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H.R. 5005 (107th): Homeland Security Act of 2002

The text of the bill below is as of Jul 26, 2002 (Passed the House).


HR 5005 EH

107th CONGRESS

2d Session

H. R. 5005


AN ACT

To establish the Department of Homeland Security, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Homeland Security Act of 2002’.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Definitions.

      Sec. 3. Construction; severability.

      Sec. 4. Effective date.

TITLE I--DEPARTMENT OF HOMELAND SECURITY

      Sec. 101. Executive department; mission.

      Sec. 102. Secretary; functions.

      Sec. 103. Other officers.

      Sec. 104. National Council of First Responders.

TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

Subtitle A--Under Secretary for Information Analysis and Infrastructure Protection

      Sec. 201. Under Secretary for Information Analysis and Infrastructure Protection.

      Sec. 202. Functions transferred.

      Sec. 203. Access to information.

      Sec. 204. Procedures for sharing information.

      Sec. 205. Privacy officer.

      Sec. 206. Federal cybersecurity program.

      Sec. 207. Enhancement of non-Federal cybersecurity.

      Sec. 208. Information security.

Subtitle B--Intelligence Analysis Center

      Sec. 211. Intelligence Analysis Center

      Sec. 212. Mission of the Intelligence Analysis Center.

      Sec. 213. Net Guard.

TITLE III--SCIENCE AND TECHNOLOGY

      Sec. 301. Under Secretary for Science and Technology.

      Sec. 302. Functions transferred.

      Sec. 303. Conduct of certain public health-related activities.

      Sec. 304. Federally funded research and development center.

      Sec. 305. Miscellaneous provisions.

      Sec. 306. Homeland Security Science and Technology Coordination Council.

      Sec. 307. Conduct of research, development, demonstration, testing and evaluation.

      Sec. 308. Transfer of Plum Island Animal Disease Center, Department of Agriculture.

      Sec. 309. Homeland Security Science and Technology Advisory Committee.

      Sec. 310. Homeland Security Institute.

      Sec. 311. Technology clearinghouse to encourage and support innovative solutions to enhance homeland security.

TITLE IV--BORDER AND TRANSPORTATION SECURITY

Subtitle A--General Provisions

      Sec. 401. Under Secretary for Border and Transportation Security.

      Sec. 402. Functions transferred.

      Sec. 403. Visa issuance.

      Sec. 404. Transfer of certain agricultural inspection functions of the Department of Agriculture.

      Sec. 405. Functions of Administrator of General Services.

      Sec. 406. Functions of Transportation Security Administration.

      Sec. 407. Preservation of Transportation Security Administration as a distinct entity.

      Sec. 408. Annual assessment of terrorist-related threats to public transportation.

      Sec. 409. Explosive detection systems.

      Sec. 410. Transportation security.

Subtitle B--Immigration and Nationality Functions

Chapter 1--Immigration Enforcement

      Sec. 411. Transfer of functions to under Secretary for Border and Transportation Security.

      Sec. 412. Establishment of Bureau of Border Security.

      Sec. 413. Professional responsibility and quality review.

      Sec. 414. Employee discipline.

      Sec. 415. Report on improving enforcement functions.

      Sec. 416. Sense of Congress regarding construction of fencing near San Diego, California.

Chapter 2--Citizenship And Immigration Services

SUBCHAPTER A--TRANSFERS OF FUNCTIONS

      Sec. 421. Establishment of Bureau of Citizenship and Immigration Services.

      Sec. 422. Citizenship and Immigration Services Ombudsman.

      Sec. 423. Professional responsibility and quality review.

      Sec. 424. Employee discipline.

      Sec. 425. Office of Immigration Statistics within Bureau of Justice Statistics.

      Sec. 426. Preservation of Attorney General’s authority.

      Sec. 427. Effective date.

      Sec. 428. Transition.

SUBCHAPTER B--OTHER PROVISIONS

      Sec. 431. Funding for citizenship and immigration services.

      Sec. 432. Backlog elimination.

      Sec. 433. Report on improving immigration services.

      Sec. 434. Report on responding to fluctuating needs.

      Sec. 435. Application of Internet-based technologies.

      Sec. 436. Children’s affairs.

Chapter 3--General Provisions

      Sec. 441. Abolishment of INS.

      Sec. 442. Voluntary separation incentive payments.

      Sec. 443. Authority to conduct a demonstration project relating to disciplinary action.

      Sec. 444. Sense of Congress.

      Sec. 445. Reports and implementation plans.

      Sec. 446. Immigration functions.

Subtitle C--United States Customs Service

      Sec. 451. Establishment; Commissioner of Customs.

      Sec. 452. Retention of customs revenue functions by Secretary of the Treasury.

      Sec. 453. Establishment and implementation of cost accounting system; reports.

      Sec. 454. Preservation of Customs funds.

      Sec. 455. Separate budget request for Customs.

      Sec. 456. Payment of duties and fees.

      Sec. 457. Definition.

      Sec. 458. GAO report to Congress.

      Sec. 459. Allocation of resources by the Secretary.

      Sec. 460. Reports to Congress.

      Sec. 461. Customs user fees.

TITLE V--EMERGENCY PREPAREDNESS AND RESPONSE

      Sec. 501. Under Secretary for Emergency Preparedness and Response.

      Sec. 502. Functions transferred.

      Sec. 503. Nuclear incident response.

      Sec. 504. Definition.

      Sec. 505. Conduct of certain public-health related activities.

      Sec. 506. Role of Federal Emergency Management Agency.

      Sec. 507. Sense of Congress regarding funding of trauma systems.

TITLE VI--MANAGEMENT

      Sec. 601. Under Secretary for Management.

      Sec. 602. Chief Financial Officer.

      Sec. 603. Chief Information Officer.

      Sec. 604. Establishment of Office for Civil Rights and Civil Liberties.

      Sec. 605. Consolidation and co-location of offices.

TITLE VII--MISCELLANEOUS

Subtitle A--Inspector General

      Sec. 701. Authority of the Secretary.

Subtitle B--United States Secret Service

      Sec. 711. Functions transferred.

Subtitle C--Critical Infrastructure Information

      Sec. 721. Short title.

      Sec. 722. Definitions.

      Sec. 723. Designation of critical infrastructure protection program.

      Sec. 724. Protection of voluntarily shared critical infrastructure information.

      Sec. 725. No private right of action.

Subtitle D--Acquisitions

      Sec. 731. Research and development projects.

      Sec. 732. Personal services.

      Sec. 733. Special streamlined acquisition authority.

      Sec. 734. Procurements from small businesses.

      Sec. 735. Prohibition on contracting with corporate expatriates.

Subtitle E--Property

      Sec. 741. Department headquarters.

Subtitle F--Support Anti-Terrorism by Fostering Effective Technologies Act of 2002 (the SAFETY Act)

      Sec. 751. Short title.

      Sec. 752. Administration.

      Sec. 753. Litigation management.

      Sec. 754. Risk management.

      Sec. 755. Definitions.

Subtitle G--Other Provisions

      Sec. 761. Establishment of human resources management system.

      Sec. 762. Labor-management relations.

      Sec. 763. Advisory committees.

      Sec. 764. Reorganization; transfer of appropriations.

      Sec. 765. Miscellaneous authorities.

      Sec. 766. Military activities.

      Sec. 767. Regulatory authority and preemption.

      Sec. 768. Provisions regarding transfers from Department of Energy.

      Sec. 769. Counternarcotics officer.

      Sec. 770. Office of International Affairs.

      Sec. 771. Prohibition of the terrorism information and prevention system.

      Sec. 772. Review of pay and benefit plans.

      Sec. 773. Role of the District of Columbia.

      Sec. 774. Transfer of the Federal Law Enforcement Training Center.

      Sec. 775. Requirement to comply with laws protecting equal employment opportunity and providing whistleblower protections.

      Sec. 776. Federal Law Enforcment Training Center.

      Sec. 777. Office for State and local government coordination.

      Sec. 778. Reporting requirements.

      Sec. 779. Joint Interagency Task Force.

      Sec. 780. Sense of Congress reaffirming the continued importance and applicability of the Posse Comitatus Act.

      Sec. 781. Air Transportation Safety and System Stabilization Act Amendments.

Subtitle H--Information Sharing

      Sec. 790. Short title.

      Sec. 791. Findings and sense of Congress.

      Sec. 792. Facilitating homeland security information sharing procedures.

      Sec. 793. Report.

      Sec. 794. Authorization of appropriations.

      Sec. 795. Authority to share grand jury information.

      Sec. 796. Authority to share electronic, wire, and oral interception information.

      Sec. 797. Foreign intelligence information.

      Sec. 798. Information acquired from an electronic surveillance.

      Sec. 799. Information acquired from a physical search.

TITLE VIII--TRANSITION

Subtitle A--Reorganization Plan

      Sec. 801. Definitions.

      Sec. 802. Reorganization plan.

Subtitle B--Transitional Provisions

      Sec. 811. Transitional authorities.

      Sec. 812. Savings provisions.

      Sec. 813. Terminations.

      Sec. 814. National identification system not authorized.

      Sec. 815. Continuity of Inspector General oversight.

      Sec. 816. Reference.

TITLE IX--CONFORMING AND TECHNICAL AMENDMENTS

      Sec. 901. Inspector General Act of 1978.

      Sec. 902. Executive Schedule.

      Sec. 903. United States Secret Service.

      Sec. 904. Coast Guard.

      Sec. 905. Strategic National Stockpile and smallpox vaccine development.

      Sec. 906. Transfer of certain security and law enforcement functions and authorities.

      Sec. 907. Transportation security regulations.

      Sec. 908. Railroad security laws.

      Sec. 909. Office of Science and Technology Policy.

      Sec. 910. National Oceanographic Partnership Program.

      Sec. 911. Chief Financial Officer.

      Sec. 912. Chief Information Officer.

TITLE X--NATIONAL HOMELAND SECURITY COUNCIL

      Sec. 1001. National Homeland Security Council.

      Sec. 1002. Function.

      Sec. 1003. Membership.

      Sec. 1004. Other functions and activities.

      Sec. 1005. Homeland security budget.

      Sec. 1006. Staff composition.

      Sec. 1007. Relation to the National Security Council.

TITLE XI--INFORMATION SECURITY

      Sec. 1101. Information security.

      Sec. 1102. Management of information technology.

      Sec. 1103. National Institute of Standards and Technology.

      Sec. 1104. Information Security and Privacy Advisory Board.

      Sec. 1105. Technical and conforming amendments.

      Sec. 1106. Construction.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:

      (1) Each of the terms ‘American homeland’ and ‘homeland’ means the United States.

      (2) The term ‘appropriate congressional committee’ means any committee of the House of Representatives or the Senate having legislative or oversight jurisdiction under the Rules of the House of Representatives or the Senate, respectively, over the matter concerned.

      (3) The term ‘assets’ includes contracts, facilities, property, records, unobligated or unexpended balances of appropriations, and other funds or resources (other than personnel).

      (4) The term ‘critical infrastructure’ has the meaning given that term in section 1016(e) of Public Law 107-56 (42 U.S.C. 5195c(e)).

      (5) The term ‘Department’ means the Department of Homeland Security.

      (6) The term ‘emergency response providers’ includes Federal, State, and local emergency public safety, law enforcement, emergency response, emergency medical (including hospital emergency facilities), and related personnel, agencies, and authorities.

      (7) The term ‘executive agency’ means an executive agency and a military department, as defined, respectively, in sections 105 and 102 of title 5, United States Code.

      (8) The term ‘functions’ includes authorities, powers, rights, privileges, immunities, programs, projects, activities, duties, and responsibilities.

      (9) The term ‘key resources’ means publicly or privately controlled resources essential to the minimal operations of the economy and government.

      (10) The term ‘local government’ means--

        (A) a county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments (regardless of whether the council of governments is incorporated as a nonprofit corporation under State law), regional or interstate government entity, or agency or instrumentality of a local government;

        (B) an Indian tribe or authorized tribal organization, or Alaska Native village or organization; and

        (C) a rural community, unincorporated town or village, or other public entity.

      (11) The term ‘major disaster’ has the meaning given in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122).

      (12) The term ‘personnel’ means officers and employees.

      (13) The term ‘Secretary’ means the Secretary of Homeland Security.

      (14) The term ‘State’ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any possession of the United States.

      (15) The term ‘terrorism’ means any activity that--

        (A) involves an act that--

          (i) is dangerous to human life or potentially destructive of critical infrastructure or key resources; and

          (ii) is a violation of the criminal laws of the United States or of any State or other subdivision of the United States; and

        (B) appears to be intended--

          (i) to intimidate or coerce a civilian population;

          (ii) to influence the policy of a government by intimidation or coercion; or

          (iii) to affect the conduct of a government by mass destruction, assassination, or kidnapping.

      (16) The term ‘United States’, when used in a geographic sense, means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, any possession of the United States, and any waters within the jurisdiction of the United States.

SEC. 3. CONSTRUCTION; SEVERABILITY.

    Any provision of this Act held to be invalid or unenforceable by its terms, or as applied to any person or circumstance, shall be construed so as to give it the maximum effect permitted by law, unless such holding shall be one of utter invalidity or unenforceability, in which event such provision shall be deemed severable from this Act and shall not affect the remainder thereof, or the application of such provision to other persons not similarly situated or to other, dissimilar circumstances.

SEC. 4. EFFECTIVE DATE.

    This Act shall take effect thirty days after the date of enactment or, if enacted within thirty days before January 1, 2003, on January 1, 2003.

TITLE I--DEPARTMENT OF HOMELAND SECURITY

SEC. 101. EXECUTIVE DEPARTMENT; MISSION.

    (a) ESTABLISHMENT- There is established a Department of Homeland Security, as an executive department of the United States within the meaning of title 5, United States Code.

    (b) MISSION-

      (1) IN GENERAL- The primary mission of the Department is to--

        (A) prevent terrorist attacks within the United States;

        (B) reduce the vulnerability of the United States to terrorism;

        (C) minimize the damage, and assist in the recovery, from terrorist attacks that do occur within the United States;

        (D) carry out all functions of entities transferred to the Department, including by acting as a focal point regarding natural and manmade crises and emergency planning;

        (E) ensure that the functions of the agencies and subdivisions within the Department that are not related directly to securing the homeland are not diminished or neglected except by a specific explicit Act of Congress;

        (F) ensure that the overall economic security of the United States is not diminished by efforts, activities, and programs aimed at securing the homeland; and

        (G) monitor connections between illegal drug trafficking and terrorism, coordinate efforts to sever such connections, and otherwise contribute to efforts to interdict illegal drug trafficking.

      (2) RESPONSIBILITY FOR INVESTIGATING AND PROSECUTING TERRORISM- Except as specifically provided by law with respect to entities transferred to the Department under this Act, primary responsibility for investigating and prosecuting acts of terrorism shall be vested not in the Department, but rather in Federal, State, and local law enforcement agencies with jurisdiction over the acts in question.

SEC. 102. SECRETARY; FUNCTIONS.

    (a) SECRETARY- (1) There is a Secretary of Homeland Security, appointed by the President, by and with the advice and consent of the Senate.

    (2) The Secretary is the head of the Department and shall have direction, authority, and control over it.

    (3) All functions of all officers, employees, and organizational units of the Department are vested in the Secretary.

    (b) FUNCTIONS- The Secretary--

      (1) except as otherwise provided by this Act, may delegate any of the Secretary’s functions to any officer, employee, or organizational unit of the Department;

      (2) shall have the authority to make contracts, grants, and cooperative agreements, and to enter into agreements with other executive agencies, as may be necessary and proper to carry out the Secretary’s responsibilities under this Act or otherwise provided by law; and

      (3) shall take reasonable steps to ensure that information systems and databases of the Department are compatible with each other and with appropriate databases of other Departments.

    (c) COORDINATION WITH NON-FEDERAL ENTITIES- With respect to homeland security, the Secretary shall coordinate (including the provision of training and equipment) with State and local government personnel, agencies, and authorities, with the private sector, and with other entities, including by--

      (1) coordinating with State and local government personnel, agencies, and authorities, and with the private sector, to ensure adequate planning, equipment, training, and exercise activities;

      (2) coordinating and, as appropriate, consolidating, the Federal Government’s communications and systems of communications relating to homeland security with State and local government personnel, agencies, and authorities, the private sector, other entities, and the public; and

      (3) distributing or, as appropriate, coordinating the distribution of, warnings and information to State and local government personnel, agencies, and authorities and to the public.

    (d) MEETINGS OF NATIONAL SECURITY COUNCIL- The Secretary may, subject to the direction of the President, attend and participate in meetings of the National Security Council.

    (e) ISSUANCE OF REGULATIONS- The issuance of regulations by the Secretary shall be governed by the provisions of chapter 5 of title 5, United States Code, except as specifically provided in this Act, in laws granting regulatory authorities that are transferred by this Act, and in laws enacted after the date of enactment of this Act.

    (f) SPECIAL ASSISTANT TO THE SECRETARY- The Secretary shall appoint a Special Assistant to the Secretary who shall be responsible for--

      (1) creating and fostering strategic communications with the private sector to enhance the primary mission of the Department to protect the American homeland;

      (2) advising the Secretary on the impact of the Department’s policies, regulations, processes, and actions on the private sector;

      (3) interfacing with other relevant Federal agencies with homeland security missions to assess the impact of these agencies’ actions on the private sector;

      (4) creating and managing private sector advisory councils composed of representatives of industries and associations designated by the Secretary to--

        (A) advise the Secretary on private sector products, applications, and solutions as they relate to homeland security challenges; and

        (B) advise the Secretary on homeland security policies, regulations, processes, and actions that affect the participating industries and associations;

      (5) working with Federal laboratories, Federally funded research and development centers, other Federally funded organizations, academia, and the private sector to develop innovative approaches to address homeland security challenges to produce and deploy the best available technologies for homeland security missions;

      (6) promoting existing public-private partnerships and developing new public-private partnerships to provide for collaboration and mutual support to address homeland security challenges; and

      (7) assisting in the development and promotion of private sector best practices to secure critical infrastructure.

    (g) STANDARDS POLICY- All standards activities of the Department shall be conducted in accordance with section 12(d) of the National Technology Transfer Advancement Act of 1995 (15 U.S.C. 272 note) and Office of Management and Budget Circular A-119.

SEC. 103. OTHER OFFICERS.

    (a) DEPUTY SECRETARY; UNDER SECRETARIES- There are the following officers, appointed by the President, by and with the advice and consent of the Senate:

      (1) A Deputy Secretary of Homeland Security, who shall be the Secretary’s first assistant for purposes of subchapter III of chapter 33 of title 5, United States Code.

      (2) An Under Secretary for Information Analysis and Infrastructure Protection.

      (3) An Under Secretary for Science and Technology.

      (4) An Under Secretary for Border and Transportation Security.

      (5) An Under Secretary for Emergency Preparedness and Response.

      (6) An Under Secretary for Management.

      (7) Not more than four Assistant Secretaries.

      (8) A Chief Financial Officer.

    (b) INSPECTOR GENERAL- There is an Inspector General, who shall be appointed as provided in section 3(a) of the Inspector General Act of 1978.

    (c) COMMANDANT OF THE COAST GUARD- To assist the Secretary in the performance of the Secretary’s functions, there is a Commandant of the Coast Guard, who shall be appointed as provided in section 44 of title 14, United States Code, and who shall report directly to the Secretary. In addition to such duties as may be provided in this Act and as assigned to the Commandant by the Secretary, the duties of the Commandant shall include those required by section 2 of title 14, United States Code.

    (d) OTHER OFFICERS- To assist the Secretary in the performance of the Secretary’s functions, there are the following officers, appointed by the President:

      (1) A General Counsel, who shall be the chief legal officer of the Department.

      (2) Not more than eight Assistant Secretaries.

      (3) A Director of the Secret Service.

      (4) A Chief Information Officer.

    (e) PERFORMANCE OF SPECIFIC FUNCTIONS- Subject to the provisions of this Act, every officer of the Department shall perform the functions specified by law for the official’s office or prescribed by the Secretary.

SEC. 104. NATIONAL COUNCIL OF FIRST RESPONDERS.

    (a) FINDINGS- The Congress finds the following:

      (1) First responders are key to protecting the health and safety of our citizens against disasters.

      (2) First responders are the Nation’s ready reaction force of dedicated and brave people who save lives and property when catastrophe strikes.

      (3) First responders have the knowledge, training, and experience to save lives, often under the most difficult conditions imaginable.

      (4) First responders play an important role in helping to develop and implement advances in life saving technology.

      (5) First responders are uniquely qualified to advise the Department of Homeland Security on the role of first responders in defending our Nation against terrorism.

    (b) ESTABLISHMENT AND ADMINISTRATION-

      (1) There is established within the Department of Homeland Security a National Council of First Responders (in this section referred to as the ‘Council’).

      (2) The President shall appoint the members of the Council. The Council shall consist of not less than 100 members, no more than 10 of whom may be residents of the same State. Members of the Council shall be selected from among the ranks of police, firefighters, emergency medical technicians, rescue workers, and hospital personnel who are employed in communities, tribal governments, and political subdivisions of various regions and population sizes.

      (3) The President shall appoint a Chairman of the Council.

      (4) Members shall be appointed to the Council for a term of 3 years.

      (5) Membership shall be staggered to provide continuity.

      (6) The Council shall meet no fewer than 2 times each year.

      (7) Members of the Council shall receive no compensation for service on the Council.

      (8) The Secretary shall detail a single employee from the Department of Homeland Security to the Council for the purposes of:

        (A) Choosing meeting dates and locations.

        (B) Coordinating travel.

        (C) Other administrative functions as needed.

    (c) DUTIES- The Council shall have the following duties:

      (1) Develop a plan to disseminate information on first response best practices.

      (2) Identify and educate the Secretary on the latest technological advances in the field of first response.

      (3) Identify probable emerging threats to first responders.

      (4) Identify needed improvements to first response techniques and training.

      (5) Identify efficient means of communication and coordination between first responders and local, State, and Federal officials.

      (6) Identify areas in which the Department can assist first responders.

      (7) Evaluate the adequacy and timeliness of resources being made available to local first responders.

    (d) REPORTING REQUIREMENT- The Council shall report to the Congress by October 1 of each year on how first responders can continue to be most effectively used to meet the ever-changing challenges of providing homeland security for the United States.

TITLE II--INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION

Subtitle A--Under Secretary for Information Analysis and Infrastructure Protection

SEC. 201. UNDER SECRETARY FOR INFORMATION ANALYSIS AND INFRASTRUCTURE PROTECTION.

    The Secretary, acting through the Under Secretary for Information Analysis and Infrastructure Protection, shall be responsible for the following:

      (1) Conducting analysis of information, including foreign intelligence and open source information, lawfully collected by Federal, State and local law enforcement agencies and by elements of the intelligence community with respect to threats of terrorist acts against the United States.

      (2) Integrating information, intelligence, and intelligence analyses to produce and disseminate infrastructure vulnerability assessments with respect to such threats.

      (3) Identifying priorities for protective and support measures by the Department, by other executive agencies, by State and local governments, by the private sector, and by other entities.

      (4) Reviewing, analyzing, and recommending improvements in law, policy, and procedure for the sharing of intelligence and other information with respect to threats against the United States within the Federal Government and between the Federal Government and State and local governments.

