H. R. 5005—115
(3) POTENTIAL
PUBLIC
HEALTH
EMERGENCY.—In cases
involving, or potentially involving, a public health emergency,
but in which no determination of an emergency by the Secretary
of Health and Human Services under section 319(a) of the
Public Health Service Act (42 U.S.C. 247d(a)), has been made,
all relevant agencies, including the Department of Homeland
Security, the Department of Justice, and the Federal Bureau
of Investigation, shall keep the Secretary of Health and Human
Services and the Director of the Centers for Disease Control
and Prevention fully and currently informed.
SEC. 888. PRESERVING COAST GUARD MISSION PERFORMANCE.
(a) DEFINITIONS.—In this section:
(1) NON-HOMELAND SECURITY MISSIONS.—The term ‘‘non-
homeland security missions’’ means the following missions of
the Coast Guard:
(A) Marine safety.
(B) Search and rescue.
(C) Aids to navigation.
(D) Living marine resources (fisheries law enforce-
ment).
(E) Marine environmental protection.
(F) Ice operations.
(2) HOMELAND SECURITY MISSIONS.—The term ‘‘homeland
security missions’’ means the following missions of the Coast
Guard:
(A) Ports, waterways and coastal security.
(B) Drug interdiction.
(C) Migrant interdiction.
(D) Defense readiness.
(E) Other law enforcement.
(b) TRANSFER.—There are transferred to the Department the
authorities, functions, personnel, and assets of the Coast Guard,
which shall be maintained as a distinct entity within the Depart-
ment, including the authorities and functions of the Secretary of
Transportation relating thereto.
(c) MAINTENANCE OF STATUS OF FUNCTIONS AND ASSETS.—Not-
withstanding any other provision of this Act, the authorities, func-
tions, and capabilities of the Coast Guard to perform its missions
shall be maintained intact and without significant reduction after
the transfer of the Coast Guard to the Department, except as
specified in subsequent Acts.
(d) CERTAIN TRANSFERS PROHIBITED.—No mission, function, or
asset (including for purposes of this subsection any ship, aircraft,
or helicopter) of the Coast Guard may be diverted to the principal
and continuing use of any other organization, unit, or entity of
the Department, except for details or assignments that do not
reduce the Coast Guard’s capability to perform its missions.
(e) CHANGES TO MISSIONS.—
(1) PROHIBITION.—The Secretary may not substantially or
significantly reduce the missions of the Coast Guard or the
Coast Guard’s capability to perform those missions, except as
specified in subsequent Acts.
(2) WAIVER.—The Secretary may waive the restrictions
under paragraph (1) for a period of not to exceed 90 days
upon a declaration and certification by the Secretary to Con-
gress that a clear, compelling, and immediate need exists for
H. R. 5005—116
such a waiver. A certification under this paragraph shall
include a detailed justification for the declaration and certifi-
cation, including the reasons and specific information that dem-
onstrate that the Nation and the Coast Guard cannot respond
effectively if the restrictions under paragraph (1) are not
waived.
(f) ANNUAL REVIEW.—
(1) IN GENERAL.—The Inspector General of the Department
shall conduct an annual review that shall assess thoroughly
the performance by the Coast Guard of all missions of the
Coast Guard (including non-homeland security missions and
homeland security missions) with a particular emphasis on
examining the non-homeland security missions.
(2) REPORT.—The report under this paragraph shall be
submitted to—
(A) the Committee on Governmental Affairs of the
Senate;
(B) the Committee on Government Reform of the House
of Representatives;
(C) the Committees on Appropriations of the Senate
and the House of Representatives;
(D) the Committee on Commerce, Science, and
Transportation of the Senate; and
(E) the Committee on Transportation and Infrastruc-
ture of the House of Representatives.
(g) DIRECT REPORTING TO SECRETARY.—Upon the transfer of
the Coast Guard to the Department, the Commandant shall report
directly to the Secretary without being required to report through
any other official of the Department.
(h) OPERATION AS A SERVICE IN THE NAVY.—None of the condi-
tions and restrictions in this section shall apply when the Coast
Guard operates as a service in the Navy under section 3 of title
14, United States Code.
