management set forth in this subtitle in
194
accordance with criteria that shall include, but not be lim-
ited to, the following:
(1) Prior United States government use or
demonstrated substantial utility and effectiveness.
(2) Availability of the technology for immediate
deployment in public and private settings.
(3) Existence of extraordinarily large or ex-
traordinarily unquantifiable potential third party li-
ability risk exposure to the Seller or other provider
of such anti-terrorism technology.
(4) Substantial likelihood that such anti-ter-
rorism technology will not be deployed unless protec-
tions under the system of risk management provided
under this subtitle are extended.
(5) Magnitude of risk exposure to the public if
such anti-terrorism technology is not deployed.
(6) Evaluation of all scientific studies that can
be feasibly conducted in order to assess the capa-
bility of the technology to substantially reduce risks
of harm.
(7) Anti-terrorism technology that would be ef-
fective in facilitating the defense against acts of ter-
rorism.
(c) REGULATIONS.—The Secretary may issue such
regulations, after notice and comment in accordance with
195
section 553 of title 5, United States, Code, as may be nec-
essary to carry out this subtitle.
SEC. 753. LITIGATION MANAGEMENT.
(a) FEDERAL CAUSE OF ACTION.—(1) There shall
exist a Federal cause of action for claims arising out of,
relating to, or resulting from an act of terrorism when
qualified anti-terrorism technologies have been deployed in
defense against such act and such claims result or may
result in loss to the Seller. The substantive law for deci-
sion in any such action shall be derived from the law, in-
cluding choice of law principles, of the State in which such
acts of terrorism occurred, unless such law is inconsistent
with or preempted by Federal law.
(2) Such appropriate district court of the United
States shall have original and exclusive jurisdiction over
all actions for any claim for loss of property, personal in-
jury, or death arising out of, relating to, or resulting from
an act of terrorism when qualified anti-terrorism tech-
nologies have been deployed in defense against such act
and such claims result or may result in loss to the Seller.
(b) SPECIAL RULES.—In an action brought under
this section for damages the following provisions apply:
(1) No punitive damages intended to punish or
deter, exemplary damages, or other damages not in-
tended to compensate a plaintiff for actual losses
196
may be awarded, nor shall any party be liable for in-
terest prior to the judgment.
(2)(A) Noneconomic damages may be awarded
against a defendant only in an amount directly pro-
portional to the percentage of responsibility of such
defendant for the harm to the plaintiff, and no
plaintiff may recover noneconomic damages unless
the plaintiff suffered physical harm.
(B) For purposes of subparagraph (A), the
term ‘‘noneconomic damages’’ means damages for
losses for physical and emotional pain, suffering, in-
convenience, physical impairment, mental anguish,
disfigurement, loss of enjoyment of life, loss of soci-
ety and companionship, loss of consortium, hedonic
damages, injury to reputation, and any other non-
pecuniary losses.
(c) COLLATERAL SOURCES.—Any recovery by a
plaintiff in an action under this section shall be reduced
by the amount of collateral source compensation, if any,
that the plaintiff has received or is entitled to receive as
a result of such acts of terrorism that result or may result
in loss to the Seller.
(d) GOVERNMENT
CONTRACTOR
DEFENSE.—(1)
Should a product liability or other lawsuit be filed for
claims arising out of, relating to, or resulting from an act
197
of terrorism when qualified anti-terrorism technologies ap-
proved by the Secretary, as provided in paragraphs (2)
and (3) of this subsection, have been deployed in defense
against such act and such claims result or may result in
loss to the Seller, there shall be a rebuttable presumption
that the government contractor defense applies in such
lawsuit. This presumption shall only be overcome by evi-
dence showing that the Seller acted fraudulently or with
willful misconduct in submitting information to the Sec-
retary during the course of the Secretary’s consideration
of such technology under this subsection. This presump-
tion of the government contractor defense shall apply re-
gardless of whether the claim against the Seller arises
from a sale of the product to Federal Government or non-
Federal Government customers.
(2) The Secretary will be exclusively responsible for
the review and approval of anti-terrorism technology for
purposes of establishing a government contractor defense
in any product liability lawsuit for claims arising out of,
relating to, or resulting from an act of terrorism when
qualified anti-terrorism technologies approved by the Sec-
retary, as provided in this paragraph and paragraph (3),
have been deployed in defense against such act and such
claims result or may result in loss to the Seller. Upon the
Seller’s submission to the Secretary for approval of anti-
198
terrorism technology, the Secretary will conduct a com-
prehensive review of the design of such technology and de-
termine whether it will perform as intended, conforms to
the Seller’s specifications, and is safe for use as intended.
The Seller will conduct safety and hazard analyses on such
technology and will supply the Secretary with all such in-
formation.
(3) For anti-terrorism technology reviewed and ap-
proved by the Secretary, the Secretary will issue a certifi-
cate of conformance to the Seller and place the anti-ter-
rorism technology on an Approved Product List for Home-
land Security.
(e) EXCLUSION.—Nothing in this section shall in any
way limit the ability of any person to seek any form of
recovery from any person, government, or other entity
that—
(1) attempts to commit, knowingly participates
in, aids and abets, or commits any act of terrorism,
or any criminal act related to or resulting from such
act of terrorism; or
(2) participates in a conspiracy to commit any
such act of terrorism or any such criminal act.
SEC. 754. RISK MANAGEMENT.
(a) IN GENERAL.—(1) Any person or entity that sells
or otherwise provides a qualified anti-terrorism technology
199
to Federal and non-Federal government customers (‘‘Sell-
er’’) 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 such act.
(2) For the total claims related to one such act of
terrorism, the Seller is not required to obtain liability in-
surance 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) Liability insurance obtained pursuant to this sub-
section shall, in addition to the Seller, protect the fol-
lowing, to the extent of their potential liability for involve-
ment in the manufacture, qualification, sale, use, or oper-
ation of qualified anti-terrorism technologies deployed in
defense against an act of terrorism:
(A) contractors, subcontractors, suppliers, ven-
dors and customers of the Seller.
(B) contractors, subcontractors, suppliers, and
vendors of the customer.
200
(4) 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-ter-
rorism technologies.
(b) RECIPROCAL WAIVER OF CLAIMS.—The Seller
shall enter into a reciprocal waiver of claims with its con-
tractors, subcontractors, suppliers, vendors and cus-
tomers, and contractors and subcontractors of the cus-
tomers, 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, in-
cluding 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 quali-
fied anti-terrorism technologies have been deployed in de-
fense against 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-terrorism technologies
have been deployed in defense against 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
201
limits of liability insurance coverage required to be main-
tained by the Seller under this section.
SEC. 755. DEFINITIONS.
For purposes of this subtitle, the following definitions
apply:
(1) 
QUALIFIED
ANTI-TERRORISM
TECH-
NOLOGY.—For purposes of this subtitle, the term
‘‘qualified anti-terrorism technology’’ means any
product, equipment, service (including support serv-
ices), device, or technology (including information
technology) designed, developed, modified, or pro-
cured for the specific purpose of preventing, detect-
ing, 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 deter-
mines meets the requirements under subparagraph
(B), as such requirements are further defined and
specified by the Secretary.
(B) REQUIREMENTS.—An act meets the re-
quirements 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
202
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 in-
surance coverage is subject to regulation in the
United States), in or outside the United States;
and
(iii) uses or attempts to use instrumental-
ities, weapons or other methods designed or in-
tended to cause mass destruction, injury or
other loss to citizens or institutions of the
United States.
(3) INSURANCE
CARRIER.—The term ‘‘insur-
ance carrier’’ means any corporation, association, so-
ciety, order, firm, company, mutual, partnership, in-
dividual aggregation of individuals, or any other
legal entity that provides commercial property and
casualty insurance. Such term includes any affiliates
of a commercial insurance carrier.
(4) LIABILITY INSURANCE.—
(A) IN GENERAL.—The term ‘‘liability in-
surance’’ means insurance for legal liabilities
incurred by the insured resulting from—
(i) loss of or damage to property of
others;
203
(ii) ensuing loss of income or extra ex-
pense incurred because of loss of or dam-
age to property of others;
(iii) bodily injury (including) to per-
sons other than the insured or its employ-
ees; or
(iv) loss resulting from debt or default
of another.
(5) LOSS.—The term ‘‘loss’’ means death, bod-
ily injury, or loss of or damage to property, includ-
ing business interruption loss.
(6) 
NON-FEDERAL
GOVERNMENT
CUS-
TOMERS.—The term ‘‘non-Federal Government cus-
tomers’’ 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 cir-
cumstances for third-party claims against its con-
tractors, including but not limited to State and local
authorities and commercial entities.
Subtitle G—Other Provisions
SEC. 761. ESTABLISHMENT OF HUMAN RESOURCES MAN-
AGEMENT SYSTEM.
(a) AUTHORITY.—
204
(1) SENSE OF CONGRESS.—It is the sense of
the Congress that—
(A) it is extremely important that employ-
ees of the Department be allowed to participate
in a meaningful way in the creation of any
human resources management system affecting
them;
(B) such employees have the most direct
knowledge of the demands of their jobs and
have a direct interest in ensuring that their
human resources management system is condu-
cive to achieving optimal operational effi-
ciencies;
(C) the 21st century human resources
management system envisioned for the Depart-
ment should be one that benefits from the input
of its employees; and
(D) this collaborative effort will help se-
cure our homeland.
(2) IN GENERAL.—Subpart I of part III of title
5, United States Code, is amended by adding at the
end the following:
‘‘CHAPTER 97—DEPARTMENT OF HOMELAND
SECURITY
‘‘Sec.
‘‘9701. Establishment of human resources management system.
205
‘‘§ 9701. Establishment of human resources manage-
ment system
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this title, the Secretary of Homeland Security
may, in regulations prescribed jointly with the Director
of the Office of Personnel Management, establish, and
from time to time adjust, a human resources management
system for some or all of the organizational units of the
Department of Homeland Security.
‘‘(b) SYSTEM REQUIREMENTS.—Any system estab-
lished under subsection (a) shall—
‘‘(1) be flexible;
‘‘(2) be contemporary;
‘‘(3) not waive, modify, or otherwise affect—
‘‘(A) the public employment principles of
merit and fitness set forth in section 2301, in-
cluding the principles of hiring based on merit,
fair treatment without regard to political affili-
ation or other non-merit considerations, equal
pay for equal work, and protection of employees
against reprisal for whistleblowing;
‘‘(B) any provision of section 2302, relat-
ing to prohibited personnel practices;
‘‘(C)(i) any provision of law referred to in
section 2302(b)(1); or
206
‘‘(ii) any provision of law implementing
any provision of law referred to in section
2302(b)(1) by—
‘‘(I) providing for equal employment
opportunity through affirmative action; or
‘‘(II) providing any right or remedy
available to any employee or applicant for
employment in the civil service;
‘‘(D) any other provision of this part (as
described in subsection (c)); or
‘‘(E) any rule or regulation prescribed
under any provision of law referred to in any of
the preceding subparagraphs of this paragraph;
‘‘(4) ensure that employees may organize, bar-
gain collectively, and participate through labor orga-
nizations of their own choosing in decisions which
affect them, subject to any exclusion from coverage
or limitation on negotiability established by law; and
‘‘(5) permit the use of a category rating system
for evaluating applicants for positions in the com-
petitive service.
‘‘(c) OTHER NONWAIVABLE PROVISIONS.—The other
provisions of this part, as referred to in subsection
(b)(3)(D), are (to the extent not otherwise specified in
subparagraph (A), (B), (C), or (D) of subsection (b)(3))—
207
‘‘(1) subparts A, B, E, G, and H of this part;
and
‘‘(2) chapters 41, 45, 47, 55, 57, 59, 72, 73,
and 79, and this chapter.
‘‘(d) LIMITATIONS RELATING TO PAY.—Nothing in
this section shall constitute authority—
‘‘(1) to modify the pay of any employee who
serves in—
‘‘(A) an Executive Schedule position under
subchapter II of chapter 53 of title 5, United
States Code; or
‘‘(B) a position for which the rate of basic
pay is fixed in statute by reference to a section
or level under subchapter II of chapter 53 of
such title 5;
‘‘(2) to fix pay for any employee or position at
an annual rate greater than the maximum amount
of cash compensation allowable under section 5307
of such title 5 in a year; or
‘‘(3) to exempt any employee from the applica-
tion of such section 5307.
