Chapter 4

otherwise.

SEC. 844. HOMELAND SECURITY ROTATION PROGRAM.

(a) Establishment.-- (1) In general.--Not later than 180 days after the date of enactment of this section, the Secretary shall establish the Homeland Security Rotation Program (in this section referred to as the ``Rotation Program'') for employees of the Department. The Rotation Program shall use applicable best practices, including those from the Chief Human Capital Officers Council. (2) Goals.--The Rotation Program established by the Secretary shall-- (A) be established in accordance with the Human Capital Strategic Plan of the Department; (B) provide middle and senior level employees in the Department the opportunity to broaden their knowledge through exposure to other components of the Department; (C) expand the knowledge base of the Department by providing for rotational assignments of employees to other components; (D) build professional relationships and contacts among the employees in the Department; (E) invigorate the workforce with exciting and professionally rewarding opportunities; (F) incorporate Department human capital strategic plans and activities, and address critical human capital deficiencies, recruitment and retention efforts, and succession planning within the Federal workforce of the Department; and (G) complement and incorporate (but not replace) rotational programs within the Department in effect on the date of enactment of this section. (3) Administration.-- (A) In general.--The Chief Human Capital Officer shall administer the Rotation Program. (B) Responsibilities.--The Chief Human Capital Officer shall-- (i) provide oversight of the establishment and implementation of the Rotation Program; (ii) establish a framework that supports the goals of the Rotation Program and promotes cross-disciplinary rotational opportunities; (iii) establish eligibility for employees to participate in the Rotation Program and select participants from employees who apply; (iv) establish incentives for employees to participate in the Rotation Program, including promotions and employment preferences; (v) ensure that the Rotation Program provides professional education and training; (vi) ensure that the Rotation Program develops qualified employees and future leaders with broad-based experience throughout the Department; (vii) provide for greater interaction among employees in components of the Department; and (viii) coordinate with rotational programs within the Department in effect on the date of enactment of this section. (4) Allowances, privileges, and benefits.--All allowances, privileges, rights, seniority, and other benefits of employees participating in the Rotation Program shall be preserved. (5) Reporting.--Not later than 180 days after the date of the establishment of the Rotation Program, the Secretary shall submit a report on the status of the Rotation Program, including a description of the Rotation Program, the number of employees participating, and how the Rotation Program is used in succession planning and leadership development to the appropriate committees of Congress.

SEC. 845. HOMELAND SECURITY EDUCATION PROGRAM.

(a) Establishment.--The Secretary, acting through the Administrator, shall establish a graduate-level Homeland Security Education Program in the National Capital Region to provide educational opportunities to senior Federal officials and selected State and local officials with homeland security and emergency management responsibilities. The Administrator shall appoint an individual to administer the activities under this section. (b) Leveraging of Existing Resources.--To maximize efficiency and effectiveness in carrying out the Program, the Administrator shall use existing Department-reviewed Master's Degree curricula in homeland security, including curricula pending accreditation, together with associated learning materials, quality assessment tools, digital libraries, exercise systems and other educational facilities, including the National Domestic Preparedness Consortium, the National Fire Academy, and the Emergency Management Institute. The Administrator may develop additional educational programs, as appropriate. (c) Student Enrollment.-- (1) Sources.--The student body of the Program shall include officials from Federal, State, local, and tribal governments, and from other sources designated by the Administrator. (2) Enrollment priorities and selection criteria.-- The Administrator shall establish policies governing student enrollment priorities and selection criteria that are consistent with the mission of the Program. (3) Diversity.--The Administrator shall take reasonable steps to ensure that the student body represents racial, gender, and ethnic diversity. (d) Service Commitment.-- (1) In general.--Before any employee selected for the Program may be assigned to participate in the program, the employee shall agree in writing-- (A) to continue in the service of the agency sponsoring the employee during the 2- year period beginning on the date on which the employee completes the program, unless the employee is involuntarily separated from the service of that agency for reasons other than a reduction in force; and (B) to pay to the Government the amount of the additional expenses incurred by the Government in connection with the employee's education if the employee is voluntarily separated from the service to the agency before the end of the period described in subparagraph (A). (2) Payment of expenses.-- (A) Exemption.--An employee who leaves the service of the sponsoring agency to enter into the service of another agency in any branch of the Government shall not be required to make a payment under paragraph (1)(B), unless the head of the agency that sponsored the education of the employee notifies that employee before the date on which the employee enters the service of the other agency that payment is required under that paragraph. (B) Amount of payment.--If an employee is required to make a payment under paragraph (1)(B), the agency that sponsored the education of the employee shall determine the amount of the payment, except that such amount may not exceed the pro rata share of the expenses incurred for the time remaining in the 2-year period. (3) Recovery of payment.--If an employee who is required to make a payment under this subsection does not make the payment, a sum equal to the amount of the expenses incurred by the Government for the education of that employee is recoverable by the Government from the employee or his estate by-- (A) setoff against accrued pay, compensation, amount of retirement credit, or other amount due the employee from the Government; or (B) such other method as is provided by lay for the recovery of amounts owing to the Government.

Subtitle F--Federal Emergency Procurement Flexibility

SEC. 851. [6 U.S.C. 421] DEFINITION.

In this subtitle, the term ``executive agency'' has the meaning given that term under section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).

SEC. 852. [6 U.S.C. 422] PROCUREMENTS FOR DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

The authorities provided in this subtitle apply to any procurement of property or services by or for an executive agency that, as determined by the head of the executive agency, are to be used to facilitate defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack, but only if a solicitation of offers for the procurement is issued during the 1-year period beginning on the date of the enactment of this Act.

SEC. 853. [6 U.S.C. 423] INCREASED SIMPLIFIED ACQUISITION THRESHOLD FOR PROCUREMENTS IN SUPPORT OF HUMANITARIAN OR PEACEKEEPING OPERATIONS OR CONTINGENCY OPERATIONS.

(a) Temporary Threshold Amounts.--For a procurement referred to in section 852 that is carried out in support of a humanitarian or peacekeeping operation or a contingency operation, the simplified acquisition threshold definitions shall be applied as if the amount determined under the exception provided for such an operation in those definitions were-- (1) in the case of a contract to be awarded and performed, or purchase to be made, inside the United States, $200,000; or (2) in the case of a contract to be awarded and performed, or purchase to be made, outside the United States, $300,000. (b) Simplified Acquisition Threshold Definitions.--In this section, the term ``simplified acquisition threshold definitions'' means the following: (1) Section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)). (2) Section 309(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 259(d)). (3) Section 2302(7) of title 10, United States Code. (c) Small Business Reserve.--For a procurement carried out pursuant to subsection (a), section 15(j) of the Small Business Act (15 U.S.C. 644(j)) shall be applied as if the maximum anticipated value identified therein is equal to the amounts referred to in subsection (a).

SEC. 854. [6 U.S.C. 424] INCREASED MICRO-PURCHASE THRESHOLD FOR CERTAIN PROCUREMENTS.

In the administration of section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428) with respect to a procurement referred to in section 852, the amount specified in subsections (c), (d), and (f) of such section 32 shall be deemed to be $7,500.

SEC. 855. [6 U.S.C. 425] APPLICATION OF CERTAIN COMMERCIAL ITEMS AUTHORITIES TO CERTAIN PROCUREMENTS.

(a) Authority.-- (1) In general.--The head of an executive agency may apply the provisions of law listed in paragraph (2) to a procurement referred to in section 852 without regard to whether the property or services are commercial items. (2) Commercial item laws.--The provisions of law referred to in paragraph (1) are as follows: (A) Sections 31 and 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 427, 430). (B) Section 2304(g) of title 10, United States Code. (C) Section 303(g) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)). (b) Inapplicability of Limitation on Use of Simplified Acquisition Procedures.-- (1) In general.--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)), section 2304(g)(1)(B) of title 10, United States Code, 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 not apply to purchases of property or services to which any of the provisions of law referred to in subsection (a) are applied under the authority of this section. (2) OMB guidance.--The Director of the Office of Management and Budget shall issue guidance and procedures for the use of simplified acquisition procedures for a purchase of property or services in excess of $5,000,000 under the authority of this section. (c) Continuation of Authority for Simplified Purchase Procedures.--Authority under a provision of law referred to in subsection (a)(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 use by the head of an executive agency as provided in subsections (a) and (b).