      (5) Developing a comprehensive national plan to provide for the security of key resources and critical infrastructures including, but not limited to, power production, generation, and distribution systems, information technology and telecommunications systems (including satellites), electronic financial and property record storage and transmission systems, emergency preparedness communications systems, and the physical and technological assets that support such systems.

      (6) Coordinating with other executive agencies, State and local government personnel, agencies, and authorities, and the private sector, to provide advice on implementation of such comprehensive national plan.

      (7) Supporting the intelligence and information requirements of the Department.

      (8) Administering the Homeland Security Advisory System, exercising primary responsibility for public advisories relating to terrorist threats, and (in coordination with other executive agencies) providing specific warning information to State and local government personnel, agencies, and authorities, the private sector, other entities, and the public, as well as advice about appropriate protective actions and countermeasures.

SEC. 202. FUNCTIONS TRANSFERRED.

    In accordance with title VIII, there shall be transferred to the Secretary the functions, personnel, assets, and obligations of the following:

      (1) The National Infrastructure Protection Center of the Federal Bureau of Investigation (other than the Computer Investigations and Operations Section), including the functions of the Attorney General relating thereto.

      (2) The National Communications System of the Department of Defense, including the functions of the Secretary of Defense relating thereto.

      (3) The Critical Infrastructure Assurance Office of the Department of Commerce, including the functions of the Secretary of Commerce relating thereto.

      (4) The Energy Security and Assurance Program of the Department of Energy, including the National Infrastructure Simulation and Analysis Center and the functions of the Secretary of Energy relating thereto.

      (5) The Federal Computer Incident Response Center of the General Services Administration, including the functions of the Administrator of General Services relating thereto.

SEC. 203. ACCESS TO INFORMATION.

    The Secretary shall have access to all reports, assessments, and analytical information relating to threats of terrorism in the United States, and to all information concerning infrastructure vulnerabilites or other vulnerabilites of the United States to terrorism, whether or not such information has been analyzed, that may be collected, possessed, or prepared by any executive agency, except as otherwise directed by the President. The Secretary shall also have access to other information relating to the foregoing matters that may be collected, possessed, or prepared by an executive agency, as the President may further provide. With respect to the material to which the Secretary has access under this section--

      (1) the Secretary may obtain such material by request, and may enter into cooperative arrangements with other executive agencies to share such material on a regular or routine basis, including requests or arrangements involving broad categories of material;

      (2) regardless of whether the Secretary has made any request or entered into any cooperative arrangement pursuant to paragraph (1), all executive agencies promptly shall provide to the Secretary--

        (A) all reports, assessments, and analytical information relating to threats of terrorism in the United States;

        (B) all information concerning infrastructure vulnerablilites or other vulnerablities of the United States to terrorism, whether or not such information has been analyzed;

        (C) all information relating to significant and credible threats of terrorism in the United States, whether or not such information has been analyzed, if the President has provided that the Secretary shall have access to such information; and

        (D) such other material as the President may further provide;

      (3) the Secretary shall have full access and input with respect to information from any national collaborative information analysis capability (as referred to in section 924 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1199)) established jointly by the Secretary of Defense and the Director of Central Intelligence; and

      (4) the Secretary shall ensure that any material received pursuant to this section is protected from unauthorized disclosure and handled and used only for the performance of official duties, and that any intelligence information shared under this section shall be transmitted, retained, and disseminated consistent with the authority of the Director of Central Intelligence to protect intelligence sources and methods under the National Security Act and related procedures or, as appropriate, similar authorities of the Attorney General concerning sensitive law enforcement information.

SEC. 204. PROCEDURES FOR SHARING INFORMATION.

    The Secretary shall establish procedures on the use of information shared under this title that--

      (1) limit the redissemination of such information to ensure that it is not used for an unauthorized purpose;

      (2) ensure the security and confidentiality of such information;

      (3) protect the constitutional and statutory rights of any individuals who are subjects of such information; and

      (4) provide data integrity through the timely removal and destruction of obsolete or erroneous names and information.

SEC. 205. PRIVACY OFFICER.

    The Secretary shall appoint a senior official in the Department to assume primary responsibility for privacy policy, including--

      (1) assuring that the use of technologies sustain, and do not erode, privacy protections relating to the use, collection, and disclosure of personal information;

      (2) assuring that personal information contained in Privacy Act systems of records is handled in full compliance with fair information practices as set out in the Privacy Act of 1974;

      (3) evaluating legislative and regulatory proposals involving collection, use, and disclosure of personal information by the Federal Government;

      (4) conducting a privacy impact assessment of proposed rules of the Department or that of the Department on the privacy of personal information, including the type of personal information collected and the number of people affected; and

      (5) preparing a report to Congress on an annual basis on activities of the Department that affect privacy, including complaints of privacy violations, implementation of the Privacy Act of 1974, internal controls, and other matters.

SEC. 206. FEDERAL CYBERSECURITY PROGRAM.

    (a) IN GENERAL- The Secretary, acting through the Under Secretary for Information Analysis and Infrastructure Protection, shall establish and manage a program to improve the security of Federal critical information systems, including carrying out responsibilities under paragraphs (2) and (3) of section 201 that relate to such systems.

    (b) DUTIES- The duties of the Secretary under subsection (a) are--

      (1) to evaluate the increased use by civilian executive agencies of techniques and tools to enhance the security of Federal critical information systems, including, as appropriate, consideration of cryptography;

      (2) to provide assistance to civilian executive agencies in protecting the security of Federal critical information systems, including identification of significant risks to such systems; and

      (3) to coordinate research and development for critical information systems relating to supervisory control and data acquisition systems, including, as appropriate, the establishment of a test bed.

    (c) FEDERAL INFORMATION SYSTEM SECURITY TEAM-

      (1) IN GENERAL- In carrying out subsection (b)(2), the Secretary shall establish, manage, and support a Federal information system security team whose purpose is to provide technical expertise to civilian executive agencies to assist such agencies in securing Federal critical information systems by conducting information security audits of such systems, including conducting tests of the effectiveness of information security control techniques and performing logical access control tests of interconnected computer systems and networks, and related vulnerability assessment techniques.

      (2) TEAM MEMBERS- The Secretary shall ensure that the team under paragraph (1) includes technical experts and auditors, computer scientists, and computer forensics analysts whose technical competence enables the team to conduct audits under such paragraph.

      (3) AGENCY AGREEMENTS REGARDING AUDITS- Each civilian executive agency may enter into an agreement with the team under paragraph (1) for the conduct of audits under such paragraph of the Federal critical information systems of the agency. Such agreement shall establish the terms of the audit and shall include provisions to minimize the extent to which the audit disrupts the operations of the agency.

      (4) REPORTS- Promptly after completing an audit under paragraph (1) of a civilian executive agency, the team under such paragraph shall prepare a report summarizing the findings of the audit and making recommendations for corrective action. Such report shall be submitted to the Secretary, the head of such agency, and the Inspector General of the agency (if any), and upon request of any congressional committee with jurisdiction over such agency, to such committee.

    (d) DEFINITION- For purposes of this section, the term ‘Federal critical information system’ means an ‘information system’ as defined in section 3502 of title 44, United States Code, that--

      (1) is, or is a component of, a key resource or critical infrastructure;

      (2) is used or operated by a civilian executive agency or by a contractor of such an agency; and

      (3) does not include any national security system as defined in section 5142 of the Clinger-Cohen Act of 1996.

SEC. 207. ENHANCEMENT OF NON-FEDERAL CYBERSECURITY.

    In carrying out the responsibilities under section 201, the Under Secretary for Information Analysis and Infrastructure Protection shall--

      (1) as appropriate, provide to State and local government entities, and upon request to private entitites that own or operate critical information systems--

        (A) analysis and warnings related to threats to, and vulnerabilities of, critical information systems; and

        (B) in coordination with the Under Secretary for Emergency Preparedness and Response, crisis management support in response to threats to, or attacks on, critical information systems; and

      (2) as appropriate, provide technical assistance, upon request, to the private sector and other government entities, in coordination with the Under Secretary for Emergency Preparedness and Response, with respect to emergency recovery plans to respond to major failures of critical information systems.

SEC. 208. INFORMATION SECURITY.

    In carrying out the responsibilities under section 201, the Under Secretary for Information Analysis and Infrastructure Protection shall--

      (1) as appropriate, provide to State and local government entities, and, upon request, to private entities that own or operate critical information systems--

        (A) analysis and warnings related to threats to, and vulnerabilities of, critical information systems; and

        (B) in coordination with the Under Secretary for Emergency Preparedness and Response, crisis management support in response to threats to, or attacks on, critical information systems; and

      (2) as appropriate, provide technical assistance, upon request, to the private sector and with other government entities, in coordination with the Under Secretary for Emergency Preparedness and Response, with respect to emergency recovery plans to respond to major failures of critical information systems.

Subtitle B--Intelligence Analysis Center

SEC. 211. INTELLIGENCE ANALYSIS CENTER.

    (a) ESTABLISHMENT; NFIP AGENCY- (1) There is established within the Department the Intelligence Analysis Center. The Under Secretary for Information Analysis and Infrastructure Protection shall be the head of the Intelligence Analysis Center.

    (2) The Intelligence Analysis Center is a program of the intelligence community for purposes of the National Foreign Intelligence Program (as defined in section 3(6) of the National Security Act of 1947 (50 U.S.C. 401a(6))).

    (b) FUNCTIONS- The Under Secretary for Information Analysis and Infrastructure Protection, through the Intelligence Analysis Center, shall carry out the duties specified in paragraphs (1), (2), (3), (6), and (7) of section 201(b).

    (c) DETAIL OF CERTAIN PERSONNEL-

      (1) IN GENERAL- The Secretary and the Director of Central Intelligence, the Secretary of Defense, the Attorney General, the Secretary of State, or the head of another agency or department as the case may be, shall enter into cooperative arrangements to provide for an appropriate number of individuals to be detailed to the Under Secretary to perform analytical functions and duties with respect to the mission of the Department from the following agencies:

        (A) The Central Intelligence Agency.

        (B) The Federal Bureau of Investigation.

        (C) The National Security Agency.

        (D) The National Imagery and Mapping Agency.

        (E) The Department of State.

        (F) The Defense Intelligence Agency.

        (G) Any other agency or department that the President determines appropriate.

      (2) TERMS OF DETAIL- Any officer or employee of the United States or a member of the Armed Forces who is detailed to the Under Secretary under paragraph (1) shall be detailed on a reimbursable basis for a period of less than two years for the performance of temporary functions as required by the Under Secretary.

    (d) INCLUSION OF OFFICE OF INTELLIGENCE AS AN ELEMENT OF THE INTELLIGENCE COMMUNITY- Section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)) is amended--

      (1) by striking ‘and’ at the end of subparagraph (I);

      (2) by redesignating subparagraph (J) as subparagraph (K); and

      (3) by inserting after subparagraph (I) the following new subparagraph:

        ‘(J) the Intelligence Analysis Center of the Department of Homeland Security; and’.

SEC. 212. MISSION OF THE INTELLIGENCE ANALYSIS CENTER.

    (a) IN GENERAL- The mission of the Intelligence Analysis Center is as follows:

      (1) ANALYSIS AND PRODUCTION-

        (A) Correlating and evaluating information and intelligence related to the mission of the Department collected from all sources available.

        (B) Producing all-source collaborative intelligence analysis, warnings, tactical assessments, and strategic assessments of the terrorist threat and infrastructure vulnerabilities of the United States.

        (C) Providing appropriate dissemination of such assessments.

        (D) Improving the lines of communication with respect to homeland security between the Federal Government and State and local public safety agencies and the private sector through the timely dissemination of information pertaining to threats of acts of terrorism against the United States.

      (2) COORDINATION OF INFORMATION- Coordinating with elements of the intelligence community and with Federal, State, and local law enforcement agencies, and the private sector as appropriate.

      (3) ADDITIONAL DUTIES- Performing such other functions as the Secretary may direct.

    (b) STRATEGIC AND TACTICAL MISSIONS OF THE INTELLIGENCE ANALYSIS CENTER- The Under Secretary shall conduct strategic and tactical assessments and warnings through the Intelligence Analysis Center, including research, analysis, and the production of assessments on the following as they relate to the mission of the Department:

      (1) Domestic terrorism.

      (2) International terrorism.

      (3) Counterintelligence.

      (4) Transnational crime.

      (5) Proliferation of weapons of mass destruction.

      (6) Illicit financing of terrorist activities.

      (7) Cybersecurity and cybercrime.

      (8) Key resources and critical infrastructures.

    (c) STAFFING OF THE INTELLIGENCE ANALYSIS CENTER-

      (1) FUNCTIONS TRANSFERRED- In accordance with title VIII, for purposes of carrying out this title, there is transferred to the Under Secretary the functions, personnel, assets, and liabilities of the following entities:

        (A) The National Infrastructure Protection Center of the Federal Bureau of Investigation (other than the Computer Investigations and Operations Section).

        (B) The Critical Infrastructure Assurance Office of the Department of Commerce.

        (C) The Federal Computer Incident Response Center of the General Services Administration.

        (D) The National Infrastructure Simulation and Analysis Center of the Department of Energy.

        (E) The National Communications System of the Department of Defense.

        (F) The intelligence element of the Coast Guard.

        (G) The intelligence element of the United States Customs Service.

        (H) The intelligence element of the Immigration and Naturalization Service.

        (I) The intelligence element of the Transportation Security Administration.

        (J) The intelligence element of the Federal Protective Service.

      (2) STRUCTURE- It is the sense of Congress that the Under Secretary should model the Intelligence Analysis Center on the technical, analytic approach of the Information Dominance Center of the Department of the Army to the maximum extent feasible and appropriate.

SEC. 213. NET GUARD.

    The Under Secretary for Information Analysis and Infrastructure Protection may establish a national technology guard, to be known as ‘NET Guard’, comprised of local teams of volunteers with expertise in relevant areas of science and technology, to assist local communities to respond and recover from attacks on information systems and communications networks.

TITLE III--SCIENCE AND TECHNOLOGY

SEC. 301. UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY.

    The Secretary, acting through the Under Secretary for Science and Technology, shall have responsibility for--

      (1) developing, in consultation with other appropriate executive agencies, a national policy and strategic plan for, identifying priorities, goals, objectives and policies for, and coordinating the Federal Government’s civilian efforts to identify and develop countermeasures to chemical, biological radiological, nuclear and other emerging terrorist threats, including the development of comprehensive, research-based definable goals for such efforts and development of annual measurable objectives and specific targets to accomplish and evaluate the goals for such efforts;

      (2) establishing and administering the primary research and development activities of the Department, including the long-term research and development needs and capabilities for all elements of the Department;

      (3) conducting basic and applied research, development, demonstration, testing, and evaluation activities that are relevant to any or all elements of the Department, through both intramural and extramural programs; provided that such responsibility does not extend to human health-related research and development activities;

      (4) coordinating and integrating all research, development, demonstration, testing, and evaluation activities of the Department;

      (5) coordinating with other appropriate executive agencies in developing and carrying out the science and technology agenda of the Department to reduce duplication and identify unmet needs;

      (6) establishing Federal priorities for research, development, demonstration, testing, and, as appropriate, procurement and transitional operation of technology and systems--

        (A) for preventing the importation of chemical, biological, radiological, and nuclear weapons and related materials;

        (B) for detecting, preventing, and protecting against terrorist attacks that involve such weapons or related materials; and

        (C) for interoperability of communications systems for emergency response providers;

      (7) ensuring that the research, development, demonstration, testing, and evaluation activities of the Department are aligned with the Department’s procurement needs;

      (8) facilitating the deployment of technology that will serve to enhance homeland security; and

      (9) developing and overseeing the administration of guidelines for merit review of research and development projects throughout the Department, and for the dissemination of research conducted or sponsored by the Department.

SEC. 302. FUNCTIONS TRANSFERRED.

    In accordance with title VIII, there shall be transferred to the Secretary the functions, personnel, assets, and obligations of the following:

      (1) Programs and activities of the Department of Energy, including the functions of the Secretary of Energy relating thereto (but not including programs and activities relating to the strategic nuclear defense posture of the United States), as follows:

        (A) The programs and activities relating to chemical and biological national security, and supporting programs and activities directly related to homeland security, of the non-proliferation and verification research and development program.

        (B) The programs and activities relating to nuclear smuggling, and other programs and activities directly related to homeland security, within the proliferation detection program of the non-proliferation and verification research and development program.

        (C) Those aspects of the nuclear assessment program of the international materials protection and cooperation program that are directly related to homeland security.

        (D) Such life sciences activities of the biological and environmental research program related to microbial pathogens as may be designated by the President for transfer to the Department and that are directly related to homeland security.

        (E) The Environmental Measurements Laboratory.

        (F) The advanced scientific computing research program and activities at Lawrence Livermore National Laboratory.

      (2) The homeland security projects within the Chemical Biological Defense Program of the Department of Defense known as the Biological Defense Homeland Security Support Program and the Biological Counter-Terrorism Research Program.

SEC. 303. CONDUCT OF CERTAIN PUBLIC HEALTH-RELATED ACTIVITIES.

    With respect to civilian human health-related research and development activities relating to countermeasures for chemical, biological, radiological, and nuclear and other emerging terrorist threats carried out by the Department of Health and Human Services (including the Public Health Service), the Secretary of Health and Human Services shall set priorities, goals, objectives, and policies and develop a coordinated strategy for such activities in collaboration with the Secretary of Homeland Security to ensure consistency with the national policy and strategic plan developed pursuant to section 301(1).

SEC. 304. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER.

    The Secretary, acting through the Under Secretary for Science and Technology, shall have the authority to establish or contract with one or more federally funded research and development centers to provide independent analysis of homeland security issues, or to carry out other responsibilities under this Act, including coordinating and integrating both the extramural and intramural programs described in section 307.

SEC. 305. MISCELLANEOUS PROVISIONS.

    (a) CLASSIFICATION- To the greatest extent practicable, research conducted or supported by the Department shall be unclassified.

    (b) CONSTRUCTION- Nothing in this title shall be construed to preclude any Under Secretary of the Department from carrying out research, development, demonstration, or deployment activities, as long as such activities are coordinated through the Under Secretary for Science and Technology.

    (c) REGULATIONS- The Secretary, acting through the Under Secretary for Science and Technology, may issue necessary regulations with respect to research, development, demonstration, testing, and evaluation activities of the Department, including the conducting, funding, and reviewing of such activities.

    (d) NOTIFICATION OF PRESIDENTIAL LIFE SCIENCES DESIGNATIONS- Not later than 60 days before effecting any transfer of Department of Energy life sciences activities pursuant to section 302(1)(D) of this Act, the President shall notify the appropriate congressional committees of the proposed transfer and shall include the reasons for the transfer and a description of the effect of the transfer on the activities of the Department of Energy.

SEC. 306. HOMELAND SECURITY SCIENCE AND TECHNOLOGY COORDINATION COUNCIL.

    (a) ESTABLISHMENT AND COMPOSITION- There is established within the Department a Homeland Security Science and Technology Coordination Council (in this section referred to as the ‘Coordination Council’). The Coordination Council shall be composed of all the Under Secretaries of the Department and any other Department officials designated by the Secretary, and shall be chaired by the Under Secretary for Science and Technology. The Coordination Council shall meet at the call of the chair.

    (b) RESPONSIBILITIES- The Coordination Council shall--

      (1) establish priorities for research, development, demonstration, testing, and evaluation activities conducted or supported by the Department;

      (2) ensure that the priorities established under paragraph (1) reflect the acquisition needs of the Department; and

      (3) assist the Under Secretary for Science and Technology in carrying out his responsibilities under section 301(4).

SEC. 307. CONDUCT OF RESEARCH, DEVELOPMENT, DEMONSTRATION, TESTING AND EVALUATION.

    (a) IN GENERAL- The Secretary, acting through the Under Secretary for Science and Technology, shall carry out the responsibilities under section 301(3) through both extramural and intramural programs.

    (b) EXTRAMURAL PROGRAMS- (1) The Secretary, acting through the Under Secretary for Science and Technology, shall operate extramural research, development, demonstration, testing, and evaluation programs so as to--

      (A) ensure that colleges, universities, private research institutes, and companies (and consortia thereof) from as many areas of the United States as practicable participate;

      (B) ensure that the research funded is of high quality, as determined through merit review processes developed under section 301(10); and

      (C) distribute funds through grants, cooperative agreements, and contracts through competitions that are as open as possible.

    (2)(A) The Secretary, acting through the Under Secretary for Science and Technology, shall establish within 1 year of the date of enactment of this Act a university-based center or centers for homeland security. The purpose of this center or centers shall be to establish a coordinated, university-based system to enhance the Nation’s homeland security.

    (B) In selecting colleges or universities as centers for homeland security, the Secretary shall consider the following criteria:

      (i) Demonstrated expertise in the training of first responders.

      (ii) Demonstrated expertise in responding to incidents involving weapons of mass destruction and biological warfare.

      (iii) Demonstrated expertise in emergency medical services.

      (iv) Demonstrated expertise in chemical, biological, radiological, and nuclear countermeasures.

      (v) Strong affiliations with animal and plant diagnostic laboratories.

      (vi) Demonstrated expertise in food safety.

      (vii) Affiliation with Department of Agriculture laboratories or training centers.

      (viii) Demonstrated expertise in water and wastewater operations.

      (ix) Demonstrated expertise in port and waterway security.

      (x) Demonstrated expertise in multi-modal transportation.

      (xi) Nationally recognized programs in information security.

      (xii) Nationally recognized programs in engineering.

      (xiii) Demonstrated expertise in educational outreach and technical assistance.

      (xiv) Demonstrated expertise in border transportation and security.

      (xv) Demonstrated expertise in interdisciplinary public policy research and communication outreach regarding science, technology, and public policy.

    (C) The Secretary shall have the discretion to establish such centers and to consider additional criteria as necessary to meet the evolving needs of homeland security and shall report to Congress concerning the implementation of this paragraph as necessary.

    (D) There are authorized to be appropriated such sums as may be necessary to carry out this paragraph.

    (c) INTRAMURAL PROGRAMS- (1) In carrying out the duties under section 301, the Secretary, acting through the Under Secretary for Science and Technology, may draw upon the expertise of any laboratory of the Federal Government, whether operated by a contractor or the Government.

    (2) The Secretary, acting through the Under Secretary for Science and Technology, may establish a headquarters laboratory for the Department at any national laboratory and may establish additional laboratory units at other national laboratories.

    (3) If the Secretary chooses to establish a headquarters laboratory pursuant to paragraph (2), then the Secretary shall do the following:

      (A) Establish criteria for the selection of the headquarters laboratory in consultation with the National Academy of Sciences, appropriate Federal agencies, and other experts.

      (B) Publish the criteria in the Federal Register.

      (C) Evaluate all appropriate national laboratories against the criteria.

      (D) Select a national laboratory on the basis of the criteria.

      (E) Report to the appropriate congressional committees on which laboratory was selected, how the selected laboratory meets the published criteria, and what duties the headquarters laboratory shall perform.

    (4) No laboratory shall begin operating as the headquarters laboratory of the Department until at least 30 days after the transmittal of the report required by paragraph (3)(E).