(i) REPORT
ON ACCELERATING
THE INTEGRATED DEEPWATER
SYSTEM.—Not later than 90 days after the date of enactment of
this Act, the Secretary, in consultation with the Commandant of
the Coast Guard, shall submit a report to the Committee on Com-
merce, Science, and Transportation of the Senate, the Committee
on Transportation and Infrastructure of the House of Representa-
tives, and the Committees on Appropriations of the Senate and
the House of Representatives that—
(1) analyzes the feasibility of accelerating the rate of
procurement in the Coast Guard’s Integrated Deepwater
System from 20 years to 10 years;
(2) includes an estimate of additional resources required;
(3) describes the resulting increased capabilities;
(4) outlines any increases in the Coast Guard’s homeland
security readiness;
(5) describes any increases in operational efficiencies; and
(6) provides a revised asset phase-in time line.
SEC. 889. HOMELAND SECURITY FUNDING ANALYSIS IN PRESIDENT’S
BUDGET.
(a) IN GENERAL.—Section 1105(a) of title 31, United States
Code, is amended by adding at the end the following:
H. R. 5005—117
‘‘(33)(A)(i) a detailed, separate analysis, by budget function,
by agency, and by initiative area (as determined by the adminis-
tration) for the prior fiscal year, the current fiscal year, the
fiscal years for which the budget is submitted, and the ensuing
fiscal year identifying the amounts of gross and net appropria-
tions or obligational authority and outlays that contribute to
homeland security, with separate displays for mandatory and
discretionary amounts, including—
‘‘(I) summaries of the total amount of such appropria-
tions or new obligational authority and outlays requested
for homeland security;
‘‘(II) an estimate of the current service levels of home-
land security spending;
‘‘(III) the most recent risk assessment and summary
of homeland security needs in each initiative area (as deter-
mined by the administration); and
‘‘(IV) an estimate of user fees collected by the Federal
Government on behalf of homeland security activities;
‘‘(ii) with respect to subclauses (I) through (IV) of clause
(i), amounts shall be provided by account for each program,
project and activity; and
‘‘(iii) an estimate of expenditures for homeland security
activities by State and local governments and the private sector
for the prior fiscal year and the current fiscal year.
‘‘(B) In this paragraph, consistent with the Office of
Management and Budget’s June 2002 ‘Annual Report to Con-
gress on Combatting Terrorism’, the term ‘homeland security’
refers to those activities that detect, deter, protect against,
and respond to terrorist attacks occurring within the United
States and its territories.
‘‘(C) In implementing this paragraph, including deter-
mining what Federal activities or accounts constitute homeland
security for purposes of budgetary classification, the Office of
Management and Budget is directed to consult periodically,
but at least annually, with the House and Senate Budget
Committees, the House and Senate Appropriations Committees,
and the Congressional Budget Office.’’.
(b) REPEAL OF DUPLICATIVE REPORTS.—The following sections
are repealed:
(1) Section 1051 of Public Law 105–85.
(2) Section 1403 of Public Law 105–261.
(c) EFFECTIVE DATE.—This section and the amendment made
by this section shall apply beginning with respect to the fiscal
year 2005 budget submission.
SEC. 890. AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION
ACT.
The Air Transportation Safety and System Stabilization 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
H. R. 5005—118
and agents (including persons engaged in the business of pro-
viding air transportation security and their affiliates) of such
citizen. For purposes of the preceding sentence, the term ‘agent’,
as applied to persons engaged in the business of providing
air transportation security, shall only include persons that have
contracted directly with the Federal Aviation Administration
on or after and commenced services no later than February
17, 2002, to provide such security, and had not been or are
not debarred for any period within 6 months from that date.’’.
Subtitle I—Information Sharing
SEC. 891. SHORT TITLE; FINDINGS; AND SENSE OF CONGRESS.
(a) SHORT TITLE.—This subtitle may be cited as the ‘‘Homeland
Security Information Sharing Act’’.
(b) FINDINGS.—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 per-
sonnel to protect against terrorist attack.
(3) The Federal Government collects, creates, manages,
and protects classified and sensitive but unclassified informa-
tion to enhance homeland security.
(4) Some homeland security information is needed by the
State and local personnel to prevent and prepare for terrorist
attack.