SEC. 856. [6 U.S.C. 426] USE OF STREAMLINED PROCEDURES.

(a) Required Use.--The head of an executive agency shall, when appropriate, use streamlined acquisition authorities and procedures authorized by law for a procurement referred to in section 852, including authorities and procedures that are provided under the following provisions of law: (1) Federal property and administrative services act of 1949.--In title III of the Federal Property and Administrative Services Act of 1949: (A) Paragraphs (1), (2), (6), and (7) of subsection (c) of section 303 (41 U.S.C. 253), relating to use of procedures other than competitive procedures under certain circumstances (subject to subsection (e) of such section). (B) Section 303J (41 U.S.C. 253j), relating to orders under task and delivery order contracts. (2) Title 10, united states code.--In chapter 137 of title 10, United States Code: (A) Paragraphs (1), (2), (6), and (7) of subsection (c) of section 2304, relating to use of procedures other than competitive procedures under certain circumstances (subject to subsection (e) of such section). (B) Section 2304c, relating to orders under task and delivery order contracts. (3) Office of federal procurement policy act.-- Paragraphs (1)(B), (1)(D), and (2) of section 18(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(c)), relating to inapplicability of a requirement for procurement notice. (b) Waiver of Certain Small Business Threshold Requirements.--Subclause (II) of section 8(a)(1)(D)(i) of the Small Business Act (15 U.S.C. 637(a)(1)(D)(i)) and clause (ii) of section 31(b)(2)(A) of such Act (15 U.S.C. 657a(b)(2)(A)) shall not apply in the use of streamlined acquisition authorities and procedures referred to in paragraphs (1)(A) and (2)(A) of subsection (a) for a procurement referred to in section 852.

SEC. 857. [6 U.S.C. 427] REVIEW AND REPORT BY COMPTROLLER GENERAL.

(a) Requirements.--Not later than March 31, 2004, the Comptroller General shall-- (1) complete a review of the extent to which procurements of property and services have been made in accordance with this subtitle; and (2) submit a report on the results of the review to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives. (b) Content of Report.--The report under subsection (a)(2) shall include the following matters: (1) Assessment.--The Comptroller General's assessment of-- (A) the extent to which property and services procured in accordance with this title have contributed to the capacity of the workforce of Federal Government employees within each executive agency to carry out the mission of the executive agency; and (B) the extent to which Federal Government employees have been trained on the use of technology. (2) Recommendations.--Any recommendations of the Comptroller General resulting from the assessment described in paragraph (1). (c) Consultation.--In preparing for the review under subsection (a)(1), the Comptroller shall consult with the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives on the specific issues and topics to be reviewed. The extent of coverage needed in areas such as technology integration, employee training, and human capital management, as well as the data requirements of the study, shall be included as part of the consultation.

SEC. 858. [6 U.S.C. 428] IDENTIFICATION OF NEW ENTRANTS INTO THE FEDERAL MARKETPLACE.

The head of each executive agency shall conduct market research on an ongoing basis to identify effectively the capabilities, including the capabilities of small businesses and new entrants into Federal contracting, that are available in the marketplace for meeting the requirements of the executive agency in furtherance of defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack. The head of the executive agency shall, to the maximum extent practicable, take advantage of commercially available market research methods, including use of commercial databases, to carry out the research. * * * * * * *

Subtitle G--Support Anti-terrorism by Fostering Effective Technologies Act of 2002

SEC. 861. [6 U.S.C. 101 NOTE] SHORT TITLE.

This subtitle may be cited as the ``Support Anti-terrorism by Fostering Effective Technologies Act of 2002'' or the ``SAFETY Act''.

SEC. 862. [6 U.S.C. 441] 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, including technologies that prevent, defeat or respond to such acts. (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. 863. [6 U.S.C. 442] LITIGATION MANAGEMENT.

(a) Federal Cause of Action.-- (1) In general.--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 or response or recovery from 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. Such Federal cause of action shall be brought only for claims for injuries that are proximately caused by sellers that provide qualified anti-terrorism technology to Federal and non- Federal government customers. (2) Jurisdiction.--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 or response or recovery from 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) Punitive damages.--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) Noneconomic damages.-- (A) In general.--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) Definition.--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) In general.--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 or response or recovery from 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) Exclusive responsibility.--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 or response or recovery from 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) Certificate.--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. 864. [6 U.S.C. 443] RISK MANAGEMENT.

(a) In General.-- (1) Liability insurance required.--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 or response or recovery from such act. (2) Maximum amount.--For the total claims related to 1 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) Scope of coverage.--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 or response or recovery from an act of terrorism: (A) Contractors, subcontractors, suppliers, vendors and customers of the Seller. (B) Contractors, subcontractors, suppliers, and vendors of the customer. (4) Third party claims.--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 or response or recovery from 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 or response or recovery from 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. 865. [6 U.S.C. 444] 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 H--Miscellaneous Provisions

SEC. 871. [6 U.S.C. 451] ADVISORY COMMITTEES.

(a) In General.--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. (b) Termination.--Any advisory committee established by the Secretary shall terminate 2 years after the date of its establishment, unless the Secretary makes a written determination to extend the advisory committee to a specified date, which shall not be more than 2 years after the date on which such determination is made. The Secretary may make any number of subsequent extensions consistent with this subsection.

SEC. 872. [6 U.S.C. 452] REORGANIZATION.

(a) Reorganization.--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-- (1) pursuant to section 1502(b); or (2) 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. (b) Limitations.-- (1) In general.--Authority under subsection (a)(1) does not extend to the abolition of any agency, entity, organizational unit, program, or function established or required to be maintained by this Act. (2) Abolitions.--Authority under subsection (a)(2) does not extend to the abolition of any agency, entity, organizational unit, program, or function established or required to be maintained by statute.

SEC. 873. [6 U.S.C. 453] USE OF APPROPRIATED FUNDS.

(a) Disposal of Property.-- (1) Strict compliance.--If specifically authorized to dispose of real property in this or any other Act, the Secretary shall exercise this authority in strict compliance with section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485). (2) Deposit of proceeds.--The Secretary shall deposit the proceeds of any exercise of property disposal authority into the miscellaneous receipts of the Treasury in accordance with section 3302(b) of title 31, United States Code. (b) Gifts.--Except as authorized by section 2601 of title 10, United States Code, and by section 93 of title 14, United States Code, gifts \1\ or donations of services or property of or for the Department may not be accepted, used, or disposed of unless specifically permitted in advance in an appropriations Act and only under the conditions and for the purposes specified in such appropriations Act. --------------------------------------------------------------------------- \1\ Section 103(3) of Public Law 108-7 (117 Stat. 529) amends subsection (b) by inserting ``Except as authorized by section 2601 of title 10, United States Code, and by section 93 of title 14, United States Code,'' before the word ``Gifts'' in the second place it appears and by striking the letter ``G'' and inserting in lieu thereof ``g'' in the word ``Gifts'' in the second place it appears. The word ``Gifts'' appears once in the text, however, the amendments have been executed to reflect the probable intent of Congress. --------------------------------------------------------------------------- (c) Budget Request.--Under section 1105 of title 31, United States Code, the President shall submit to Congress a detailed budget request for the Department for fiscal year 2004, and for each subsequent fiscal year.

SEC. 874. [6 U.S.C. 454] FUTURE YEAR HOMELAND SECURITY PROGRAM.