SEC. 308. TRANSFER OF PLUM ISLAND ANIMAL DISEASE CENTER, DEPARTMENT OF AGRICULTURE.

    (a) TRANSFER REQUIRED- In accordance with title VIII, the Secretary of Agriculture shall transfer to the Secretary of Homeland Security the Plum Island Animal Disease Center of the Department of Agriculture, including the assets and liabilities of the Center.

    (b) CONTINUED DEPARTMENT OF AGRICULTURE ACCESS- Upon the transfer of the Plum Island Animal Disease Center, the Secretary of Homeland Security and the Secretary of Agriculture shall enter into an agreement to ensure Department of Agriculture access to the center for research, diagnostic, and other activities of the Department of Agriculture.

    (c) NOTIFICATION- At least 180 days before any change in the biosafety level at the facility described in subsection (a), the President shall notify the Congress of the change and describe the reasons therefor. No such change may be made until at least 180 days after the completion of the transition period defined in section 801(2).

SEC. 309. HOMELAND SECURITY SCIENCE AND TECHNOLOGY ADVISORY COMMITTEE.

    (a) ESTABLISHMENT- There is established within the Department a Homeland Security Science and Technology Advisory Committee (in this section referred to as the ‘Advisory Committee’). The Advisory Committee shall make recommendations with respect to the activities of the Under Secretary for Science and Technology, including identifying research areas of potential importance to the security of the Nation.

    (b) MEMBERSHIP-

      (1) APPOINTMENT- The Advisory Committee shall consist of 20 members appointed by the Under Secretary for Science and Technology, which shall include emergency first-responders or representatives of organizations or associations of emergency first-responders. The Advisory Committee shall also include representatives of citizen groups, including economically disadvantaged communities. The individuals appointed as members of the Advisory Committee--

        (A) shall be eminent in fields such as emergency response, research, engineering, new product development, business, and management consulting;

        (B) shall be selected solely on the basis of established records of distinguished service;

        (C) shall not be employees of the Federal Government; and

        (D) shall be so selected as to provide representation of a cross-section of the research, development, demonstration, and deployment activities supported by the Under Secretary for Science and Technology.

      (2) NATIONAL RESEARCH COUNCIL- The Under Secretary for Science and Technology may enter into an arrangement for the National Research Council to select members of the Advisory Committee, but only if the panel used by the National Research Council reflects the representation described in paragraph (1).

    (c) TERMS OF OFFICE-

      (1) IN GENERAL- Except as otherwise provided in this subsection, the term of office of each member of the Advisory Committee shall be 3 years.

      (2) ORIGINAL APPOINTMENTS- The original members of the Advisory Committee shall be appointed to three classes of three members each. One class shall have a term of one year, one a term of two years, and the other a term of three years.

      (3) VACANCIES- A member appointed to fill a vacancy occurring before the expiration of the term for which the member’s predecessor was appointed shall be appointed for the remainder of such term.

    (d) ELIGIBILITY- A person who has completed two consecutive full terms of service on the Advisory Committee shall thereafter be ineligible for appointment during the one-year period following the expiration of the second such term.

    (e) MEETINGS- The Advisory Committee shall meet at least quarterly at the call of the Chair or whenever one-third of the members so request in writing. Each member shall be given appropriate notice of the call of each meeting, whenever possible not less than 15 days before the meeting.

    (f) QUORUM- A majority of the members of the Advisory Committee not having a conflict of interest in the matter being considered by the Advisory Committee shall constitute a quorum.

    (g) CONFLICT OF INTEREST RULES- The Advisory Committee shall establish rules for determining when one of its members has a conflict of interest in a matter being considered by the Advisory Committee.

    (h) REPORTS-

      (1) ANNUAL REPORT- The Advisory Committee shall render an annual report to the Under Secretary for Science and Technology for transmittal to the Congress on or before January 31 of each year. Such report shall describe the activities and recommendations of the Advisory Committee during the previous year.

      (2) ADDITIONAL REPORTS- The Advisory Committee may render to the Under Secretary for transmittal to the Congress such additional reports on specific policy matters as it considers appropriate.

    (i) FACA EXEMPTION- Section 14 of the Federal Advisory Committee Act shall not apply to the Advisory Committee.

SEC. 310. HOMELAND SECURITY INSTITUTE.

    (a) ESTABLISHMENT- The Secretary shall establish a federally funded research and development center to be known as the ‘Homeland Security Institute’ (in this section referred to as the ‘Institute’).

    (b) ADMINISTRATION- The Institute shall be administered as a separate entity by the Secretary.

    (c) DUTIES- The duties of the Institute shall be determined by the Secretary, and may include the following:

      (1) Systems analysis, risk analysis, and simulation and modeling to determine the vulnerabilities of the Nation’s critical infrastructures and the effectiveness of the systems deployed to reduce those vulnerabiblities.

      (2) Economic and policy analysis to assess the distributed costs and benefits of alternative approaches to enhancing security.

      (3) Evaluation of the effectiveness of measures deployed to enhance the security of institutions, facilities, and infrastructure that may be terrorist targets.

      (4) Identification of instances when common standards and protocols could improve the interoperability and effective utilization of tools developed for field operators and first responders.

      (5) Assistance for Federal agencies and departments in establishing testbeds to evaluate the effectiveness of technologies under development and to assess the appropriateness of such technologies for deployment.

      (6) Design of metrics and use of those metrics to evaluate the effectiveness of homeland security programs throughout the Federal Government, including all national laboratories.

      (7) Design of and support for the conduct of homeland security-related exercises and simulations.

      (8) Creation of strategic technology development plans to reduce vulnerabilities in the Nation’s critical infrastructure and key resources.

    (d) CONSULTATION ON INSTITUTE ACTIVITIES- In carrying out the duties described in subsection (c), the Institute shall consult widely with representatives from private industry, institutions of higher education, and nonprofit institutions.

    (e) ANNUAL REPORTS- The Institute shall transmit to the Secretary and the Congress an annual report on the activities of the Institute under this section.

SEC. 311. TECHNOLOGY CLEARINGHOUSE TO ENCOURAGE AND SUPPORT INNOVATIVE SOLUTIONS TO ENHANCE HOMELAND SECURITY.

    (a) ESTABLISHMENT OF PROGRAM- The Secretary, acting through the Under Secretary for Science and Technology, shall establish and promote a program to encourage technological innovation in facilitating the mission of the Department (as described in section 101).

    (b) ELEMENTS OF PROGRAM- The program described in subsection (a) shall include the following components:

      (1) The establishment of a centralized Federal clearinghouse for information relating to technologies that would further the mission of the Department for dissemination, as appropriate, to Federal, State, and local government and private sector entities for additional review, purchase, or use.

      (2) The issuance of announcements seeking unique and innovative technologies to advance the mission of the Department.

      (3) The establishment of a technical assistance team to assist in screening, as appropriate, proposals submitted to the Secretary (except as provided in subsection (c)(2)) to assess the feasibility, scientific and technical merits, and estimated cost of such proposals, as appropriate.

      (4) The provision of guidance, recommendations, and technical assistance, as appropriate, to assist Federal, State, and local government and private sector efforts to evaluate and implement the use of technologies described in paragraph (1) or (2).

      (5) The provision of information for persons seeking guidance on how to pursue proposals to develop or deploy technologies that would enhance homeland security, including information relating to Federal funding, regulation, or acquisition.

    (c) MISCELLANEOUS PROVISIONS-

      (1) IN GENERAL- Nothing in this section shall be construed as authorizing the Secretary or the technical assistance team established under subsection (b)(3) to set standards for technology to be used by the Department, any other executive agency, any State or local government entity, or any private sector entity.

      (2) CERTAIN PROPOSALS- The technical assistance team established under subsection (b)(3) shall not consider or evaluate proposals submitted in response to a solicitation for offers for a pending procurement or for a specific agency requirement.

      (3) COORDINATION- In carrying out this section, the Secretary shall coordinate with the Technical Support Working Group (organized under the April 1982 National Security Decision Directive Numbered 30).

TITLE IV--BORDER AND TRANSPORTATION SECURITY

Subtitle A--General Provisions

SEC. 401. UNDER SECRETARY FOR BORDER AND TRANSPORTATION SECURITY.

    The Secretary, acting through the Under Secretary for Border and Transportation Security, shall be responsible for the following:

      (1) Preventing the entry of terrorists and the instruments of terrorism into the United States.

      (2) Securing the borders, territorial waters, ports, terminals, waterways, and air, land, and sea transportation systems of the United States, including managing and coordinating governmental activities at ports of entry.

      (3) Carrying out the immigration enforcement functions vested by statute in, or performed by, the Commissioner of Immigration and Naturalization (or any officer, employee, or component of the Immigration and Naturalization Service) immediately before the date on which the transfer of functions specified under section 411 takes effect.

      (4) Establishing and administering rules, in accordance with section 403, governing the granting of visas or other forms of permission, including parole, to enter the United States to individuals who are not a citizen or an alien lawfully admitted for permanent residence in the United States.

      (5) Except as provided in subtitle C, administering the customs laws of the United States.

      (6) Conducting the inspection and related administrative functions of the Department of Agriculture transferred to the Secretary of Homeland Security under section 404.

      (7) In carrying out the foregoing responsibilities, ensuring the speedy, orderly, and efficient flow of lawful traffic and commerce.

SEC. 402. FUNCTIONS TRANSFERRED.

    In accordance with title VIII, there shall be transferred to the Secretary the functions, personnel, assets, and obligations of the following:

      (1) The United States Customs Service, except as provided in subtitle C.

      (2) The Coast Guard of the Department of Transportation, which shall be maintained as a distinct entity within the Department, including the functions of the Secretary of Transportation relating thereto.

      (3) The Transportation Security Administration of the Department of Transportation, including the functions of the Secretary of Transportation, and of the Under Secretary of Transportation for Security, relating thereto.

      (4) The Federal Protective Service of the General Services Administration, including the functions of the Administrator of General Services relating thereto.

      (5) The Office for Domestic Preparedness of the Office of Justice Programs of the Department of Justice, including the functions of the Attorney General relating thereto.

      (6) The National Domestic Preparedness Office of the Federal Bureau of Investigation, including the functions of the Attorney General relating thereto.

      (7) The Domestic Emergency Support Teams of the Department of Justice, including the functions of the Attorney General relating thereto.

SEC. 403. VISA ISSUANCE.

    (a) IN GENERAL- Notwithstanding section 104(a) of the Immigration and Nationality Act (8 U.S.C. 1104(a)) or any other provision of law, and except as provided in subsection (b) of this section, the Secretary--

      (1) shall be vested exclusively with all authorities to issue regulations with respect to, administer, and enforce the provisions of such Act, and of all other immigration and nationality laws, relating to the functions of consular officers of the United States in connection with the granting or refusal of visas, and shall have the authority to refuse visas in accordance with law and to develop programs of homeland security training for consular officers (in addition to consular training provided by the Secretary of State), which authorities shall be exercised through the Secretary of State, except that the Secretary shall not have authority to alter or reverse the decision of a consular officer to refuse a visa to an alien; and

      (2) shall have authority to confer or impose upon any officer or employee of the United States, with the consent of the head of the executive agency under whose jurisdiction such officer or employee is serving, any of the functions specified in paragraph (1).

    (b) AUTHORITY OF THE SECRETARY OF STATE-

      (1) IN GENERAL- Notwithstanding subsection (a), the Secretary of State may direct a consular officer to refuse a visa to an alien if the Secretary of State deems such refusal necessary or advisable in the foreign policy or security interests of the United States.

      (2) CONSTRUCTION REGARDING AUTHORITY- Nothing in this section shall be construed as affecting the authorities of the Secretary of State under the following provisions of law:

        (A) Section 101(a)(15)(A) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(A)).

        (B) Section 204(d)(2) of the Immigration and Nationality Act (8 U.S.C. 1154) (as it will take effect upon the entry into force of the Convention on Protection of Children and Cooperation in Respect to Inter-Country Adoption).

        (C) Section 212(a)(3)(B)(vi)(II) of the Immigration and Nationality Act.

        (D) Section 212(a)(3)(C) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(C)).

        (E) Section 212(a)(10)(C) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(10)(C)).

        (F) Section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)).

        (G) Section 237(a)(4)(C) of the Immigration and Nationality Act (8 U.S.C. 1227(a)(4)(C)).

        (H) Section 401 of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6034; Public Law 104-114).

        (I) Section 613 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1999 (as contained in section 101(b) of division A of Public Law 105-277) (Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999; 112 Stat. 2681; H.R. 4328 (originally H.R. 4276) as amended by section 617 of Public Law 106-553).

        (J) Section 801 of H.R. 3427, the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001, as enacted by reference in Public Law 106-113.

        (K) Section 568 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115).

      (3) CONSTRUCTION REGARDING DELEGATION OF AUTHORITY- Nothing in this section shall be construed to affect any delegation of authority to the Secretary of State by the President pursuant to any proclamation issued under section 212(f) of the Immigration and Nationality Act (8 U.S.C. 1182(f)).

    (c) ASSIGNMENT OF HOMELAND SECURITY EMPLOYEES TO DIPLOMATIC AND CONSULAR POSTS-

      (1) IN GENERAL- The Secretary is authorized to assign employees of the Department of Homeland Security to any diplomatic and consular posts abroad to perform the following functions:

        (A) Provide expert advice and training to consular officers regarding specific security threats relating to individual visa applications or classes of applications.

        (B) Review any or all such applications prior to their adjudication, either on the initiative of the employee of the Department of Homeland Security or upon request by a consular officer or other person charged with adjudicating such applications.

        (C) Conduct investigations with respect to matters under the jurisdiction of the Secretary.

      (2) PERMANENT ASSIGNMENT; PARTICIPATION IN TERRORIST LOOKOUT COMMITTEE- When appropriate, employees of the Department of Homeland Security assigned to perform functions described in paragraph (1) may be assigned permanently to overseas diplomatic or consular posts with country-specific or regional responsibility. If the Secretary so directs, any such employee, when present at an overseas post, shall participate in the terrorist lookout committee established under section 304 of the Enhanced Border Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1733).

      (3) TRAINING AND HIRING-

        (A) The Secretary shall ensure that any employees of the Department of Homeland Security assigned to perform functions described in paragraph (1) shall be provided all necessary training to enable them to carry out such functions, including training in foreign languages, interview techniques, fraud detection techniques, and other skills required by such employees, in conditions in the particular country where each employee is assigned, and in other appropriate areas of study.

        (B) The Secretary shall promulgate regulations within 60 days of the enactment of this Act establishing foreign language proficiency requirements for employees of the Department performing the functions described in paragraph (1) and providing that preference shall be given to individuals who meet such requirements in hiring employees for the performance of such functions.

        (C) The Secretary is authorized to use the National Foreign Affairs Training Center, on a reimbursable basis, to obtain the training described in subparagraph (A).

    (d) NO CREATION OF PRIVATE RIGHT OF ACTION- Nothing in this section shall be construed to create or authorize a private right of action to challenge a decision of a consular officer or other United States official or employee to grant or deny a visa.

    (e) STUDY REGARDING USE OF FOREIGN NATIONALS-

      (1) IN GENERAL- The Secretary of Homeland Security shall conduct a study of the role of foreign nationals in the granting or refusal of visas and other documents authorizing entry of aliens into the United States. The study shall address the following:

        (A) The proper role, if any, of foreign nationals in the process of rendering decisions on such grants and refusals.

        (B) Any security concerns involving the employment of foreign nationals.

        (C) Whether there are cost-effective alternatives to the use of foreign nationals.

      (2) REPORT- Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report containing the findings of the study conducted under paragraph (1) to the Committee on the Judiciary, the Committee on International Relations, and the Committee on Government Reform of the House of Representatives, and the Committee on the Judiciary, the Committee on Foreign Relations, and the Committee on Government Affairs of the Senate.

    (f) REPORT- Not later than 120 days after the date of the enactment of this Act, the Director of the Office of Science and Technology Policy shall submit to the Congress a report on how the provisions of this section will affect procedures for the issuance of student visas.

    (g) VISA ISSUANCE PROGRAM FOR SAUDI ARABIA- Notwithstanding any other provision of law, after the date of the enactment of this Act all third party screening, interview waiver, or other non-interview visa issuance programs in Saudi Arabia shall be terminated. On-site personnel of the Department of Homeland Security shall review all visa applications prior to adjudication. All visa applicants in Saudi Arabia shall be interviewed unless on-site personnel of the Department of Homeland Security determine, in writing and pursuant to written guidelines issued by the Secretary of Homeland Security, that the alien is unlikely to present a risk to homeland security. The Secretary of Homeland Security shall promulgate such guidelines not later than 30 days after the date of the enactment of this Act.

SEC. 404. TRANSFER OF CERTAIN AGRICULTURAL INSPECTION FUNCTIONS OF THE DEPARTMENT OF AGRICULTURE.

    (a) TRANSFER OF AGRICULTURAL IMPORT AND ENTRY INSPECTION FUNCTIONS- There shall be transferred to the Secretary of Homeland Security the functions of the Secretary of Agriculture relating to agricultural import and entry inspection activities under the laws specified in subsection (b).

    (b) COVERED ANIMAL AND PLANT PROTECTION LAWS- The laws referred to in subsection (a) are the following:

      (1) The Act commonly known as the Virus-Serum-Toxin Act (the eighth paragraph under the heading ‘Bureau of Animal Industry’ in the Act of March 4, 1913; 21 U.S.C. 151 et seq.).

      (2) Section 1 of the Act of August 31, 1922 (commonly known as the Honeybee Act; 7 U.S.C. 281).

      (3) Title III of the Federal Seed Act (7 U.S.C. 1581 et seq.).

      (4) The Plant Protection Act (7 U.S.C. 7701 et seq.).

      (5) The Animal Protection Act (subtitle E of title X of Public Law 107-171; 7 U.S.C. 8301 et seq.).

      (6) The Lacey Act Amendments of 1981 (16 U.S.C. 3371 et seq.).

      (7) Section 11 of the Endangered Species Act of 1973 (16 U.S.C. 1540).

    (c) EXCLUSION OF QUARANTINE ACTIVITIES- For purposes of this section, the term ‘functions’ does not include any quarantine activities carried out under the laws specified in subsection (b).

    (d) EFFECT OF TRANSFER-

      (1) COMPLIANCE WITH DEPARTMENT OF AGRICULTURE REGULATIONS- The authority transferred pursuant to subsection (a) shall be exercised by the Secretary of Homeland Security in accordance with the regulations, policies, and procedures issued by the Secretary of Agriculture regarding the administration of the laws specified in subsection (b).

      (2) RULEMAKING COORDINATION- The Secretary of Agriculture shall coordinate with the Secretary of Homeland Security whenever the Secretary of Agriculture prescribes regulations, policies, or procedures for administering the laws specified in subsection (b) at the locations referred to in subsection (a).

      (3) EFFECTIVE ADMINISTRATION- The Secretary of Homeland Security, in consultation with the Secretary of Agriculture, may issue such directives and guidelines as are necessary to ensure the effective use of personnel of the Department of Homeland Security to carry out the functions transferred pursuant to subsection (a).

    (e) TRANSFER AGREEMENT-

      (1) AGREEMENT REQUIRED; REVISION- Before the end of the transition period, as defined in section 801(2), the Secretary of Agriculture and the Secretary of Homeland Security shall enter into an agreement to effectuate the transfer of functions required by subsection (a). The Secretary of Agriculture and the Secretary of Homeland Security may jointly revise the agreement as necessary thereafter.

      (2) REQUIRED TERMS- The agreement required by this subsection shall specifically address the following:

        (A) The supervision by the Secretary of Agriculture of the training of employees of the Secretary of Homeland Security to carry out the functions transferred pursuant to subsection (a).

        (B) The transfer of funds to the Secretary of Homeland Security under subsection (f).

      (3) COOPERATION AND RECIPROCITY- The Secretary of Agriculture and the Secretary of Homeland Security may include as part of the agreement the following:

        (A) Authority for the Secretary of Homeland Security to perform functions delegated to the Animal and Plant Health Inspection Service of the Department of Agriculture regarding the protection of domestic livestock and plants, but not transferred to the Secretary of Homeland Security pursuant to subsection (a).

        (B) Authority for the Secretary of Agriculture to use employees of the Department of Homeland Security to carry out authorities delegated to the Animal and Plant Health Inspection Service regarding the protection of domestic livestock and plants.

    (f) PERIODIC TRANSFER OF FUNDS TO DEPARTMENT OF HOMELAND SECURITY-

      (1) TRANSFER OF FUNDS- Out of funds collected by fees authorized under sections 2508 and 2509 of the Food, Agriculture, Conservation, and Trade Act of 1990 (21 U.S.C. 136, 136a), the Secretary of Agriculture shall transfer, from time to time in accordance with the agreement under subsection (e), to the Secretary of Homeland Security funds for activities carried out by the Secretary of Homeland Security for which such fees were collected.

      (2) LIMITATION- The proportion of fees collected pursuant to such sections that are transferred to the Secretary of Homeland Security under this subsection may not exceed the proportion of the costs incurred by the Secretary of Homeland Security to all costs incurred to carry out activities funded by such fees.

    (g) TRANSFER OF DEPARTMENT OF AGRICULTURE EMPLOYEES- During the transition period, the Secretary of Agriculture shall transfer to the Secretary of Homeland Security not more than 3,200 full-time equivalent positions of the Department of Agriculture.

    (h) PROTECTION OF INSPECTION ANIMALS- Title V of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 2279e, 2279f) is amended--

      (1) in section 501(a)--

        (A) by inserting ‘or the Department of Homeland Security’ after ‘Department of Agriculture’; and

        (B) by inserting ‘or the Secretary of Homeland Security’ after ‘Secretary of Agriculture’;

      (2) by striking ‘Secretary’ each place it appears (other than in sections 501(a) and 501(e)) and inserting ‘Secretary concerned’; and

      (3) by adding at the end of section 501 the following new subsection:

    ‘(e) SECRETARY CONCERNED DEFINED- In this title, the term ‘Secretary concerned’ means--

      ‘(1) the Secretary of Agriculture, with respect to an animal used for purposes of official inspections by the Department of Agriculture; and

      ‘(2) the Secretary of Homeland Security, with respect to an animal used for purposes of official inspections by the Department of Homeland Security.’.

SEC. 405. FUNCTIONS OF ADMINISTRATOR OF GENERAL SERVICES.

    (a) OPERATION, MAINTENANCE, AND PROTECTION OF FEDERAL BUILDINGS AND GROUNDS- Nothing in this Act may be construed to affect the functions or authorities of the Administrator of General Services with respect to the operation, maintenance, and protection of buildings and grounds owned or occupied by the Federal Government and under the jurisdiction, custody, or control of the Administrator. Except for the law enforcement and related security functions transferred under section 402(4), the Administrator shall retain all powers, functions, and authorities vested in the Administrator under the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and other provisions of law that are necessary for the operation, maintenance, and protection of such buildings and grounds.

    (b) COLLECTION OF RENTS AND FEES; FEDERAL BUILDINGS FUND-

      (1) STATUTORY CONSTRUCTION- Nothing in this Act may be construed--

        (A) to direct the transfer of, or affect, the authority of the Administrator of General Services to collect rents and fees, including fees collected for protective services; or

        (B) to authorize the Secretary or any other official in the Department to obligate amounts in the Federal Buildings Fund established by section 210(f) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)).

