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separation incentive payment under this section
based on their separating from service during the
fiscal year with respect to which the payment under
this subsection relates.
(4) FINAL BASIC PAY DEFINED.—In this sub-
section, the term ‘‘final basic pay’’ means, with re-
spect to an employee, the total amount of basic pay
which would be payable for a year of service by such
employee, computed using the employee’s final rate
of basic pay, and, if last serving on other than a
full-time basis, with appropriate adjustment there-
for.
(e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH
THE GOVERNMENT.—An individual who receives a vol-
untary separation incentive payment under this section
and who, within 5 years after the date of the separation
on which the payment is based, accepts any compensated
employment with the Government or works for any agency
of the Government through a personal services contract,
shall be required to pay, prior to the individual’s first day
of employment, the entire amount of the incentive pay-
ment. Such payment shall be made to the covered entity
from which the individual separated or, if made on or after
the transfer date, to the Deputy Attorney General (for
transfer to the appropriate component of the Department
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of Justice, if necessary) or the Under Secretary for Border
and Transportation Security (for transfer to the appro-
priate component of the Department of Homeland Secu-
rity, if necessary).
(f) EFFECT ON EMPLOYMENT LEVELS.—
(1) INTENDED EFFECT.—Voluntary separations
under this section are not intended to necessarily re-
duce the total number of full-time equivalent posi-
tions in any covered entity.
(2) USE OF VOLUNTARY SEPARATIONS.—A cov-
ered entity may redeploy or use the full-time equiva-
lent positions vacated by voluntary separations
under this section to make other positions available
to more critical locations or more critical occupa-
tions.
SEC. 443. AUTHORITY TO CONDUCT A DEMONSTRATION
PROJECT RELATING TO DISCIPLINARY AC-
TION.
(a) IN GENERAL.—The Attorney General and the
Secretary may each, during a period ending not later than
5 years after the date of the enactment of this Act, con-
duct a demonstration project for the purpose of deter-
mining whether one or more changes in the policies or pro-
cedures relating to methods for disciplining employees
would result in improved personnel management.
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(b) SCOPE.—A demonstration project under this
section—
(1) may not cover any employees apart from
those employed in or under a covered entity; and
(2) shall not be limited by any provision of
chapter 43, 75, or 77 of title 5, United States Code.
(c) 
PROCEDURES.—Under 
the 
demonstration
project—
(1) the use of alternative means of dispute reso-
lution (as defined in section 571 of title 5, United
States Code) shall be encouraged, whenever appro-
priate; and
(2) each covered entity under the jurisdiction of
the official conducting the project shall be required
to provide for the expeditious, fair, and independent
review of any action to which section 4303 or sub-
chapter II of chapter 75 of such title 5 would other-
wise apply (except an action described in section
7512(5) thereof).
(d) ACTIONS
INVOLVING
DISCRIMINATION.—Not-
withstanding any other provision of this section, if, in the
case of any matter described in section 7702(a)(1)(B) of
title 5, United States Code, there is no judicially review-
able action under the demonstration project within 120
days after the filing of an appeal or other formal request
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for review (referred to in subsection (c)(2)), an employee
shall be entitled to file a civil action to the same extent
and in the same manner as provided in section 7702(e)(1)
of such title 5 (in the matter following subparagraph (C)
thereof).
(e) CERTAIN EMPLOYEES.—Employees shall not be
included within any project under this section if such em-
ployees are—
(1) neither managers nor supervisors; and
(2) within a unit with respect to which a labor
organization is accorded exclusive recognition under
chapter 71 of title 5, United States Code.
Notwithstanding the preceding sentence, an aggrieved em-
ployee within a unit (referred to in paragraph (2)) may
elect to participate in a complaint procedure developed
under the demonstration project in lieu of any negotiated
grievance procedure and any statutory procedure (as such
term is used in section 7121 of such title 5).
(f) REPORTS.—The General Accounting Office shall
prepare and submit to the Committees on Government Re-
form and the Judiciary of the House of Representatives
and the Committees on Governmental Affairs and the Ju-
diciary of the Senate periodic reports on any demonstra-
tion project conducted under this section, such reports to
be submitted after the second and fourth years of its oper-
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ation. Upon request, the Attorney General or the Sec-
retary shall furnish such information as the General Ac-
counting Office may require to carry out this subsection.