(a) In General.--Each budget request submitted to Congress for the Department under section 1105 of title 31, United States Code, shall, at or about the same time, be accompanied by a Future Years Homeland Security Program. (b) Contents.--The Future Years Homeland Security Program under subsection (a) shall-- (1) include the same type of information, organizational structure, and level of detail as the future years defense program submitted to Congress by the Secretary of Defense under section 221 of title 10, United States Code; (2) set forth the homeland security strategy of the Department, which shall be developed and updated as appropriate annually by the Secretary, that was used to develop program planning guidance for the Future Years Homeland Security Program; and (3) include an explanation of how the resource allocations included in the Future Years Homeland Security Program correlate to the homeland security strategy set forth under paragraph (2). (c) Effective Date.--This section shall take effect with respect to the preparation and submission of the fiscal year 2005 budget request for the Department and for any subsequent fiscal year, except that the first Future Years Homeland Security Program shall be submitted not later than 90 days after the Department's fiscal year 2005 budget request is submitted to Congress.

SEC. 875. [6 U.S.C. 455] MISCELLANEOUS AUTHORITIES.

(a) Seal.--The Department shall have a seal, whose design is subject to the approval of the President. (b) 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. (c) 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. 876. [6 U.S.C. 456] 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. 877. [6 U.S.C. 457] REGULATORY AUTHORITY AND PREEMPTION.

(a) Regulatory Authority.--Except as otherwise provided in sections 306(c), 862(c), and 1706(b), 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. 878. [6 U.S.C. 458] OFFICE OF COUNTERNARCOTICS ENFORCEMENT.

(a) Office.--There is established in the Department an Office of Counternarcotics Enforcement, which shall be headed by a Director appointed by the President, by and with the advice and consent of the Senate. (b) Assignment of Personnel.-- (1) In general.--The Secretary shall assign permanent staff to the Office, consistent with effective management of Department resources. (2) Liaisons.--The Secretary shall designate senior employees from each appropriate subdivision of the Department that has significant counternarcotics responsibilities to act as a liaison between that subdivision and the Office of Counternarcotics Enforcement. (c) Limitation on Concurrent Employment.--The Director of the Office of Counternarcotics Enforcement shall not be employed by, assigned to, or serve as the head of, any other branch of the Federal Government, any State or local government, or any subdivision of the Department other than the Office of Counternarcotics Enforcement. (d) Responsibilities.--The Secretary shall direct the Director of the Office of Counternarcotics Enforcement-- (1) to coordinate policy and operations within the Department, between the Department and other Federal departments and agencies, and between the Department and State and local agencies with respect to stopping the entry of illegal drugs into the United States; (2) to ensure the adequacy of resources within the Department for stopping the entry of illegal drugs into the United States; (3) to recommend the appropriate financial and personnel resources necessary to help the Department better fulfill its responsibility to stop the entry of illegal drugs into the United States; (4) within the Joint Terrorism Task Force construct to track and sever connections between illegal drug trafficking and terrorism; and (5) to be a representative of the Department on all task forces, committees, or other entities whose purpose is to coordinate the counternarcotics enforcement activities of the Department and other Federal, State or local agencies. (e) Savings Clause.--Nothing in this section shall be construed to authorize direct control of the operations conducted by the Directorate of Border and Transportation Security, the Coast Guard, or joint terrorism task forces. (f) Reports to Congress.-- (1) Annual budget review.--The Director of the Office of Counternarcotics Enforcement shall, not later than 30 days after the submission by the President to Congress of any request for expenditures for the Department, submit to the Committees on Appropriations and the authorizing committees of jurisdiction of the House of Representatives and the Senate a review and evaluation of such request. The review and evaluation shall-- (A) identify any request or subpart of any request that affects or may affect the counternarcotics activities of the Department or any of its subdivisions, or that affects the ability of the Department or any subdivision of the Department to meet its responsibility to stop the entry of illegal drugs into the United States; (B) describe with particularity how such requested funds would be or could be expended in furtherance of counternarcotics activities; and (C) compare such requests with requests for expenditures and amounts appropriated by Congress in the previous fiscal year. (2) Evaluation of counternarcotics activities.--The Director of the Office of Counternarcotics Enforcement shall, not later than February 1 of each year, submit to the Committees on Appropriations and the authorizing committees of jurisdiction of the House of Representatives and the Senate a review and evaluation of the counternarcotics activities of the Department for the previous fiscal year. The review and evaluation shall-- (A) describe the counternarcotics activities of the Department and each subdivision of the Department (whether individually or in cooperation with other subdivisions of the Department, or in cooperation with other branches of the Federal Government or with State or local agencies), including the methods, procedures, and systems (including computer systems) for collecting, analyzing, sharing, and disseminating information concerning narcotics activity within the Department and between the Department and other Federal, State, and local agencies; (B) describe the results of those activities, using quantifiable data whenever possible; (C) state whether those activities were sufficient to meet the responsibility of the Department to stop the entry of illegal drugs into the United States, including a description of the performance measures of effectiveness that were used in making that determination; and (D) recommend, where appropriate, changes to those activities to improve the performance of the Department in meeting its responsibility to stop the entry of illegal drugs into the United States. (3) Classified or law enforcement sensitive information.--Any content of a review and evaluation described in the reports required in this subsection that involves information classified under criteria established by an Executive order, or whose public disclosure, as determined by the Secretary, would be detrimental to the law enforcement or national security activities of the Department or any other Federal, State, or local agency, shall be presented to Congress separately from the rest of the review and evaluation.

SEC. 879. [6 U.S.C. 459] 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 exchange shall include the following: (A) Exchange of information on research and development on homeland security technologies. (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. 880. [6 U.S.C. 460] 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. 881. [6 U.S.C. 461] 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 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. 882. [6 U.S.C. 462] OFFICE FOR NATIONAL CAPITAL REGION COORDINATION.

(a) Establishment.-- (1) In general.--There is established within the Office of the Secretary the Office of National Capital Region Coordination, to oversee and coordinate Federal programs for and relationships with State, local, and regional authorities in the National Capital Region, as defined under section 2674(f)(2) of title 10, United States Code. (2) Director.--The Office established under paragraph (1) shall be headed by a Director, who shall be appointed by the Secretary. (3) Cooperation.--The Secretary shall cooperate with the Mayor of the District of Columbia, the Governors of Maryland and Virginia, and other State, local, and regional officers in the National Capital Region to integrate the District of Columbia, Maryland, and Virginia 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. (b) Responsibilities.--The Office established under subsection (a)(1) shall-- (1) coordinate the activities of the Department relating to the National Capital Region, including cooperation with the Office for State and Local Government Coordination; (2) assess, and advocate for, the resources needed by State, local, and regional authorities in the National Capital Region to implement efforts to secure the homeland; (3) provide State, local, and regional authorities in the National Capital Region with regular information, research, and technical support to assist the efforts of State, local, and regional authorities in the National Capital Region in securing the homeland; (4) develop a process for receiving meaningful input from State, local, and regional authorities and the private sector in the National Capital Region to assist in the development of the homeland security plans and activities of the Federal Government; (5) coordinate with Federal agencies in the National Capital Region on terrorism preparedness, to ensure adequate planning, information sharing, training, and execution of the Federal role in domestic preparedness activities; (6) coordinate with Federal, State, local, and regional agencies, and the private sector in the National Capital Region on terrorism preparedness to ensure adequate planning, information sharing, training, and execution of domestic preparedness activities among these agencies and entities; and (7) serve as a liaison between the Federal Government and State, local, and regional authorities, and private sector entities in the National Capital Region to facilitate access to Federal grants and other programs. (c) Annual Report.--The Office established under subsection (a) shall submit an annual report to Congress that includes-- (1) the identification of the resources required to fully implement homeland security efforts in the National Capital Region; (2) an assessment of the progress made by the National Capital Region in implementing homeland security efforts; and (3) recommendations to Congress regarding the additional resources needed to fully implement homeland security efforts in the National Capital Region. (d) Limitation.--Nothing contained in this section shall be construed as limiting the power of State and local governments.