      (2) USE OF TRANSFERRED AMOUNTS- Any amounts transferred by the Administrator of General Services to the Secretary out of rents and fees collected by the Administrator shall be used by the Secretary solely for the protection of buildings or grounds owned or occupied by the Federal Government.

SEC. 406. FUNCTIONS OF TRANSPORTATION SECURITY ADMINISTRATION.

    (a) CONSULTATION WITH FEDERAL AVIATION ADMINISTRATION- The Secretary and other officials in the Department shall consult with the Administrator of the Federal Aviation Administration before taking any action that might affect aviation safety, air carrier operations, aircraft airworthiness, or the use of airspace. The Secretary shall establish a liaison office within the Department for the purpose of consulting with the Administrator of the Federal Aviation Administration.

    (b) REPORT TO CONGRESS- Not later than 60 days after the date of enactment of this Act, the Secretary of Transportation shall transmit to Congress a report containing a plan for complying with the requirements of section 44901(d) of title 49, United States Code.

    (c) LIMITATIONS ON STATUTORY CONSTRUCTION-

      (1) GRANT OF AUTHORITY- Nothing in this Act may be construed to vest in the Secretary or any other official in the Department any authority over transportation security that is not vested in the Under Secretary of Transportation for Security, or in the Secretary of Transportation under chapter 449 of title 49, United States Code, on the day before the date of enactment of this Act.

      (2) OBLIGATION OF AIP FUNDS- Nothing in this Act may be construed to authorize the Secretary or any other official in the Department to obligate amounts made available under section 48103 of title 49, United States Code.

SEC. 407. PRESERVATION OF TRANSPORTATION SECURITY ADMINISTRATION AS A DISTINCT ENTITY.

    (a) IN GENERAL- Notwithstanding any other provision of this Act, and subject to subsection (b), the Transportation Security Administration shall be maintained as a distinct entity within the Department under the Under Secretary for Border Transportation and Security.

    (b) SUNSET- Subsection (a) shall cease to apply two years after the date of enactment of this Act.

SEC. 408. ANNUAL ASSESSMENT OF TERRORIST-RELATED THREATS TO PUBLIC TRANSPORTATION.

    On an annual basis, the Secretary, in consultation with the heads of other appropriate Federal departments and agencies, shall conduct an assessment of terrorist-related threats to all forms of public transportation, including public gathering areas related to public transportation.

SEC. 409. EXPLOSIVE DETECTION SYSTEMS.

    (a) INSTALLATION OF SYSTEMS- Section 44901(d) of title 49, United States Code, is amended by adding at the end the following:

      ‘(2) MODIFICATION OF AIRPORT TERMINAL BUILDINGS TO ACCOMMODATE EXPLOSIVE DETECTION SYSTEMS-

        ‘(A) NOTIFICATION OF AIRPORTS- Not later than October 1, 2002, the Under Secretary shall notify the owner or operator of each United States airport described in section 44903(c) of the number and type of explosive detection systems that will be required to be deployed at the airport in order to screen all checked baggage by explosive detection systems without imposing unreasonable delays on the passengers using the airport.

        ‘(B) ASSESSMENTS OF AIRPORT TERMINAL BUILDINGS- If the owner or operator of a United States airport described in section 44903(c) determines that the airport will not be able to make the modifications to the airport’s terminal buildings that are necessary to accommodate the explosive detection systems required under subparagraph (A) in a cost-effective manner on or before December 31, 2002, the owner or operator shall provide notice of that determination to the Under Secretary not later than November 1, 2002.

        ‘(C) PLANS FOR MAKING MODIFICATIONS TO AIRPORT TERMINAL BUILDINGS-

          ‘(i) IN GENERAL- If the owner or operator of an airport provides notice to the Under Secretary under subparagraph (B), the Under Secretary, in consultation with the owner or operator, shall develop, not later than December 1, 2002, a plan for making necessary modifications to the airport’s terminal buildings so as to deploy and fully utilize explosive detection systems to screen all checked baggage.

          ‘(ii) DEADLINE- A plan developed under this subparagraph shall include a date for executing the plan. All such plans shall be executed as expeditiously as practicable but not later than December 31, 2003.

          ‘(iii) TRANSMISSION OF PLANS TO CONGRESS- On the date of completion of a plan under this subparagraph, the Under Secretary shall transmit a copy of the plan to Congress. For security purposes, information contained in the plan shall not be disclosed to the public.

        ‘(D) REQUIREMENTS FOR PLANS- A plan developed and published under subparagraph (C), shall provide for, to the maximum extent practicable--

          ‘(i) the deployment of explosive detection systems in the baggage sorting area or other non-public area rather than the lobby of an airport terminal building; and

          ‘(ii) the deployment of state of the art explosive detection systems that have high throughput, low false alarm rates, and high reliability without reducing detection rates.

        ‘(E) USE OF SCREENING METHODS OTHER THAN EDS- Notwithstanding the deadline in paragraph (1)(A), after December 31, 2002, if explosive detection systems are not screening all checked baggage at a United States airport described in section 44903(c), such baggage shall be screened by the methods described in subsection (e) until such time as all checked baggage is screened by explosive detection systems at the airport.

      ‘(3) PURCHASE OF EXPLOSIVE DETECTION SYSTEMS- Any explosive detection system required to be purchased under paragraph (2)(A) shall be purchased by the Under Secretary.

      ‘(4) EXPLOSIVE DETECTION SYSTEM DEFINED- In this subsection, the term ‘explosive detection system’ means a device, or combination of devices, that can detect different types of explosives.’.

    (b) CORRECTION OF REFERENCE- Section 44901(e) of title 49, United States Code, is amended by striking ‘(b)(1)(A)’ and inserting ‘(d)(1)(A)’.

SEC. 410. TRANSPORTATION SECURITY.

    (a) TRANSPORTATION SECURITY OVERSIGHT BOARD-

      (1) ESTABLISHMENT- Section 115(a) of title 49, United States Code, is amended by striking ‘Department of Transportation’ and inserting ‘Department of Homeland Security’.

      (2) MEMBERSHIP- Section 115(b)(1) of title 49, United States Code, is amended--

        (A) by striking subparagraph (G);

        (B) by redesignating subparagraphs (A) through (F) as subparagraphs (B) through (G), respectively; and

        (C) by inserting before subparagraph (B) (as so redesignated) the following:

        ‘(A) The Secretary of Homeland Security, or the Secretary’s designee.’.

      (3) CHAIRPERSON- Section 115(b)(2) of title 49, United States Code, is amended by striking ‘Secretary of Transportation’ and inserting ‘Secretary of Homeland Security’.

    (b) APPROVAL OF AIP GRANT APPLICATIONS FOR SECURITY ACTIVITIES- Section 47106 of title 49, United States Code, is amended by adding at the end the following:

    ‘(g) CONSULTATION WITH SECRETARY OF HOMELAND SECURITY- The Secretary shall consult with the Secretary of Homeland Security before approving an application under this subchapter for an airport development project grant for activities described in section 47102(3)(B)(ii) (relating to security equipment) or section 47102(3)(B)(x) (relating to installation of bulk explosive detection systems).’.

Subtitle B--Immigration and Nationality Functions

CHAPTER 1--IMMIGRATION ENFORCEMENT

SEC. 411. TRANSFER OF FUNCTIONS TO UNDER SECRETARY FOR BORDER AND TRANSPORTATION SECURITY.

    In accordance with title VIII, there shall be transferred from the Commissioner of Immigration and Naturalization to the Under Secretary for Border and Transportation Security all functions performed under the following programs, and all personnel, assets, and liabilities pertaining to such programs, immediately before such transfer occurs:

      (1) The Border Patrol program.

      (2) The detention and removal program.

      (3) The intelligence program.

      (4) The investigations program.

      (5) The inspections program.

SEC. 412. ESTABLISHMENT OF BUREAU OF BORDER SECURITY.

    (a) ESTABLISHMENT OF BUREAU-

      (1) IN GENERAL- There is established in the Department of Homeland Security a bureau to be known as the ‘Bureau of Border Security’.

      (2) ASSISTANT SECRETARY- The head of the Bureau of Border Security shall be the Assistant Secretary of the Bureau of Border Security, who--

        (A) shall report directly to the Under Secretary for Border and Transportation Security; and

        (B) shall have a minimum of 10 years professional experience in law enforcement, at least 5 of which shall have been years of service in a managerial capacity.

      (3) FUNCTIONS- The Assistant Secretary of the Bureau of Border Security--

        (A) shall establish the policies for performing such functions as are--

          (i) transferred to the Under Secretary for Border and Transportation Security by section 411 and delegated to the Assistant Secretary by the Under Secretary for Border and Transportation Security; or

          (ii) otherwise vested in the Assistant Secretary by law;

        (B) shall oversee the administration of such policies; and

        (C) shall advise the Under Secretary for Border and Transportation Security with respect to any policy or operation of the Bureau of Border Security that may affect the Bureau of Citizenship and Immigration Services of the Department of Justice established under chapter 2, including potentially conflicting policies or operations.

      (4) PROGRAM TO COLLECT INFORMATION RELATING TO FOREIGN STUDENTS- The Assistant Secretary of the Bureau of Border Security shall be responsible for administering the program to collect information relating to nonimmigrant foreign students and other exchange program participants described in section 641 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1372), including the Student and Exchange Visitor Information System established under that section, and shall use such information to carry out the enforcement functions of the Bureau.

      (5) MANAGERIAL ROTATION PROGRAM-

        (A) IN GENERAL- Not later than 1 year after the date on which the transfer of functions specified under section 411 takes effect, the Assistant Secretary of the Bureau of Border Security shall design and implement a managerial rotation program under which employees of such bureau holding positions involving supervisory or managerial responsibility and classified, in accordance with chapter 51 of title 5, United States Code, as a GS-14 or above, shall, as a condition on further promotion--

          (i) gain some experience in all the major functions performed by such bureau; and

          (ii) work in at least one local office of such bureau.

        (B) REPORT- Not later than 2 years after the date on which the transfer of functions specified under section 411 takes effect, the Secretary shall submit a report to the Congress on the implementation of such program.

    (b) CHIEF OF POLICY AND STRATEGY-

      (1) IN GENERAL- There shall be a position of Chief of Policy and Strategy for the Bureau of Border Security.

      (2) FUNCTIONS- In consultation with Bureau of Border Security personnel in local offices, the Chief of Policy and Strategy shall be responsible for--

        (A) establishing national immigration enforcement policies and priorities;

        (B) performing policy research and analysis on immigration enforcement issues; and

        (C) coordinating immigration policy issues with the Chief of Policy and Strategy for the Bureau of Citizenship and Immigration Services of the Department of Justice (established under chapter 2), and the Assistant Attorney General for Citizenship and Immigration Services, as appropriate.

    (c) CITIZENSHIP AND IMMIGRATION SERVICES LIAISON-

      (1) IN GENERAL- There shall be a position of Citizenship and Immigration Services Liaison for the Bureau of Border Security.

      (2) FUNCTIONS- The Citizenship and Immigration Services Liaison shall be responsible for the appropriate allocation and coordination of resources involved in supporting shared support functions for the Bureau of Citizenship and Immigration Services of the Department of Justice (established under chapter 2) and the Bureau of Border Security, including--

        (A) information resources management, including computer databases and information technology;

        (B) records and file management; and

        (C) forms management.

SEC. 413. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

    The Under Secretary for Border and Transportation Security shall be responsible for--

      (1) conducting investigations of noncriminal allegations of misconduct, corruption, and fraud involving any employee of the Bureau of Border Security that are not subject to investigation by the Inspector General for the Department;

      (2) inspecting the operations of the Bureau of Border Security and providing assessments of the quality of the operations of such bureau as a whole and each of its components; and

      (3) providing an analysis of the management of the Bureau of Border Security.

SEC. 414. EMPLOYEE DISCIPLINE.

    The Under Secretary for Border and Transportation Security may, notwithstanding any other provision of law, impose disciplinary action, including termination of employment, pursuant to policies and procedures applicable to employees of the Federal Bureau of Investigation, on any employee of the Bureau of Border Security who willfully deceives the Congress or agency leadership on any matter.

SEC. 415. REPORT ON IMPROVING ENFORCEMENT FUNCTIONS.

    (a) IN GENERAL- The Secretary, not later than 1 year after being sworn into office, shall submit to the Committees on Appropriations and the Judiciary of the United States House of Representatives and of the Senate a report with a plan detailing how the Bureau of Border Security, after the transfer of functions specified under section 411 takes effect, will enforce comprehensively, effectively, and fairly all the enforcement provisions of the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) relating to such functions.

    (b) CONSULTATION- In carrying out subsection (a), the Secretary of Homeland Security shall consult with the Attorney General, the Secretary of State, the Assistant Attorney General for Citizenship and Immigration Services, the Director of the Federal Bureau of Investigation, the Secretary of the Treasury, the Secretary of Labor, the Commissioner of Social Security, the Director of the Executive Office for Immigration Review, and the heads of State and local law enforcement agencies to determine how to most effectively conduct enforcement operations.

SEC. 416. SENSE OF CONGRESS REGARDING CONSTRUCTION OF FENCING NEAR SAN DIEGO, CALIFORNIA.

    It is the sense of the Congress that completing the 14-mile border fence project required to be carried out under section 102(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1103 note) should be a priority for the Secretary.

CHAPTER 2--CITIZENSHIP AND IMMIGRATION SERVICES

Subchapter A--Transfers of Functions

SEC. 421. ESTABLISHMENT OF BUREAU OF CITIZENSHIP AND IMMIGRATION SERVICES.

    (a) ESTABLISHMENT OF BUREAU-

      (1) IN GENERAL- There is established in the Department of Justice a bureau to be known as the ‘Bureau of Citizenship and Immigration Services’.

      (2) ASSISTANT ATTORNEY GENERAL- The head of the Bureau of Citizenship and Immigration Services shall be the Assistant Attorney General for Citizenship and Immigration Services, who--

        (A) shall report directly to the Deputy Attorney General; and

        (B) shall have a minimum of 10 years professional experience in the rendering of adjudications on the provision of government benefits or services, at least 5 of which shall have been years of service in a managerial capacity or in a position affording comparable management experience.

      (3) FUNCTIONS- The Assistant Attorney General for Citizenship and Immigration Services--

        (A) shall establish the policies for performing such functions as are transferred to the Assistant Attorney General by this section or this Act or otherwise vested in the Assistant Attorney General by law;

        (B) shall oversee the administration of such policies;

        (C) shall advise the Deputy Attorney General with respect to any policy or operation of the Bureau of Citizenship and Immigration Services that may affect the Bureau of Border Security of the Department of Homeland Security, including potentially conflicting policies or operations;

        (D) shall meet regularly with the Ombudsman described in section 422 to correct serious service problems identified by the Ombudsman; and

        (E) shall establish procedures requiring a formal response to any recommendations submitted in the Ombudsman’s annual report to the Congress within 3 months after its submission to the Congress.

      (4) MANAGERIAL ROTATION PROGRAM-

        (A) IN GENERAL- Not later than 1 year after the effective date specified in section 427, the Assistant Attorney General for Citizenship and Immigration Services shall design and implement a managerial rotation program under which employees of such bureau holding positions involving supervisory or managerial responsibility and classified, in accordance with chapter 51 of title 5, United States Code, as a GS-14 or above, shall, as a condition on further promotion--

          (i) gain some experience in all the major functions performed by such bureau; and

          (ii) work in at least one field office and one service center of such bureau.

        (B) REPORT- Not later than 2 years after the effective date specified in section 427, the Attorney General shall submit a report to the Congress on the implementation of such program.

      (5) PILOT INITIATIVES FOR BACKLOG ELIMINATION- The Assistant Attorney General for Citizenship and Immigration Services is authorized to implement innovative pilot initiatives to eliminate any remaining backlog in the processing of immigration benefit applications, and to prevent any backlog in the processing of such applications from recurring, in accordance with section 204(a) of the Immigration Services and Infrastructure Improvements Act of 2000 (8 U.S.C. 1573(a)). Such initiatives may include measures such as increasing personnel, transferring personnel to focus on areas with the largest potential for backlog, and streamlining paperwork.

    (b) TRANSFER OF FUNCTIONS FROM COMMISSIONER- There are transferred from the Commissioner of Immigration and Naturalization to the Assistant Attorney General for Citizenship and Immigration Services the following functions, and all personnel, infrastructure, and funding provided to the Commissioner in support of such functions immediately before the effective date specified in section 427:

      (1) Adjudications of immigrant visa petitions.

      (2) Adjudications of naturalization petitions.

      (3) Adjudications of asylum and refugee applications.

      (4) Adjudications performed at service centers.

      (5) All other adjudications performed by the Immigration and Naturalization Service immediately before the effective date specified in section 427.

    (c) CHIEF OF POLICY AND STRATEGY-

      (1) IN GENERAL- There shall be a position of Chief of Policy and Strategy for the Bureau of Citizenship and Immigration Services.

      (2) FUNCTIONS- In consultation with Bureau of Citizenship and Immigration Services personnel in field offices, the Chief of Policy and Strategy shall be responsible for--

        (A) establishing national immigration services policies and priorities;

        (B) performing policy research and analysis on immigration services issues; and

        (C) coordinating immigration policy issues with the Chief of Policy and Strategy for the Bureau of Border Security of the Department of Homeland Security.

    (d) GENERAL COUNSEL-

      (1) IN GENERAL- There shall be a position of General Counsel for the Bureau of Citizenship and Immigration Services.

      (2) FUNCTIONS- The General Counsel shall serve as the principal legal advisor to the Assistant Attorney General for Citizenship and Immigration Services. The General Counsel shall be responsible for--

        (A) providing specialized legal advice, opinions, determinations, regulations, and any other assistance to the Assistant Attorney General for Citizenship and Immigration Services with respect to legal matters affecting the Bureau of Citizenship and Immigration Services; and

        (B) representing the Bureau of Citizenship and Immigration Services in visa petition appeal proceedings before the Executive Office for Immigration Review and in other legal or administrative proceedings involving immigration services issues.

    (e) CHIEF BUDGET OFFICER-

      (1) IN GENERAL- There shall be a position of Chief Budget Officer for the Bureau of Citizenship and Immigration Services.

      (2) FUNCTIONS-

        (A) IN GENERAL- The Chief Budget Officer shall be responsible for--

          (i) formulating and executing the budget of the Bureau of Citizenship and Immigration Services;

          (ii) financial management of the Bureau of Citizenship and Immigration Services; and

          (iii) collecting all payments, fines, and other debts for the Bureau of Citizenship and Immigration Services.

      (3) AUTHORITY AND FUNCTIONS OF AGENCY CHIEF FINANCIAL OFFICERS- The Chief Budget Officer for the Bureau of Citizenship and Immigration Services shall have the authorities and functions described in section 902 of title 31, United States Code, in relation to financial activities of such bureau.

    (f) CHIEF OF CONGRESSIONAL, INTERGOVERNMENTAL, AND PUBLIC AFFAIRS-

      (1) IN GENERAL- There shall be a position of Chief of Congressional, Intergovernmental, and Public Affairs for the Bureau of Citizenship and Immigration Services.

      (2) FUNCTIONS- The Chief of Congressional, Intergovernmental, and Public Affairs shall be responsible for--

        (A) providing information relating to immigration services to the Congress, including information on specific cases relating to immigration services issues;

        (B) serving as a liaison with other Federal agencies on immigration services issues; and

        (C) responding to inquiries from the media and the general public on immigration services issues.

    (g) BORDER SECURITY LIAISON-

      (1) IN GENERAL- There shall be a position of Border Security Liaison for the Bureau of Citizenship and Immigration Services.

      (2) FUNCTIONS- The Border Security Liaison shall be responsible for the appropriate allocation and coordination of resources involved in supporting shared support functions for the Bureau of Border Security of the Department of Homeland Security and the Bureau of Citizenship and Immigration Services, including--

        (A) information resources management, including computer databases and information technology;

        (B) records and file management; and

        (C) forms management.

    (h) CHIEF OF OFFICE OF CITIZENSHIP-

      (1) IN GENERAL- There shall be a position of Chief of the Office of Citizenship for the Bureau of Citizenship and Immigration Services.

      (2) FUNCTIONS- The Chief of the Office of Citizenship for the Bureau of Citizenship and Immigration Services shall be responsible for promoting instruction and training on citizenship responsibilities for aliens interested in becoming naturalized citizens of the United States, including the development of educational materials.

SEC. 422. CITIZENSHIP AND IMMIGRATION SERVICES OMBUDSMAN.

    (a) IN GENERAL- Within the Department of Justice, there shall be a position of Citizenship and Immigration Services Ombudsman (in this section referred to as the ‘Ombudsman’). The Ombudsman shall report directly to the Deputy Attorney General. The Ombudsman shall have a background in customer service as well as immigration law.

    (b) FUNCTIONS- It shall be the function of the Ombudsman--

      (1) to assist individuals and employers in resolving problems with the Bureau of Citizenship and Immigration Services;

      (2) to identify areas in which individuals and employers have problems in dealing with the Bureau of Citizenship and Immigration Services;

      (3) to the extent possible, to propose changes in the administrative practices of the Bureau of Citizenship and Immigration Services to mitigate problems identified under paragraph (2); and

      (4) to identify potential legislative changes that may be appropriate to mitigate such problems.

    (c) ANNUAL REPORTS-

      (1) OBJECTIVES- Not later than June 30 of each calendar year, the Ombudsman shall report to the Committee on the Judiciary of the United States House of Representatives and the Senate on the objectives of the Office of the Ombudsman for the fiscal year beginning in such calendar year. Any such report shall contain full and substantive analysis, in addition to statistical information, and--

        (A) shall identify the initiatives the Office of the Ombudsman has taken on improving services and responsiveness of the Bureau of Citizenship and Immigration Services;

        (B) shall contain a summary of the most pervasive and serious problems encountered by individuals and employers, including a description of the nature of such problems;

        (C) shall contain an inventory of the items described in subparagraphs (A) and (B) for which action has been taken and the result of such action;

        (D) shall contain an inventory of the items described in subparagraphs (A) and (B) for which action remains to be completed and the period during which each item has remained on such inventory;

        (E) shall contain an inventory of the items described in subparagraphs (A) and (B) for which no action has been taken, the period during which each item has remained on such inventory, the reasons for the inaction, and shall identify any official of the Bureau of Citizenship and Immigration Services who is responsible for such inaction;

        (F) shall contain recommendations for such administrative and legislative action as may be appropriate to resolve problems encountered by individuals and employers, including problems created by excessive backlogs in the adjudication and processing of immigration benefit petitions and applications; and

        (G) shall include such other information as the Ombudsman may deem advisable.

      (2) REPORT TO BE SUBMITTED DIRECTLY- Each report required under this subsection shall be provided directly to the committees described in paragraph (1) without any prior review or comment from the Attorney General, Deputy Attorney General, Assistant Attorney General for Citizenship and Immigration Services, or any other officer or employee of the Department of Justice or the Office of Management and Budget.