(5) The needs of State and local personnel to have access
to relevant homeland security information to combat terrorism
must be reconciled with the need to preserve the protected
status of such information 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 otherwise 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 suspicious activities and
terrorist threats not possessed by Federal agencies.
(9) The Federal Government and State and local govern-
ments 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 partnership to maximize the
benefits of information gathering and analysis to prevent and
respond to terrorist attacks.
(11) Information systems, including the National Law
Enforcement Telecommunications System and the Terrorist
Threat Warning System, have been established for rapid
sharing of classified and sensitive but unclassified information
among Federal, State, and local entities.
H. R. 5005—119
(12) Increased efforts to share homeland security informa-
tion should avoid duplicating existing information systems.
(c) SENSE
OF CONGRESS.—It is the sense of Congress 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. 
892. 
FACILITATING 
HOMELAND 
SECURITY 
INFORMATION
SHARING PROCEDURES.
(a) PROCEDURES
FOR DETERMINING EXTENT
OF SHARING
OF
HOMELAND SECURITY INFORMATION.—
(1) The President shall prescribe and implement procedures
under which relevant Federal agencies—
(A) share relevant and appropriate homeland security
information with other Federal agencies, including the
Department, and appropriate State and local personnel;
(B) identify and safeguard homeland security informa-
tion that is sensitive but unclassified; 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
removed.
(2) The President shall ensure that such procedures apply
to all agencies of the Federal Government.
(3) Such procedures shall not change the substantive
requirements for the classification and safeguarding of classi-
fied information.
(4) Such procedures shall not change the requirements
and authorities to protect sources and methods.
(b) PROCEDURES
FOR
SHARING
OF
HOMELAND
SECURITY
INFORMATION.—
(1) Under procedures prescribed by the President, all appro-
priate agencies, including the intelligence community, shall,
through information sharing 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 subsection (a), together with
assessments of the credibility of such information.
(2) Each information sharing system through which
information is shared under paragraph (1) shall—
(A) have the capability to transmit unclassified or
classified information, though the procedures and recipients
for each capability may differ;
(B) have the capability to restrict delivery of informa-
tion to specified subgroups by geographic location, type
of organization, position of a recipient within an organiza-
tion, or a recipient’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 per-
sonnel.
(3) The procedures prescribed under paragraph (1) shall
establish conditions on the use of information shared under
paragraph (1)—
H. R. 5005—120
(A) to limit the redissemination of such information
to ensure that such information is not used for an
unauthorized purpose;
(B) to ensure the security and confidentiality of such
information;
(C) to protect the constitutional and statutory 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
Telecommunications System, the Regional Information Sharing
System, and the Terrorist Threat Warning System of the Fed-
eral Bureau of Investigation.
(5) Each appropriate Federal agency, as determined by
the President, shall have access to each information sharing
system through which information is shared under paragraph
(1), and shall therefore have access to all information, as appro-
priate, shared under such paragraph.
(6) The procedures prescribed under paragraph (1) shall
ensure that appropriate State and local personnel are author-
ized 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 homeland security
information of their own jurisdictions, 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 appro-
priate Federal agency, as determined by the President, shall
review and assess the information shared under paragraph
(6) and integrate such information with existing intelligence.
(c) SHARING OF CLASSIFIED INFORMATION AND SENSITIVE BUT
UNCLASSIFIED INFORMATION WITH STATE AND LOCAL PERSONNEL.—
(1) The President shall prescribe procedures under which
Federal agencies may, to the extent the President considers
necessary, share with appropriate State and local personnel
homeland security information that remains classified or other-
wise protected after the determinations prescribed under the
procedures set forth in subsection (a).
(2) It is the sense of Congress that such procedures may
include 1 or more of the following means:
(A) Carrying out security clearance investigations with
respect to appropriate State and local personnel.
(B) With respect to information that is sensitive but
unclassified, entering into nondisclosure 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
H. R. 5005—121
of Investigation, the Anti-Terrorism Task Forces of the
Department of Justice, and regional Terrorism Early
Warning Groups.
(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 pre-
scribed under this section, information obtained 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 informa-
tion 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 activity;
(B) relates to the ability to prevent, interdict, or disrupt
terrorist activity;
(C) would improve the identification or investigation
of a suspected terrorist or terrorist organization; or
(D) would improve the response to a terrorist act.