SEC. 883. [6 U.S.C. 463] 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 (Public Law 107-174)); or (2) to provide whistleblower protections for employees of the Department (including pursuant to the provisions in section 2302(b)(8) and (9) of such title and the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002).

SEC. 884. [6 U.S.C. 464] FEDERAL LAW ENFORCEMENT 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 Homeland Security under this Act shall continue to be carried out at the locations such activities were carried out before such transfer.

SEC. 885. [6 U.S.C. 465] 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. 886. [6 U.S.C. 466] SENSE OF CONGRESS REAFFIRMING THE CONTINUED IMPORTANCE AND APPLICABILITY OF THE POSSE COMITATUS ACT.

(a) Findings.--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.--Congress reaffirms the continued importance of section 1385 of title 18, United States Code, and it is the sense of 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. 887. [6 U.S.C. 467] COORDINATION WITH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER THE PUBLIC HEALTH SERVICE ACT.

(a) In General.--The annual Federal response plan developed by the Department shall be consistent with section 319 of the Public Health Service Act (42 U.S.C. 247d). (b) Disclosures Among Relevant Agencies.-- (1) In general.--Full disclosure among relevant agencies shall be made in accordance with this subsection. (2) Public health emergency.--During the period in which the Secretary of Health and Human Services has declared the existence of a public health emergency under section 319(a) of the Public Health Service Act (42 U.S.C. 247d(a)), the Secretary of Health and Human Services shall keep relevant agencies, including the Department of Homeland Security, the Department of Justice, and the Federal Bureau of Investigation, fully and currently informed. (3) Potential public health emergency.--In cases involving, or potentially involving, a public health emergency, but in which no determination of an emergency by the Secretary of Health and Human Services under section 319(a) of the Public Health Service Act (42 U.S.C. 247d(a)), has been made, all relevant agencies, including the Department of Homeland Security, the Department of Justice, and the Federal Bureau of Investigation, shall keep the Secretary of Health and Human Services and the Director of the Centers for Disease Control and Prevention fully and currently informed.

SEC. 888. [6 U.S.C. 468] PRESERVING COAST GUARD MISSION PERFORMANCE.

(a) Definitions.--In this section: (1) Non-homeland security missions.--The term ``non-homeland security missions'' means the following missions of the Coast Guard: (A) Marine safety. (B) Search and rescue. (C) Aids to navigation. (D) Living marine resources (fisheries law enforcement). (E) Marine environmental protection. (F) Ice operations. (2) Homeland security missions.--The term ``homeland security missions'' means the following missions of the Coast Guard: (A) Ports, waterways and coastal security. (B) Drug interdiction. (C) Migrant interdiction. (D) Defense readiness. (E) Other law enforcement. (b) Transfer.--There are transferred to the Department the authorities, functions, personnel, and assets of the Coast Guard, which shall be maintained as a distinct entity within the Department, including the authorities and functions of the Secretary of Transportation relating thereto. (c) Maintenance of Status of Functions and Assets.-- Notwithstanding any other provision of this Act, the authorities, functions, and capabilities of the Coast Guard to perform its missions shall be maintained intact and without significant reduction after the transfer of the Coast Guard to the Department, except as specified in subsequent Acts. (d) Certain Transfers Prohibited.--No mission, function, or asset (including for purposes of this subsection any ship, aircraft, or helicopter) of the Coast Guard may be diverted to the principal and continuing use of any other organization, unit, or entity of the Department, except for details or assignments that do not reduce the Coast Guard's capability to perform its missions. (e) Changes to Missions.-- (1) Prohibition.--The Secretary may not substantially or significantly reduce the missions of the Coast Guard or the Coast Guard's capability to perform those missions, except as specified in subsequent Acts. (2) Waiver.--The Secretary may waive the restrictions under paragraph (1) for a period of not to exceed 90 days upon a declaration and certification by the Secretary to Congress that a clear, compelling, and immediate need exists for such a waiver. A certification under this paragraph shall include a detailed justification for the declaration and certification, including the reasons and specific information that demonstrate that the Nation and the Coast Guard cannot respond effectively if the restrictions under paragraph (1) are not waived. (f) Annual Review.-- (1) In general.--The Inspector General of the Department shall conduct an annual review that shall assess thoroughly the performance by the Coast Guard of all missions of the Coast Guard (including non-homeland security missions and homeland security missions) with a particular emphasis on examining the non-homeland security missions. (2) Report.--The report under this paragraph shall be submitted to-- (A) the Committee on Governmental Affairs of the Senate; (B) the Committee on Government Reform of the House of Representatives; (C) the Committees on Appropriations of the Senate and the House of Representatives; (D) the Committee on Commerce, Science, and Transportation of the Senate; and (E) the Committee on Transportation and Infrastructure of the House of Representatives. (g) Direct Reporting to Secretary.--Upon the transfer of the Coast Guard to the Department, the Commandant shall report directly to the Secretary without being required to report through any other official of the Department. (h) Operation as a Service in the Navy.--None of the conditions and restrictions in this section shall apply when the Coast Guard operates as a service in the Navy under section 3 of title 14, United States Code. (i) Report on Accelerating the Integrated Deepwater System.--Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the Commandant of the Coast Guard, shall submit a report to the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committees on Appropriations of the Senate and the House of Representatives that-- (1) analyzes the feasibility of accelerating the rate of procurement in the Coast Guard's Integrated Deepwater System from 20 years to 10 years; (2) includes an estimate of additional resources required; (3) describes the resulting increased capabilities; (4) outlines any increases in the Coast Guard's homeland security readiness; (5) describes any increases in operational efficiencies; and (6) provides a revised asset phase-in time line. * * * * * * *

SEC. 889. HOMELAND SECURITY FUNDING ANALYSIS IN PRESIDENT'S BUDGET.

(a) * * * * * * * * * * (c) [31 U.S.C. 1105 note] Effective Date.--This section and the amendment made by this section shall apply beginning with respect to the fiscal year 2005 budget submission. * * * * * * *

Subtitle I--Information Sharing

SEC. 891. [6 U.S.C. 481] SHORT TITLE; FINDINGS; AND SENSE OF CONGRESS.

(a) Short Title.--This subtitle may be cited as the ``Homeland Security Information Sharing Act''. (b) Findings.--Congress finds the following: (1) The Federal Government is required by the Constitution to provide for the common defense, which includes terrorist attack. (2) The Federal Government relies on State and local 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. (c) Sense of Congress.--It is the sense of Congress that Federal, State, and local entities should share homeland security information to the maximum extent practicable, with special emphasis on hard-to-reach urban and rural communities.

SEC. 892. [6 U.S.C. 482] 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 1 or more of the following means: (A) Carrying out security clearance investigations with respect to appropriate State and local personnel. (B) With respect to information that is sensitive but unclassified, entering into nondisclosure agreements with appropriate State and local personnel. (C) Increased use of information-sharing partnerships that include appropriate State and local personnel, such as the Joint Terrorism Task Forces of the Federal Bureau of Investigation, the Anti-Terrorism Task Forces of the Department of Justice, and regional Terrorism Early Warning Groups. (3)(A) The Secretary shall establish a program to provide appropriate training to officials described in subparagraph (B) in order to assist such officials in-- (i) identifying sources of potential terrorist threats through such methods as the Secretary determines appropriate; (ii) reporting information relating to such potential terrorist threats to the appropriate Federal agencies in the appropriate form and manner; (iii) assuring that all reported information is systematically submitted to and passed on by the Department for use by appropriate Federal agencies; and (iv) understanding the mission and roles of the intelligence community to promote more effective information sharing among Federal, State, and local officials and representatives of the private sector to prevent terrorist attacks against the United States. (B) The officials referred to in subparagraph (A) are officials of State and local government agencies and representatives of private sector entities with responsibilities relating to the oversight and management of first responders, counterterrorism activities, or critical infrastructure. (C) The Secretary shall consult with the Attorney General to ensure that the training program established in subparagraph (A) does not duplicate the training program established in section 908 of the USA PATRIOT Act (Public Law 107-56; 28 U.S.C. 509 note). (D) The Secretary shall carry out this paragraph in consultation with the Director of Central Intelligence and the Attorney General. (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. 893. [6 U.S.C. 483] 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 892. The report shall include any recommendations for additional measures or appropriation requests, beyond the requirements of section 892, to increase the effectiveness of sharing of information between and among Federal, State, and local entities. (b) Specified Congressional Committees.--The congressional committees referred to in subsection (a) are the following 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. 894. [6 U.S.C. 484] AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be necessary to carry out section 892. * * * * * * *

Subtitle J--Secure Handling of Ammonium Nitrate

SEC. 899A. [6 U.S.C. 488] DEFINITIONS.