    (d) OTHER RESPONSIBILITIES- The Ombudsman--

      (1) shall monitor the coverage and geographic allocation of local offices of the Ombudsman;

      (2) shall develop guidance to be distributed to all officers and employees of the Bureau of Citizenship and Immigration Services outlining the criteria for referral of inquiries to local offices of the Ombudsman;

      (3) shall ensure that the local telephone number for each local office of the Ombudsman is published and available to individuals and employers served by the office; and

      (4) shall meet regularly with the Assistant Attorney General for Citizenship and Immigration Services to identify serious service problems and to present recommendations for such administrative action as may be appropriate to resolve problems encountered by individuals and employers.

    (e) PERSONNEL ACTIONS-

      (1) IN GENERAL- The Ombudsman shall have the responsibility and authority--

        (A) to appoint local ombudsmen and make available at least 1 such ombudsman for each State; and

        (B) to evaluate and take personnel actions (including dismissal) with respect to any employee of any local office of the Ombudsman.

      (2) CONSULTATION- The Ombudsman may consult with the appropriate supervisory personnel of the Bureau of Citizenship and Immigration Services in carrying out the Ombudsman’s responsibilities under this subsection.

    (f) RESPONSIBILITIES OF BUREAU OF CITIZENSHIP AND IMMIGRATION SERVICES- The Assistant Attorney General for Citizenship and Immigration Services shall establish procedures requiring a formal response to all recommendations submitted to such Assistant Attorney General by the Ombudsman within 3 months after submission to such director.

    (g) OPERATION OF LOCAL OFFICES-

      (1) IN GENERAL- Each local ombudsman--

        (A) shall report to the Ombudsman or the delegate thereof;

        (B) may consult with the appropriate supervisory personnel of the Bureau of Citizenship and Immigration Services regarding the daily operation of the local office of such ombudsman;

        (C) shall, at the initial meeting with any individual or employer seeking the assistance of such local office, notify such individual or employer that the local offices of the Ombudsman operate independently of any other component of the Department of Justice and report directly to the Congress through the Ombudsman; and

        (D) at the local ombudsman’s discretion, may determine not to disclose to the Bureau of Citizenship and Immigration Services contact with, or information provided by, such individual or employer.

      (2) MAINTENANCE OF INDEPENDENT COMMUNICATIONS- Each local office of the Ombudsman shall maintain a phone, facsimile, and other means of electronic communication access, and a post office address, that is separate from those maintained by the Bureau of Citizenship and Immigration Services, or any component of the Bureau of Citizenship and Immigration Services.

SEC. 423. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

    (a) IN GENERAL- The Assistant Attorney General for Citizenship and Immigration Services shall be responsible for--

      (1) conducting investigations of noncriminal allegations of misconduct, corruption, and fraud involving any employee of the Bureau of Citizenship and Immigration Services that are not subject to investigation by the Department of Justice Office of the Inspector General;

      (2) inspecting the operations of the Bureau of Citizenship and Immigration Services and providing assessments of the quality of the operations of such bureau as a whole and each of its components; and

      (3) providing an analysis of the management of the Bureau of Citizenship and Immigration Services.

    (b) SPECIAL CONSIDERATIONS- In providing assessments in accordance with subsection (a)(2) with respect to a decision of the Bureau of Citizenship and Immigration Services, or any of its components, consideration shall be given to--

      (1) the accuracy of the findings of fact and conclusions of law used in rendering the decision;

      (2) any fraud or misrepresentation associated with the decision; and

      (3) the efficiency with which the decision was rendered.

SEC. 424. EMPLOYEE DISCIPLINE.

    The Assistant Attorney General for Citizenship and Immigration Services may, notwithstanding any other provision of law, impose disciplinary action, including termination of employment, pursuant to policies and procedures applicable to employees of the Federal Bureau of Investigation, on any employee of the Bureau of Citizenship and Immigration Services who willfully deceives the Congress or agency leadership on any matter.

SEC. 425. OFFICE OF IMMIGRATION STATISTICS WITHIN BUREAU OF JUSTICE STATISTICS.

    (a) IN GENERAL- Part C of title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3731 et seq.) is amended by adding at the end the following:

‘OFFICE OF IMMIGRATION STATISTICS

    ‘SEC. 305. (a) There is established within the Bureau of Justice Statistics of the Department of Justice an Office of Immigration Statistics (in this section referred to as the ‘Office’), which shall be headed by a Director who shall be appointed by the Attorney General and who shall report to the Director of Justice Statistics.

    ‘(b) The Director of the Office shall be responsible for the following:

      ‘(1) Maintenance of all immigration statistical information of the Bureau of Citizenship and Immigration Services and the Executive Office for Immigration Review. 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 Naturalization Service (as in effect on the day prior to the effective date specified in section 427 of the Homeland Security Act of 2002), including region-by-region statistics on the aggregate number of applications and petitions filed by an alien (or filed on behalf of an alien) and denied by such offices and bureaus, and the reasons for such denials, disaggregated by category of denial and application or petition type.

      ‘(2) Establishment of standards of reliability and validity for immigration statistics collected by the Bureau of Citizenship and Immigration Services and the Executive Office for Immigration Review.

    ‘(c) The Bureau of Citizenship and Immigration Services and the Executive Office for Immigration Review shall provide statistical information to the Office of Immigration Statistics from the operational data systems controlled by the Bureau of Citizenship and Immigration Services and the Executive Office for Immigration Review, respectively, for the purpose of meeting the responsibilities of the Director.’.

    (b) TRANSFER OF FUNCTIONS- There are transferred to the Office of Immigration Statistics established under section 305 of the Omnibus Crime Control and Safe Streets Act of 1968, as added by subsection (a), the functions performed immediately before such transfer occurs by the Statistics Branch of the Office of Policy and Planning of the Immigration and Naturalization Service with respect to the following:

      (1) Adjudications of immigrant visa petitions.

      (2) Adjudications of naturalization petitions.

      (3) Adjudications of asylum and refugee applications.

      (4) Adjudications performed at service centers.

      (5) All other adjudications performed by the Immigration and Naturalization Service.

    (c) CONFORMING AMENDMENTS- Section 302(c) of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3732(c)) is amended--

      (1) by striking ‘and’ at the end of paragraph (22);

      (2) by striking the period at the end of paragraph (23) and inserting ‘; and’; and

      (3) by adding at the end the following:

      ‘(24) collect, maintain, compile, analyze, publish, and disseminate information and statistics involving the functions of the Bureau of Citizenship and Immigration Services and the Executive Office for Immigration Review.’.

SEC. 426. PRESERVATION OF ATTORNEY GENERAL’S AUTHORITY.

    (a) IN GENERAL- Any function for which this subchapter vests responsibility in an official other than the Attorney General, or which is transferred by this subchapter to such an official, may, notwithstanding any provision of this subchapter, be performed by the Attorney General, or the Attorney General’s delegate, in lieu of such official.

    (b) REFERENCES- In a case in which the Attorney General performs a function described in subsection (a), any reference in any other Federal law, Executive order, rule, regulation, document, or delegation of authority to the official otherwise responsible for the function is deemed to refer to the Attorney General.

SEC. 427. EFFECTIVE DATE.

    Notwithstanding section 4, this subchapter, and the amendments made by this subchapter, shall take effect on the date on which the transfer of functions specified under section 411 takes effect.

SEC. 428. TRANSITION.

    (a) REFERENCES- With respect to any function transferred by this subchapter to, and exercised on or after the effective date specified in section 427 by, the Assistant Attorney General for Citizenship and Immigration Services, any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a component of government from which such function is transferred--

      (1) to the head of such component is deemed to refer to the Assistant Attorney General for Citizenship and Immigration Services; or

      (2) to such component is deemed to refer to the Bureau of Citizenship and Immigration Services.

    (b) OTHER TRANSITION ISSUES-

      (1) EXERCISE OF AUTHORITIES- Except as otherwise provided by law, a Federal official to whom a function is transferred by this subchapter may, for purposes of performing the function, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date specified in section 427.

      (2) SAVINGS PROVISIONS- Subsections (a), (b), and (c) of section 812 shall apply to a transfer of functions under this subchapter in the same manner as such provisions apply to a transfer of functions under this Act to the Department of Homeland Security.

      (3) TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL- The personnel of the Department of Justice employed in connection with the functions transferred by this subchapter (and functions that the Attorney General determines are properly related to the functions of the Bureau of Citizenship and Immigration Services), and the assets, liabilities, contracts, property, records, and unexpended balance of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available to, the Immigration and Naturalization Service in connection with the functions transferred by this subchapter, subject to section 202 of the Budget and Accounting Procedures Act of 1950, shall be transferred to the Assistant Attorney General for Citizenship and Immigration Services for allocation to the appropriate component of the Department of Justice. Unexpended funds transferred pursuant to this paragraph shall be used only for the purposes for which the funds were originally authorized and appropriated. The Attorney General shall have the right to adjust or realign transfers of funds and personnel effected pursuant to this subchapter for a period of 2 years after the effective date specified in section 427.

      (4) AUTHORITIES OF ATTORNEY GENERAL- The Attorney General (or a delegate of the Attorney General), at such time or times as the Attorney General (or the delegate) shall provide, may make such determinations as may be necessary with regard to the functions transferred by this subchapter, and may 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 subchapter. The Attorney General shall provide for such further measures and dispositions as may be necessary to effectuate the purposes of this subchapter.

Subchapter B--Other Provisions

SEC. 431. FUNDING FOR CITIZENSHIP AND IMMIGRATION SERVICES.

    (a) ESTABLISHMENT OF FEES FOR ADJUDICATION AND NATURALIZATION SERVICES- Section 286(m) of the Immigration and Nationality Act (8 U.S.C. 1356(m)) is amended by striking ‘services, including the costs of similar services provided without charge to asylum applicants or other immigrants.’ and inserting ‘services.’.

    (b) AUTHORIZATION OF APPROPRIATIONS FOR REFUGEE AND ASYLUM ADJUDICATIONS- There are authorized to be appropriated such sums as may be necessary to carry out the provisions of sections 207 through 209 of the Immigration and Nationality Act (8 U.S.C. 1157-1159). All funds appropriated under this subsection shall be deposited into the Immigration Examinations Fee Account established under section 286(m) of the Immigration and Nationality Act (8 U.S.C. 1356(m)) and shall remain available until expended.

SEC. 432. BACKLOG ELIMINATION.

    Section 204(a)(1) of the Immigration Services and Infrastructure Improvements Act of 2000 (8 U.S.C. 1573(a)(1)) is amended by striking ‘not later than one year after the date of enactment of this Act;’ and inserting ‘1 year after the date of the enactment of the Homeland Security Act of 2002;’.

SEC. 433. REPORT ON IMPROVING IMMIGRATION SERVICES.

    (a) IN GENERAL- The Attorney General, not later than 1 year after the effective date of this Act, shall submit to the Committees on the Judiciary and Appropriations of the United States House of Representatives and of the Senate a report with a plan detailing how the Bureau of Citizenship and Immigration Services, after the transfer of functions specified in subchapter 1 takes effect, will complete efficiently, fairly, and within a reasonable time, the adjudications described in paragraphs (1) through (5) of section 421(b).

    (b) CONTENTS- For each type of adjudication to be undertaken by the Assistant Attorney General for Citizenship and Immigration Services, the report shall include the following:

      (1) Any potential savings of resources that may be implemented without affecting the quality of the adjudication.

      (2) The goal for processing time with respect to the application.

      (3) Any statutory modifications with respect to the adjudication that the Attorney General considers advisable.

    (c) CONSULTATION- In carrying out subsection (a), the Attorney General shall consult with the Secretary of State, the Secretary of Labor, the Assistant Secretary of the Bureau of Border Security of the Department of Homeland Security, and the Director of the Executive Office for Immigration Review to determine how to streamline and improve the process for applying for and making adjudications described in section 421(b) and related processes.

SEC. 434. REPORT ON RESPONDING TO FLUCTUATING NEEDS.

    Not later than 30 days after the date of the enactment of this Act, the Attorney General shall submit to the Congress a report on changes in law, including changes in authorizations of appropriations and in appropriations, that are needed to permit the Immigration and Naturalization Service, and, after the transfer of functions specified in subchapter 1 takes effect, the Bureau of Citizenship and Immigration Services, to ensure a prompt and timely response to emergent, unforeseen, or impending changes in the number of applications for immigration benefits, and otherwise to ensure the accommodation of changing immigration service needs.

SEC. 435. APPLICATION OF INTERNET-BASED TECHNOLOGIES.

    (a) ESTABLISHMENT OF TRACKING SYSTEM- The Attorney General, not later than 1 year after the effective date of this Act, in consultation with the Technology Advisory Committee established under subsection (c), shall establish an Internet-based system, that will permit a person, employer, immigrant, or nonimmigrant who has filings with the Attorney General for any benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), access to online information about the processing status of the filing involved.

    (b) FEASIBILITY STUDY FOR ONLINE FILING AND IMPROVED PROCESSING-

      (1) ONLINE FILING- The Attorney General, in consultation with the Technology Advisory Committee established under subsection (c), shall conduct a feasibility study on the online filing of the filings described in subsection (a). The study shall include a review of computerization and technology of the Immigration and Naturalization Service relating to the immigration services and processing of filings related to immigrant services. The study shall also include an estimate of the timeframe and cost and shall consider other factors in implementing such a filing system, including the feasibility of fee payment online.

      (2) REPORT- A report on the study under this subsection shall be submitted to the Committees on the Judiciary of the United States House of Representatives and the Senate not later than 1 year after the effective date of this Act.

    (c) TECHNOLOGY ADVISORY COMMITTEE-

      (1) ESTABLISHMENT- The Attorney General shall establish, not later than 60 days after the effective date of this Act, an advisory committee (in this section referred to as the ‘Technology Advisory Committee’) to assist the Attorney General in--

        (A) establishing the tracking system under subsection (a); and

        (B) conducting the study under subsection (b).

      The Technology Advisory Committee shall be established after consultation with the Committees on the Judiciary of the United States House of Representatives and the Senate.

      (2) COMPOSITION- The Technology Advisory Committee shall be composed of representatives from high technology companies capable of establishing and implementing the system in an expeditious manner, and representatives of persons who may use the tracking system described in subsection (a) and the online filing system described in subsection (b)(1).

SEC. 436. CHILDREN’S AFFAIRS.

    (a) TRANSFER OF FUNCTIONS- There are transferred to the Director of the Office of Refugee Resettlement of the Department of Health and Human Services functions under the immigration laws of the United States with respect to the care of unaccompanied alien children that were vested by statute in, or performed by, the Commissioner of Immigration and Naturalization (or any officer, employee, or component of the Immigration and Naturalization Service) immediately before the effective date specified in subsection (d).

    (b) FUNCTIONS-

      (1) IN GENERAL- Pursuant to the transfer made by subsection (a), the Director of the Office of Refugee Resettlement shall be responsible for--

        (A) coordinating and implementing the care and placement of unaccompanied alien children who are in Federal custody by reason of their immigration status, including developing a plan to be submitted to the Congress on how to ensure that qualified and independent legal counsel is timely appointed to represent the interests of each such child, consistent with the law regarding appointment of counsel that is in effect on the date of the enactment of this Act;

        (B) ensuring that the interests of the child are considered in decisions and actions relating to the care and custody of an unaccompanied alien child;

        (C) making placement determinations for all unaccompanied alien children who are in Federal custody by reason of their immigration status;

        (D) implementing the placement determinations;

        (E) implementing policies with respect to the care and placement of unaccompanied alien children;

        (F) identifying a sufficient number of qualified individuals, entities, and facilities to house unaccompanied alien children;

        (G) overseeing the infrastructure and personnel of facilities in which unaccompanied alien children reside;

        (H) reuniting unaccompanied alien children with a parent abroad in appropriate cases;

        (I) compiling, updating, and publishing at least annually a state-by-state list of professionals or other entities qualified to provide guardian and attorney representation services for unaccompanied alien children;

        (J) maintaining statistical information and other data on unaccompanied alien children for whose care and placement the Director is responsible, which shall include--

          (i) biographical information, such as a child’s name, gender, date of birth, country of birth, and country of habitual residence;

          (ii) the date on which the child came into Federal custody by reason of his or her immigration status;

          (iii) information relating to the child’s placement, removal, or release from each facility in which the child has resided;

          (iv) in any case in which the child is placed in detention or released, an explanation relating to the detention or release; and

          (v) the disposition of any actions in which the child is the subject;

        (K) collecting and compiling statistical information from the Department of Justice, the Department of Homeland Security, and the Department of State on each department’s actions relating to unaccompanied alien children; and

        (L) conducting investigations and inspections of facilities and other entities in which unaccompanied alien children reside.

      (2) COORDINATION WITH OTHER ENTITIES; NO RELEASE ON OWN RECOGNIZANCE- In making determinations described in paragraph (1)(C), the Director of the Office of Refugee Resettlement--

        (A) shall consult with appropriate juvenile justice professionals, the Director of the Bureau of Citizenship and Immigration Services of the Department of Justice, and the Assistant Secretary of the Bureau of Border Security of the Department of Homeland Security to ensure that such determinations ensure that unaccompanied alien children described in such subparagraph--

          (i) are likely to appear for all hearings or proceedings in which they are involved;

          (ii) are protected from smugglers, traffickers, or others who might seek to victimize or otherwise engage them in criminal, harmful, or exploitive activity; and

          (iii) are placed in a setting in which they not likely to pose a danger to themselves or others; and

        (B) shall not release such children upon their own recognizance.

      (3) DUTIES WITH RESPECT TO FOSTER CARE- In carrying out the duties described in paragraph (1)(G), the Director of the Office of Refugee Resettlement is encouraged to use the refugee children foster care system established pursuant to section 412(d) of the Immigration and Nationality Act (8 U.S.C. 1522(d)) for the placement of unaccompanied alien children.

    (c) RULE OF CONSTRUCTION- Nothing in this section may be construed to transfer the responsibility for adjudicating benefit determinations under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.) from the authority of any official of the Department of Justice, the Department of Homeland Security, or the Department of State.

    (d) EFFECTIVE DATE- Notwithstanding section 4, this section shall take effect on the date on which the transfer of functions specified under section 411 takes effect.

    (e) REFERENCES- With respect to any function transferred by this section, any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a component of government from which such function is transferred--

      (1) to the head of such component is deemed to refer to the Director of the Office of Refugee Resettlement; or

      (2) to such component is deemed to refer to the Office of Refugee Resettlement of the Department of Health and Human Services.

    (f) OTHER TRANSITION ISSUES-

      (1) EXERCISE OF AUTHORITIES- Except as otherwise provided by law, a Federal official to whom a function is transferred by this section may, for purposes of performing the function, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date specified in subsection (d).

      (2) SAVINGS PROVISIONS- Subsections (a), (b), and (c) of section 812 shall apply to a transfer of functions under this section in the same manner as such provisions apply to a transfer of functions under this Act to the Department of Homeland Security.

      (3) TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL- The personnel of the Department of Justice employed in connection with the functions transferred by this section, and the assets, liabilities, contracts, property, records, and unexpended balance of appropriations, authorizations, allocations, and other funds employed, held, used, arising from, available to, or to be made available to, the Immigration and Naturalization Service in connection with the functions transferred by this section, subject to section 202 of the Budget and Accounting Procedures Act of 1950, shall be transferred to the Director of the Office of Refugee Resettlement for allocation to the appropriate component of the Department of Health and Human Services. Unexpended funds transferred pursuant to this paragraph shall be used only for the purposes for which the funds were originally authorized and appropriated.

    (g) DEFINITIONS- As used in this section--

      (1) the term ‘placement’ means the placement of an unaccompanied alien child in either a detention facility or an alternative to such a facility; and

      (2) the term ‘unaccompanied alien child’ means a child who--

        (A) has no lawful immigration status in the United States;

        (B) has not attained 18 years of age; and

        (C) with respect to whom--

          (i) there is no parent or legal guardian in the United States; or

          (ii) no parent or legal guardian in the United States is available to provide care and physical custody.

CHAPTER 3--GENERAL PROVISIONS

SEC. 441. ABOLISHMENT OF INS.

    The Immigration and Naturalization Service of the Department of Justice is abolished.

SEC. 442. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) DEFINITIONS- For purposes of this section--

      (1) the term ‘employee’ means an employee (as defined by section 2105 of title 5, United States Code) who--

        (A) has completed at least 3 years of current continuous service with 1 or more covered entities; and

        (B) is serving under an appointment without time limitation;

      but does not include any person under subparagraphs (A)-(G) of section 663(a)(2) of Public Law 104-208 (5 U.S.C. 5597 note);

      (2) the term ‘covered entity’ means--

        (A) the Immigration and Naturalization Service;

        (B) the Bureau of Border Security of the Department of Homeland Security; and

        (C) the Bureau of Citizenship and Immigration Services of the Department of Justice; and

      (3) the term ‘transfer date’ means the date on which the transfer of functions specified under section 411 takes effect.

    (b) STRATEGIC RESTRUCTURING PLAN- Before the Attorney General or the Secretary obligates any resources for voluntary separation incentive payments under this section, such official shall submit to the appropriate committees of Congress a strategic restructuring plan, which shall include--

      (1) an organizational chart depicting the covered entities after their restructuring pursuant to this Act;

      (2) a summary description of how the authority under this section will be used to help carry out that restructuring; and

      (3) the information specified in section 663(b)(2) of Public Law 104-208 (5 U.S.C. 5597 note).

    As used in the preceding sentence, the ‘appropriate committees of Congress’ are the Committees on Appropriations, Government Reform, and the Judiciary of the House of Representatives, and the Committees on Appropriations, Governmental Affairs, and the Judiciary of the Senate.

    (c) AUTHORITY- The Attorney General and the Secretary may, to the extent necessary to help carry out their respective strategic restructuring plan described in subsection (b), make voluntary separation incentive payments to employees. Any such payment--

      (1) shall be paid to the employee, in a lump sum, after the employee has separated from service;

      (2) shall be paid from appropriations or funds available for the payment of basic pay of the employee;

      (3) shall be equal to the lesser of--

        (A) the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code; or

        (B) an amount not to exceed $25,000, as determined by the Attorney General or the Secretary;

      (4) may not be made except in the case of any qualifying employee who voluntarily separates (whether by retirement or resignation) before the end of--

        (A) the 3-month period beginning on the date on which such payment is offered or made available to such employee; or

        (B) the 3-year period beginning on the date of the enactment of this Act,

      whichever occurs first;

      (5) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; and

      (6) shall not be taken into account in determining the amount of any severance pay to which the employee may be entitled under section 5595 of title 5, United States Code, based on any other separation.

    (d) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND-

      (1) IN GENERAL- In addition to any payments which it is otherwise required to make, the Department of Justice and the Department of Homeland Security shall, for each fiscal year with respect to which it makes any voluntary separation incentive payments under this section, remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund the amount required under paragraph (2).

      (2) AMOUNT REQUIRED- The amount required under this paragraph shall, for any fiscal year, be the amount under subparagraph (A) or (B), whichever is greater.

        (A) FIRST METHOD- The amount under this subparagraph shall, for any fiscal year, be equal to the minimum amount necessary to offset the additional costs to the retirement systems under title 5, United States Code (payable out of the Civil Service Retirement and Disability Fund) resulting from the voluntary separation of the employees described in paragraph (3), as determined under regulations of the Office of Personnel Management.

        (B) SECOND METHOD- The amount under this subparagraph shall, for any fiscal year, be equal to 45 percent of the sum total of the final basic pay of the employees described in paragraph (3).