‘‘(e) PROVISIONS TO ENSURE COLLABORATION WITH
EMPLOYEE REPRESENTATIVES.—
‘‘(1) IN GENERAL.—In order to ensure that the
authority of this section is exercised in collaboration
208
with, and in a manner that ensures the direct par-
ticipation of employee representatives in the plan-
ning, development, and implementation of any
human resources management system or adjust-
ments under this section, the Secretary of Homeland
Security and the Director of the Office of Personnel
Management shall provide for the following:
‘‘(A) NOTICE
OF
PROPOSAL, ETC.—The
Secretary and the Director shall, with respect
to any proposed system or adjustment—
‘‘(i) provide to each employee rep-
resentative representing any employees
who might be affected, a written descrip-
tion of the proposed system or adjustment
(including the reasons why it is considered
necessary);
‘‘(ii) give each representative at least
days 
(unless 
extraordinary 
cir-
cumstances require earlier action) to re-
view and make recommendations with re-
spect to the proposal; and
‘‘(iii) give any recommendations re-
ceived from any such representative under
clause (ii) full and fair consideration in de-
209
ciding whether or how to proceed with the
proposal.
‘‘(B) 
PRE-IMPLEMENTATION
REQUIRE-
MENTS.—If the Secretary and the Director de-
cide to implement a proposal described in sub-
paragraph 
(A), 
they 
shall 
before
implementation—
‘‘(i) give each employee representative
details of the decision to implement the
proposal, together with the information
upon which the decision was based;
‘‘(ii) give each representative an op-
portunity to make recommendations with
respect to the proposal; and
‘‘(iii) give such recommendations full
and fair consideration, including the pro-
viding of reasons to an employee represent-
ative if any of its recommendations are re-
jected.
‘‘(C) CONTINUING COLLABORATION.—If a
proposal described in subparagraph (A) is im-
plemented, the Secretary and the Director
shall—
‘‘(i) develop a method for each em-
ployee representative to participate in any
210
further planning or development which
might become necessary; and
‘‘(ii) give each employee representative
adequate access to information to make
that participation productive.
‘‘(2) PROCEDURES.—Any procedures necessary
to carry out this subsection shall be established by
the Secretary and the Director jointly. Such proce-
dures shall include measures to ensure—
‘‘(A) in the case of employees within a unit
with respect to which a labor organization is ac-
corded exclusive recognition, representation by
individuals designated or from among individ-
uals nominated by such organization;
‘‘(B) in the case of any employees who are
not within such a unit, representation by any
appropriate organization which represents a
substantial percentage of those employees or, if
none, in such other manner as may be appro-
priate, consistent with the purposes of this sub-
section; and
‘‘(C) the selection of representatives in a
manner consistent with the relative numbers of
employees represented by the organizations or
other representatives involved.
211
‘‘(f) PROVISIONS RELATING TO APPELLATE PROCE-
DURES.—
‘‘(1) SENSE OF CONGRESS.—It is the sense of
the Congress that—
‘‘(A) employees of the Department of
Homeland Security are entitled to fair treat-
ment in any appeals that they bring in decisions
relating to their employment; and
‘‘(B) in prescribing regulations for any
such appeals procedures, the Secretary of
Homeland Security and the Director of the Of-
fice of Personnel Management—
‘‘(i) should ensure that employees of
the Department are afforded the protec-
tions of due process; and
‘‘(ii) toward that end, should be re-
quired to consult with the Merit Systems
Protection Board before issuing any such
regulations.
‘‘(2) REQUIREMENTS.—Any regulations under
this section which relate to any matters within the
purview of chapter 77—
‘‘(A) shall be issued only after consultation
with the Merit Systems Protection Board; and
212
‘‘(B) shall ensure the availability of proce-
dures which shall—
‘‘(i) be consistent with requirements
of due process; and
‘‘(ii) provide, to the maximum extent
practicable, for the expeditious handling of
any matters involving the Department of
Homeland Security.
‘‘(g) SUNSET PROVISION.—Effective 5 years after
the date of the enactment of this section, all authority to
issue regulations under this section (including regulations
which would modify, supersede, or terminate any regula-
tions previously issued under this section) shall cease to
be available.’’.
(3) CLERICAL
AMENDMENT.—The table of
chapters for part III of title 5, United States Code,
is amended by adding at the end the following:
‘‘97. Department of Homeland Security .................................... 9701’’.
(b) EFFECT ON PERSONNEL.—
(1) NON-SEPARATION
OR
NON-REDUCTION
IN
GRADE
OR
COMPENSATION
OF
FULL-TIME
PER-
SONNEL AND PART-TIME PERSONNEL HOLDING PER-
MANENT POSITIONS.—Except as otherwise provided
in this Act, the transfer pursuant to this Act of full-
time personnel (except special Government employ-
ees) and part-time personnel holding permanent po-
213
sitions shall not cause any such employee to be sepa-
rated or reduced in grade or compensation for one
year after the date of transfer to the Department.
(2) POSITIONS COMPENSATED IN ACCORDANCE
WITH EXECUTIVE SCHEDULE.—Any person who, on
the day preceding such person’s date of transfer
pursuant to this Act, held a position compensated in
accordance with the Executive Schedule prescribed
in chapter 53 of title 5, United States Code, and
who, without a break in service, is appointed in the
Department to a position having duties comparable
to the duties performed immediately preceding such
appointment shall continue to be compensated in
such new position at not less than the rate provided
for such previous position, for the duration of the
service of such person in such new position.
(3) COORDINATION RULE.—Any exercise of au-
thority under chapter 97 of title 5, United States
Code (as amended by subsection (a)), including
under any system established under such chapter,
shall be in conformance with the requirements of
this subsection.
SEC. 762. LABOR-MANAGEMENT RELATIONS.
(a) LIMITATION ON EXCLUSIONARY AUTHORITY.—
214
(1) IN GENERAL.—No agency or subdivision of
an agency which is transferred to the Department
pursuant to this Act shall be excluded from the cov-
erage of chapter 71 of title 5, United States Code,
as a result of any order issued under section
7103(b)(1) of such title 5 after June 18, 2002,
unless—
(A) the mission and responsibilities of the
agency (or subdivision) materially change; and
(B) a majority of the employees within
such agency (or subdivision) have as their pri-
mary duty intelligence, counterintelligence, or
investigative work directly related to terrorism
investigation.
(2) EXCLUSIONS
ALLOWABLE.—Nothing in
paragraph (1) shall affect the effectiveness of any
order to the extent that such order excludes any por-
tion of an agency or subdivision of an agency as to
which—
(A) recognition as an appropriate unit has
never been conferred for purposes of chapter 71
of such title 5; or
(B) any such recognition has been revoked
or otherwise terminated as a result of a deter-
mination under subsection (b)(1).
215
(b) 
PROVISIONS
RELATING
TO
BARGAINING
UNITS.—
(1) LIMITATION
RELATING
TO
APPROPRIATE
UNITS.—Each unit which is recognized as an appro-
priate unit for purposes of chapter 71 of title 5,
United States Code, as of the day before the effec-
tive date of this Act (and any subdivision of any
such unit) shall, if such unit (or subdivision) is
transferred to the Department pursuant to this Act,
continue to be so recognized for such purposes,
unless—
(A) the mission and responsibilities of such
unit (or subdivision) materially change; and
(B) a majority of the employees within
such unit (or subdivision) have as their primary
duty intelligence, counterintelligence, or inves-
tigative work directly related to terrorism inves-
tigation.
(2) LIMITATION
RELATING
TO
POSITIONS
OR
EMPLOYEES.—No position or employee within a unit
(or subdivision of a unit) as to which continued rec-
ognition is given in accordance with paragraph (1)
shall be excluded from such unit (or subdivision), for
purposes of chapter 71 of such title 5, unless the
primary job duty of such position or employee—
216
(A) materially changes; and
(B) consists of intelligence, counterintel-
ligence, or investigative work directly related to
terrorism investigation.
In the case of any positions within a unit (or sub-
division) which are first established on or after the
effective date of this Act and any employees first ap-
pointed on or after such date, the preceding sentence
shall be applied disregarding subparagraph (A).
(c) HOMELAND SECURITY.—Subsections (a), (b), and
(d) of this section shall not apply in circumstances where
the President determines in writing that such application
would have a substantial adverse impact on the Depart-
ment’s ability to protect homeland security.
(d) COORDINATION RULE.—No other provision of
this Act or of any amendment made by this Act may be
construed or applied in a manner so as to limit, supersede,
or otherwise affect the provisions of this section, except
to the extent that it does so by specific reference to this
section.
SEC. 763. ADVISORY COMMITTEES.
The Secretary may establish, appoint members of,
and use the services of, advisory committees, as the Sec-
retary may deem necessary. An advisory committee estab-
lished under this section may be exempted by the Sec-
217
retary from Public Law 92–463, but the Secretary shall
publish notice in the Federal Register announcing the es-
tablishment of such a committee and identifying its pur-
pose and membership. Notwithstanding the preceding sen-
tence, 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 eligi-
ble 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 committee.
SEC. 764. REORGANIZATION; TRANSFER OF APPROPRIA-
TIONS.
(a) REORGANIZATION.—
(1) IN GENERAL.—The Secretary may allocate
or reallocate functions among the officers of the De-
partment, and may establish, consolidate, alter, or
discontinue organizational units within the Depart-
ment, but only—
(A) pursuant to section 802; or
(B) after the expiration of 60 days after
providing notice of such action to the appro-
priate congressional committees, which shall in-
clude an explanation of the rationale for the ac-
tion.
218
(2) LIMITATIONS.—(A) Authority under para-
graph (1)(A) does not extend to the abolition of any
agency, entity, organizational unit, program, or
function established or required to be maintained by
this Act.
(B) Authority under paragraph (1)(B) does not
extend to the abolition of any agency, entity, organi-
zational unit, program, or function established or re-
quired to be maintained by statute.
(b) TRANSFER OF APPROPRIATIONS.—
(1) IN GENERAL.—Except as otherwise specifi-
cally provided by law, not to exceed two percent of
any appropriation available to the Secretary in any
fiscal year may be transferred between such appro-
priations, except that not less than 15 days’ notice
shall be given to the Committees on Appropriations
of the Senate and House of Representatives before
any such transfer is made.
(2) EXPIRATION OF AUTHORITY.—The author-
ity under paragraph (1) shall expire two years after
the date of enactment of this Act.
SEC. 765. MISCELLANEOUS AUTHORITIES.
(a) SEAL.—The Department shall have a seal, whose
design is subject to the approval of the President.
219
(b) GIFTS, DEVISES, AND BEQUESTS.—With respect
to the Department, the Secretary shall have the same au-
thorities that the Attorney General has with respect to the
Department of Justice under section 524(d) of title 28,
United States Code.
(c) 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.
(d) REDELEGATION OF FUNCTIONS.—Unless other-
wise provided in the delegation or by law, any function
delegated under this Act may be redelegated to any subor-
dinate.
SEC. 766. MILITARY ACTIVITIES.
Nothing in this Act shall confer upon the Secretary
any authority to engage in warfighting, the military de-
fense 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.
220
SEC. 767. REGULATORY AUTHORITY AND PREEMPTION.
(a) REGULATORY AUTHORITY.—Except as otherwise
provided in sections 305(c) and 752(c) of this Act, this
Act vests no new regulatory authority in the Secretary or
any other Federal official, and transfers 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 Depart-
ment pursuant to this Act, or that on such date of enact-
ment 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 transfer of
such agency, program, or function to the Secretary or an-
other Federal official pursuant to this Act. This Act may
not be construed as altering or diminishing the regulatory
authority of any other executive agency, except to the ex-
tent that this Act transfers such authority from the agen-
cy.
(b) PREEMPTION OF STATE OR LOCAL LAW.—Ex-
cept as otherwise provided in this Act, this Act preempts
no State or local law, except that any authority to preempt
State or local law vested in any Federal agency or official
transferred to the Department pursuant to this Act shall
be transferred to the Department effective on the date of
221
the transfer to the Department of that Federal agency or
official.