In this subtitle: (1) Ammonium nitrate.--The term ``ammonium nitrate'' means-- (A) solid ammonium nitrate that is chiefly the ammonium salt of nitric acid and contains not less than 33 percent nitrogen by weight; and (B) any mixture containing a percentage of ammonium nitrate that is equal to or greater than the percentage determined by the Secretary under section 899B(b). (2) Ammonium nitrate facility.--The term ``ammonium nitrate facility'' means any entity that produces, sells or otherwise transfers ownership of, or provides application services for ammonium nitrate. (3) Ammonium nitrate purchaser.--The term ``ammonium nitrate purchaser'' means any person who purchases ammonium nitrate from an ammonium nitrate facility.

SEC. 899B. [6 U.S.C. 488A] REGULATION OF THE SALE AND TRANSFER OF AMMONIUM NITRATE.

(a) In General.--The Secretary shall regulate the sale and transfer of ammonium nitrate by an ammonium nitrate facility in accordance with this subtitle to prevent the misappropriation or use of ammonium nitrate in an act of terrorism. (b) Ammonium Nitrate Mixtures.--Not later than 90 days after the date of the enactment of this subtitle, the Secretary, in consultation with the heads of appropriate Federal departments and agencies (including the Secretary of Agriculture), shall, after notice and an opportunity for comment, establish a threshold percentage for ammonium nitrate in a substance. (c) Registration of Owners of Ammonium Nitrate Facilities.-- (1) Registration.--The Secretary shall establish a process by which any person that-- (A) owns an ammonium nitrate facility is required to register with the Department; and (B) registers under subparagraph (A) is issued a registration number for purposes of this subtitle. (2) Registration information.--Any person applying to register under paragraph (1) shall submit to the Secretary-- (A) the name, address, and telephone number of each ammonium nitrate facility owned by that person; (B) the name of the person designated by that person as the point of contact for each such facility, for purposes of this subtitle; and (C) such other information as the Secretary may determine is appropriate. (d) Registration of Ammonium Nitrate Purchasers.-- (1) Registration.--The Secretary shall establish a process by which any person that-- (A) intends to be an ammonium nitrate purchaser is required to register with the Department; and (B) registers under subparagraph (A) is issued a registration number for purposes of this subtitle. (2) Registration information.--Any person applying to register under paragraph (1) as an ammonium nitrate purchaser shall submit to the Secretary-- (A) the name, address, and telephone number of the applicant; and (B) the intended use of ammonium nitrate to be purchased by the applicant. (e) Records.-- (1) Maintenance of records.--The owner of an ammonium nitrate facility shall-- (A) maintain a record of each sale or transfer of ammonium nitrate, during the two- year period beginning on the date of that sale or transfer; and (B) include in such record the information described in paragraph (2). (2) Specific information required.--For each sale or transfer of ammonium nitrate, the owner of an ammonium nitrate facility shall-- (A) record the name, address, telephone number, and registration number issued under subsection (c) or (d) of each person that purchases ammonium nitrate, in a manner prescribed by the Secretary; (B) if applicable, record the name, address, and telephone number of an agent acting on behalf of the person described in subparagraph (A), at the point of sale; (C) record the date and quantity of ammonium nitrate sold or transferred; and (D) verify the identity of the persons described in subparagraphs (A) and (B), as applicable, in accordance with a procedure established by the Secretary. (3) Protection of information.--In maintaining records in accordance with paragraph (1), the owner of an ammonium nitrate facility shall take reasonable actions to ensure the protection of the information included in such records. (f) Exemption for Explosive Purposes.--The Secretary may exempt from this subtitle a person producing, selling, or purchasing ammonium nitrate exclusively for use in the production of an explosive under a license or permit issued under chapter 40 of title 18, United States Code. (g) Consultation.--In carrying out this section, the Secretary shall consult with the Secretary of Agriculture, States, and appropriate private sector entities, to ensure that the access of agricultural producers to ammonium nitrate is not unduly burdened. (h) Data Confidentiality.-- (1) In general.--Notwithstanding section 552 of title 5, United States Code, or the USA PATRIOT ACT (Public Law 107-56; 115 Stat. 272), and except as provided in paragraph (2), the Secretary may not disclose to any person any information obtained under this subtitle. (2) Exception.--The Secretary may disclose any information obtained by the Secretary under this subtitle to-- (A) an officer or employee of the United States, or a person that has entered into a contract with the United States, who has a need to know the information to perform the duties of the officer, employee, or person; or (B) to a State agency under section 899D, under appropriate arrangements to ensure the protection of the information. (i) Registration Procedures and Check of Terrorist Screening Database.-- (1) Registration procedures.-- (A) Generally.--The Secretary shall establish procedures to efficiently receive applications for registration numbers under this subtitle, conduct the checks required under paragraph (2), and promptly issue or deny a registration number. (B) Initial six-month registration period.--The Secretary shall take steps to maximize the number of registration applications that are submitted and processed during the six-month period described in section 899F(e). (2) Check of terrorist screening database.-- (A) Check required.--The Secretary shall conduct a check of appropriate identifying information of any person seeking to register with the Department under subsection (c) or (d) against identifying information that appears in the terrorist screening database of the Department. (B) Authority to deny registration number.--If the identifying information of a person seeking to register with the Department under subsection (c) or (d) appears in the terrorist screening database of the Department, the Secretary may deny issuance of a registration number under this subtitle. (3) Expedited review of applications.-- (A) In general.--Following the six-month period described in section 899F(e), the Secretary shall, to the extent practicable, issue or deny registration numbers under this subtitle not later than 72 hours after the time the Secretary receives a complete registration application, unless the Secretary determines, in the interest of national security, that additional time is necessary to review an application. (B) Notice of application status.--In all cases, the Secretary shall notify a person seeking to register with the Department under subsection (c) or (d) of the status of the application of that person not later than 72 hours after the time the Secretary receives a complete registration application. (4) Expedited appeals process.-- (A) Requirement.-- (i) Appeals process.--The Secretary shall establish an expedited appeals process for persons denied a registration number under this subtitle. (ii) Time period for resolution.-- The Secretary shall, to the extent practicable, resolve appeals not later than 72 hours after receiving a complete request for appeal unless the Secretary determines, in the interest of national security, that additional time is necessary to resolve an appeal. (B) Consultation.--The Secretary, in developing the appeals process under subparagraph (A), shall consult with appropriate stakeholders. (C) Guidance.--The Secretary shall provide guidance regarding the procedures and information required for an appeal under subparagraph (A) to any person denied a registration number under this subtitle. (5) Restrictions on use and maintenance of information.-- (A) In general.--Any information constituting grounds for denial of a registration number under this section shall be maintained confidentially by the Secretary and may be used only for making determinations under this section. (B) Sharing of information.-- Notwithstanding any other provision of this subtitle, the Secretary may share any such information with Federal, State, local, and tribal law enforcement agencies, as appropriate. (6) Registration information.-- (A) Authority to require information.--The Secretary may require a person applying for a registration number under this subtitle to submit such information as may be necessary to carry out the requirements of this section. (B) Requirement to update information.--The Secretary may require persons issued a registration under this subtitle to update registration information submitted to the Secretary under this subtitle, as appropriate. (7) Re-checks against terrorist screening database.-- (A) Re-checks.--The Secretary shall, as appropriate, recheck persons provided a registration number pursuant to this subtitle against the terrorist screening database of the Department, and may revoke such registration number if the Secretary determines such person may pose a threat to national security. (B) Notice of revocation.--The Secretary shall, as appropriate, provide prior notice to a person whose registration number is revoked under this section and such person shall have an opportunity to appeal, as provided in paragraph (4).