      (3) COMPUTATIONS TO BE BASED ON SEPARATIONS OCCURRING IN THE FISCAL YEAR INVOLVED- The employees described in this paragraph are those employees who receive a voluntary 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 subsection, the term ‘final basic pay’ means, with respect 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 therefor.

    (e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT- An individual who receives a voluntary 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 payment. 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 of Justice, if necessary) or the Under Secretary for Border and Transportation Security (for transfer to the appropriate component of the Department of Homeland Security, if necessary).

    (f) EFFECT ON EMPLOYMENT LEVELS-

      (1) INTENDED EFFECT- Voluntary separations under this section are not intended to necessarily reduce the total number of full-time equivalent positions in any covered entity.

      (2) USE OF VOLUNTARY SEPARATIONS- A covered entity may redeploy or use the full-time equivalent positions vacated by voluntary separations under this section to make other positions available to more critical locations or more critical occupations.

SEC. 443. AUTHORITY TO CONDUCT A DEMONSTRATION PROJECT RELATING TO DISCIPLINARY ACTION.

    (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, conduct a demonstration project for the purpose of determining whether one or more changes in the policies or procedures relating to methods for disciplining employees would result in improved personnel management.

    (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 resolution (as defined in section 571 of title 5, United States Code) shall be encouraged, whenever appropriate; 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 subchapter II of chapter 75 of such title 5 would otherwise apply (except an action described in section 7512(5) thereof).

    (d) ACTIONS INVOLVING DISCRIMINATION- Notwithstanding 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 reviewable action under the demonstration project within 120 days after the filing of an appeal or other formal request 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 employees 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 employee 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 Reform and the Judiciary of the House of Representatives and the Committees on Governmental Affairs and the Judiciary of the Senate periodic reports on any demonstration project conducted under this section, such reports to be submitted after the second and fourth years of its operation. Upon request, the Attorney General or the Secretary shall furnish such information as the General Accounting 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 Security 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 unexpended funds, appropriations, and fees, between the Bureau of Citizenship and Immigration Services and the Bureau of Border Security.

    (b) DIVISION OF PERSONNEL- 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 of personnel between the Bureau of Citizenship and Immigration Services and the Bureau of Border Security.

    (c) IMPLEMENTATION PLAN-

      (1) IN GENERAL- The Attorney General and the Secretary, not later than 120 days after the effective date of this Act, and every 6 months thereafter 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 implementation 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:

        (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 removal proceedings, including expedited removal and applications for relief from removal.

        (F) Recommendations for conforming amendments to the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

        (G) Establishment of a transition team.

        (H) Methods to phase in the costs of separating 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 REPORTS-

      (1) STATUS REPORTS ON TRANSITION- Not later than 18 months after the date on which the transfer of functions specified under section 411 takes effect, and every 6 months thereafter, until full implementation of this subtitle has been completed, 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 transfers of functions made by chapters 1 and 2 have been completed, and if a transfer of functions has not taken place, identifying the reasons why the transfer has not taken place.

        (B) If the transfers of functions made by chapters 1 and 2 have been completed, an identification 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 functions.

      (2) REPORT ON MANAGEMENT- Not later than 4 years after the date on which the transfer of functions specified under section 411 takes effect, 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, following a study, containing the following:

        (A) Determinations of whether the transfer of functions from the Immigration and Naturalization 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 accountability and communication.

          (iii) Financial administration.

          (iv) Recordkeeping, including information management and technology.

        (B) A statement of the reasons for the determinations under subparagraph (A).

        (C) Any recommendations for further improvements 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 submit to the Committees on the Judiciary of the House of Representatives and of the Senate a report examining whether the Bureau of Citizenship and Immigration Services is likely to derive sufficient funds from fees to carry out its functions in the absence 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 Judiciary 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 address the following with respect to the period covered by the report:

        (A) The aggregate number of all immigration applications and petitions received, and processed, by the Department;

        (B) Region-by-region statistics on the aggregate number of immigration applications and petitions filed by an alien (or filed on behalf of an alien) and denied, disaggregated by category of denial and application or petition type.

        (C) The quantity of backlogged immigration applications and petitions that have been processed, the aggregate number awaiting processing, and a detailed plan for eliminating the backlog.

        (D) The average processing period for immigration 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 improve immigration services.

        (G) Whether immigration-related fees were used consistent with legal requirements regarding such use.

        (H) Whether immigration-related questions conveyed by customers to the Department of Justice (whether conveyed in person, by telephone, or by means of the Internet) were answered effectively and efficiently.

    (b) SENSE OF THE CONGRESS REGARDING IMMIGRATION 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 efforts to guarantee that concerns regarding the quality and efficiency of immigration services are addressed 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 Transportation Security, which shall be vested with those functions 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.

      (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 effective date until a Commissioner of Customs is appointed under paragraph (1).

SEC. 452. RETENTION OF CUSTOMS REVENUE FUNCTIONS BY SECRETARY OF THE TREASURY.

    (a) RETENTION BY SECRETARY OF THE TREASURY-

      (1) RETENTION OF AUTHORITY- Notwithstanding sections 401(5), 402(1), and 808(e)(2), authority 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 reason of this Act, and on and after the effective date of this Act, the Secretary of the Treasury may delegate any such authority to the Secretary at the discretion of the Secretary of the Treasury. The Secretary of the Treasury shall consult with the Secretary 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); section 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 Economic 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.

    (b) MAINTENANCE OF CUSTOMS REVENUE FUNCTIONS-

      (1) MAINTENANCE OF FUNCTIONS- Notwithstanding any other provision of this Act, the Secretary may not consolidate, alter, discontinue, or diminish those functions described in paragraph (2) performed by the United States Customs Service (as established under section 451) on or after the effective date of this Act, reduce the staffing level, or the compensation or benefits under title 5, United States Code, of personnel attributable to such functions, or reduce the resources attributable to such functions, and the Secretary shall ensure that an appropriate 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.

    (c) NEW PERSONNEL- The Secretary of the Treasury is authorized to appoint up to 20 new personnel to work with personnel of the Department in performing customs 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 accordance with the audit of the Customs Service’s fiscal 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 accounting system described in paragraph (1) shall provide for an identification of expenses based on the type of operation, the port at which the operation 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 appropriate classification necessary to provide for an accurate and complete accounting of the expenses.

      (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 enactment 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 Reconciliation 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 transmitted to the Congress under section 1105 of title 31, 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 statement, 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 entered or released, whichever occurs first.’.

SEC. 457. DEFINITION.

    In this subtitle, the term ‘customs revenue function’ means the following:

      (1) Assessing and collecting customs duties (including antidumping and countervailing duties and duties imposed under safeguard provisions), excise taxes, fees, and penalties due on imported merchandise, 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 assessment and collection of import duties.

      (3) Detecting and apprehending persons engaged 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 compilation of international trade statistics.

      (6) Enforcing reciprocal trade agreements.

      (7) 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.

      (8) Functions performed by the following offices, with respect to any function described in any of paragraphs (1) through (7), and associated support staff, of the United States Customs Service on the day before the effective date of this Act: the Office 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, specifying 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 customs revenue services provided on the day before the effective date of this Act shall continue to be provided.

    (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 customs 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 Department 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 Representatives 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.

SEC. 461. CUSTOMS USER FEES.

    Section 13031(f) of the Consolidated Omnibus Budget 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 Automation 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 Automation 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, establishment, and implementation of the Automated Commercial Environment computer system for the processing of merchandise that is entered or released and for other 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 Treasury shall reduce the amount estimated to be collected in fiscal year 2006 by the amount by which total fees deposited 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 PREPAREDNESS AND RESPONSE.

    The Secretary, acting through the Under Secretary for Emergency Preparedness and Response, shall be responsible 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 Response Team (regardless of whether it is operating as an organizational unit of the Department pursuant to this title)--

        (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 equipment.

      (3) Providing the Federal Government’s response to terrorist attacks and major disasters, including--

        (A) managing such response;

        (B) directing the Domestic Emergency Support Team, the Strategic National Stockpile, the National Disaster Medical System, and (when operating as an organizational unit of the Department pursuant to this title) the Nuclear 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.

      (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 mental health workers to allow them to respond effectively 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 developing interoperative communications technology, and helping to ensure that emergency response providers acquire such technology.

SEC. 502. FUNCTIONS TRANSFERRED.

    In accordance with title VIII, there shall be transferred to the Secretary the functions, personnel, assets, and obligations of the following:

      (1) The Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, and the Integrated Hazard Information System of the Department of Defense.

      (2) The Office of Emergency Preparedness, the National Disaster Medical System, and the Metropolitan Medical Response System of the Department of Health and Human Services, including the functions of the Secretary of Health and Human Services and the Assistant Secretary for Public Health Emergency Preparedness relating thereto.

      (3) The Strategic National Stockpile of the Department 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 Secretary of Energy and the Administrator of the Environmental Protection Agency for organizing, training, equipping, 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 indemnify 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 Response 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 support functions (including accident response, search response, advisory, and technical operations functions), radiation exposure functions at the medical assistance facility known as the Radiation Emergency Assistance/Training Site (REAC/TS), radiological assistance functions, and related functions; and

      (2) those entities of the Environmental Protection Agency that perform radiological emergency response 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 preparedness and response to chemical, biological, radiological, and nuclear and other emerging terrorist threats carried out by the Department of Health and Human Services (including the Public Health Service), the Secretary of Health and Human Services shall set priorities and preparedness goals and further develop a coordinated strategy for such activities in collaboration with the Secretary of Homeland Security.

    (b) EVALUATION OF PROGRESS- In carrying out subsection (a), the Secretary of Health and Human Services shall collaborate with the Secretary of Homeland Security in developing specific benchmarks and outcome 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 limited to, 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--

        (A) of mitigation, by taking sustained actions to reduce or eliminate long-term risk to people and property from hazards and their effects;

        (B) of preparedness, by building the emergency management profession to prepare effectively for, mitigate against, respond to, and recover from any hazard by planning, training, and exercising;

        (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 coordinating efforts relating to preparedness and response 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 Executive Order 12148 (44 Fed. Reg. 43239) and Executive 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 Management Agency shall revise the Federal Response 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.

      (5) Facilities, property, equipment, and other material resources.

      (6) Security for personnel, information technology and communications systems, facilities, property, equipment, and other material resources.

      (7) Identification and tracking of performance measures relating to the responsibilities of the Department.

      (8) Grants and other assistance management programs.

      (9) The transition and reorganization process, to ensure an efficient and orderly transfer of functions and personnel to the Department, including the development of a transition plan.

      (10) The conduct of internal audits and management 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 responsibilities described in subsection (a), the Under Secretary for Management shall be responsible for the following:

        (A) Maintenance of all immigration statistical information of the Bureau of Border Security. 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 Naturalization Service (as in effect immediately before the date on which the transfer of functions specified under section 411 takes effect), including region-by-region statistics on the aggregate number 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 denials, disaggregated by category of denial and application or petition type.

        (B) Establishment of standards of reliability 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 performed immediately before such transfer occurs by the Statistics Branch of the Office of Policy and 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 Department, 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 Liberties. The Director shall--

      (1) review and assess information alleging abuses of civil rights, civil liberties, and racial and ethnic profiling by employees and officials of the Department;

      (2) make public through the Internet, radio, television, or newspaper advertisements information on the responsibilities and functions of, and how to contact, 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 implementation of this section, including the use of funds appropriated to carry out this section, and detailing any allegations of abuses described in paragraph (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 agencies that are transferred to the Department under this Act, if such officers are located in the same municipality; and

      (2) portions of regional and field offices of other Federal agencies, to the extent such offices perform functions that are transferred to the Secretary under this Act.

TITLE VII--MISCELLANEOUS

Subtitle A--Inspector General

SEC. 701. AUTHORITY OF THE SECRETARY.

    (a) IN GENERAL- Notwithstanding the last two sentences 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 audits 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 proceedings;

      (3) undercover operations;

      (4) the identity of confidential sources, including 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

      (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 investigation, 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 necessary to prevent the disclosure of any information described 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 exercises any power under subsection (a) or (b), the Secretary shall notify the Inspector General of the Department in writing stating the reasons for such exercise. Within 30 days after receipt of any such notice, the Inspector 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 disagreement, to the President of the Senate and the Speaker of the House of Representatives and to appropriate committees and subcommittees of the Congress.

    (d) ACCESS TO INFORMATION BY CONGRESS- The exercise of authority by the Secretary described in subsection (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 inserting 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 specified 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 Service. The head of each such office shall promptly report to the Inspector General the significant activities being carried out by such office.’.

Subtitle B--United States Secret Service

SEC. 711. FUNCTIONS TRANSFERRED.

    In accordance with title VIII, there shall be transferred 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 Department, 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 Infrastructure 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 INFORMATION- The term ‘critical infrastructure information’ means information not customarily in the public domain and related to the security of critical infrastructure or protected systems--

        (A) actual, potential, or threatened interference with, attack on, compromise of, or incapacitation 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 infrastructure or protected system to resist such interference, compromise, or incapacitation, including any planned or past assessment, projection, or estimate of the vulnerability of critical infrastructure or a protected system, including security testing, risk evaluation thereto, risk management planning, or risk audit; or

        (C) any planned or past operational problem or solution regarding critical infrastructure or protected systems, including repair, recovery, reconstruction, insurance, or continuity, to the extent it is related to such interference, compromise, or incapacitation.

      (4) CRITICAL INFRASTRUCTURE PROTECTION PROGRAM- The term ‘critical infrastructure protection 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 ORGANIZATION- The term ‘Information Sharing and Analysis Organization’ means any formal or informal entity or collaboration created or employed by public or private sector organizations, for purposes of--

        (A) gathering and analyzing critical infrastructure information in order to better understand security problems and interdependencies related to critical infrastructure and protected systems, so as to ensure the availability, integrity, and reliability thereof;

        (B) communicating or disclosing critical infrastructure information to help prevent, detect, mitigate, or recover from the effects of a interference, compromise, or a incapacitation problem related to critical infrastructure or protected systems; and

        (C) voluntarily disseminating critical infrastructure 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 computer-based system, process, or procedure that directly or indirectly affects the viability of a facility 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 transmission or storage.

      (7) VOLUNTARY-

        (A) IN GENERAL- The term ‘voluntary’, in the case of any submittal of critical infrastructure information to a covered Federal agency, means the submittal thereof in the absence of such agency’s exercise of legal authority to compel access to or submission of such information and may be accomplished by a single entity or an Information Sharing and Analysis Organization on behalf of itself or its members.

        (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 Exchange Act of 1934 (15 U.S.C. 78c(a)(47))--

            (I) does not include information or statements contained in any documents or materials filed with the Securities and Exchange Commission, or with Federal banking regulators, pursuant 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, 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 proceedings.

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 CRITICAL 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 systems, if analysis, warning, interdependency study, recovery, reconstitution, or other informational purpose, 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 (commonly referred to as the Freedom of Information 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 information, 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 submitted in good faith;

        (D) shall not, without the written consent of the person or entity submitting such information, 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

          (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 subcommittee thereof, any joint committee 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 distributed 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 purpose of protecting critical infrastructure or protected systems, or in furtherance of an investigation or the prosecution of a criminal act; and

        (F) does not constitute a waiver of any applicable 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 protection from disclosure as provided by the provisions of the Critical Infrastructure Information Act of 2002.’; or

        (B) in the case of oral information, a similar written statement submitted within a reasonable period following the oral communication.

    (b) LIMITATION- No communication of critical infrastructure information to a covered Federal agency made pursuant to this subtitle shall be considered to be an action subject to the requirements of the Federal Advisory Committee Act (5 U.S.C. App. 2).

    (c) INDEPENDENTLY OBTAINED INFORMATION- Nothing in this section shall be construed to limit or otherwise affect the ability of a State, local, or Federal Government entity, agency, or authority, or any third party, under applicable law, to obtain critical infrastructure information in a manner not covered by subsection (a), including any information lawfully and properly disclosed generally or broadly to the public and to use such information in any manner permitted by law.

    (d) TREATMENT OF VOLUNTARY SUBMITTAL OF INFORMATION- The voluntary submittal to the Government of information or records that are protected from disclosure by this subtitle shall not be construed to constitute compliance with any requirement to submit such information to a Federal agency under any other provision of law.

    (e) PROCEDURES-

      (1) IN GENERAL- The Secretary of the Department of Homeland Security shall, in consultation with appropriate representatives of the National Security Council and the Office of Science and Technology Policy, establish uniform procedures for the receipt, care, and storage by Federal agencies of critical infrastructure information that is voluntarily 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 information that is voluntarily submitted to the Government;

        (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 information; and

        (D) the protection and maintenance of the confidentiality of such information so as to permit 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 infrastructure and protected systems, in such manner as to protect from public disclosure the identity of the submitting person or entity, or information that is proprietary, business sensitive, relates specifically to the submitting person or entity, and is otherwise not appropriately in the public domain.

    (f) PENALTIES- Whoever, being an officer or employee of the United States or of any department or agency thereof, knowingly publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by law, any critical infrastructure information protected from disclosure by this subtitle coming to him in the course of this employment or official duties or by reason of any examination or investigation made by, or return, report, or record made to or filed with, such department 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 governmental 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--

      (1) the source of any voluntarily submitted critical infrastructure information that forms the basis for the warning; or

      (2) information that is proprietary, business sensitive, relates specifically to the submitting person 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 following the effective date of this Act, the Secretary may carry out a pilot program under which the Secretary may exercise the following authorities:

      (1)(A) In carrying out basic, applied, and advanced research and development projects for response 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 cooperative 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 subsection (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 accordance with the requirements and conditions provided for carrying out prototype projects under section 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 paragraph, except that in applying such subsection any reference in such subsection to the Comptroller General shall be deemed to refer to the Comptroller General and the Inspector General of the Department; and

        (ii) the Secretary shall perform the functions of the Secretary of Defense under subsection (d) thereof.

    (b) REPORT- Not later than one year after the effective date of this Act, and annually thereafter, the Comptroller General shall report to the Committee on Government 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 contractors and results in the acquisition of needed technologies; and

      (2) if such authorities were to be made permanent, 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, including the services of experts or consultants (or organizations thereof), without regard to the pay limitations of such section 3109.

SEC. 733. SPECIAL STREAMLINED ACQUISITION AUTHORITY.

    (a) AUTHORITY- (1) The Secretary may use the authorities set forth in this section with respect to any procurement made during the period beginning on the effective 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 described in paragraph (1) may not be delegated by the Secretary to an officer of the Department who is not appointed 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 Committee 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 designate certain employees of the Department to make procurements described in subsection (a) for which in the administration of section 32 of the Office of Federal Procurement 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 paragraph (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 Procurement Policy Act (41 U.S.C. 428(c));

      (B) sufficient to ensure the geographic dispersal of the availability of the use of the procurement authority 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 supervisor 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 subsection.

    (c) SIMPLIFIED ACQUISITION PROCEDURES- (1) With respect to a procurement described in subsection (a), the Secretary may deem the simplified acquisition threshold 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 Procurement Policy Act is amended--

      (A) by striking ‘or’ at the end of suparagraph (F);

      (B) by striking the period at the end of subparagraph (G) and inserting ‘; or’; and

      (C) by adding at the end the following new subparagraph:

      ‘(H) the procurement is by the Secretary of Homeland Security pursuant to the special procedures 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 described 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 (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, notwithstanding 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 following:

      (1) An assessment of the extent to which property 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.

      (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 implementation of the provisions of this section.

SEC. 734. PROCUREMENTS FROM SMALL BUSINESSES.

    (a) OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION- There is established in the Department 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 section 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 business concerns, by small business concerns owned and controlled by service-disabled veterans, by qualified HUBZone small business concerns, by small business concerns owned and controlled by socially and economically disadvantaged individuals, and by small 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 GOVERNMENT-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 Government-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 paragraph (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 CORPORATE EXPATRIATES.

    (a) IN GENERAL- The Secretary may not enter into any contract with a subsidiary of a publicly traded corporation if the corporation is incorporated in a tax haven 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.

    (c) USE OF HEADQUARTERS FACILITY- The Administrator of General Services shall make the headquarter facility, as well as other Government-owned or leased facilities, available to the Secretary pursuant to the Administrator’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 appropriated to the Secretary such amounts as may be necessary to pay the annual charges for General Services Administration furnished space and services.

Subtitle F--Support Anti-terrorism by Fostering Effective Technologies Act of 2002 (the SAFETY Act)

SEC. 751. SHORT TITLE.

    This subtitle may be cited as the ‘Support Anti-terrorism 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-terrorism technologies that qualify for protection under the system of risk management set forth in this subtitle in accordance with criteria that shall include, but not be limited 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 extraordinarily unquantifiable potential third party liability risk exposure to the Seller or other provider of such anti-terrorism technology.

      (4) Substantial likelihood that such anti-terrorism technology will not be deployed unless protections 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 capability of the technology to substantially reduce risks of harm.

      (7) Anti-terrorism technology that would be effective in facilitating the defense against acts of terrorism.

    (c) REGULATIONS- The Secretary may issue such regulations, after notice and comment in accordance with section 553 of title 5, United States, Code, as may be necessary 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 decision in any such action shall be derived from the law, including 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 injury, or death 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.

    (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 intended to compensate a plaintiff for actual losses may be awarded, nor shall any party be liable for interest prior to the judgment.

      (2)(A) Noneconomic damages may be awarded against a defendant only in an amount directly proportional 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, inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium, hedonic damages, injury to reputation, and any other nonpecuniary 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 of terrorism when qualified anti-terrorism technologies approved 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 evidence showing that the Seller acted fraudulently or with willful misconduct in submitting information to the Secretary during the course of the Secretary’s consideration of such technology under this subsection. This presumption of the government contractor defense shall apply regardless 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 Secretary, 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-terrorism technology, the Secretary will conduct a comprehensive review of the design of such technology and determine 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 information.

    (3) For anti-terrorism technology reviewed and approved by the Secretary, the Secretary will issue a certificate of conformance to the Seller and place the anti-terrorism technology on an Approved Product List for Homeland 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 to Federal and non-Federal government customers (‘Seller’) shall obtain liability insurance of such types and in such amounts as shall be required in accordance with this section and certified by the Secretary to satisfy otherwise compensable third-party claims arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against such act.

    (2) For the total claims related to one such act of terrorism, the Seller is not required to obtain liability insurance of more than the maximum amount of liability insurance reasonably available from private sources on the world market at prices and terms that will not unreasonably distort the sales price of Seller’s anti-terrorism technologies.

    (3) Liability insurance obtained pursuant to this subsection shall, in addition to the Seller, protect the following, to the extent of their potential liability for involvement in the manufacture, qualification, sale, use, or operation of qualified anti-terrorism technologies deployed in defense against an act of terrorism:

      (A) contractors, subcontractors, suppliers, vendors and customers of the Seller.

      (B) contractors, subcontractors, suppliers, and vendors of the customer.

    (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-terrorism technologies.

    (b) RECIPROCAL WAIVER OF CLAIMS- The Seller shall enter into a reciprocal waiver of claims with its contractors, subcontractors, suppliers, vendors and customers, and contractors and subcontractors of the customers, involved in the manufacture, sale, use or operation of qualified anti-terrorism technologies, under which each party to the waiver agrees to be responsible for losses, including business interruption losses, that it sustains, or for losses sustained by its own employees resulting from an activity resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against 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 limits of liability insurance coverage required to be maintained by the Seller under this section.