SEC. 768. PROVISIONS REGARDING TRANSFERS FROM DE-
PARTMENT OF ENERGY.
(a) SEPARATE CONTRACTING.—To the extent that
programs or activities transferred by this Act from the De-
partment of Energy to the Department of Homeland Se-
curity are being carried out through contracts with the
operator of a national laboratory of the Department of
Energy, the Secretary of Homeland Security and the Sec-
retary of Energy shall ensure that contracts for such pro-
grams and activities between the Department of Home-
land Security and such operator are separate from the
contracts of the Department of Energy with such oper-
ator.
(b) HOMELAND SECURITY CENTER.—(1) Notwith-
standing section 307, the Secretary, acting through the
Under Secretary for Science and Technology, shall estab-
lish at a national security laboratory of the National Nu-
clear Security Administration, a center to serve as the pri-
mary location for carrying out research, development, test,
and evaluation activities of the Department related to the
goals described in section 301(6)(A) and (B). The Sec-
retary shall establish, in concurrence with the Secretary
of Energy, such additional centers at one or more national
222
laboratories of the Department of Energy as the Secretary
considers appropriate to serve as secondary locations for
carrying out such activities.
(2) Each center established under paragraph (1) shall
be composed of such facilities and assets as are required
for the performance of such activities. The particular fa-
cilities and assets shall be designated and transferred by
the Secretary of Energy with the concurrence of the Sec-
retary.
(c) REIMBURSEMENT OF COSTS.—In the case of an
activity carried out by the operator of a national labora-
tory of the Department of Energy but under contract with
the Department of Homeland Security, the Department
of Homeland Security shall reimburse the Department of
Energy for costs of such activity through a method under
which the Secretary of Energy waives any requirement for
the Department of Homeland Security to pay administra-
tive charges or personnel costs of the Department of En-
ergy or its contractors in excess of the amount that the
Secretary of Energy pays for an activity carried out by
such contractor and paid for by the Department of En-
ergy.
(d) LABORATORY DIRECTED RESEARCH AND DEVEL-
OPMENT BY THE DEPARTMENT OF ENERGY.—No funds
authorized to be appropriated or otherwise made available
223
to the Department in any fiscal year may be obligated or
expended for laboratory directed research and develop-
ment activities carried out by the Department of Energy
unless such activities support the mission of the Depart-
ment described in section 101.
(e) DEPARTMENT OF ENERGY COORDINATION ON
HOMELAND SECURITY RELATED RESEARCH.—The Sec-
retary of Energy shall ensure that any research, develop-
ment, test, and evaluation activities conducted within the
Department of Energy that are directly or indirectly re-
lated to homeland security are fully coordinated with the
Secretary to minimize duplication of effort and maximize
the effective application of Federal budget resources.
SEC. 769. COUNTERNARCOTICS OFFICER.
The Secretary shall appoint a senior official in the
Department to assume primary responsibility for coordi-
nating policy and operations within the Department and
between the Department and other Federal departments
and agencies with respect to interdicting the entry of ille-
gal drugs into the United States, and tracking and sev-
ering connections between illegal drug trafficking and ter-
rorism. Such official shall—
(1) ensure the adequacy of resources within the
Department for illicit drug interdiction; and
224
(2) serve as the United States Interdiction Co-
ordinator for the Director of National Drug Control
Policy.
SEC. 770. OFFICE OF INTERNATIONAL AFFAIRS.
(a) ESTABLISHMENT.—There is established within
the Office of the Secretary an Office of International Af-
fairs. The Office shall be headed by a Director, who shall
be a senior official appointed by the Secretary.
(b) DUTIES OF THE DIRECTOR.—The Director shall
have the following duties:
(1) To promote information and education ex-
change with nations friendly to the United States in
order to promote sharing of best practices and tech-
nologies relating to homeland security. Such infor-
mation exchange shall include the following:
(A) Joint research and development on
countermeasures.
(B) Joint training exercises of first re-
sponders.
(C) Exchange of expertise on terrorism
prevention, response, and crisis management.
(2) To identify areas for homeland security in-
formation and training exchange where the United
States has a demonstrated weakness and another
225
friendly nation or nations have a demonstrated ex-
pertise.
(3) To plan and undertake international con-
ferences, exchange programs, and training activities.
(4) To manage international activities within
the Department in coordination with other Federal
officials with responsibility for counter-terrorism
matters.
SEC. 771. PROHIBITION OF THE TERRORISM INFORMATION
AND PREVENTION SYSTEM.
Any and all activities of the Federal Government to
implement the proposed component program of the Citizen
Corps known as Operation TIPS (Terrorism Information
and Prevention System) are hereby prohibited.
SEC. 772. REVIEW OF PAY AND BENEFIT PLANS.
Notwithstanding any other provision of this Act, the
Secretary shall, in consultation with the Director of the
Office of Personnel Management, review the pay and ben-
efit plans of each agency whose functions are transferred
under this Act to the Department and, within 90 days
after the date of enactment, submit a plan to the Presi-
dent of the Senate and the Speaker of the House of Rep-
resentatives and the appropriate committees and sub-
committees of the Congress, for ensuring, to the maximum
extent practicable, the elimination of disparities in pay
226
and benefits throughout the Department, especially among
law enforcement personnel, that are inconsistent with
merit system principles set forth in section 2301 of title
5, United States Code.
SEC. 773. ROLE OF THE DISTRICT OF COLUMBIA.
The Secretary (or the Secretary’s designee) shall
work in cooperation with the Mayor of the District of Co-
lumbia (or the Mayor’s designee) for the purpose of inte-
grating the District of Columbia into the planning, coordi-
nation, and execution of the activities of the Federal Gov-
ernment for the enhancement of domestic preparedness
against the consequences of terrorist attacks.
SEC. 774. TRANSFER OF THE FEDERAL LAW ENFORCEMENT
TRAINING CENTER.
There shall be transferred to the Attorney General
the functions, personnel, assets, and liabilities of the Fed-
eral Law Enforcement Training Center, including any
functions of the Secretary of the Treasury relating there-
to.
227
SEC. 775. REQUIREMENT TO COMPLY WITH LAWS PRO-
TECTING 
EQUAL 
EMPLOYMENT 
OPPOR-
TUNITY AND PROVIDING WHISTLEBLOWER
PROTECTIONS.
Nothing in this Act shall be construed as exempting
the Department from requirements applicable with respect
to executive agencies—
(1) to provide equal employment protection for
employees of the Department (including pursuant to
the provisions in section 2302(b)(1) of title 5,
United States Code, and the Notification and Fed-
eral Employee Antidiscrimination and Retaliation
Act of 2002 (Pub. L. 107–174)); or
(2) to provide whistleblower protections for em-
ployees of the Department (including pursuant to
the provisions in section 2302(b)(8) of such title and
the Notification and Federal Employee Antidiscrimi-
nation and Retaliation Act of 2002).
SEC. 776. FEDERAL LAW ENFORCMENT TRAINING CENTER.
(a) IN GENERAL.—The transfer of an authority or
an agency under this Act to the Department of Homeland
Security does not affect training agreements already en-
tered into with the Federal Law Enforcement Training
Center with respect to the training of personnel to carry
out that authority or the duties of that transferred agency.
228
(b) CONTINUITY OF OPERATIONS.—All activities of
the Federal Law Enforcement Training Center trans-
ferred to the Department of Justice under this Act shall
continue to be carried out at the locations such activities
were carried out before such transfer.
SEC. 777. OFFICE FOR STATE AND LOCAL GOVERNMENT
COORDINATION.
(a) ESTABLISHMENT.—There is established within
the Office of the Secretary the Office for State and Local
Government Coordination, to oversee and coordinate de-
partmental programs for and relationships with State and
local governments.
(b) 
RESPONSIBILITIES.—The 
Office 
established
under subsection (a) shall—
(1) coordinate the activities of the Department
relating to State and local government;
(2) assess, and advocate for, the resources
needed by State and local government to implement
the national strategy for combating terrorism;
(3) provide State and local government with
regular information, research, and technical support
to assist local efforts at securing the homeland; and
(4) develop a process for receiving meaningful
input from State and local government to assist the
229
development of the national strategy for combating
terrorism and other homeland security activities.
SEC. 778. REPORTING REQUIREMENTS.
(a) BIENNIAL REPORTS.—Every 2 years the Sec-
retary shall submit to Congress—
(1) a report assessing the resources and re-
quirements of executive agencies relating to border
security and emergency preparedness issues;
(2) a report certifying the preparedness of the
United States to prevent, protect against, and re-
spond to natural disasters, cyber attacks, and inci-
dents involving weapons of mass destruction; and
(3) a report assessing the emergency prepared-
ness of each State, including an assessment of each
State’s coordination with the Department with re-
spect to the responsibilities specified in section 501.
(b) ADDITIONAL REPORT.—Not later than 1 year
after the effective date of this Act, the Secretary shall sub-
mit to Congress a report—
(1) assessing the progress of the Department
in—
(A) implementing this Act; and
(B) ensuring the core functions of each en-
tity transferred to the Department are main-
tained and strengthened; and
230
(2) recommending any conforming changes in
law necessary as a result of the enactment and im-
plementation of this Act.
SEC. 779. JOINT INTERAGENCY TASK FORCE.
(a) ESTABLISHMENT..—The Secretary may establish
and operate a permanent Joint Interagency Homeland Se-
curity Task Force composed of representatives from mili-
tary and civilian agencies of the United States Govern-
ment for the purposes of anticipating terrorist threats
against the United States and taking appropriate actions
to prevent harm to the United States.
(b) STRUCTURE.—It is the sense of Congress that the
Secretary should model the Joint Interagency Homeland
Security Task Force on the approach taken by the Joint
Interagency Task Forces for drug interdiction at Key
West, Florida and Alameda, California, to the maximum
extent feasible and appropriate.
SEC. 780. SENSE OF CONGRESS REAFFIRMING THE CONTIN-
UED IMPORTANCE AND APPLICABILITY OF
THE POSSE COMITATUS ACT.
(a) FINDINGS.—The Congress finds the following:
(1) Section 1385 of title 18, United States
Code (commonly known as the ‘‘Posse Comitatus
Act’’), prohibits the use of the Armed Forces as a
posse comitatus to execute the laws except in cases
231
and under circumstances expressly authorized by the
Constitution or Act of Congress.
(2) Enacted in 1878, the Posse Comitatus Act
was expressly intended to prevent United States
Marshals, on their own initiative, from calling on the
Army for assistance in enforcing Federal law.
(3) The Posse Comitatus Act has served the
Nation well in limiting the use of the Armed Forces
to enforce the law.
(4) Nevertheless, by its express terms, the
Posse Comitatus Act is not a complete barrier to the
use of the Armed Forces for a range of domestic
purposes, including law enforcement functions, when
the use of the Armed Forces is authorized by Act of
Congress or the President determines that the use of
the Armed Forces is required to fulfill the Presi-
dent’s obligations under the Constitution to respond
promptly in time of war, insurrection, or other seri-
ous emergency.
(5) Existing laws, including chapter 15 of title
10, United States Code (commonly known as the
‘‘Insurrection Act’’), and the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.), grant the President broad
powers that may be invoked in the event of domestic
232
emergencies, including an attack against the Nation
using weapons of mass destruction, and these laws
specifically authorize the President to use the Armed
Forces to help restore public order.
(b) SENSE OF CONGRESS.—The Congress reaffirms
the continued importance of section 1385 of title 18,
United States Code, and it is the sense of the Congress
that nothing in this Act should be construed to alter the
applicability of such section to any use of the Armed
Forces as a posse comitatus to execute the laws.
SEC. 781. AIR TRANSPORTATION SAFETY AND SYSTEM STA-
BILIZATION ACT AMENDMENTS.
The Air Transportation Safety and System Stabiliza-
tion Act (49 U.S.C. 40101 note) is amended—
(1) in section 408 by striking the last sentence
of subsection (c); and
(2) in section 402 by striking paragraph (1)
and inserting the following:
‘‘(1) AIR
CARRIER.—The term ‘air carrier’
means a citizen of the United States undertaking by
any means, directly or indirectly, to provide air
transportation and includes employees and agents
(including persons engaged in the business of pro-
viding air transportation security and their affili-
ates) of such citizen. For purposes of the preceding
233
sentence, the term ‘agent’, as applied to persons en-
gaged in the business of providing air transportation
security, shall only include persons that have con-
tracted directly with the Federal Aviation Adminis-
tration on or after February 17, 2002, to provide
such security, or are not debarred.’’.
