A bill to establish the Federal Emergency Management Agency as an independent agency, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Emergency Management 
Improvement Act of 2006''.

              TITLE I--FEDERAL EMERGENCY MANAGEMENT AGENCY

SEC. 101. ESTABLISHMENT OF AGENCY AND DIRECTOR AND DEPUTY DIRECTOR.

    (a) Establishment.--The Federal Emergency Management Agency is 
established as an independent establishment in the executive branch as 
defined under section 104 of title 5, United States Code.
    (b) Director.--
            (1) In general.--The Director of the Federal Emergency 
        Management Agency shall be the head of the Federal Emergency 
        Management Agency. The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate. 
        The Director shall report directly to the President.
            (2) Qualifications.--The Director of the Federal Emergency 
        Management Agency shall have significant experience, knowledge, 
        training, and expertise in the area of emergency preparedness, 
        response, recovery, and mitigation as related to natural 
        disasters and other national cataclysmic events.
            (3) Executive schedule position.--Section 5312 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
            ``Director of the Federal Emergency Management Agency.''.
    (c) Deputy Director.--
            (1) In general.--The Deputy Director of the Federal 
        Emergency Management Agency shall assist the Director of the 
        Federal Emergency Management Agency. The Deputy Director shall 
        be appointed by the President, by and with the advice and 
        consent of the Senate.
            (2) Qualifications.--The Deputy Director of the Federal 
        Emergency Management Agency shall have significant experience, 
        knowledge, training, and expertise in the area of emergency 
        preparedness, response, recovery, and mitigation as related to 
        natural disasters and other national cataclysmic events.
            (3) Executive schedule position.--Section 5313 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
            ``Deputy Director of the Federal Emergency Management 
        Agency.''.

SEC. 102. FUNCTIONS.

    (a) In General.--The functions of the Federal Emergency Management 
Agency include the following:
            (1) All functions and authorities prescribed by the Robert 
        T. Stafford Disaster Relief and Emergency 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 of--
                    (A) mitigation, by taking sustained actions to 
                reduce or eliminate long-term risk to people and 
                property from hazards and their effects;
                    (B) planning for building the emergency management 
                profession to prepare effectively for, mitigate 
                against, respond to, and recover from any hazard;
                    (C) 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) 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) increased efficiencies, by coordinating efforts 
                relating to mitigation, planning, response, and 
                recovery.
    (b) Federal Response Plan.--
            (1) Role of fema.--Notwithstanding any provision of the 
        Homeland Security Act of 2002 (6 U.S.C. 101 et seq.), the 
        Federal Emergency Management Agency shall remain the lead 
        agency for the Federal Response Plan established under 
        Executive Order No. 12148 (44 Fed. Reg. 43239) and Executive 
        Order No. 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 Management Agency shall revise the Federal 
        Response Plan to reflect the establishment of the Federal 
        Emergency Management Agency as an independent establishment 
        under this Act.
    (c) Technical and Conforming Amendments.--
            (1) In general.--Section 507 of the Homeland Security Act 
        of 2002 (6 U.S.C. 317) is repealed.
            (2) Other provisions.--The Homeland Security Act of 2002 (6 
        U.S.C. 101 et seq.) is amended--
                    (A) in section 430(c)--
                            (i) in paragraph (7), by adding ``and'' at 
                        the end;
                            (ii) by striking paragraph (8); and
                            (iii) by redesignating paragraph (9) as 
                        paragraph (8); and
                    (B) in section 503--
                            (i) by striking paragraph (1); and
                            (ii) by redesignating paragraphs (2) 
                        through (5) as paragraphs (1) through (4), 
                        respectively.
            (3) Table of contents.--The table of contents for the 
        Homeland Security Act of 2002 (6 U.S.C. 101) is amended by 
        striking the item relating to section 507.

SEC. 103. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to detract from the 
Department of Homeland Security's primary mission to secure the 
homeland from terrorist attacks.

               TITLE II--TRANSFER AND SAVINGS PROVISIONS

SEC. 201. DEFINITIONS.

    In this title, unless otherwise provided or indicated by the 
context--
            (1) the term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code;
            (2) the term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (3) the term ``office'' includes any office, 
        administration, agency, institute, unit, organizational entity, 
        or component thereof.

SEC. 202. TRANSFER OF FUNCTIONS.