SEC. 755. DEFINITIONS.

    For purposes of this subtitle, the following definitions apply:

      (1) QUALIFIED ANTI-TERRORISM TECHNOLOGY- For purposes of this subtitle, the term ‘qualified anti-terrorism technology’ means any product, equipment, service (including support services), device, or technology (including information technology) designed, developed, modified, or procured for the specific purpose of preventing, detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise cause, that is designated as such by the Secretary.

      (2) ACT OF TERRORISM- (A) The term ‘act of terrorism’ means any act that the Secretary determines meets the requirements under subparagraph (B), as such requirements are further defined and specified by the Secretary.

      (B) REQUIREMENTS- An act meets the requirements of this subparagraph if the act--

        (i) is unlawful;

        (ii) causes harm to a person, property, or entity, in the United States, or in the case of a domestic United States air carrier or a United States-flag vessel (or a vessel based principally in the United States on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), in or outside the United States; and

        (iii) uses or attempts to use instrumentalities, weapons or other methods designed or intended to cause mass destruction, injury or other loss to citizens or institutions of the United States.

      (3) INSURANCE CARRIER- The term ‘insurance carrier’ means any corporation, association, society, order, firm, company, mutual, partnership, individual 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 insurance’ means insurance for legal liabilities incurred by the insured resulting from--

          (i) loss of or damage to property of others;

          (ii) ensuing loss of income or extra expense incurred because of loss of or damage to property of others;

          (iii) bodily injury (including) to persons other than the insured or its employees; or

          (iv) loss resulting from debt or default of another.

      (5) LOSS- The term ‘loss’ means death, bodily injury, or loss of or damage to property, including business interruption loss.

      (6) NON-FEDERAL GOVERNMENT CUSTOMERS- The term ‘non-Federal Government customers’ means any customer of a Seller that is not an agency or instrumentality of the United States Government with authority under Public Law 85-804 to provide for indemnification under certain circumstances for third-party claims against its contractors, including but not limited to State and local authorities and commercial entities.

Subtitle G--Other Provisions

SEC. 761. ESTABLISHMENT OF HUMAN RESOURCES MANAGEMENT SYSTEM.

    (a) AUTHORITY-

      (1) SENSE OF CONGRESS- It is the sense of the Congress that--

        (A) it is extremely important that employees 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 conducive to achieving optimal operational efficiencies;

        (C) the 21st century human resources management system envisioned for the Department should be one that benefits from the input of its employees; and

        (D) this collaborative effort will help secure 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.

‘Sec. 9701. Establishment of human resources management system

    ‘(a) IN GENERAL- Notwithstanding any other provision 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 established 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, including the principles of hiring based on merit, fair treatment without regard to political affiliation or other non-merit considerations, equal pay for equal work, and protection of employees against reprisal for whistleblowing;

        ‘(B) any provision of section 2302, relating to prohibited personnel practices;

        ‘(C)(i) any provision of law referred to in section 2302(b)(1); or

        ‘(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, bargain collectively, and participate through labor organizations 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 competitive 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))--

      ‘(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 application 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 with, and in a manner that ensures the direct participation of employee representatives in the planning, development, and implementation of any human resources management system or adjustments 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 representative representing any employees who might be affected, a written description of the proposed system or adjustment (including the reasons why it is considered necessary);

          ‘(ii) give each representative at least 60 days (unless extraordinary circumstances require earlier action) to review and make recommendations with respect to the proposal; and

          ‘(iii) give any recommendations received from any such representative under clause (ii) full and fair consideration in deciding whether or how to proceed with the proposal.

        ‘(B) PRE-IMPLEMENTATION REQUIREMENTS- If the Secretary and the Director decide to implement a proposal described in subparagraph (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 opportunity to make recommendations with respect to the proposal; and

          ‘(iii) give such recommendations full and fair consideration, including the providing of reasons to an employee representative if any of its recommendations are rejected.

        ‘(C) CONTINUING COLLABORATION- If a proposal described in subparagraph (A) is implemented, the Secretary and the Director shall--

          ‘(i) develop a method for each employee representative to participate in any 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 procedures shall include measures to ensure--

        ‘(A) in the case of employees within a unit with respect to which a labor organization is accorded exclusive recognition, representation by individuals designated or from among individuals 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 appropriate, consistent with the purposes of this subsection; and

        ‘(C) the selection of representatives in a manner consistent with the relative numbers of employees represented by the organizations or other representatives involved.

    ‘(f) PROVISIONS RELATING TO APPELLATE PROCEDURES-

      ‘(1) SENSE OF CONGRESS- It is the sense of the Congress that--

        ‘(A) employees of the Department of Homeland Security are entitled to fair treatment 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 Office of Personnel Management--

          ‘(i) should ensure that employees of the Department are afforded the protections of due process; and

          ‘(ii) toward that end, should be required 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

        ‘(B) shall ensure the availability of procedures 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 regulations 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:

9701’.

    (b) EFFECT ON PERSONNEL-

      (1) NON-SEPARATION OR NON-REDUCTION IN GRADE OR COMPENSATION OF FULL-TIME PERSONNEL AND PART-TIME PERSONNEL HOLDING PERMANENT POSITIONS- Except as otherwise provided in this Act, the transfer pursuant to this Act 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 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 authority 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-

      (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 coverage 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 primary 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 portion 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 determination under subsection (b)(1).

    (b) PROVISIONS RELATING TO BARGAINING UNITS-

      (1) LIMITATION RELATING TO APPROPRIATE UNITS- Each unit which is recognized as an appropriate unit for purposes of chapter 71 of title 5, United States Code, as of the day before the effective 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 investigative work directly related to terrorism investigation.

      (2) LIMITATION RELATING TO POSITIONS OR EMPLOYEES- No position or employee within a unit (or subdivision of a unit) as to which continued recognition 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--

        (A) materially changes; and

        (B) consists of intelligence, counterintelligence, or investigative work directly related to terrorism investigation.

      In the case of any positions within a unit (or subdivision) which are first established on or after the effective date of this Act and any employees first appointed 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 Department’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 Secretary may deem necessary. An advisory committee established under this section may be exempted by the Secretary from Public Law 92-463, but the Secretary shall publish notice in the Federal Register announcing the establishment of such a committee and identifying its purpose and membership. Notwithstanding the preceding sentence, members of an advisory committee that is exempted by the Secretary under the preceding sentence who are special Government employees (as that term is defined in section 202 of title 18, United States Code) shall be eligible for certifications under subsection (b)(3) of section 208 of title 18, United States Code, for official actions taken as a member of such advisory committee.

SEC. 764. REORGANIZATION; TRANSFER OF APPROPRIATIONS.

    (a) REORGANIZATION-

      (1) IN GENERAL- The Secretary may allocate or reallocate functions among the officers of the Department, and may establish, consolidate, alter, or discontinue organizational units within the Department, but only--

        (A) pursuant to section 802; or

        (B) after the expiration of 60 days after providing notice of such action to the appropriate congressional committees, which shall include an explanation of the rationale for the action.

      (2) LIMITATIONS- (A) Authority under paragraph (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, organizational unit, program, or function established or required to be maintained by statute.

    (b) TRANSFER OF APPROPRIATIONS-

      (1) IN GENERAL- Except as otherwise specifically provided by law, not to exceed two percent of any appropriation available to the Secretary in any fiscal year may be transferred between such appropriations, 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 authority 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.

    (b) GIFTS, DEVISES, AND BEQUESTS- With respect to the Department, the Secretary shall have the same authorities 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 otherwise provided in the delegation or by law, any function delegated under this Act may be redelegated to any subordinate.

SEC. 766. MILITARY ACTIVITIES.

    Nothing in this Act shall confer upon the Secretary any authority to engage in warfighting, the military defense of the United States, or other military activities, nor shall anything in this Act limit the existing authority of the Department of Defense or the Armed Forces to engage in warfighting, the military defense of the United States, or other military activities.

SEC. 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 Department pursuant to this Act, or that on such date of enactment is exercised by another official of the executive branch with respect to such agency, program, or function. Any such transferred authority may not be exercised by an official from whom it is transferred upon transfer of such agency, program, or function to the Secretary or another 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 extent that this Act transfers such authority from the agency.

    (b) PREEMPTION OF STATE OR LOCAL LAW- Except 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 the transfer to the Department of that Federal agency or official.

SEC. 768. PROVISIONS REGARDING TRANSFERS FROM DEPARTMENT OF ENERGY.

    (a) SEPARATE CONTRACTING- To the extent that programs or activities transferred by this Act from the Department of Energy to the Department of Homeland Security 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 Secretary of Energy shall ensure that contracts for such programs and activities between the Department of Homeland Security and such operator are separate from the contracts of the Department of Energy with such operator.

    (b) HOMELAND SECURITY CENTER- (1) Notwithstanding section 307, the Secretary, acting through the Under Secretary for Science and Technology, shall establish at a national security laboratory of the National Nuclear Security Administration, a center to serve as the primary 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 Secretary shall establish, in concurrence with the Secretary of Energy, such additional centers at one or more national 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 facilities and assets shall be designated and transferred by the Secretary of Energy with the concurrence of the Secretary.

    (c) REIMBURSEMENT OF COSTS- In the case of an activity carried out by the operator of a national laboratory 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 administrative charges or personnel costs of the Department of Energy 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 Energy.

    (d) LABORATORY DIRECTED RESEARCH AND DEVELOPMENT BY THE DEPARTMENT OF ENERGY- No funds authorized to be appropriated or otherwise made available to the Department in any fiscal year may be obligated or expended for laboratory directed research and development activities carried out by the Department of Energy unless such activities support the mission of the Department described in section 101.

    (e) DEPARTMENT OF ENERGY COORDINATION ON HOMELAND SECURITY RELATED RESEARCH- The Secretary of Energy shall ensure that any research, development, test, and evaluation activities conducted within the Department of Energy that are directly or indirectly related 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 coordinating policy and operations within the Department and between the Department and other Federal departments and agencies with respect to interdicting the entry of illegal drugs into the United States, and tracking and severing connections between illegal drug trafficking and terrorism. Such official shall--

      (1) ensure the adequacy of resources within the Department for illicit drug interdiction; and

      (2) serve as the United States Interdiction Coordinator 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 Affairs. 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 exchange with nations friendly to the United States in order to promote sharing of best practices and technologies relating to homeland security. Such information exchange shall include the following:

        (A) Joint research and development on countermeasures.

        (B) Joint training exercises of first responders.

        (C) Exchange of expertise on terrorism prevention, response, and crisis management.

      (2) To identify areas for homeland security information and training exchange where the United States has a demonstrated weakness and another friendly nation or nations have a demonstrated expertise.

      (3) To plan and undertake international conferences, 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 benefit 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 President of the Senate and the Speaker of the House of Representatives and the appropriate committees and subcommittees of the Congress, for ensuring, to the maximum extent practicable, the elimination of disparities in pay 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 Columbia (or the Mayor’s designee) for the purpose of integrating the District of Columbia into the planning, coordination, and execution of the activities of the Federal Government 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 Federal Law Enforcement Training Center, including any functions of the Secretary of the Treasury relating thereto.

SEC. 775. REQUIREMENT TO COMPLY WITH LAWS PROTECTING EQUAL EMPLOYMENT OPPORTUNITY 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 Federal Employee Antidiscrimination and Retaliation Act of 2002 (Pub. L. 107-174)); or

      (2) to provide whistleblower protections for employees of the Department (including pursuant to the provisions in section 2302(b)(8) of such title and the Notification and Federal Employee Antidiscrimination 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 entered 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.

    (b) CONTINUITY OF OPERATIONS- All activities of the Federal Law Enforcement Training Center transferred 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 departmental 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 development of the national strategy for combating terrorism and other homeland security activities.

SEC. 778. REPORTING REQUIREMENTS.

    (a) BIENNIAL REPORTS- Every 2 years the Secretary shall submit to Congress--

      (1) a report assessing the resources and requirements 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 respond to natural disasters, cyber attacks, and incidents involving weapons of mass destruction; and

      (3) a report assessing the emergency preparedness of each State, including an assessment of each State’s coordination with the Department with respect 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 submit to Congress a report--

      (1) assessing the progress of the Department in--

        (A) implementing this Act; and

        (B) ensuring the core functions of each entity transferred to the Department are maintained and strengthened; and

      (2) recommending any conforming changes in law necessary as a result of the enactment and implementation of this Act.

SEC. 779. JOINT INTERAGENCY TASK FORCE.

    (a) ESTABLISHMENT.- The Secretary may establish and operate a permanent Joint Interagency Homeland Security Task Force composed of representatives from military and civilian agencies of the United States Government 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 CONTINUED 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 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 President’s obligations under the Constitution to respond promptly in time of war, insurrection, or other serious 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 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 STABILIZATION ACT AMENDMENTS.

    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 and agents (including persons engaged in the business of providing 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 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 attack.

      (3) The Federal Government collects, creates, manages, and protects classified and sensitive but unclassified information 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 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 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.

      (12) Increased efforts to share homeland security information should avoid duplicating existing information systems.

    (b) 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. 792. 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 information 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 classified 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 appropriate 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 information to specified subgroups by geographic location, type of organization, position of a recipient within an organization, 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 personnel.

      (3) The procedures prescribed under paragraph (1) shall establish conditions on the use of information shared under paragraph (1)--

        (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 Federal 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 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 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 appropriate 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 otherwise 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 one 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 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 prescribed 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 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 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 personnel.

        (F) Employees of private-sector entities that affect critical infrastructure, cyber, economic, or public health security, as designated by the Federal government in procedures 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 violation of any other provision of law relating to the confidentiality 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 additional 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:

      (1) The Permanent Select Committee on Intelligence 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 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 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 before the semicolon 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 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 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 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, 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’;

          (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 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 derived therefrom, may disclose such contents or derivative 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 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 derived therefrom, may disclose such contents or derivative 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 unauthorized 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. 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 responsibility 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 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, 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 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.’.

    (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 Surveillance Act of 1978 (50 U.S.C. 1806) is amended by inserting 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 appoint 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 Surveillance Act of 1978 (50 U.S.C. 1825) is amended by inserting 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 appoint 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, organizational unit, program, or function.

      (2) The term ‘transition period’ means the 12-month period beginning on the effective date of this Act.

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 Department 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.

      (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 transferred in connection with transfers under the plan.

      (5) Specification of any proposed disposition of property, facilities, contracts, records, and other assets and obligations of agencies transferred under the plan.

      (6) Specification of the proposed allocations within the Department of the functions of the agencies 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 congressional 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 described in this section, including any modifications or revisions of the plan under subsection (d), shall become effective for an agency on the earlier of--

        (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 transmitted the reorganization plan to the appropriate 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 request in preparing for the transfer and integration of the agency into the Department.

    (b) SERVICES AND PERSONNEL- During the transition period, upon the request of the Secretary, the head of any executive agency may, on a reimbursable basis, provide services or detail personnel to assist with the transition.

    (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 Security, not to exceed two percent of the unobligated balance of any appropriation enacted prior to October 1, 2002, available to such agency; and

      (2) for purposes for which the funds were appropriated, not to exceed three percent of the unobligated 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 Representatives and the Senate before any such funds transfer is made.

    (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 President may designate any officer whose appointment was required to be made by and with such advice and consent and who was such an officer immediately before the effective date of this Act (and who continues in office) or immediately 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 respective 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.

    (e) TRANSFER OF PERSONNEL, ASSETS, OBLIGATIONS, 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 allocation, subject to the approval of the Director of the Office of Management and Budget and in accordance with the provisions of section 1531(a)(2) of title 31, United States Code; and

      (2) the Secretary shall have all functions relating 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 functions vested in the Secretary by this Act or other law.

    Paragraph (1) shall not apply to appropriations transferred 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, 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 Federal Aviation Administration for fiscal years preceding fiscal year 2003 for (A) operations, (B) facilities 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 accordance 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 ‘completed administrative action’ includes orders, determinations, rules, regulations, personnel actions, permits, agreements, grants, contracts, certificates, licenses, registrations, and privileges.

    (b) PENDING PROCEEDINGS- Subject to the authority of the Secretary under this Act--

      (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 enactment 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 extent that such discontinuance could have occurred if such enactment or transfer had not occurred; and

      (2) orders issued in such proceedings, and appeals 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 revoked 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 authority 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 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, Executive 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) Notwithstanding the generality of the foregoing (including subsections (a) and (d)), in and for the Department the Secretary may, in regulations prescribed jointly with the Director 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 conditions of employment, including compensation, of any employee 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 compensation 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 AUTHORIZED.

    Nothing in this Act shall be construed to authorize the development of a national identification system or card.

SEC. 815. CONTINUITY OF INSPECTOR GENERAL OVERSIGHT.

    Notwithstanding the transfer of an agency to the Department 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 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 becomes 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 transferred shall be deemed to refer to the Secretary, other official, or component of the Department to which such function 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--

      (1) in section 5312, by inserting ‘Secretary of Homeland Security.’ as a new item after ‘Affairs.’;

      (2) in section 5313, by inserting ‘Deputy Secretary of Homeland Security.’ as a new item after ‘Affairs.’;

      (3) in section 5314, by inserting ‘Under Secretaries, 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 Security.’, ‘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.

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, 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 striking ‘the General Counsel of the Department of Transportation’ and inserting ‘an official designated to serve as Judge Advocate General of the Coast Guard by the Secretary 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 striking ‘Department of Transportation’ and inserting ‘Department in which the Coast Guard is operating’.

    (5) Section 7045 of such title is amended--

      (A) in subsections (a)(1) and (b), by striking ‘Secretaries of the Army, Air Force, and Transportation’ both places it appears and inserting ‘Secretary 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’.

    (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 Transportation’ 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 consultation 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 Transportation’ 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 Transportation’ 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 appears and inserting ‘of Homeland Security’.

    (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 Secondary 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 Secondary 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 Transportation’ 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 paragraph 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 places it appears and inserting ‘of Homeland Security’;

      (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 military department, and the Secretary of Homeland Security 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 appears 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 relating 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 Department.

SEC. 905. STRATEGIC NATIONAL STOCKPILE AND SMALLPOX VACCINE DEVELOPMENT.

    (a) IN GENERAL- Section 121 of the Public Health Security and Bioterrorism Preparedness and Response 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 coordination with’ and ‘the Secretary of Veterans Affairs’; and

        (C) by inserting ‘of Health and Human Services’ after ‘as are determined by the Secretary’; 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 ENFORCEMENT 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.

    (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 Security (in this Act referred to as the ‘Secretary’) shall protect the buildings, grounds, and property that are owned, occupied, or secured by the Federal Government (including 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 designate employees of the Department of Homeland Security, including employees transferred to the Department from the Office of the Federal Protective Service of the General Services Administration pursuant to the Homeland Security Act of 2002, as officers and agents for duty in connection with the protection of property owned or occupied by the Federal Government and persons on the property, including duty in areas outside the property to the extent necessary to protect the property and persons on the property.

      ‘(2) POWERS- While engaged in the performance 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 committed 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 reasonable grounds to believe that the person to be arrested 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 occupied by the Federal Government or persons on the property.

        ‘(F) carry out such other activities for the promotion of homeland security as the Secretary may prescribe.

    ‘(c) REGULATIONS-

      ‘(1) IN GENERAL- The Secretary, in consultation 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 property. The regulations may include reasonable penalties, 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 regulation 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 protection of the property and persons on the property.

      ‘(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 Secretary 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.

    ‘(f) SECRETARY AND ATTORNEY GENERAL APPROVAL- The powers granted to officers and agents designated under this section shall be exercised in accordance with guidelines approved by the Secretary and the Attorney General.

    ‘(g) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in this section shall be construed to--

      ‘(1) preclude or limit the authority of any Federal law enforcement agency; or

      ‘(2) restrict the authority of the Administrator of General Services to promulgate regulations affecting 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 ‘ratified 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 safety’ and ‘or the Secretary of Homeland Security’ after ‘Secretary of Transportation’; and

      (2) in section 20105--

        (A) by inserting ‘or the Secretary of Homeland Security’ after ‘Secretary of Transportation’ 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 appropriate,’ after ‘to the Secretary’ in subsection (a), and after ‘Secretary’ in subsection (b)(1)(A)(iii) and (B)(iv), the first place it appears 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 appropriate’ 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 ‘Secretary’s’ with ‘Secretary of Transportation’s’ and adding before the period at the end ‘or the 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, Organization, 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 PROGRAM.

    Section 7902(b) of title 10, United States Code, is amended by adding at the end the following new paragraphs:

      ‘(13) The Under Secretary for Science and Technology of the Department of Homeland Security.

      ‘(14) Other Federal officials the Council considers appropriate.’.

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), respectively; 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 enacted 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 appointed’ 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 ‘subparagraph (B)’ and inserting ‘subparagraphs (B) and (C)’; and

        (B) by adding at the end the following:

    ‘(C) The Chief Information Officer of the Department 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 inserting ‘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 ‘Council’).

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.

      (5) The Secretary of Health and Human Services.

      (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 designated 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 homeland security and to make resulting recommendations to the President;

      (2) oversee and review homeland security policies of the Federal Government and to make resulting recommendations to the President; and

      (3) perform such other functions as the President may direct.

SEC. 1005. HOMELAND SECURITY BUDGET.

    The Director of the Office of Management and Budget shall prepare for the President a Federal homeland security 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 COUNCIL.

    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-

      (1) IN GENERAL- Subchapter II of chapter 35 of title 44, United States Code, is amended to read as follows:

‘SUBCHAPTER II--INFORMATION SECURITY

‘Sec. 3531. Purposes

    ‘The purposes of this subchapter are to--

      ‘(1) provide a comprehensive framework for ensuring the effectiveness of information security controls over information resources that support Federal operations and assets;

      ‘(2) recognize the highly networked nature of the current Federal computing environment and provide effective governmentwide management and oversight of the related information security risks, including 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 information and information systems;

      ‘(4) provide a mechanism for improved oversight of Federal agency information security programs;

      ‘(5) acknowledge that commercially developed information security products offer advanced, dynamic, robust, and effective information security solutions, 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 security solutions should be left to individual agencies from among commercially developed products.’.

‘Sec. 3532. Definitions

    ‘(a) IN GENERAL- Except as provided under subsection (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 protecting 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 destruction, and includes ensuring information nonrepudiation and authenticity;

        ‘(B) confidentiality, which means preserving authorized restrictions on access and disclosure, including means for protecting personal privacy and proprietary information;

        ‘(C) availability, which means ensuring timely and reliable access to and use of information; 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 telecommunications 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 military forces;

        ‘(D) involves equipment that is an integral part of a weapon or weapons system; or

        ‘(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, logistics, 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 acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information, and includes--

        ‘(A) computers and computer networks;

        ‘(B) ancillary equipment;

        ‘(C) software, firmware, and related procedures;

        ‘(D) services, including support services; and

        ‘(E) related resources.’.