Subtitle H—Information Sharing
SEC. 790. SHORT TITLE.
This subtitle may be cited as the ‘‘Homeland Security
Information Sharing Act’’.
SEC. 791. FINDINGS AND SENSE OF CONGRESS.
(a) FINDINGS.—The Congress finds the following:
(1) The Federal Government is required by the
Constitution to provide for the common defense,
which includes terrorist attack.
(2) The Federal Government relies on State
and local personnel to protect against terrorist at-
tack.
(3) The Federal Government collects, creates,
manages, and protects classified and sensitive but
unclassified information to enhance homeland secu-
rity.
(4) Some homeland security information is
needed by the State and local personnel to prevent
and prepare for terrorist attack.
234
(5) The needs of State and local personnel to
have access to relevant homeland security informa-
tion to combat terrorism must be reconciled with the
need to preserve the protected status of such infor-
mation and to protect the sources and methods used
to acquire such information.
(6) Granting security clearances to certain
State and local personnel is one way to facilitate the
sharing of information regarding specific terrorist
threats among Federal, State, and local levels of
government.
(7) Methods exist to declassify, redact, or other-
wise adapt classified information so it may be shared
with State and local personnel without the need for
granting additional security clearances.
(8) State and local personnel have capabilities
and opportunities to gather information on sus-
picious activities and terrorist threats not possessed
by Federal agencies.
(9) The Federal Government and State and
local governments and agencies in other jurisdictions
may benefit from such information.
(10) Federal, State, and local governments and
intelligence, law enforcement, and other emergency
preparation and response agencies must act in part-
235
nership to maximize the benefits of information
gathering and analysis to prevent and respond to
terrorist attacks.
(11) Information systems, including the Na-
tional Law Enforcement Telecommunications Sys-
tem and the Terrorist Threat Warning System, have
been established for rapid sharing of classified and
sensitive but unclassified information among Fed-
eral, State, and local entities.
(12) Increased efforts to share homeland secu-
rity information should avoid duplicating existing in-
formation systems.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that Federal, State, and local entities should share
homeland security information to the maximum extent
practicable, with special emphasis on hard-to-reach urban
and rural communities.
SEC. 792. FACILITATING HOMELAND SECURITY INFORMA-
TION SHARING PROCEDURES.
(a) PROCEDURES FOR DETERMINING EXTENT OF
SHARING OF HOMELAND SECURITY INFORMATION.—
(1) The President shall prescribe and imple-
ment procedures under which relevant Federal
agencies—
236
(A) share relevant and appropriate home-
land security information with other Federal
agencies, including the Department, and appro-
priate State and local personnel;
(B) identify and safeguard homeland secu-
rity information that is sensitive but unclassi-
fied; and
(C) to the extent such information is in
classified form, determine whether, how, and to
what extent to remove classified information, as
appropriate, and with which such personnel it
may be shared after such information is re-
moved.
(2) The President shall ensure that such proce-
dures apply to all agencies of the Federal Govern-
ment.
(3) Such procedures shall not change the sub-
stantive requirements for the classification and safe-
guarding of classified information.
(4) Such procedures shall not change the re-
quirements and authorities to protect sources and
methods.
(b) PROCEDURES FOR SHARING OF HOMELAND SE-
CURITY INFORMATION.—
237
(1) Under procedures prescribed by the Presi-
dent, all appropriate agencies, including the intel-
ligence community, shall, through information shar-
ing systems, share homeland security information
with Federal agencies and appropriate State and
local personnel to the extent such information may
be shared, as determined in accordance with sub-
section (a), together with assessments of the credi-
bility of such information.
(2) Each information sharing system through
which information is shared under paragraph (1)
shall—
(A) have the capability to transmit unclas-
sified or classified information, though the pro-
cedures and recipients for each capability may
differ;
(B) have the capability to restrict delivery
of information to specified subgroups by geo-
graphic location, type of organization, position
of a recipient within an organization, or a re-
cipient’s need to know such information;
(C) be configured to allow the efficient and
effective sharing of information; and
(D) be accessible to appropriate State and
local personnel.
238
(3) The procedures prescribed under paragraph
(1) shall establish conditions on the use of informa-
tion shared under paragraph (1)—
(A) to limit the redissemination of such in-
formation to ensure that such information is
not used for an unauthorized purpose;
(B) to ensure the security and confiden-
tiality of such information;
(C) to protect the constitutional and statu-
tory rights of any individuals who are subjects
of such information; and
(D) to provide data integrity through the
timely removal and destruction of obsolete or
erroneous names and information.
(4) The procedures prescribed under paragraph
(1) shall ensure, to the greatest extent practicable,
that the information sharing system through which
information is shared under such paragraph include
existing information sharing systems, including, but
not limited to, the National Law Enforcement Tele-
communications System, the Regional Information
Sharing System, and the Terrorist Threat Warning
System of the Federal Bureau of Investigation.
(5) Each appropriate Federal agency, as deter-
mined by the President, shall have access to each in-
239
formation sharing system through which information
is shared under paragraph (1), and shall therefore
have access to all information, as appropriate,
shared under such paragraph.
(6) The procedures prescribed under paragraph
(1) shall ensure that appropriate State and local
personnel are authorized to use such information
sharing systems—
(A) to access information shared with such
personnel; and
(B) to share, with others who have access
to such information sharing systems, the home-
land security information of their own jurisdic-
tions, which shall be marked appropriately as
pertaining to potential terrorist activity.
(7) Under procedures prescribed jointly by the
Director of Central Intelligence and the Attorney
General, each appropriate Federal agency, as deter-
mined by the President, shall review and assess the
information shared under paragraph (6) and inte-
grate such information with existing intelligence.
(c) SHARING
OF CLASSIFIED INFORMATION
AND
SENSITIVE
BUT
UNCLASSIFIED
INFORMATION
WITH
STATE AND LOCAL PERSONNEL.—
240
(1) The President shall prescribe procedures
under which Federal agencies may, to the extent the
President considers necessary, share with appro-
priate State and local personnel homeland security
information that remains classified or otherwise pro-
tected after the determinations prescribed under the
procedures set forth in subsection (a).
(2) It is the sense of Congress that such proce-
dures may include one or more of the following
means:
(A) Carrying out security clearance inves-
tigations with respect to appropriate State and
local personnel.
(B) With respect to information that is
sensitive but unclassified, entering into non-
disclosure agreements with appropriate State
and local personnel.
(C) Increased use of information-sharing
partnerships that include appropriate State and
local personnel, such as the Joint Terrorism
Task Forces of the Federal Bureau of Inves-
tigation, the Anti-Terrorism Task Forces of the
Department of Justice, and regional Terrorism
Early Warning Groups.
241
(d) RESPONSIBLE OFFICIALS.—For each affected
Federal agency, the head of such agency shall designate
an official to administer this Act with respect to such
agency.
(e) FEDERAL CONTROL OF INFORMATION.—Under
procedures prescribed under this section, information ob-
tained by a State or local government from a Federal
agency under this section shall remain under the control
of the Federal agency, and a State or local law authorizing
or requiring such a government to disclose information
shall not apply to such information.
(f) DEFINITIONS.—As used in this section:
(1) The term ‘‘homeland security information’’
means any information possessed by a Federal,
State, or local agency that—
(A) relates to the threat of terrorist activ-
ity;
(B) relates to the ability to prevent, inter-
dict, or disrupt terrorist activity;
(C) would improve the identification or in-
vestigation of a suspected terrorist or terrorist
organization; or
(D) would improve the response to a ter-
rorist act.
242
(2) The term ‘‘intelligence community’’ has the
meaning given such term in section 3(4) of the Na-
tional Security Act of 1947 (50 U.S.C. 401a(4)).
(3) The term ‘‘State and local personnel’’
means any of the following persons involved in pre-
vention, preparation, or response for terrorist attack:
(A) State Governors, mayors, and other lo-
cally elected officials.
(B) State and local law enforcement per-
sonnel and firefighters.
(C) Public health and medical profes-
sionals.
(D) Regional, State, and local emergency
management agency personnel, including State
adjutant generals.
(E) Other appropriate emergency response
agency personnel.
(F) Employees of private-sector entities
that affect critical infrastructure, cyber, eco-
nomic, or public health security, as designated
by the Federal government in procedures devel-
oped pursuant to this section.
(4) The term ‘‘State’’ includes the District of
Columbia and any commonwealth, territory, or pos-
session of the United States.
243
(g) CONSTRUCTION.—Nothing in this Act shall be
construed as authorizing any department, bureau, agency,
officer, or employee of the Federal Government to request,
receive, or transmit to any other Government entity or
personnel, or transmit to any State or local entity or per-
sonnel otherwise authorized by this Act to receive home-
land security information, any information collected by the
Federal Government solely for statistical purposes in vio-
lation of any other provision of law relating to the con-
fidentiality of such information.
SEC. 793. REPORT.
(a) REPORT REQUIRED.—Not later than 12 months
after the date of the enactment of this Act, the President
shall submit to the congressional committees specified in
subsection (b) a report on the implementation of section
792. The report shall include any recommendations for ad-
ditional measures or appropriation requests, beyond the
requirements of section 792, to increase the effectiveness
of sharing of information between and among Federal,
State, and local entities.
(b) SPECIFIED CONGRESSIONAL COMMITTEES.—The
congressional committees referred to in subsection (a) are
the following committees:
244
(1) The Permanent Select Committee on Intel-
ligence and the Committee on the Judiciary of the
House of Representatives.
(2) The Select Committee on Intelligence and
the Committee on the Judiciary of the Senate.
SEC. 794. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out section 792.
SEC. 795. AUTHORITY TO SHARE GRAND JURY INFORMA-
TION.
Rule 6(e) of the Federal Rules of Criminal Procedure
is amended—
(1) in paragraph (2), by inserting ‘‘, or of
guidelines jointly issued by the Attorney General and
Director of Central Intelligence pursuant to Rule 6,’’
after ‘‘Rule 6’’; and
(2) in paragraph (3)—
(A) in subparagraph (A)(ii), by inserting
‘‘or of a foreign government’’ after ‘‘(including
personnel of a state or subdivision of a state’’;
(B) in subparagraph (C)(i)—
(i) in subclause (I), by inserting be-
fore the semicolon the following: ‘‘or, upon
a request by an attorney for the govern-
ment, when sought by a foreign court or
245
prosecutor for use in an official criminal
investigation’’;
(ii) in subclause (IV)—
(I) by inserting ‘‘or foreign’’
after ‘‘may disclose a violation of
State’’;
(II) by inserting ‘‘or of a foreign
government’’ after ‘‘to an appropriate
official of a State or subdivision of a
State’’; and
(III) by striking ‘‘or’’ at the end;
(iii) by striking the period at the end
of subclause (V) and inserting ‘‘; or’’; and
(iv) by adding at the end the fol-
lowing:
‘‘(VI) when matters involve a threat
of actual or potential attack or other grave
hostile acts of a foreign power or an agent
of a foreign power, domestic or inter-
national sabotage, domestic or inter-
national terrorism, or clandestine intel-
ligence gathering activities by an intel-
ligence service or network of a foreign
power or by an agent of a foreign power,
within the United States or elsewhere, to
246
any appropriate federal, state, local, or for-
eign government official for the purpose of
preventing or responding to such a
threat.’’; and
(C) in subparagraph (C)(iii)—
(i) by striking ‘‘Federal’’;
(ii) by inserting ‘‘or clause (i)(VI)’’
after ‘‘clause (i)(V)’’; and
(iii) by adding at the end the fol-
lowing: ‘‘Any state, local, or foreign official
who receives information pursuant to
clause (i)(VI) shall use that information
only consistent with such guidelines as the
Attorney General and Director of Central
Intelligence shall jointly issue.’’.
SEC. 796. AUTHORITY TO SHARE ELECTRONIC, WIRE, AND
ORAL INTERCEPTION INFORMATION.