SEC. 899C. [6 U.S.C. 488B] INSPECTION AND AUDITING OF RECORDS.

The Secretary shall establish a process for the periodic inspection and auditing of the records maintained by owners of ammonium nitrate facilities for the purpose of monitoring compliance with this subtitle or for the purpose of deterring or preventing the misappropriation or use of ammonium nitrate in an act of terrorism.

SEC. 899D. [6 U.S.C. 488C] ADMINISTRATIVE PROVISIONS.

(a) Cooperative Agreements.--The Secretary-- (1) may enter into a cooperative agreement with the Secretary of Agriculture, or the head of any State department of agriculture or its designee involved in agricultural regulation, in consultation with the State agency responsible for homeland security, to carry out the provisions of this subtitle; and (2) wherever possible, shall seek to cooperate with State agencies or their designees that oversee ammonium nitrate facility operations when seeking cooperative agreements to implement the registration and enforcement provisions of this subtitle. (b) Delegation.-- (1) Authority.--The Secretary may delegate to a State the authority to assist the Secretary in the administration and enforcement of this subtitle. (2) Delegation required.--At the request of a Governor of a State, the Secretary shall delegate to that State the authority to carry out functions under sections 899B and 899C, if the Secretary determines that the State is capable of satisfactorily carrying out such functions. (3) Funding.--Subject to the availability of appropriations, if the Secretary delegates functions to a State under this subsection, the Secretary shall provide to that State sufficient funds to carry out the delegated functions. (c) Provision of Guidance and Notification Materials to Ammonium Nitrate Facilities.-- (1) Guidance.--The Secretary shall make available to each owner of an ammonium nitrate facility registered under section 899B(c)(1) guidance on-- (A) the identification of suspicious ammonium nitrate purchases or transfers or attempted purchases or transfers; (B) the appropriate course of action to be taken by the ammonium nitrate facility owner with respect to such a purchase or transfer or attempted purchase or transfer, including-- (i) exercising the right of the owner of the ammonium nitrate facility to decline sale of ammonium nitrate; and (ii) notifying appropriate law enforcement entities; and (C) additional subjects determined appropriate to prevent the misappropriation or use of ammonium nitrate in an act of terrorism. (2) Use of materials and programs.--In providing guidance under this subsection, the Secretary shall, to the extent practicable, leverage any relevant materials and programs. (3) Notification materials.-- (A) In general.--The Secretary shall make available materials suitable for posting at locations where ammonium nitrate is sold. (B) Design of materials.--Materials made available under subparagraph (A) shall be designed to notify prospective ammonium nitrate purchasers of-- (i) the record-keeping requirements under section 899B; and (ii) the penalties for violating such requirements.

SEC. 899E. [6 U.S.C. 488D] THEFT REPORTING REQUIREMENT.

Any person who is required to comply with section 899B(e) who has knowledge of the theft or unexplained loss of ammonium nitrate shall report such theft or loss to the appropriate Federal law enforcement authorities not later than 1 calendar day of the date on which the person becomes aware of such theft or loss. Upon receipt of such report, the relevant Federal authorities shall inform State, local, and tribal law enforcement entities, as appropriate.

SEC. 899F. [6 U.S.C. 488E] PROHIBITIONS AND PENALTY.

(a) Prohibitions.-- (1) Taking possession.--No person shall purchase ammonium nitrate from an ammonium nitrate facility unless such person is registered under subsection (c) or (d) of section 899B, or is an agent of a person registered under subsection (c) or (d) of that section. (2) Transferring possession.--An owner of an ammonium nitrate facility shall not transfer possession of ammonium nitrate from the ammonium nitrate facility to any ammonium nitrate purchaser who is not registered under subsection (c) or (d) of section 899B, or to any agent acting on behalf of an ammonium nitrate purchaser when such purchaser is not registered under subsection (c) or (d) of section 899B. (3) Other prohibitions.--No person shall-- (A) purchase ammonium nitrate without a registration number required under subsection (c) or (d) of section 899B; (B) own or operate an ammonium nitrate facility without a registration number required under section 899B(c); or (C) fail to comply with any requirement or violate any other prohibition under this subtitle. (b) Civil Penalty.--A person that violates this subtitle may be assessed a civil penalty by the Secretary of not more than $50,000 per violation. (c) Penalty Considerations.--In determining the amount of a civil penalty under this section, the Secretary shall consider-- (1) the nature and circumstances of the violation; (2) with respect to the person who commits the violation, any history of prior violations, the ability to pay the penalty, and any effect the penalty is likely to have on the ability of such person to do business; and (3) any other matter that the Secretary determines that justice requires. (d) Notice and Opportunity for a Hearing.--No civil penalty may be assessed under this subtitle unless the person liable for the penalty has been given notice and an opportunity for a hearing on the violation for which the penalty is to be assessed in the county, parish, or incorporated city of residence of that person. (e) Delay in Application of Prohibition.--Paragraphs (1) and (2) of subsection (a) shall apply on and after the date that is 6 months after the date that the Secretary issues a final rule implementing this subtitle.

SEC. 899G. [6 U.S.C. 488F] PROTECTION FROM CIVIL LIABILITY.

(a) In General.--Notwithstanding any other provision of law, an owner of an ammonium nitrate facility that in good faith refuses to sell or transfer ammonium nitrate to any person, or that in good faith discloses to the Department or to appropriate law enforcement authorities an actual or attempted purchase or transfer of ammonium nitrate, based upon a reasonable belief that the person seeking purchase or transfer of ammonium nitrate may use the ammonium nitrate to create an explosive device to be employed in an act of terrorism (as defined in section 3077 of title 18, United States Code), or to use ammonium nitrate for any other unlawful purpose, shall not be liable in any civil action relating to that refusal to sell ammonium nitrate or that disclosure. (b) Reasonable Belief.--A reasonable belief that a person may use ammonium nitrate to create an explosive device to be employed in an act of terrorism under subsection (a) may not solely be based on the race, sex, national origin, creed, religion, status as a veteran, or status as a member of the Armed Forces of the United States of that person.

SEC. 899H. [6 U.S.C. 488G] PREEMPTION OF OTHER LAWS.

(a) Other Federal Regulations.--Except as provided in section 899G, nothing in this subtitle affects any regulation issued by any agency other than an agency of the Department. (b) State Law.--Subject to section 899G, this subtitle preempts the laws of any State to the extent that such laws are inconsistent with this subtitle, except that this subtitle shall not preempt any State law that provides additional protection against the acquisition of ammonium nitrate by terrorists or the use of ammonium nitrate in explosives in acts of terrorism or for other illicit purposes, as determined by the Secretary.

SEC. 899I. [6 U.S.C. 488H] DEADLINES FOR REGULATIONS.

The Secretary-- (1) shall issue a proposed rule implementing this subtitle not later than 6 months after the date of the enactment of this subtitle; and (2) issue a final rule implementing this subtitle not later than 1 year after such date of enactment.

SEC. 899J. [6 U.S.C. 488I] AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary-- (1) $2,000,000 for fiscal year 2008; and (2) $10,750,000 for each of fiscal years 2009 through 2012.