(g) DEFINITION.—In this section, the term ‘‘covered
entity’’ has the meaning given such term in section
442(a)(2).
SEC. 444. SENSE OF CONGRESS.
It is the sense of the Congress that—
(1) the missions of the Bureau of Border Secu-
rity of the Department of Homeland Security and
the Bureau of Citizenship and Immigration Services
of the Department of Justice are equally important
and, accordingly, they each should be adequately
funded; and
(2) the functions transferred under this subtitle
should not, after such transfers take effect, operate
at levels below those in effect prior to the enactment
of this Act.
SEC. 445. REPORTS AND IMPLEMENTATION PLANS.
(a) DIVISION OF FUNDS.—The Attorney General and
the Secretary, not later than 120 days after the effective
date of this Act, shall each submit to the Committees on
Appropriations and the Judiciary of the United States
House of Representatives and of the Senate a report on
the proposed division and transfer of funds, including un-
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expended funds, appropriations, and fees, between the Bu-
reau of Citizenship and Immigration Services and the Bu-
reau of Border Security.
(b) DIVISION OF PERSONNEL.—The Attorney Gen-
eral and the Secretary, not later than 120 days after the
effective date of this Act, shall each submit to the Commit-
tees on Appropriations and the Judiciary of the United
States House of Representatives and of the Senate a re-
port on the proposed division of personnel between the Bu-
reau of Citizenship and Immigration Services and the Bu-
reau of Border Security.
(c) IMPLEMENTATION PLAN.—
(1) IN GENERAL.—The Attorney General and
the Secretary, not later than 120 days after the ef-
fective date of this Act, and every 6 months there-
after until the termination of fiscal year 2005, shall
each submit to the Committees on Appropriations
and the Judiciary of the United States House of
Representatives and of the Senate an implementa-
tion plan to carry out this Act.
(2) 
CONTENTS.—The 
implementation 
plan
should include details concerning the separation of
the Bureau of Citizenship and Immigration Services
and the Bureau of Border Security, including the
following:
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(A) Organizational structure, including the
field structure.
(B) Chain of command.
(C) Procedures for interaction among such
bureaus.
(D) Fraud detection and investigation.
(E) The processing and handling of re-
moval proceedings, including expedited removal
and applications for relief from removal.
(F) 
Recommendations 
for 
conforming
amendments to the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.).
(G) Establishment of a transition team.
(H) Methods to phase in the costs of sepa-
rating the administrative support systems of
the Immigration and Naturalization Service in
order to provide for separate administrative
support systems for the Bureau of Citizenship
and Immigration Services and the Bureau of
Border Security.
(d) COMPTROLLER GENERAL STUDIES
AND RE-
PORTS.—
(1) STATUS
REPORTS
ON
TRANSITION.—Not
later than 18 months after the date on which the
transfer of functions specified under section 411
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takes effect, and every 6 months thereafter, until
full implementation of this subtitle has been com-
pleted, the Comptroller General of the United States
shall submit to the Committees on Appropriations
and on the Judiciary of the United States House of
Representatives and the Senate a report containing
the following:
(A) A determination of whether the trans-
fers of functions made by chapters 1 and 2
have been completed, and if a transfer of func-
tions has not taken place, identifying the rea-
sons why the transfer has not taken place.
(B) If the transfers of functions made by
chapters 1 and 2 have been completed, an iden-
tification of any issues that have arisen due to
the completed transfers.
(C) An identification of any issues that
may arise due to any future transfer of func-
tions.
(2) REPORT ON MANAGEMENT.—Not later than
4 years after the date on which the transfer of func-
tions specified under section 411 takes effect, the
Comptroller General of the United States shall sub-
mit to the Committees on Appropriations and on the
Judiciary of the United States House of Representa-
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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
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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
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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.
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(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.
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(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-
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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.
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(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.
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(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.
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(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,
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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:
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(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-