Section 2517 of title 18, United States Code, is
amended by adding at the end the following:
‘‘(7) Any investigative or law enforcement officer, or
other Federal official in carrying out official duties as such
Federal official, who by any means authorized by this
chapter, has obtained knowledge of the contents of any
wire, oral, or electronic communication, or evidence de-
rived therefrom, may disclose such contents or derivative
247
evidence to a foreign investigative or law enforcement offi-
cer to the extent that such disclosure is appropriate to
the proper performance of the official duties of the officer
making or receiving the disclosure, and foreign investiga-
tive or law enforcement officers may use or disclose such
contents or derivative evidence to the extent such use or
disclosure is appropriate to the proper performance of
their official duties.
‘‘(8) Any investigative or law enforcement officer, or
other Federal official in carrying out official duties as such
Federal official, who by any means authorized by this
chapter, has obtained knowledge of the contents of any
wire, oral, or electronic communication, or evidence de-
rived therefrom, may disclose such contents or derivative
evidence to any appropriate Federal, State, local, or for-
eign government official to the extent that such contents
or derivative evidence reveals a threat of actual or poten-
tial attack or other grave hostile acts of a foreign power
or an agent of a foreign power, domestic or international
sabotage, domestic or international terrorism, or clandes-
tine intelligence gathering activities by an intelligence
service or network of a foreign power or by an agent of
a foreign power, within the United States or elsewhere,
for the purpose of preventing or responding to such a
threat. Any official who receives information pursuant to
248
this provision may use that information only as necessary
in the conduct of that person’s official duties subject to
any limitations on the unauthorized disclosure of such in-
formation, and any State, local, or foreign official who re-
ceives information pursuant to this provision may use that
information only consistent with such guidelines as the At-
torney General and Director of Central Intelligence shall
jointly issue.’’.
SEC. 797. FOREIGN INTELLIGENCE INFORMATION.
(a) 
DISSEMINATION
AUTHORIZED.—Section
203(d)(1) of the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act (USA PATRIOT ACT) of 2001
(Public Law 107–56; 50 U.S.C. 403–5d) is amended by
adding at the end the following: ‘‘Consistent with the re-
sponsibility of the Director of Central Intelligence to pro-
tect intelligence sources and methods, and the responsi-
bility of the Attorney General to protect sensitive law en-
forcement information, it shall be lawful for information
revealing a threat of actual or potential attack or other
grave hostile acts of a foreign power or an agent of a for-
eign power, domestic or international sabotage, domestic
or international terrorism, or clandestine intelligence gath-
ering activities by an intelligence service or network of a
foreign power or by an agent of a foreign power, within
249
the United States or elsewhere, obtained as part of a
criminal investigation to be disclosed to any appropriate
Federal, State, local, or foreign government official for the
purpose of preventing or responding to such a threat. Any
official who receives information pursuant to this provision
may use that information only as necessary in the conduct
of that person’s official duties subject to any limitations
on the unauthorized disclosure of such information, and
any State, local, or foreign official who receives informa-
tion pursuant to this provision may use that information
only consistent with such guidelines as the Attorney Gen-
eral and Director of Central Intelligence shall jointly
issue.’’.
(b) CONFORMING AMENDMENTS.—Section 203(c) of
that Act is amended—
(1) by striking ‘‘section 2517(6)’’ and inserting
‘‘paragraphs (6) and (8) of section 2517 of title 18,
United States Code,’’; and
(2) by inserting ‘‘and (VI)’’ after ‘‘Rule
6(e)(3)(C)(i)(V)’’.
SEC. 798. INFORMATION ACQUIRED FROM AN ELECTRONIC
SURVEILLANCE.
Section 106(k)(1) of the Foreign Intelligence Surveil-
lance Act of 1978 (50 U.S.C. 1806) is amended by insert-
ing after ‘‘law enforcement officers’’ the following: ‘‘or law
250
enforcement personnel of a State or political subdivision
of a State (including the chief executive officer of that
State or political subdivision who has the authority to ap-
point or direct the chief law enforcement officer of that
State or political subdivision)’’.
SEC. 799. INFORMATION ACQUIRED FROM A PHYSICAL
SEARCH.
Section 305(k)(1) of the Foreign Intelligence Surveil-
lance Act of 1978 (50 U.S.C. 1825) is amended by insert-
ing after ‘‘law enforcement officers’’ the following: ‘‘or law
enforcement personnel of a State or political subdivision
of a State (including the chief executive officer of that
State or political subdivision who has the authority to ap-
point or direct the chief law enforcement officer of that
State or political subdivision)’’.
TITLE VIII—TRANSITION
Subtitle A—Reorganization Plan
SEC. 801. DEFINITIONS.
For purposes of this title:
(1) The term ‘‘agency’’ includes any entity, or-
ganizational unit, program, or function.
(2) The term ‘‘transition period’’ means the 12-
month period beginning on the effective date of this
Act.
251
SEC. 802. REORGANIZATION PLAN.
(a) SUBMISSION OF PLAN.—Not later than 60 days
after the date of the enactment of this Act, the President
shall transmit to the appropriate congressional committees
a reorganization plan regarding the following:
(1) The transfer of agencies, personnel, assets,
and obligations to the Department pursuant to this
Act.
(2) 
Any 
consolidation, 
reorganization, 
or
streamlining of agencies transferred to the Depart-
ment pursuant to this Act.
(b) PLAN ELEMENTS.—The plan transmitted under
subsection (a) shall contain, consistent with this Act, such
elements as the President deems appropriate, including
the following:
(1) Identification of any functions of agencies
transferred to the Department pursuant to this Act
that will not be transferred to the Department under
the plan.
(2) Specification of the steps to be taken by the
Secretary to organize the Department, including the
delegation or assignment of functions transferred to
the Department among officers of the Department
in order to permit the Department to carry out the
functions transferred under the plan.
252
(3) Specification of the funds available to each
agency that will be transferred to the Department as
a result of transfers under the plan.
(4) Specification of the proposed allocations
within the Department of unexpended funds trans-
ferred in connection with transfers under the plan.
(5) Specification of any proposed disposition of
property, facilities, contracts, records, and other as-
sets and obligations of agencies transferred under
the plan.
(6) Specification of the proposed allocations
within the Department of the functions of the agen-
cies and subdivisions that are not related directly to
securing the homeland.
(c) MODIFICATION OF PLAN.—The President may,
on the basis of consultations with the appropriate congres-
sional committees, modify or revise any part of the plan
until that part of the plan becomes effective in accordance
with subsection (d).
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The reorganization plan de-
scribed in this section, including any modifications
or revisions of the plan under subsection (d), shall
become effective for an agency on the earlier of—
253
(A) the date specified in the plan (or the
plan as modified pursuant to subsection (d)),
except that such date may not be earlier than
90 days after the date the President has trans-
mitted the reorganization plan to the appro-
priate congressional committees pursuant to
subsection (a); or
(B) the end of the transition period.
(2) STATUTORY
CONSTRUCTION.—Nothing in
this subsection may be construed to require the
transfer of functions, personnel, records, balances of
appropriations, or other assets of an agency on a
single date.
(3) SUPERSEDES
EXISTING
LAW.—Paragraph
(1) shall apply notwithstanding section 905(b) of
title 5, United States Code.
Subtitle B—Transitional Provisions
SEC. 811. TRANSITIONAL AUTHORITIES.
(a) PROVISION
OF ASSISTANCE
BY OFFICIALS.—
Until the transfer of an agency to the Department, any
official having authority over or functions relating to the
agency immediately before the effective date of this Act
shall provide to the Secretary such assistance, including
the use of personnel and assets, as the Secretary may re-
254
quest in preparing for the transfer and integration of the
agency into the Department.
(b) SERVICES AND PERSONNEL.—During the transi-
tion period, upon the request of the Secretary, the head
of any executive agency may, on a reimbursable basis, pro-
vide services or detail personnel to assist with the transi-
tion.
(c) TRANSFER OF FUNDS.—Until the transfer of an
agency to the Department, the President is authorized to
transfer to the Secretary to fund the purposes authorized
in this Act—
(1) for administrative expenses related to the
establishment of the Department of Homeland Secu-
rity, not to exceed two percent of the unobligated
balance of any appropriation enacted prior to Octo-
ber 1, 2002, available to such agency; and
(2) for purposes for which the funds were ap-
propriated, not to exceed three percent of the unobli-
gated balance of any appropriation available to such
agency;
except that not less than 15 days’ notice shall be given
to the Committees on Appropriations of the House of Rep-
resentatives and the Senate before any such funds transfer
is made.
255
(d) ACTING OFFICIALS.—(1) During the transition
period, pending the advice and consent of the Senate to
the appointment of an officer required by this Act to be
appointed by and with such advice and consent, the Presi-
dent may designate any officer whose appointment was re-
quired to be made by and with such advice and consent
and who was such an officer immediately before the effec-
tive date of this Act (and who continues in office) or im-
mediately before such designation, to act in such office
until the same is filled as provided in this Act. While so
acting, such officers shall receive compensation at the
higher of—
(A) the rates provided by this Act for the re-
spective offices in which they act; or
(B) the rates provided for the offices held at
the time of designation.
(2) Nothing in this Act shall be understood to require
the advice and consent of the Senate to the appointment
by the President to a position in the Department of any
officer whose agency is transferred to the Department
pursuant to this Act and whose duties following such
transfer are germane to those performed before such
transfer.
256
(e) TRANSFER
OF PERSONNEL, ASSETS, OBLIGA-
TIONS, AND FUNCTIONS.—Upon the transfer of an agency
to the Department—
(1) the personnel, assets, and obligations held
by or available in connection with the agency shall
be transferred to the Secretary for appropriate allo-
cation, subject to the approval of the Director of the
Office of Management and Budget and in accord-
ance with the provisions of section 1531(a)(2) of
title 31, United States Code; and
(2) the Secretary shall have all functions relat-
ing to the agency that any other official could by law
exercise in relation to the agency immediately before
such transfer, and shall have in addition all func-
tions vested in the Secretary by this Act or other
law.
Paragraph (1) shall not apply to appropriations trans-
ferred pursuant to section 763(b).
(f) PROHIBITION
ON USE
OF TRANSPORTATION
TRUST FUNDS.—
(1) IN GENERAL.—Notwithstanding any other
provision of this Act, no funds derived from the
Highway Trust Fund, Airport and Airway Trust
Fund, Inland Waterway Trust Fund, or Harbor
Maintenance Trust Fund, may be transferred to,
257
made available to, or obligated by the Secretary or
any other official in the Department.
(2) LIMITATION.—This subsection shall not
apply to security-related funds provided to the Fed-
eral Aviation Administration for fiscal years pre-
ceding fiscal year 2003 for (A) operations, (B) facili-
ties and equipment, or (C) research, engineering,
and development.
SEC. 812. SAVINGS PROVISIONS.
(a) COMPLETED
ADMINISTRATIVE
ACTIONS.—(1)
Completed administrative actions of an agency shall not
be affected by the enactment of this Act or the transfer
of such agency to the Department, but shall continue in
effect according to their terms until amended, modified,
superseded, terminated, set aside, or revoked in accord-
ance with law by an officer of the United States or a court
of competent jurisdiction, or by operation of law.
(2) For purposes of paragraph (1), the term ‘‘com-
pleted administrative action’’ includes orders, determina-
tions, rules, regulations, personnel actions, permits, agree-
ments, grants, contracts, certificates, licenses, registra-
tions, and privileges.
(b) PENDING PROCEEDINGS.—Subject to the author-
ity of the Secretary under this Act—
258
(1) pending proceedings in an agency, including
notices of proposed rulemaking, and applications for
licenses, permits, certificates, grants, and financial
assistance, shall continue notwithstanding the enact-
ment of this Act or the transfer of the agency to the
Department, unless discontinued or modified under
the same terms and conditions and to the same ex-
tent that such discontinuance could have occurred if
such enactment or transfer had not occurred; and
(2) orders issued in such proceedings, and ap-
peals therefrom, and payments made pursuant to
such orders, shall issue in the same manner and on
the same terms as if this Act had not been enacted
or the agency had not been transferred, and any
such orders shall continue in effect until amended,
modified, superseded, terminated, set aside, or re-
voked by an officer of the United States or a court
of competent jurisdiction, or by operation of law.