(2) The term ‘‘intelligence community’’ has the meaning
given such term in section 3(4) of the National 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 prevention, preparation, or
response for terrorist attack:
(A) State Governors, mayors, and other locally elected
officials.
(B) State and local law enforcement personnel and
firefighters.
(C) Public health and medical professionals.
(D) Regional, State, and local emergency management
agency personnel, including State adjutant generals.
(E) Other appropriate emergency response agency per-
sonnel.
(F) Employees of private-sector entities that affect crit-
ical infrastructure, cyber, economic, or public health secu-
rity, as designated by the Federal Government in proce-
dures developed pursuant to this section.
(4) The term ‘‘State’’ includes the District of Columbia
and any commonwealth, territory, or possession of the United
States.
(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 personnel otherwise authorized by this Act to
receive homeland security information, any information collected
by the Federal Government solely for statistical purposes in viola-
tion of any other provision of law relating to the confidentiality
of such information.
SEC. 893. REPORT.
(a) REPORT REQUIRED.—Not later than 12 months after the
date of the enactment of this Act, the President shall submit to
H. R. 5005—122
the congressional committees specified in subsection (b) a report
on the implementation of section 892. The report shall include
any recommendations for additional measures or appropriation
requests, beyond the requirements of section 892, 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 commit-
tees:
(1) The Permanent Select Committee on Intelligence and
the Committee on the Judiciary of the House of Representa-
tives.
(2) The Select Committee on Intelligence and the Com-
mittee on the Judiciary of the Senate.
SEC. 894. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may
be necessary to carry out section 892.
SEC. 895. AUTHORITY TO SHARE GRAND JURY INFORMATION.
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 Intel-
ligence 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 sub-
division of a state’’;
(B) in subparagraph (C)(i)—
(i) in subclause (I), by inserting before the semi-
colon the following: ‘‘or, upon a request by an attorney
for the government, when sought by a foreign court
or prosecutor for use in an official criminal investiga-
tion’’;
(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 sub-
division 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 following:
‘‘(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
international sabotage, domestic or international ter-
rorism, or clandestine 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, to any appropriate federal, state,
local, or foreign government official for the purpose
of preventing or responding to such a threat.’’; and
(C) in subparagraph (C)(iii)—
(i) by striking ‘‘Federal’’;
H. R. 5005—123
(ii) by inserting ‘‘or clause (i)(VI)’’ after ‘‘clause
(i)(V)’’; and
(iii) by adding at the end the following: ‘‘Any state,
local, or foreign official who receives information pursu-
ant to clause (i)(VI) shall use that information only
consistent with such guidelines as the Attorney Gen-
eral and Director of Central Intelligence shall jointly
issue.’’.
SEC. 896. AUTHORITY TO SHARE ELECTRONIC, WIRE, AND ORAL INTER-
CEPTION 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 Fed-
eral official in carrying out official duties as such Federal official,
who by any means authorized by this chapter, has obtained knowl-
edge of the contents of any wire, oral, or electronic communication,
or evidence derived therefrom, may disclose such contents or deriva-
tive evidence to a foreign investigative or law enforcement officer
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 investigative 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 perform-
ance of their official duties.
‘‘(8) Any investigative or law enforcement officer, or other Fed-
eral official in carrying out official duties as such Federal official,
who by any means authorized by this chapter, has obtained knowl-
edge of the contents of any wire, oral, or electronic communication,
or evidence derived therefrom, may disclose such contents or deriva-
tive evidence to any appropriate Federal, State, local, or foreign
government official to the extent that such contents or derivative
evidence reveals 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 international sabotage, domestic or international
terrorism, or clandestine 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 this provision may
use that information only as necessary in the conduct of that
person’s official duties subject to any limitations on the unauthor-
ized disclosure of such information, and any State, local, or foreign
official who receives information pursuant to this provision may
use that information only consistent with such guidelines as the
Attorney General and Director of Central Intelligence shall jointly
issue.’’.
SEC. 897. 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 (USA PATRIOT ACT)
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 responsi-
bility of the Director of Central Intelligence to protect intelligence
sources and methods, and the responsibility of the Attorney General
to protect sensitive law enforcement information, it shall be lawful
for information revealing a threat of actual or potential attack