    There are transferred to the Federal Emergency Management Agency 
established under section 101 of this Act all functions which the 
Director of the Federal Emergency Management Agency of the Department 
of Homeland Security exercised before the date of the enactment of this 
title.

SEC. 203. PERSONNEL PROVISIONS.

    (a) Appointments.--The Director of the Federal Emergency Management 
Agency may appoint and fix the compensation of such officers and 
employees, including investigators, attorneys, and administrative law 
judges, as may be necessary to carry out the respective functions 
transferred under this title. Except as otherwise provided by law, such 
officers and employees shall be appointed in accordance with the civil 
service laws and their compensation fixed in accordance with title 5, 
United States Code.
    (b) Experts and Consultants.--The Director of the Federal Emergency 
Management Agency may obtain the services of experts and consultants in 
accordance with section 3109 of title 5, United States Code, and 
compensate such experts and consultants for each day (including 
traveltime) at rates not in excess of the rate of pay for level IV of 
the Executive Schedule under section 5315 of such title. The Director 
of the Federal Emergency Management Agency may pay experts and 
consultants who are serving away from their homes or regular place of 
business, travel expenses and per diem in lieu of subsistence at rates 
authorized by sections 5702 and 5703 of such title for persons in 
Government service employed intermittently.

SEC. 204. DELEGATION AND ASSIGNMENT.

    Except where otherwise expressly prohibited by law or otherwise 
provided by this title, the Director of the Federal Emergency 
Management Agency may delegate any of the functions transferred to the 
Director of the Federal Emergency Management Agency by this title and 
any function transferred or granted to such Director after the 
effective date of this title to such officers and employees of the 
Federal Emergency Management Agency as the Director may designate, and 
may authorize successive redelegations of such functions as may be 
necessary or appropriate. No delegation of functions by the Director of 
the Federal Emergency Management Agency under this section or under any 
other provision of this title shall relieve such Director of 
responsibility for the administration of such functions.

SEC. 205. REORGANIZATION.

    The Director of the Federal Emergency Management Agency is 
authorized to allocate or reallocate any function transferred under 
section 202 among the officers of the Federal Emergency Management 
Agency, and to establish, consolidate, alter, or discontinue such 
organizational entities in the Federal Emergency Management Agency as 
may be necessary or appropriate.

SEC. 206. RULES.

    The Director of the Federal Emergency Management Agency is 
authorized to prescribe, in accordance with the provisions of chapters 
5 and 6 of title 5, United States Code, such rules and regulations as 
the Director determines necessary or appropriate to administer and 
manage the functions of the Federal Emergency Management Agency.

SEC. 207. TRANSFER AND ALLOCATIONS OF APPROPRIATIONS AND PERSONNEL.

    Except as otherwise provided in this title, the personnel employed 
in connection with, and the assets, liabilities, contracts, property, 
records, and unexpended balances of appropriations, authorizations, 
allocations, and other funds employed, used, held, arising from, 
available to, or to be made available in connection with the functions 
transferred by this title, subject to section 1531 of title 31, United 
States Code, shall be transferred to the Federal Emergency Management 
Agency. Unexpended funds transferred pursuant to this section shall be 
used only for the purposes for which the funds were originally 
authorized and appropriated.

SEC. 208. INCIDENTAL TRANSFERS.

    The Director of the Office of Management and Budget, at such time 
or times as the Director shall provide, is authorized to make such 
determinations as may be necessary with regard to the functions 
transferred by this title, and to make such additional incidental 
dispositions of personnel, assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds held, used, arising from, 
available to, or to be made available in connection with such 
functions, as may be necessary to carry out the provisions of this 
title. The Director of the Office of Management and Budget shall 
provide for the termination of the affairs of all entities terminated 
by this title and for such further measures and dispositions as may be 
necessary to effectuate the purposes of this title.

SEC. 209. EFFECT ON PERSONNEL.

    (a) In General.--Except as otherwise provided by this title, the 
transfer pursuant to this title of full-time personnel (except special 
Government employees) and part-time personnel holding permanent 
positions shall not cause any such employee to be separated or reduced 
in grade or compensation for one year after the date of transfer of 
such employee under this title.
    (b) Executive Schedule Positions.--Except as otherwise provided in 
this title, any person who, on the day preceding the effective date of 
this title, 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 Federal 
Emergency Management Agency 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.