(c) PENDING CIVIL ACTIONS.—Subject to the author-
ity of the Secretary under this Act, pending civil actions
shall continue notwithstanding the enactment of this Act
or the transfer of an agency to the Department, and in
such civil actions, proceedings shall be had, appeals taken,
and judgments rendered and enforced in the same manner
259
and with the same effect as if such enactment or transfer
had not occurred.
(d) REFERENCES.—References relating to an agency
that is transferred to the Department in statutes, Execu-
tive orders, rules, regulations, directives, or delegations of
authority that precede such transfer or the effective date
of this Act shall be deemed to refer, as appropriate, to
the Department, to its officers, employees, or agents, or
to its corresponding organizational units or functions.
Statutory reporting requirements that applied in relation
to such an agency immediately before the effective date
of this Act shall continue to apply following such transfer
if they refer to the agency by name.
(e) 
EMPLOYMENT
PROVISIONS.—(1) 
Notwith-
standing the generality of the foregoing (including sub-
sections (a) and (d)), in and for the Department the Sec-
retary may, in regulations prescribed jointly with the Di-
rector of the Office of Personnel Management, adopt the
rules, procedures, terms, and conditions, established by
statute, rule, or regulation before the effective date of this
Act, relating to employment in any agency transferred to
the Department pursuant to this Act; and
(2) except as otherwise provided in this Act, or under
authority granted by this Act, the transfer pursuant to
this Act of personnel shall not alter the terms and condi-
260
tions of employment, including compensation, of any em-
ployee so transferred.
SEC. 813. TERMINATIONS.
Except as otherwise provided in this Act, whenever
all the functions vested by law in any agency have been
transferred pursuant to this Act, each position and office
the incumbent of which was authorized to receive com-
pensation at the rates prescribed for an office or position
at level II, III, IV, or V, of the Executive Schedule, shall
terminate.
SEC. 814. NATIONAL IDENTIFICATION SYSTEM NOT AU-
THORIZED.
Nothing in this Act shall be construed to authorize
the development of a national identification system or
card.
SEC. 815. CONTINUITY OF INSPECTOR GENERAL OVER-
SIGHT.
Notwithstanding the transfer of an agency to the De-
partment pursuant to this Act, the Inspector General that
exercised oversight of such agency prior to such transfer
shall continue to exercise oversight of such agency during
the period of time, if any, between the transfer of such
agency to the Department pursuant to this Act and the
appointment of the Inspector General of the Department
261
of Homeland Security in accordance with section 103(b)
of this Act.
SEC. 816. REFERENCE.
With respect to any function transferred by or under
this Act (including under a reorganization plan that be-
comes effective under section 802) and exercised on or
after the effective date of this Act, reference in any other
Federal law to any department, commission, or agency or
any officer or office the functions of which are so trans-
ferred shall be deemed to refer to the Secretary, other offi-
cial, or component of the Department to which such func-
tion is so transferred.
TITLE IX—CONFORMING AND
TECHNICAL AMENDMENTS
SEC. 901. INSPECTOR GENERAL ACT OF 1978.
Section 11 of the Inspector General Act of 1978
(Public Law 95–452) is amended—
(1) by inserting ‘‘Homeland Security,’’ after
‘‘Transportation,’’ each place it appears; and
(2) by striking ‘‘; and’’ each place it appears in
paragraph (1) and inserting ‘‘;’’;
SEC. 902. EXECUTIVE SCHEDULE.
(a) IN GENERAL.—Title 5, United States Code, is
amended—
262
(1) in section 5312, by inserting ‘‘Secretary of
Homeland Security.’’ as a new item after ‘‘Affairs.’’;
(2) in section 5313, by inserting ‘‘Deputy Sec-
retary of Homeland Security.’’ as a new item after
‘‘Affairs.’’;
(3) in section 5314, by inserting ‘‘Under Secre-
taries, Department of Homeland Security.’’ as a new
item after ‘‘Affairs.’’ the third place it appears;
(4) in section 5315, by inserting ‘‘Assistant
Secretaries, Department of Homeland Security.’’,
‘‘General Counsel, Department of Homeland Secu-
rity.’’, ‘‘Chief Financial Officer, Department of
Homeland Security.’’, ‘‘Chief Information Officer,
Department of Homeland Security.’’, and ‘‘Inspector
General, Department of Homeland Security.’’ as new
items after ‘‘Affairs.’’ the first place it appears; and
(5) in section 5315, by striking ‘‘Commissioner
of Immigration and Naturalization, Department of
Justice.’’.
(b) SPECIAL EFFECTIVE DATE.—Notwithstanding
section 4, the amendment made by subsection (a)(5) shall
take effect on the date on which the transfer of functions
specified under section 411 takes effect.
263
SEC. 903. UNITED STATES SECRET SERVICE.
(a) IN GENERAL.—(1) The United States Code is
amended in section 202 of title 3, and in section 3056
of title 18, by striking ‘‘of the Treasury’’, each place it
appears and inserting ‘‘of Homeland Security’’.
(2) Section 208 of title 3, United States Code, is
amended by striking ‘‘of Treasury’’ each place it appears
and inserting ‘‘of Homeland Security’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of transfer of
the United States Secret Service to the Department.
SEC. 904. COAST GUARD.
(a) TITLE 14, U.S.C.—Title 14, United States Code,
is amended in sections 1, 3, 53, 95, 145, 516, 666, 669,
673, 673a (as redesignated by subsection (e)(1)), 674,
687, and 688 by striking ‘‘of Transportation’’ each place
it appears and inserting ‘‘of Homeland Security’’.
(b) TITLE 10, U.S.C.—(1) Title 10, United States
Code, is amended in sections 101(9), 130b(a), 130b(c)(4),
130c(h)(1), 379, 513(d), 575(b)(2), 580(e)(6), 580a(e),
651(a), 671(c)(2), 708(a), 716(a), 717, 806(d)(2), 815(e),
888, 946(c)(1), 973(d), 978(d), 983(b)(1), 985(a),
1033(b)(1), 1033(d), 1034, 1037(c), 1044d(f), 1058(c),
1059(a), 1059(k)(1), 1073(a), 1074(c)(1), 1089(g)(2),
1090, 1091(a), 1124, 1143, 1143a(h), 1144, 1145(e),
1148, 1149, 1150(c), 1152(a), 1152(d)(1), 1153, 1175,
264
1212(a), 1408(h)(2), 1408(h)(8), 1463(a)(2), 1482a(b),
1510, 1552(a)(1), 1565(f), 1588(f)(4), 1589, 2002(a),
2302(1), 2306b(b), 2323(j)(2), 2376(2), 2396(b)(1),
2410a(a), 2572(a), 2575(a), 2578, 2601(b)(4), 2634(e),
2635(a), 2734(g), 2734a, 2775, 2830(b)(2), 2835, 2836,
4745(a), 5013a(a), 7361(b), 10143(b)(2), 10146(a),
10147(a), 
10149(b), 
10150, 
10202(b), 
10203(d),
10205(b), 
10301(b), 
12103(b), 
12103(d), 
12304,
12311(c), 12522(c), 12527(a)(2), 12731(b), 12731a(e),
16131(a), 16136(a), 16301(g), and 18501 by striking ‘‘of
Transportation’’ each place it appears and inserting ‘‘of
Homeland Security’’.
(2) Section 801(1) of such title is amended by strik-
ing ‘‘the General Counsel of the Department of Transpor-
tation’’ and inserting ‘‘an official designated to serve as
Judge Advocate General of the Coast Guard by the Sec-
retary of Homeland Security’’.
(3) Section 983(d)(2)(B) of such title is amended by
striking ‘‘Department of Transportation’’ and inserting
‘‘Department of Homeland Security’’.
(4) Section 2665(b) of such title is amended by strik-
ing ‘‘Department of Transportation’’ and inserting ‘‘De-
partment in which the Coast Guard is operating’’.
(5) Section 7045 of such title is amended—
265
(A) in subsections (a)(1) and (b), by striking
‘‘Secretaries of the Army, Air Force, and Transpor-
tation’’ both places it appears and inserting ‘‘Sec-
retary of the Army, the Secretary of the Air Force,
and the Secretary of Homeland Security’’; and
(B) in subsection (b), by striking ‘‘Department
of Transportation’’ and inserting ‘‘Department of
Homeland Security’’.
(6) Section 7361(b) of such title is amended in the
subsection heading by striking ‘‘TRANSPORTATION’’ and
inserting ‘‘HOMELAND SECURITY’’.
(7) Section 12522(c) of such title is amended in the
subsection heading by striking ‘‘TRANSPORTATION’’ and
inserting ‘‘HOMELAND SECURITY’’.
(c) TITLE 37, U.S.C.—Title 37, United States Code,
is amended in sections 101(5), 204(i)(4), 301a(a)(3),
306(d), 307(c), 308(a)(1), 308(d)(2), 308(f), 308b(e),
308c(c), 308d(a), 308e(f), 308g(g), 308h(f), 308i(e),
309(d), 316(d), 323(b), 323(g)(1), 325(i), 402(d),
402a(g)(1), 403(f)(3), 403(l)(1), 403b(i)(5), 406(b)(1),
417(a), 417(b), 418(a), 703, 1001(c), 1006(f), 1007(a),
and 1011(d) by striking ‘‘of Transportation’’ each place
it appears and inserting ‘‘of Homeland Security’’.
266
(d) OTHER DEFENSE-RELATED LAWS.—(1) Section
363 of Public Law 104–193 (110 Stat. 2247) is
amended—
(A) in subsection (a)(1) (10 U.S.C. 113 note),
by striking ‘‘of Transportation’’ and inserting ‘‘of
Homeland Security’’; and
(B) in subsection (b)(1) (10 U.S.C. 704 note),
by striking ‘‘of Transportation’’ and inserting ‘‘of
Homeland Security’’.
(2) Section 721(1) of Public Law 104–201 (10
U.S.C. 1073 note) is amended by striking ‘‘of Transpor-
tation’’ and inserting ‘‘of Homeland Security’’.
(3) Section 4463(a) of Public Law 102–484 (10
U.S.C. 1143a note) is amended by striking ‘‘after con-
sultation with the Secretary of Transportation’’.
(4) Section 4466(h) of Public Law 102–484 (10
U.S.C. 1143 note) is amended by striking ‘‘of Transpor-
tation’’ and inserting ‘‘of Homeland Security’’.
(5) Section 542(d) of Public Law 103–337 (10
U.S.C. 1293 note) is amended by striking ‘‘of Transpor-
tation’’ and inserting ‘‘of Homeland Security’’.
(6) Section 740 of Public Law 106–181 (10 U.S.C.
2576 note) is amended in subsections (b)(2), (c), and
(d)(1) by striking ‘‘of Transportation’’ each place it ap-
pears and inserting ‘‘of Homeland Security’’.
267
(7) Section 1407(b)(2) of the Defense Dependents’
Education Act of 1978 (20 U.S.C. 926(b)) is amended by
striking ‘‘of Transportation’’ both places it appears and
inserting ‘‘of Homeland Security’’.
(8) Section 2301(5)(D) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6671(5)(D))
is amended by striking ‘‘of Transportation’’ and inserting
‘‘of Homeland Security’’.
(9) Section 2307(a) of of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6677(a)) is
amended by striking ‘‘of Transportation’’ and inserting
‘‘of Homeland Security’’.
(10) Section 1034(a) of Public Law 105–85 (21
U.S.C. 1505a(a)) is amended by striking ‘‘of Transpor-
tation’’ and inserting ‘‘of Homeland Security’’.
(11) The Military Selective Service Act is amended—
(A) in section 4(a) (50 U.S.C. App. 454(a)), by
striking ‘‘of Transportation’’ in the fourth para-
graph and inserting ‘‘of Homeland Security’’;
(B) in section 4(b) (50 U.S.C. App. 454(b)), by
striking ‘‘of Transportation’’ both places it appears
and inserting ‘‘of Homeland Security’’;
(C) in section 6(d)(1) (50 U.S.C. App.