TITLE IX--NATIONAL HOMELAND SECURITY COUNCIL

SEC. 901. [6 U.S.C. 491] 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. 902. [6 U.S.C. 492] FUNCTION.

The function of the Council shall be to advise the President on homeland security matters.

SEC. 903. [6 U.S.C. 493] MEMBERSHIP.

(a) Members-- \1\The members of the Council shall be the following: --------------------------------------------------------------------------- \1\ A period probably should appear prior to the dash in the heading for subsection (a) of section 903. --------------------------------------------------------------------------- (1) The President. (2) The Vice President. (3) The Secretary of Homeland Security. (4) The Attorney General. (5) The Secretary of Defense. (6) Such other individuals as may be designated by the President. (b) Attendance of Chairman of Joint Chiefs of Staff at Meetings.--The Chairman of the Joint Chiefs of Staff (or, in the absence of the Chairman, the Vice Chairman of the Joint Chiefs of Staff) may, in the role of the Chairman of the Joint Chiefs of Staff as principal military adviser to the Council and subject to the direction of the President, attend and participate in meetings of the Council.

SEC. 904. [6 U.S.C. 494] 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. 905. [6 U.S.C. 495] 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. 906. [6 U.S.C. 496] 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 X--INFORMATION SECURITY

SEC. 1001. INFORMATION SECURITY.

(a) [6 U.S.C. 101 note] Short Title.--This title may be cited as the ``Federal Information Security Management Act of 2002''.

* * * * * * *

(c) [6 U.S.C. 511] 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.

* * * * * * *

(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. 1006. [6 U.S.C. 512] 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)).

TITLE XI--DEPARTMENT OF JUSTICE DIVISIONS

Subtitle A--Executive Office for Immigration Review

SEC. 1101. LEGAL STATUS OF EOIR.

(a) [6 U.S.C. 521] Existence of EOIR.--There is in the Department of Justice the Executive Office for Immigration Review, which shall be subject to the direction and regulation of the Attorney General under section 103(g) of the Immigration and Nationality Act, as added by section 1102.

* * * * * * *

SEC. 1103. [6 U.S.C. 522] STATUTORY CONSTRUCTION.

Nothing in this Act, any amendment made by this Act, or in section 103 of the Immigration and Nationality Act, as amended by section 1102, shall be construed to limit judicial deference to regulations, adjudications, interpretations, orders, decisions, judgments, or any other actions of the Secretary of Homeland Security or the Attorney General.

Subtitle B--Transfer of the Bureau of Alcohol, Tobacco and Firearms to the Department of Justice

SEC. 1111. [6 U.S.C. 531] BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES.

(a) Establishment.-- (1) In general.--There is established within the Department of Justice under the general authority of the Attorney General the Bureau of Alcohol, Tobacco, Firearms, and Explosives (in this section referred to as the ``Bureau''). (2) Director.--There shall be at the head of the Bureau a Director, Bureau of Alcohol, Tobacco, Firearms, and Explosives (in this subtitle referred to as the ``Director''). The Director shall be appointed by the President, by and with the advice and consent of the Senate and shall perform such functions as the Attorney General shall direct. The Director shall receive compensation at the rate prescribed by law under section 5314 of title V, United States Code, for positions at level III of the Executive Schedule. (3) Coordination.--The Attorney General, acting through the Director and such other officials of the Department of Justice as the Attorney General may designate, shall provide for the coordination of all firearms, explosives, tobacco enforcement, and arson enforcement functions vested in the Attorney General so as to assure maximum cooperation between and among any officer, employee, or agency of the Department of Justice involved in the performance of these and related functions. (4) Performance of transferred functions.--The Attorney General may make such provisions as the Attorney General determines appropriate to authorize the performance by any officer, employee, or agency of the Department of Justice of any function transferred to the Attorney General under this section. (b) Responsibilities.--Subject to the direction of the Attorney General, the Bureau shall be responsible for investigating-- (1) criminal and regulatory violations of the Federal firearms, explosives, arson, alcohol, and tobacco smuggling laws; (2) the functions transferred by subsection (c); and (3) any other function related to the investigation of violent crime or domestic terrorism that is delegated to the Bureau by the Attorney General. (c) Transfer of Authorities, Functions, Personnel, and Assets to the Department of Justice.-- (1) In general.--Subject to paragraph (2), but notwithstanding any other provision of law, there are transferred to the Department of Justice the authorities, functions, personnel, and assets of the Bureau of Alcohol, Tobacco and Firearms, which shall be maintained as a distinct entity within the Department of Justice, including the related functions of the Secretary of the Treasury. (2) Administration and revenue collection functions.--There shall be retained within the Department of the Treasury the authorities, functions, personnel, and assets of the Bureau of Alcohol, Tobacco and Firearms relating to the administration and enforcement of chapters 51 and 52 of the Internal Revenue Code of 1986, sections 4181 and 4182 of the Internal Revenue Code of 1986, and title 27, United States Code. (3) Building prospectus.--Prospectus PDC-98W10, giving the General Services Administration the authority for site acquisition, design, and construction of a new headquarters building for the Bureau of Alcohol, Tobacco and Firearms, is transferred, and deemed to apply, to the Bureau of Alcohol, Tobacco, Firearms, and Explosives established in the Department of Justice under subsection (a). (d) Tax and Trade Bureau.-- (1) Establishment.--There is established within the Department of the Treasury the Tax and Trade Bureau. (2) Administrator.--The Tax and Trade Bureau shall be headed by an Administrator, who shall perform such duties as assigned by the Under Secretary for Enforcement of the Department of the Treasury. The Administrator shall occupy a career-reserved position within the Senior Executive Service. (3) Responsibilities.--The authorities, functions, personnel, and assets of the Bureau of Alcohol, Tobacco and Firearms that are not transferred to the Department of Justice under this section shall be retained and administered by the Tax and Trade Bureau.

* * * * * * *

SEC. 1114. [6 U.S.C. 532] EXPLOSIVES TRAINING AND RESEARCH FACILITY.

(a) Establishment.--There is established within the Bureau an Explosives Training and Research Facility at Fort AP Hill, Fredericksburg, Virginia. (b) Purpose.--The facility established under subsection (a) shall be utilized to train Federal, State, and local law enforcement officers to-- (1) investigate bombings and explosions; (2) properly handle, utilize, and dispose of explosive materials and devices; (3) train canines on explosive detection; and (4) conduct research on explosives. (c) Authorization of Appropriations.-- (1) In general.--There are authorized to be appropriated such sums as may be necessary to establish and maintain the facility established under subsection (a). (2) Availability of funds.--Any amounts appropriated pursuant to paragraph (1) shall remain available until expended.

SEC. 1115. [6 U.S.C. 533] PERSONNEL MANAGEMENT DEMONSTRATION PROJECT.

Notwithstanding any other provision of law, the Personnel Management Demonstration Project established under section 102 of title I of division C of the Omnibus Consolidated and Emergency Supplemental Appropriations Act for Fiscal Year 1999 (Public Law 105-277; 122 Stat. 2681-585) shall be transferred to the Attorney General of the United States for continued use by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice, and the Secretary of the Treasury for continued use by the Tax and Trade Bureau.

Subtitle C--Explosives

SEC. 1121. [18 U.S.C. 841 NOTE] SHORT TITLE.

This subtitle may be referred to as the ``Safe Explosives Act''.

SEC. 1122. PERMITS FOR PURCHASERS OF EXPLOSIVES.

(a) * * *

* * * * * * *

(i) [18 U.S.C. 843 note] Effective Date.-- (1) In general.--The amendments made by this section shall take effect 180 days after the date of enactment of this Act. (2) Exception.--Notwithstanding any provision of this Act, a license or permit issued under section 843 of title 18, United States Code, before the date of enactment of this Act, shall remain valid until that license or permit is revoked under section 843(d) or expires, or until a timely application for renewal is acted upon.