SEC. 210. SAVINGS PROVISIONS.

    (a) Continuing Effect of Legal Documents.--All orders, 
determinations, rules, regulations, permits, agreements, grants, 
contracts, certificates, licenses, registrations, privileges, and other 
administrative actions--
            (1) which have been issued, made, granted, or allowed to 
        become effective by the President, any Federal agency or 
        official thereof, or by a court of competent jurisdiction, in 
        the performance of functions which are transferred under this 
        title, and
            (2) which are in effect at the time this title takes 
        effect, or were final before the effective date of this title 
        and are to become effective on or after the effective date of 
        this title,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Director of the Federal Emergency Management Agency 
or other authorized official, a court of competent jurisdiction, or by 
operation of law.
    (b) Proceedings Not Affected.--The provisions of this title shall 
not affect any proceedings, including notices of proposed rulemaking, 
or any application for any license, permit, certificate, or financial 
assistance pending before the Federal Emergency Management Agency at 
the time this title takes effect, with respect to functions transferred 
by this title but such proceedings and applications shall continue. 
Orders shall be issued in such proceedings, appeals shall be taken 
therefrom, and payments shall be made pursuant to such orders, as if 
this title had not been enacted, and orders issued in any such 
proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this 
subsection shall be deemed to prohibit the discontinuance or 
modification of any such proceeding under the same terms and conditions 
and to the same extent that such proceeding could have been 
discontinued or modified if this title had not been enacted.
    (c) Suits Not Affected.--The provisions of this title shall not 
affect suits commenced before the effective date of this title, and in 
all such suits, proceedings shall be had, appeals taken, and judgments 
rendered in the same manner and with the same effect as if this title 
had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Federal Emergency Management Agency, or by 
or against any individual in the official capacity of such individual 
as an officer of the Federal Emergency Management Agency, shall abate 
by reason of the enactment of this title.
    (e) Administrative Actions Relating to Promulgation of 
Regulations.--Any administrative action relating to the preparation or 
promulgation of a regulation by the Federal Emergency Management Agency 
relating to a function transferred under this title may be continued by 
the Federal Emergency Management Agency with the same effect as if this 
title had not been enacted.

SEC. 211. SEPARABILITY.

    If a provision of this title or its application to any person or 
circumstance is held invalid, neither the remainder of this title nor 
the application of the provision to other persons or circumstances 
shall be affected.

SEC. 212. TRANSITION.

    The Director of the Federal Emergency Management Agency is 
authorized to utilize--
            (1) the services of such officers, employees, and other 
        personnel of the Federal Emergency Management Agency with 
        respect to functions transferred by this title; and
            (2) funds appropriated to such functions for such period of 
        time as may reasonably be needed to facilitate the orderly 
        implementation of this title.

SEC. 213. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to a department, agency, or office from which a function is 
transferred by this title--
            (1) to the head of such department, agency, or office is 
        deemed to refer to the head of the department, agency, or 
        office to which such function is transferred; or
            (2) to such department, agency, or office is deemed to 
        refer to the department, agency, or office to which such 
        function is transferred.

SEC. 214. ADDITIONAL CONFORMING AMENDMENTS.

    (a) Recommended Legislation.--After consultation with the 
appropriate committees of the Congress and the Director of the Office 
of Management and Budget, the Director of the Federal Emergency 
Management Agency shall prepare and submit to Congress recommended 
legislation containing technical and conforming amendments to reflect 
the changes made by this Act.
    (b) Submission to Congress.--Not later than 6 months after the 
effective date of this title, the Director of the Federal Emergency 
Management Agency shall submit the recommended legislation referred to 
under subsection (a).

Summary: Federal Emergency Management Improvement Act of 2006 - Reestablishes the Federal Emergency Management Agency (FEMA) as an independent establishment in the executive branch. Requires FEMA to be headed by a Director appointed by the President, by and with the advice and consent of the Senate.

Requires FEMA to: (1) include all functions and authorities prescribed by the Robert T. Stafford Disaster Relief and Emergency Assistance Act; and (2) carry out its mission to reduce the loss of life and property and protect the nation from all hazards with a comprehensive, risk-based emergency management program.

Requires FEMA to remain the lead agency for the Federal Response Plan.