‘Sec. 3533. Authority and functions of the Director

    ‘(a) The Director shall oversee agency information security policies and practices, by--

      ‘(1) promulgating information security standards 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 commensurate with the risk and magnitude of the harm resulting 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 Institute of Standards and Technology Act (15 U.S.C. 278g-3) with agencies and offices operating or exercising control of national security systems (including the National Security Agency) to assure, to the maximum extent feasible, that such standards and guidelines are complementary with standards and guidelines developed for national security systems;

      ‘(5) overseeing agency compliance with the requirements 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 programs 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 requirements of this subchapter, including--

        ‘(A) a summary of the findings of evaluations required by section 3535;

        ‘(B) significant deficiencies in agency information security practices;

        ‘(C) planned remedial action to address such deficiencies; and

        ‘(D) a summary of, and the views of the Director on, the report prepared by the National 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 paragraphs (4) and (7) of subsection (a), the authorities of the Director under this section shall not apply to national security systems.

‘Sec. 3534. Federal agency responsibilities

    ‘(a) The head of each agency shall--

      ‘(1) be responsible for--

        ‘(A) providing information security protections commensurate with the risk and magnitude of the harm resulting from unauthorized access, use, disclosure, disruption, modification, or destruction of--

          ‘(i) information collected or maintained by or on behalf of the agency; and

          ‘(ii) information systems used or operated by an agency or by a contractor of an agency or other organization on behalf of an agency;

        ‘(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 systems 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 processes;

      ‘(2) ensure that senior agency officials provide information security for the information and information systems that support the operations and assets under their control, including through--

        ‘(A) assessing the risk and magnitude of the harm that could result from the unauthorized access, use, disclosure, disruption, modification, or destruction of such information or information systems;

        ‘(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 information security controls and techniques to ensure that they are effectively implemented;

      ‘(3) delegate to the agency Chief Information Officer established under section 3506 (or comparable official in an agency not covered by such section) the authority to ensure compliance with the requirements imposed on the agency under this subchapter, including--

        ‘(A) designating a senior agency information security officer who shall--

          ‘(i) carry out the Chief Information Officer’s responsibilities under this section;

          ‘(ii) possess professional qualifications, including training and experience, required to administer the functions described 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 agencywide information security program as required by subsection (b);

        ‘(C) developing and maintaining information security policies, procedures, and control techniques to address all applicable requirements, 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 concerning their responsibilities under subparagraph (2);

      ‘(4) ensure that the agency has trained personnel sufficient to assist the agency in complying 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 officials, reports annually to the agency head on the effectiveness of the agency information security program, including progress of remedial actions.

    ‘(b) Each agency shall develop, document, and implement an agencywide information security program, approved by the Director under section 3533(a)(5), to provide information security for the information and information 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 magnitude of the harm that could result from the unauthorized access, use, disclosure, disruption, modification, 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 required by subparagraph (1);

        ‘(B) cost-effectively reduce information security risks to an acceptable level;

        ‘(C) ensure that information security is addressed throughout the life cycle of each agency information system; and

        ‘(D) ensure compliance with--

          ‘(i) the requirements of this subchapter;

          ‘(ii) policies and procedures as may be prescribed by the Director, and information security standards promulgated under section 5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1441);

          ‘(iii) minimally acceptable system configuration requirements, as determined by the agency; and

          ‘(iv) any other applicable requirements, including standards and guidelines for national security systems issued in accordance with law and as directed by the President;

      ‘(3) subordinate plans for providing adequate information security for networks, facilities, and systems or groups of information systems, as appropriate;

      ‘(4) security awareness training to inform personnel, including contractors and other users of information systems that support the operations and assets of the agency, of--

        ‘(A) information security risks associated with their activities; and

        ‘(B) their responsibilities in complying with agency policies and procedures designed to reduce these risks;

      ‘(5) periodic testing and evaluation of the effectiveness of information security policies, procedures, and practices, to be performed with a frequency depending on risk, but no less than annually, of which such testing--

        ‘(A) shall include testing of management, operational, and technical controls of every information system identified in the inventory required under section 3505(c); and

        ‘(B) may include testing relied on in a evaluation under section 3535;

      ‘(6) a process for planning, implementing, evaluating, and documenting remedial action to address any deficiencies in the information security policies, procedures, and practices of the agency;

      ‘(7) procedures for detecting, reporting, and responding to security incidents, including--

        ‘(A) mitigating risks associated with such incidents before substantial damage is done; and

        ‘(B) notifying and consulting with, as appropriate--

          ‘(i) law enforcement agencies and relevant Offices of Inspector General;

          ‘(ii) an office designated by the President for any incident involving a national security system; and

          ‘(iii) any other agency or office, in accordance with law or as directed by the President; and

      ‘(8) plans and procedures to ensure continuity of operations for information systems that support the operations and assets of the agency.

    ‘(c) Each agency shall--

      ‘(1) report annually to the Director, the Committees on Government Reform and Science of the House of Representatives, the Committees on Governmental Affairs and Commerce, Science, and Transportation of the Senate, the appropriate authorization and appropriations committees of Congress, and the Comptroller General on the adequacy and effectiveness of information security policies, procedures, and practices, and compliance with the requirements of this subchapter, including compliance with each requirement of subsection (b);

      ‘(2) address the adequacy and effectiveness of information security policies, procedures, and practices in plans and reports relating to--

        ‘(A) annual agency budgets;

        ‘(B) information resources management under subchapter 1 of this chapter;

        ‘(C) information technology management under the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.);

        ‘(D) program performance under sections 1105 and 1115 through 1119 of title 31, and sections 2801 and 2805 of title 39;

        ‘(E) financial management under chapter 9 of title 31, and the Chief Financial Officers Act of 1990 (31 U.S.C. 501 note; Public Law 101-576) (and the amendments made by that Act);

        ‘(F) financial management systems under the Federal Financial Management Improvement Act (31 U.S.C. 3512 note); and

        ‘(G) internal accounting and administrative controls under section 3512 of title 31, United States Code, (known as the ‘Federal Managers Financial Integrity Act’); and

      ‘(3) report any significant deficiency in a policy, procedure, or practice identified under paragraph (1) or (2)--

        ‘(A) as a material weakness in reporting under section 3512 of title 31, United States Code; and

        ‘(B) if relating to financial management systems, as an instance of a lack of substantial compliance under the Federal Financial Management Improvement Act (31 U.S.C. 3512 note).

    ‘(d)(1) In addition to the requirements of subsection (c), each agency, in consultation with the Director, shall include as part of the performance plan required under section 1115 of title 31 a description of--

      ‘(A) the time periods, and

      ‘(B) the resources, including budget, staffing, and training,

    that are necessary to implement the program required under subsection (b).

    ‘(2) The description under paragraph (1) shall be based on the risk assessments required under subsection (b)(2)(1).

    ‘(e) Each agency shall provide the public with timely notice and opportunities for comment on proposed information security policies and procedures to the extent that such policies and procedures affect communication with the public.

‘Sec. 3535. Annual independent evaluation

    ‘(a)(1) Each year each agency shall have performed an independent evaluation of the information security program and practices of that agency to determine the effectiveness of such program and practices.

    ‘(2) Each evaluation by an agency under this section shall include--

      ‘(A) testing of the effectiveness of information security policies, procedures, and practices of a representative subset of the agency’s information systems;

      ‘(B) an assessment (made on the basis of the results of the testing) of compliance with--

        ‘(i) the requirements of this subchapter; and

        ‘(ii) related information security policies, procedures, standards, and guidelines; and

      ‘(C) separate presentations, as appropriate, regarding information security relating to national security systems.

    ‘(b) Subject to subsection (c)--

      ‘(1) for each agency with an Inspector General appointed under the Inspector General Act of 1978, the annual evaluation required by this section shall be performed by the Inspector General or by an independent external auditor, as determined by the Inspector General of the agency; and

      ‘(2) for each agency to which paragraph (1) does not apply, the head of the agency shall engage an independent external auditor to perform the evaluation.

    ‘(c) For each agency operating or exercising control of a national security system, that portion of the evaluation required by this section directly relating to a national security system shall be performed--

      ‘(1) only by an entity designated by the agency head; and

      ‘(2) in such a manner as to ensure appropriate protection for information associated with any information security vulnerability in such system commensurate with the risk and in accordance with all applicable laws.

    ‘(d) The evaluation required by this section--

      ‘(1) shall be performed in accordance with generally accepted government auditing standards; and

      ‘(2) may be based in whole or in part on an audit, evaluation, or report relating to programs or practices of the applicable agency.

    ‘(e) Each year, not later than such date established by the Director, the head of each agency shall submit to the Director the results of the evaluation required under this section.

    ‘(f) Agencies and evaluators shall take appropriate steps to ensure the protection of information which, if disclosed, may adversely affect information security. Such protections shall be commensurate with the risk and comply with all applicable laws and regulations.

    ‘(g)(1) The Director shall summarize the results of the evaluations conducted under this section in the report to Congress required under section 3533(a)(8).

    ‘(2) The Director’s report to Congress under this subsection shall summarize information regarding information security relating to national security systems in such a manner as to ensure appropriate protection for information associated with any information security vulnerability in such system commensurate with the risk and in accordance with all applicable laws.

    ‘(3) Evaluations and any other descriptions of information systems under the authority and control of the Director of Central Intelligence or of National Foreign Intelligence Programs systems under the authority and control of the Secretary of Defense shall be made available to Congress only through the appropriate oversight committees of Congress, in accordance with applicable laws.

    ‘(h) The Comptroller General shall periodically evaluate and report to Congress on--

      ‘(1) the adequacy and effectiveness of agency information security policies and practices; and

      ‘(2) implementation of the requirements of this subchapter.

‘Sec. 3536. National security systems

    ‘The head of each agency operating or exercising control of a national security system shall be responsible for ensuring that the agency--

      ‘(1) provides information security protections commensurate with the risk and magnitude of the harm resulting from the unauthorized access, use, disclosure, disruption, modification, or destruction of the information contained in such system;

      ‘(2) implements information security policies and practices as required by standards and guidelines for national security systems, issued in accordance with law and as directed by the President; and

      ‘(3) complies with the requirements of this subchapter.

‘Sec. 3537. Authorization of appropriations

    ‘There are authorized to be appropriated to carry out the provisions of this subchapter such sums as may be necessary for each of fiscal years 2003 through 2007.

‘Sec. 3538. Effect on existing law

    ‘Nothing in this subchapter, section 5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1441), or section 20 of the National Standards and Technology Act (15 U.S.C. 278g-3) may be construed as affecting the authority of the President, the Office of Management and Budget or the Director thereof, the National Institute of Standards and Technology, or the head of any agency, with respect to the authorized use or disclosure of information, including with regard to the protection of personal privacy under section 552a of title 5, the disclosure of information under section 552 of title 5, the management and disposition of records under chapters 29, 31, or 33 of title 44, the management of information resources under subchapter I of chapter 35 of this title, or the disclosure of information to the Congress or the Comptroller General of the United States.’.

      (2) CLERICAL AMENDMENT- The items in the table of sections at the beginning of such chapter 35 under the heading ‘SUBCHAPTER II’ are amended to read as follows:

      ‘3531. Purposes.

      ‘3532. Definitions.

      ‘3533. Authority and functions of the Director.

      ‘3534. Federal agency responsibilities.

      ‘3535. Annual independent evaluation.

      ‘3536. National security systems.

      ‘3537. Authorization of appropriations.

      ‘3538. Effect on existing law.’.

    (c) INFORMATION SECURITY RESPONSIBILITIES OF CERTAIN AGENCIES-

      (1) NATIONAL SECURITY RESPONSIBILITIES- (A) Nothing in this Act (including any amendment made by this Act) shall supersede any authority of the Secretary of Defense, the Director of Central Intelligence, or other agency head, as authorized by law and as directed by the President, with regard to the operation, control, or management of national security systems, as defined by section 3532(3) of title 44, United States Code.

      (B) Section 2224 of title 10, United States Code, is amended--

        (i) in subsection 2224(b), by striking ‘(b) OBJECTIVES AND MINIMUM REQUIREMENTS- (1)’ and inserting ‘(b) OBJECTIVES OF THE PROGRAM- ’;

        (ii) in subsection 2224(b), by striking ‘(2) the program shall at a minimum meet the requirements of section 3534 and 3535 of title 44, United States Code.’; and

        (iii) in subsection 2224(c), by inserting ‘, including through compliance with subtitle II of chapter 35 of title 44’ after ‘infrastructure’.

      (2) ATOMIC ENERGY ACT OF 1954- Nothing in this Act shall supersede any requirement made by or under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). Restricted Data or Formerly Restricted Data shall be handled, protected, classified, downgraded, and declassified in conformity with the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

SEC. 1102. MANAGEMENT OF INFORMATION TECHNOLOGY.

    Section 5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1441) is amended to read as follows:

‘SEC. 5131. RESPONSIBILITIES FOR FEDERAL INFORMATION SYSTEMS STANDARDS.

    ‘(a)(1)(A) Except as provided under paragraph (2), the Director of the Office of Management and Budget shall, on the basis of proposed standards developed by the National Institute of Standards and Technology pursuant to paragraphs (2) and (3) of section 20(a) of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3(a)) and in consultation with the Secretary of Homeland Security, promulgate information security standards pertaining to Federal information systems.

    ‘(B) Standards promulgated under subparagraph (A) shall include--

      ‘(i) standards that provide minimum information security requirements as determined under section 20(b) of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3(b)); and

      ‘(ii) such standards that are otherwise necessary to improve the efficiency of operation or security of Federal information systems.

    ‘(C) Information security standards described under subparagraph (B) shall be compulsory and binding.

    ‘(2) Standards and guidelines for national security systems, as defined under section 3532(3) of title 44, United States Code, shall be developed, promulgated, enforced, and overseen as otherwise authorized by law and as directed by the President.

    ‘(b) The head of an agency may employ standards for the cost-effective information security for all operations and assets within or under the supervision of that agency that are more stringent than the standards promulgated by the Director under this section, if such standards--

      ‘(1) contain, at a minimum, the provisions of those applicable standards made compulsory and binding by the Director; and

      ‘(2) are otherwise consistent with policies and guidelines issued under section 3533 of title 44, United States Code.

    ‘(c)(1) The decision regarding the promulgation of any standard by the Director under subsection (a) shall occur not later than 6 months after the submission of the proposed standard to the Director by the National Institute of Standards and Technology, as provided under section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3).

    ‘(2) A decision by the Director to significantly modify, or not promulgate, a proposed standard submitted to the Director by the National Institute of Standards and Technology, as provided under section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3), shall be made after the public is given an opportunity to comment on the Director’s proposed decision.’.

    ‘(d) In this section, the term ‘information security’ has the meaning given that term in section 3532(b)(1) of title 44, United States Code.’.

SEC. 1103. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.

    Section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3), is amended by striking the text and inserting the following:

    ‘(a) The Institute shall--

      ‘(1) have the mission of developing standards, guidelines, and associated methods and techniques for information systems;

      ‘(2) develop standards and guidelines, including minimum requirements, for information systems used or operated by an agency or by a contractor of an agency or other organization on behalf of an agency, other than national security systems (as defined in section 3532(b)(2) of title 44, United States Code);

      ‘(3) develop standards and guidelines, including minimum requirements, for providing adequate information security for all agency operations and assets, but such standards and guidelines shall not apply to national security systems; and

      ‘(4) carry out the responsibilities described in paragraph (3) through the Computer Security Division.

    ‘(b) The standards and guidelines required by subsection (a) shall include, at a minimum--

      ‘(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 agency based on the objectives of providing appropriate levels of information security according to a range of risk levels;

      ‘(B) guidelines recommending the types of information and information systems to be included in each such category; and

      ‘(C) minimum information security requirements for information and information systems in each such category;

      ‘(2) a definition of and guidelines concerning detection and handling of information security incidents; and

      ‘(3) guidelines developed in coordination with the National Security Agency for identifying an information system as a national security system consistent with applicable requirements for national security 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 (including, but not limited to, the Director of the Office of Management and Budget, the Departments of Defense and Energy, the National Security Agency, the General Accounting Office, and the Secretary of Homeland Security) to assure--

        ‘(A) use of appropriate information security policies, procedures, and techniques, in order to improve information security and avoid unnecessary and costly duplication of effort; and

        ‘(B) that such standards and guidelines are complementary with standards and guidelines employed for the protection of national security systems and information contained in such systems;

      ‘(2) provide the public with an opportunity to comment on proposed standards and guidelines;

      ‘(3) submit to the Director of the Office of Management and Budget for promulgation under section 5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1441)--

        ‘(A) standards, as required under subsection (b)(1)(A), no later than 12 months after the date of the enactment of this section; and

        ‘(B) minimum information security requirements for each category, as required under subsection (b)(1)(C), no later than 36 months after the date of the enactment of this section;

      ‘(4) issue guidelines as required under subsection (b)(1)(B), no later than 18 months after the date of the enactment of this Act;

      ‘(5) ensure that such standards and guidelines do not require specific technological solutions or products, including any specific hardware or software security solutions;

      ‘(6) ensure that such standards and guidelines provide for sufficient flexibility to permit alternative solutions to provide equivalent levels of protection for identified information security risks; and

      ‘(7) use flexible, performance-based standards and guidelines that, to the greatest extent possible, permit the use of off-the-shelf commercially developed information security products.

    ‘(d) The Institute shall--

      ‘(1) submit standards developed pursuant to subsection (a), along with recommendations as to the extent to which these should be made compulsory and binding, to the Director of the Office of Management and Budget for promulgation under section 5131 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1441);

      ‘(2) provide assistance to agencies regarding--

        ‘(A) compliance with the standards and guidelines developed under subsection (a);

        ‘(B) detecting and handling information security incidents; and

        ‘(C) information security policies, procedures, and practices;

      ‘(3) conduct research, as needed, to determine the nature and extent of information security vulnerabilities and techniques for providing cost-effective information security;

      ‘(4) develop and periodically revise performance indicators and measures for agency information security policies and practices;

      ‘(5) evaluate private sector information security policies and practices and commercially available information technologies to assess potential application by agencies to strengthen information security;

      ‘(6) evaluate security policies and practices developed for national security systems to assess potential application by agencies to strengthen information security;

      ‘(7) periodically assess the effectiveness of standards and guidelines developed under this section and undertake revisions as appropriate;

      ‘(8) solicit and consider the recommendations of the Information Security and Privacy Advisory Board, established by section 21, regarding standards and guidelines developed under subsection (a) and submit such recommendations to the Director of the Office of Management and Budget with such standards submitted to the Director; and

      ‘(9) prepare an annual public report on activities undertaken in the previous year, and planned for the coming year, to carry out responsibilities under this section.

    ‘(e) As used in this section--

      ‘(1) the term ‘agency’ has the same meaning as provided in section 3502(1) of title 44, United States Code;

      ‘(2) the term ‘information security’ has the same meaning as provided in section 3532(1) of such title;

      ‘(3) the term ‘information system’ has the same meaning as provided in section 3502(8) of such title;

      ‘(4) the term ‘information technology’ has the same meaning as provided in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401); and

      ‘(5) the term ‘national security system’ has the same meaning as provided in section 3532(b)(2) of such title.’.

SEC. 1104. INFORMATION SECURITY AND PRIVACY ADVISORY BOARD.

    Section 21 of the National Institute of Standards and Technology Act (15 U.S.C. 278g-4), is amended--

      (1) in subsection (a), by striking ‘Computer System Security and Privacy Advisory Board’ and inserting ‘Information Security and Privacy Advisory Board’;

      (2) in subsection (a)(1), by striking ‘computer or telecommunications’ and inserting ‘information technology’;

      (3) in subsection (a)(2)--

        (A) by striking ‘computer or telecommunications technology’ and inserting ‘information technology’; and

        (B) by striking ‘computer or telecommunications equipment’ and inserting ‘information technology’;

      (4) in subsection (a)(3)--

        (A) by striking ‘computer systems’ and inserting ‘information system’; and

        (B) by striking ‘computer systems security’ and inserting ‘information security’;

      (5) in subsection (b)(1) by striking ‘computer systems security’ and inserting ‘information security’;

      (6) in subsection (b) by striking paragraph (2) and inserting the following:

      ‘(2) to advise the Institute and the Director of the Office of Management and Budget on information security and privacy issues pertaining to Federal Government information systems, including through review of proposed standards and guidelines developed under section 20; and’;

      (7) in subsection (b)(3) by inserting ‘annually’ after ‘report’;

      (8) by inserting after subsection (e) the following new subsection:

    ‘(f) The Board shall hold meetings at such locations and at such time and place as determined by a majority of the Board.’;

      (9) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; and

      (10) by striking subsection (h), as redesignated by paragraph (9), and inserting the following:

    ‘(h) As used in this section, the terms ‘information system’ and ‘information technology’ have the meanings given in section 20.’.

SEC. 1105. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) COMPUTER SECURITY ACT- Sections 5 and 6 of the Computer Security Act of 1987 (40 U.S.C. 1441 note) are repealed.

    (b) FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001- The Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) is amended by striking subtitle G of title X.

    (c) PAPERWORK REDUCTION ACT- (1) Section 3504(g) of title 44, United States Code, is amended--

      (A) by adding ‘and’ at the end of paragraph (1);

      (B) in paragraph (2)--

        (i) by striking ‘sections 5 and 6 of the Computer Security Act of 1987 (40 U.S.C. 759 note)’ and inserting ‘subchapter II of this title’; and

        (ii) by striking the semicolon and inserting a period; and

      (C) by striking paragraph (3).

    (2) Section 3505 of such title is amended by adding at the end--

    ‘(c)(1) The head of each agency shall develop and maintain an inventory of the information systems (including national security systems) operated by or under the control of such agency;

    ‘(2) The identification of information systems in an inventory under this subsection shall include an identification of the interfaces between each such system and all other systems or networks, including those not operated by or under the control of the agency;

    ‘(3) Such inventory shall be--

      ‘(A) updated at least annually;

      ‘(B) made available to the Comptroller General; and

      ‘(C) used to support information resources management, including--

        ‘(i) preparation and maintenance of the inventory of information resources under section 3506(b)(4);

        ‘(ii) information technology planning, budgeting, acquisition, and management under section 3506(h), the Clinger-Cohen Act of 1996, and related laws and guidance;

        ‘(iii) monitoring, testing, and evaluation of information security controls under subchapter II;

        ‘(iv) preparation of the index of major information systems required under section 552(g) of title 5, United States Code; and

        ‘(v) preparation of information system inventories required for records management under chapters 21, 29, 31, and 33.

    ‘(4) The Director shall issue guidance for and oversee the implementation of the requirements of this subsection.’.

    (3) Section 3506(g) of such title is amended--

      (A) by adding ‘and’ at the end of paragraph (1);

      (B) in paragraph (2)--

        (i) by striking ‘the Computer Security Act of 1987 (40 U.S.C. 759 note)’ and inserting ‘subchapter II of this title’; and

        (ii) by striking the semicolon and inserting a period; and

      (C) by striking paragraph (3).

SEC. 1106. CONSTRUCTION.

    Nothing in this Act, or the amendments made by this Act, affects the authority of the National Institute of Standards and Technology or the Department of Commerce relating to the development and promulgation of standards or guidelines under paragraphs (1) and (2) of section 20(a) of the National Institute of Standards and Technology Act (15 U.S.C. 278g-3(a)).

Passed the House of Representatives July 26, 2002.

Attest:

Clerk.

107th CONGRESS

2d Session

H. R. 5005

AN ACT

To establish the Department of Homeland Security, and for other purposes.