456(d)(1)), by striking ‘‘of Transportation’’ both
268
places it appears and inserting ‘‘of Homeland Secu-
rity’’;
(D) in section 9(c) (50 U.S.C. App. 459(c)), by
striking ‘‘Secretaries of Army, Navy, Air Force, or
Transportation’’ and inserting ‘‘Secretary of a mili-
tary department, and the Secretary of Homeland Se-
curity with respect to the Coast Guard,’’; and
(E) in section 15(e) (50 U.S.C. App. 465(e)),
by striking ‘‘of Transportation’’ both places it ap-
pears and inserting ‘‘of Homeland Security’’.
(e) TECHNICAL CORRECTION.—(1) Title 14, United
States Code, is amended by redesignating section 673 (as
added by section 309 of Public Law 104–324) as section
673a.
(2) The table of sections at the beginning of chapter
17 of such title is amended by redesignating the item re-
lating to such section as section 673a.
(f) EFFECTIVE DATE.—The amendments made by
this section (other than subsection (e)) shall take effect
on the date of transfer of the Coast Guard to the Depart-
ment.
SEC. 905. STRATEGIC NATIONAL STOCKPILE AND SMALL-
POX VACCINE DEVELOPMENT.
(a) IN GENERAL.—Section 121 of the Public Health
Security and Bioterrorism Preparedness and Response
269
Act of 2002 (Public Law 107–188; 42 U.S.C. 300hh–12)
is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘Secretary of Health and
Human Services’’ and inserting ‘‘Secretary of
Homeland Security’’;
(B) by inserting ‘‘the Secretary of Health
and Human Services and’’ between ‘‘in coordi-
nation with’’ and ‘‘the Secretary of Veterans
Affairs’’; and
(C) by inserting ‘‘of Health and Human
Services’’ after ‘‘as are determined by the Sec-
retary’’; and
(2) in subsections (a)(2) and (b), by inserting
‘‘of Health and Human Services’’ after ‘‘Secretary’’
each place it appears.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of transfer of
the Strategic National Stockpile of the Department of
Health and Human Services to the Department.
SEC. 906. TRANSFER OF CERTAIN SECURITY AND LAW EN-
FORCEMENT FUNCTIONS AND AUTHORITIES.
(a) AMENDMENT
TO
PROPERTY
ACT.—Section
210(a)(2) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 490(a)(2)) is repealed.
270
(b) LAW ENFORCEMENT AUTHORITY.—The Act of
June 1, 1948 (40 U.S.C. 318–318d; chapter 359; 62 Stat.
281) is amended to read as follows:
‘‘SECTION 1. SHORT TITLE.
‘‘This Act may be cited as the ‘Protection of Public
Property Act’.
‘‘SEC. 2. LAW ENFORCEMENT AUTHORITY OF SECRETARY
OF HOMELAND SECURITY FOR PROTECTION
OF PUBLIC PROPERTY.
‘‘(a) IN GENERAL.—The Secretary of Homeland Se-
curity (in this Act referred to as the ‘Secretary’) shall pro-
tect the buildings, grounds, and property that are owned,
occupied, or secured by the Federal Government (includ-
ing any agency, instrumentality, or wholly owned or
mixed-ownership corporation thereof) and the persons on
the property.
‘‘(b) OFFICERS AND AGENTS.—
‘‘(1) DESIGNATION.—The Secretary may des-
ignate employees of the Department of Homeland
Security, including employees transferred to the De-
partment from the Office of the Federal Protective
Service of the General Services Administration pur-
suant to the Homeland Security Act of 2002, as offi-
cers and agents for duty in connection with the pro-
tection of property owned or occupied by the Federal
271
Government and persons on the property, including
duty in areas outside the property to the extent nec-
essary to protect the property and persons on the
property.
‘‘(2) POWERS.—While engaged in the perform-
ance of official duties, an officer or agent designated
under this subsection may—
‘‘(A) enforce Federal laws and regulations
for the protection of persons and property;
‘‘(B) carry firearms;
‘‘(C) make arrests without a warrant for
any offense against the United States com-
mitted in the presence of the officer or agent or
for any felony cognizable under the laws of the
United States if the officer or agent has reason-
able grounds to believe that the person to be ar-
rested has committed or is committing a felony;
‘‘(D) serve warrants and subpoenas issued
under the authority of the United States; and
‘‘(E) conduct investigations, on and off the
property in question, of offenses that may have
been committed against property owned or oc-
cupied by the Federal Government or persons
on the property.
272
‘‘(F) carry out such other activities for the
promotion of homeland security as the Sec-
retary may prescribe.
‘‘(c) REGULATIONS.—
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Administrator of General Services, may
prescribe regulations necessary for the protection
and administration of property owned or occupied by
the Federal Government and persons on the prop-
erty. The regulations may include reasonable pen-
alties, within the limits prescribed in paragraph (2),
for violations of the regulations. The regulations
shall be posted and remain posted in a conspicuous
place on the property.
‘‘(2) PENALTIES.—A person violating a regula-
tion prescribed under this subsection shall be fined
under title 18, United States Code, imprisoned for
not more than 30 days, or both.
‘‘(d) DETAILS.—
‘‘(1) REQUESTS OF AGENCIES.—On the request
of the head of a Federal agency having charge or
control of property owned or occupied by the Federal
Government, the Secretary may detail officers and
agents designated under this section for the protec-
tion of the property and persons on the property.
273
‘‘(2) APPLICABILITY
OF
REGULATIONS.—The
Secretary may—
‘‘(A) extend to property referred to in
paragraph (1) the applicability of regulations
prescribed under this section and enforce the
regulations as provided in this section; or
‘‘(B) utilize the authority and regulations
of the requesting agency if agreed to in writing
by the agencies.
‘‘(3) FACILITIES
AND
SERVICES
OF
OTHER
AGENCIES.—When the Secretary determines it to be
economical and in the public interest, the Secretary
may utilize the facilities and services of Federal,
State, and local law enforcement agencies, with the
consent of the agencies.
‘‘(e) AUTHORITY OUTSIDE FEDERAL PROPERTY.—
For the protection of property owned or occupied by the
Federal Government and persons on the property, the Sec-
retary may enter into agreements with Federal agencies
and with State and local governments to obtain authority
for officers and agents designated under this section to
enforce Federal laws and State and local laws concurrently
with other Federal law enforcement officers and with
State and local law enforcement officers.
274
‘‘(f) SECRETARY
AND ATTORNEY GENERAL AP-
PROVAL.—The powers granted to officers and agents des-
ignated under this section shall be exercised in accordance
with guidelines approved by the Secretary and the Attor-
ney General.
‘‘(g) LIMITATION ON STATUTORY CONSTRUCTION.—
Nothing in this section shall be construed to—
‘‘(1) preclude or limit the authority of any Fed-
eral law enforcement agency; or
‘‘(2) restrict the authority of the Administrator
of General Services to promulgate regulations affect-
ing property under the Administrator’s custody and
control.’’.
SEC. 907. TRANSPORTATION SECURITY REGULATIONS.
Title 49, United States Code, is amended—
(1) in section 114(l)(2)(B), by inserting ‘‘for a
period not to exceed 30 days’’ after ‘‘effective’’; and
(2) in section 114(l)(2)(B), by inserting ‘‘rati-
fied or’’ after ‘‘unless’’.
SEC. 908. RAILROAD SECURITY LAWS.
Title 49, United States Code, is amended—
(1) in section 20106 by inserting in the second
sentence, ‘‘, including security,’’ after ‘‘railroad safe-
ty’’ and ‘‘or the Secretary of Homeland Security’’
after ‘‘Secretary of Transportation’’; and
275
(2) in section 20105—
(A) by inserting ‘‘or the Secretary of
Homeland Security’’ after ‘‘Secretary of Trans-
portation’’ in subsection (a);
(B) by inserting ‘‘of Transportation or the
Secretary of Homeland Security’’ after ‘‘issued
by the Secretary’’ in subsection (a);
(C) by inserting ‘‘of Transportation or the
Secretary of Homeland Security, as appro-
priate,’’ after ‘‘to the Secretary’’ in subsection
(a), and after ‘‘Secretary’’ in subsection
(b)(1)(A)(iii) and (B)(iv), the first place it ap-
pears in subsections (b)(1)(B) and (B)(iii) and
(d), each place it appears in subsections (c)(1),
(c)(2), (e), and (f), and the first four times it
appears in subsection (b)(3);
(D) by inserting ‘‘of Transportation or the
Secretary of Homeland Security, as appro-
priate’’ 
after 
‘‘Secretary’’ 
in 
subsection
(b)(1)(A)(ii), (b)(1)(B)(ii), the second place it
appears in subsection (b)(1)(B)(iii), and the
last place it appears in subsection (b)(3);
(E) in subsection (d), by replacing ‘‘Sec-
retary’s’’ with ‘‘Secretary of Transportation’s’’
and adding before the period at the end ‘‘or the
276
Secretary of Homeland Security’s duties under
section 114’’; and
(F) in subsection (f), by adding before the
period at the end ‘‘or section 114’’.
SEC. 909. OFFICE OF SCIENCE AND TECHNOLOGY POLICY.
The National Science and Technology Policy, Organi-
zation, and Priorities Act of 1976 is amended—
(1) 
in 
section 
204(b)(1) 
(42 
U.S.C.
6613(b)(1)), by inserting ‘‘homeland security,’’ after
‘‘national security,’’; and
(2) 
in 
section 
208(a)(1) 
(42 
U.S.C.
6617(a)(1)), by inserting ‘‘the Office of Homeland
Security,’’ after ‘‘National Security Council,’’.
SEC. 910. NATIONAL OCEANOGRAPHIC PARTNERSHIP PRO-
GRAM.
Section 7902(b) of title 10, United States Code, is
amended by adding at the end the following new para-
graphs:
‘‘(13) The Under Secretary for Science and
Technology of the Department of Homeland Secu-
rity.
‘‘(14) Other Federal officials the Council con-
siders appropriate.’’.
277
SEC. 911. CHIEF FINANCIAL OFFICER.
Section 901(b)(1) of title 31, United States Code, is
amended—
(1) 
by 
redesignating 
subparagraphs 
(G)
through (P) as subparagraphs (H) through (Q), re-
spectively; and
(2) by inserting the following new subparagraph
after subparagraph (F):
‘‘(G) The Department of Homeland Security.’’.
SEC. 912. CHIEF INFORMATION OFFICER.
(a) CLINGER–COHEN ACT.—(1) The provisions en-
acted in section 5125 of the Clinger–Cohen Act of 1996
(division E of Public Law 104–106; 110 Stat. 684) shall
apply with respect to the Chief Information Officer of the
Department.
(2) Section 5131(c) of the Clinger-Cohen Act of 1996
(40 U.S.C. 1441(c)) is amended by inserting ‘‘or ap-
pointed’’ after ‘‘a Chief Information Officer designated’’.
(b) TITLE 44.—Chapter 35 of title 44, United States
Code, is amended—
(1) in section 3506(a)(2)—
(A) in subparagraph (A) by striking ‘‘sub-
paragraph (B)’’ and inserting ‘‘subparagraphs
(B) and (C)’’; and
(B) by adding at the end the following:
278
‘‘(C) The Chief Information Officer of the Depart-
ment of Homeland Security shall be an individual who is
appointed by the President.’’;
(2) in each of subsections (a)(4) and (c)(1) of
section 3506, by inserting ‘‘or appointed’’ after ‘‘the
Chief Information Officer designated’’; and
(3) in subsection (a)(3) of section 3506, by in-
serting ‘‘or appointed’’ after ‘‘The Chief Information
Officer designated’’.
TITLE X—NATIONAL HOMELAND
SECURITY COUNCIL
SEC. 1001. NATIONAL HOMELAND SECURITY COUNCIL.
There is established within the Executive Office of
the President a council to be known as the ‘‘Homeland
Security Council’’ (in this title referred to as the ‘‘Coun-
cil’’).
SEC. 1002. FUNCTION.
The function of the Council shall be to advise the
President on homeland security matters.
SEC. 1003. MEMBERSHIP.
The members of the Council shall be the following:
(1) The President.
(2) The Vice President.
(3) The Secretary of Homeland Security.
(4) The Attorney General.
279
(5) The Secretary of Health and Human Serv-
ices.
(6) The Director of Central Intelligence.
(7) The Secretary of Defense.
(8) The Secretary of the Treasury.
(9) The Secretary of State.
(10) The Secretary of Energy.
(11) The Secretary of Agriculture.
(12) Such other individuals as may be des-
ignated by the President.
SEC. 1004. OTHER FUNCTIONS AND ACTIVITIES.
For the purpose of more effectively coordinating the
policies and functions of the United States Government
relating to homeland security, the Council shall—
(1) assess the objectives, commitments, and
risks of the United States in the interest of home-
land security and to make resulting recommenda-
tions to the President;
(2) oversee and review homeland security poli-
cies of the Federal Government and to make result-
ing recommendations to the President; and
(3) perform such other functions as the Presi-
dent may direct.
280
SEC. 1005. HOMELAND SECURITY BUDGET.
The Director of the Office of Management and Budg-
et shall prepare for the President a Federal homeland se-
curity budget to be delivered to the Congress as part of
the President’s annual budget request.
SEC. 1006. STAFF COMPOSITION.
The Council shall have a staff, the head of which shall
be a civilian Executive Secretary, who shall be appointed
by the President. The President is authorized to fix the
pay of the Executive Secretary at a rate not to exceed
the rate of pay payable to the Executive Secretary of the
National Security Council.
SEC. 1007. RELATION TO THE NATIONAL SECURITY COUN-
CIL.
The President may convene joint meetings of the
Homeland Security Council and the National Security
Council with participation by members of either Council
or as the President may otherwise direct.
TITLE XI—INFORMATION
SECURITY
SEC. 1101. INFORMATION SECURITY.
(a) SHORT TITLE.—The amendments made by this
title may be cited as the ‘‘Federal Information Security
Management Act of 2002’’.
(b) INFORMATION SECURITY.—
281
(1) IN GENERAL.—Subchapter II of chapter 35
of title 44, United States Code, is amended to read
as follows:
‘‘SUBCHAPTER II—INFORMATION
SECURITY
‘‘§ 3531. Purposes
‘‘The purposes of this subchapter are to—
‘‘(1) provide a comprehensive framework for en-
suring the effectiveness of information security con-
trols over information resources that support Fed-
eral operations and assets;
‘‘(2) recognize the highly networked nature of
the current Federal computing environment and pro-
vide effective governmentwide management and over-
sight of the related information security risks, in-
cluding coordination of information security efforts
throughout the civilian, national security, and law
enforcement communities;
‘‘(3) provide for development and maintenance
of minimum controls required to protect Federal in-
formation and information systems;
‘‘(4) provide a mechanism for improved over-
sight of Federal agency information security pro-
grams;
282
‘‘(5) acknowledge that commercially developed
information security products offer advanced, dy-
namic, robust, and effective information security so-
lutions, reflecting market solutions for the protection
of critical information infrastructures important to
the national defense and economic security of the
nation that are designed, built, and operated by the
private sector; and
‘‘(6) recognize that the selection of specific
technical hardware and software information secu-
rity solutions should be left to individual agencies
from among commercially developed products.’’.
‘‘§ 3532. Definitions
‘‘(a) IN GENERAL.—Except as provided under sub-
section (b), the definitions under section 3502 shall apply
to this subchapter.
‘‘(b) ADDITIONAL DEFINITIONS.—As used in this
subchapter—
‘‘(1) the term ‘information security’ means pro-
tecting information and information systems from
unauthorized access, use, disclosure, disruption,
modification, or destruction in order to provide—
‘‘(A) integrity, which means guarding
against improper information modification or
283
destruction, and includes ensuring information
nonrepudiation and authenticity;
‘‘(B) confidentiality, which means pre-
serving authorized restrictions on access and
disclosure, including means for protecting per-
sonal privacy and proprietary information;
‘‘(C) availability, which means ensuring
timely and reliable access to and use of infor-
mation; and
‘‘(D) authentication, which means utilizing
digital credentials to assure the identity of
users and validate their access;
‘‘(2) the term ‘national security system’ means
any information system (including any telecommuni-
cations system) used or operated by an agency or by
a contractor of an agency, or other organization on
behalf of an agency, the function, operation, or use
of which—
‘‘(A) involves intelligence activities;
‘‘(B) involves cryptologic activities related
to national security;
‘‘(C) involves command and control of mili-
tary forces;
‘‘(D) involves equipment that is an integral
part of a weapon or weapons system; or
284
‘‘(E) is critical to the direct fulfillment of
military or intelligence missions provided that
this definition does not apply to a system that
is used for routine administrative and business
applications (including payroll, finance, logis-
tics, and personnel management applications);
‘‘(3) the term ‘information technology’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401); and
‘‘(4) the term ‘information system’ means any
equipment or interconnected system or subsystems
of equipment that is used in the automatic acquisi-
tion, storage, manipulation, management, movement,
control, display, switching, interchange, trans-
mission, or reception of data or information, and
includes—
‘‘(A) computers and computer networks;
‘‘(B) ancillary equipment;
‘‘(C) software, firmware, and related proce-
dures;
‘‘(D) services, including support services;
and
‘‘(E) related resources.’’.
285
‘‘§ 3533. Authority and functions of the Director
‘‘(a) The Director shall oversee agency information
security policies and practices, by—
‘‘(1) promulgating information security stand-
ards under section 5131 of the Clinger-Cohen Act of
1996 (40 U.S.C. 1441);
‘‘(2) overseeing the implementation of policies,
principles, standards, and guidelines on information
security;
‘‘(3) requiring agencies, consistent with the
standards promulgated under such section 5131 and
the requirements of this subchapter, to identify and
provide information security protections commensu-
rate with the risk and magnitude of the harm result-
ing from the unauthorized access, use, disclosure,
disruption, modification, or destruction of—
‘‘(A) information collected or maintained
by or on behalf of an agency; or
‘‘(B) information systems used or operated
by an agency or by a contractor of an agency
or other organization on behalf of an agency;
‘‘(4) coordinating the development of standards
and guidelines under section 20 of the National In-
stitute of Standards and Technology Act (15 U.S.C.
278g–3) with agencies and offices operating or exer-
cising control of national security systems (including
286
the National Security Agency) to assure, to the max-
imum extent feasible, that such standards and
guidelines are complementary with standards and
guidelines developed for national security systems;
‘‘(5) overseeing agency compliance with the re-
quirements of this subchapter, including through
any authorized action under section 5113(b)(5) of
the 
Clinger-Cohen 
Act 
of 
1996 
(40 
U.S.C.
1413(b)(5)) to enforce accountability for compliance
with such requirements;
‘‘(6) reviewing at least annually, and approving
or disapproving, agency information security pro-
grams required under section 3534(b);
‘‘(7) coordinating information security policies
and procedures with related information resources
management policies and procedures; and
‘‘(8) reporting to Congress no later than March
1 of each year on agency compliance with the re-
quirements of this subchapter, including—
‘‘(A) a summary of the findings of evalua-
tions required by section 3535;
‘‘(B) significant deficiencies in agency in-
formation security practices;
‘‘(C) planned remedial action to address
such deficiencies; and
287
‘‘(D) a summary of, and the views of the
Director on, the report prepared by the Na-
tional Institute of Standards and Technology
under section 20(e)(7) of the National Institute
of Standards and Technology Act (15 U.S.C.
278g–3).’’.
‘‘(b) Except for the authorities described in para-
graphs (4) and (7) of subsection (a), the authorities of
the Director under this section shall not apply to national
security systems.
‘‘§ 3534. Federal agency responsibilities
‘‘(a) The head of each agency shall—
‘‘(1) be responsible for—
‘‘(A) providing information security protec-
tions commensurate with the risk and mag-
nitude of the harm resulting from unauthorized
access, use, disclosure, disruption, modification,
or destruction of—
‘‘(i) information collected or main-
tained by or on behalf of the agency; and
‘‘(ii) information systems used or op-
erated by an agency or by a contractor of
an agency or other organization on behalf
of an agency;
288
‘‘(B) complying with the requirements of
this subchapter and related policies, procedures,
standards, and guidelines, including—
‘‘(i) information security standards
promulgated by the Director under section
5131 of the Clinger-Cohen Act of 1996 (40
U.S.C. 1441); and
‘‘(ii) information security standards
and guidelines for national security sys-
tems issued in accordance with law and as
directed by the President; and
‘‘(C) ensuring that information security
management processes are integrated with
agency strategic and operational planning proc-
esses;
‘‘(2) ensure that senior agency officials provide
information security for the information and infor-
mation systems that support the operations and as-
sets under their control, including through—
‘‘(A) assessing the risk and magnitude of
the harm that could result from the unauthor-
ized access, use, disclosure, disruption, modi-
fication, or destruction of such information or
information systems;
289
‘‘(B) determining the levels of information
security appropriate to protect such information
and information systems in accordance with
standards promulgated under section 5131 of
the Clinger-Cohen Act of 1996 (40 U.S.C.
1441) for information security classifications
and related requirements;
‘‘(C) implementing policies and procedures
to cost-effectively reduce risks to an acceptable
level; and
‘‘(D) periodically testing and evaluating in-
formation security controls and techniques to
ensure that they are effectively implemented;
‘‘(3) delegate to the agency Chief Information
Officer established under section 3506 (or com-
parable official in an agency not covered by such
section) the authority to ensure compliance with the
requirements imposed on the agency under this sub-
chapter, including—
‘‘(A) designating a senior agency informa-
tion security officer who shall—
‘‘(i) carry out the Chief Information
Officer’s responsibilities under this section;
‘‘(ii) possess professional qualifica-
tions, including training and experience,
290
required to administer the functions de-
scribed under this section;
‘‘(iii) have information security duties
as that official’s primary duty; and
‘‘(iv) head an office with the mission
and resources to assist in ensuring agency
compliance with this section;
‘‘(B) developing and maintaining an agen-
cywide information security program as re-
quired by subsection (b);
‘‘(C) developing and maintaining informa-
tion security policies, procedures, and control
techniques to address all applicable require-
ments, including those issued under section
3533 of this title, and section 5131 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1441);
‘‘(D) training and overseeing personnel
with significant responsibilities for information
security with respect to such responsibilities;
and
‘‘(E) assisting senior agency officials con-
cerning their responsibilities under subpara-
graph (2);
‘‘(4) ensure that the agency has trained per-
sonnel sufficient to assist the agency in complying
291
with the requirements of this subchapter and related
policies, procedures, standards, and guidelines; and
‘‘(5) ensure that the agency Chief Information
Officer, in coordination with other senior agency of-
ficials, reports annually to the agency head on the
effectiveness of the agency information security pro-
gram, including progress of remedial actions.
‘‘(b) Each agency shall develop, document, and imple-
ment an agencywide information security program, ap-
proved by the Director under section 3533(a)(5), to pro-
vide information security for the information and informa-
tion systems that support the operations and assets of the
agency, including those provided or managed by another
agency, contractor, or other source, that includes—
‘‘(1) periodic assessments of the risk and mag-
nitude of the harm that could result from the unau-
thorized access, use, disclosure, disruption, modifica-
tion, or destruction of information and information
systems that support the operations and assets of
the agency;
‘‘(2) policies and procedures that—
‘‘(A) are based on the risk assessments re-
quired by subparagraph (1);
‘‘(B) cost-effectively reduce information se-
curity risks to an acceptable level;
307
‘‘(1)(A) standards to be used by all agencies to
categorize all information and information systems
collected or maintained by or on behalf of each agen-
cy based on the objectives of providing appropriate
levels of information security according to a range of
risk levels;
‘‘(B) guidelines recommending the types of in-
formation and information systems to be included in
each such category; and
‘‘(C) minimum information security require-
ments for information and information systems in
each such category;
‘‘(2) a definition of and guidelines concerning
detection and handling of information security inci-
dents; and
‘‘(3) guidelines developed in coordination with
the National Security Agency for identifying an in-
formation system as a national security system con-
sistent with applicable requirements for national se-
curity systems, issued in accordance with law and as
directed by the President.
‘‘(c) In developing standards and guidelines required
by subsections (a) and (b), the Institute shall—
‘‘(1) consult with other agencies and offices (in-
cluding, but not limited to, the Director of the Office