* * * * * * *

SEC. 1128. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated such sums as necessary to carry out this subtitle and the amendments made by this subtitle.

TITLE XII--AIRLINE WAR RISK INSURANCE LEGISLATION

* * * * * * *

SEC. 1204. REPORT.

Not later than 90 days after the date of enactment of this Act, the Secretary shall transmit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that-- (A) evaluates the availability and cost of commercial war risk insurance for air carriers and other aviation entities for passengers and third parties; (B) analyzes the economic effect upon air carriers and other aviation entities of available commercial war risk insurance; and (C) describes the manner in which the Department could provide an alternative means of providing aviation war risk reinsurance covering passengers, crew, and third parties through use of a risk-retention group or by other means.

TITLE XIII--FEDERAL WORKFORCE IMPROVEMENT

Subtitle A--Chief Human Capital Officers

SEC. 1301. [5 U.S.C. 101 NOTE] SHORT TITLE.

This title may be cited as the ``Chief Human Capital Officers Act of 2002''.

* * * * * * *

SEC. 1303. [5 U.S.C. 1401 NOTE] CHIEF HUMAN CAPITAL OFFICERS COUNCIL.

(a) Establishment.--There is established a Chief Human Capital Officers Council, consisting of-- (1) the Director of the Office of Personnel Management, who shall act as chairperson of the Council; (2) the Deputy Director for Management of the Office of Management and Budget, who shall act as vice chairperson of the Council; and (3) the Chief Human Capital Officers of Executive departments and any other members who are designated by the Director of the Office of Personnel Management. (b) Functions.--The Chief Human Capital Officers Council shall meet periodically to advise and coordinate the activities of the agencies of its members on such matters as modernization of human resources systems, improved quality of human resources information, and legislation affecting human resources operations and organizations. (c) Employee Labor Organizations at Meetings.--The Chief Human Capital Officers Council shall ensure that representatives of Federal employee labor organizations are present at a minimum of 1 meeting of the Council each year. Such representatives shall not be members of the Council. (d) Annual Report.--Each year the Chief Human Capital Officers Council shall submit a report to Congress on the activities of the Council.

* * * * * * *

SEC. 1305. [5 U.S.C. 1103 NOTE] EFFECTIVE DATE.

This subtitle shall take effect 180 days after the date of enactment of this Act.

Subtitle B--Reforms Relating to Federal Human Capital Management

* * * * * * *

SEC. 1313. PERMANENT EXTENSION, REVISION, AND EXPANSION OF AUTHORITIES FOR USE OF VOLUNTARY SEPARATION INCENTIVE PAY AND VOLUNTARY EARLY RETIREMENT.

(a) Voluntary Separation Incentive Payments.-- (1) * * *

* * * * * * *

(2) [5 U.S.C. 3521 note] Administrative office of the united states courts.--The Director of the Administrative Office of the United States Courts may, by regulation, establish a program substantially similar to the program established under paragraph (1) for individuals serving in the judicial branch. (3) [5 U.S.C. 3521 note] Continuation of other authority.--Any agency exercising any voluntary separation incentive authority in effect on the effective date of this subsection may continue to offer voluntary separation incentives consistent with that authority until that authority expires. (4) [5 U.S.C. 3521 note] Effective date.--This subsection shall take effect 60 days after the date of enactment of this Act.

* * * * * * *

(b) Federal Employee Voluntary Early Retirement.-- (1) * * *

* * * * * * *

(3) [5 U.S.C. 8336 note] General accounting office authority.--The amendments made by this subsection shall not be construed to affect the authority under section 1 of Public Law 106-303 (5 U.S.C. 8336 note; 114 State. 1063).

* * * * * * *

(5) [5 U.S.C. 8336 note] Regulations.--The Office of Personnel Management may prescribe regulations to carry out this subsection. (c) [5 U.S.C. 3521 note] Sense of Congress.--It is the sense of Congress that the implementation of this section is intended to reshape the Federal workforce and not downsize the Federal workforce.

* * * * * * *

Subtitle C--Reforms Relating to the Senior Executive Service

* * * * * * *

SEC. 1321. REPEAL OF RECERTIFICATION REQUIREMENTS OF SENIOR EXECUTIVES.

(a) * * *

* * * * * * *

(b) [5 U.S.C. 3592 note] Savings Provision.-- Notwithstanding the amendments made by subsection (a)(2)(A), an appeal under the final sentence of section 3592(a) of title 5, United States Code, that is pending on the day before the effective date of this section-- (1) shall not abate by reason of the enactment of the amendments made by subsection (a)(2)(A); and (2) shall continue as if such amendments had not been enacted. (c) [5 U.S.C. 3593 note] Application.--The amendment made by subsection (a)(2)(B) shall not apply with respect to an individual who, before the effective date of this section, leaves the Senior Executive Service for failure to be recertified as a senior executive under section 3393a of title 5, United States Code.

* * * * * * *

Subtitle D--Academic Training

* * * * * * *

SEC. 1332. MODIFICATIONS TO NATIONAL SECURITY EDUCATION PROGRAM.

(a) [5 U.S.C. 3301 note] Findings and Policies.-- (1) Findings.--Congress finds that-- (A) the United States Government actively encourages and financially supports the training, education, and development of many United States citizens; (B) as a condition of some of those supports, many of those citizens have an obligation to seek either compensated or uncompensated employment in the Federal sector; and (C) it is in the United States national interest to maximize the return to the Nation of funds invested in the development of such citizens by seeking to employ them in the Federal sector. (2) Policy.--It shall be the policy of the United States Government to-- (A) establish procedures for ensuring that United States citizens who have incurred service obligations as the result of receiving financial support for education and training from the United States Government and have applied for Federal positions are considered in all recruitment and hiring initiatives of Federal departments, bureaus, agencies, and offices; and (B) advertise and open all Federal positions to United States citizens who have incurred service obligations with the United States Government as the result of receiving financial support for education and training from the United States Government.

* * * * * * *

TITLE XIV--ARMING PILOTS AGAINST TERRORISM

SEC. 1401. [49 U.S.C. 40101 NOTE] SHORT TITLE.

This title may be cited as the ``Arming Pilots Against Terrorism Act''.

SEC. 1402. FEDERAL FLIGHT DECK OFFICER PROGRAM.

(a) * * *

* * * * * * *

(c) [6 U.S.C. 513] Federal Air Marshal Program.-- (1) Sense of congress.--It is the sense of Congress that the Federal air marshal program is critical to aviation security. (2) Limitation on statutory construction.--Nothing in this Act, including any amendment made by this Act, shall be construed as preventing the Under Secretary of Transportation for Security from implementing and training Federal air marshals.

SEC. 1403. CREW TRAINING.

(a) * * *

* * * * * * *

(c) Benefits and Risks of Providing Flight Attendants With Nonlethal Weapons.-- (1) Study.--The Under Secretary of Transportation for Security shall conduct a study to evaluate the benefits and risks of providing flight attendants with nonlethal weapons to aide in combating air piracy and criminal violence on commercial airlines. (2) Report.--Not later than 6 months after the date of enactment of this Act, the Under Secretary shall transmit to Congress a report on the results of the study.

SEC. 1404. COMMERCIAL AIRLINE SECURITY STUDY.

(a) Study.--The Secretary of Transportation shall conduct a study of the following: (1) The number of armed Federal law enforcement officers (other than Federal air marshals), who travel on commercial airliners annually and the frequency of their travel. (2) The cost and resources necessary to provide such officers with supplemental training in aircraft anti-terrorism training that is comparable to the training that Federal air marshals are provided. (3) The cost of establishing a program at a Federal law enforcement training center for the purpose of providing new Federal law enforcement recruits with standardized training comparable to the training that Federal air marshals are provided. (4) The feasibility of implementing a certification program designed for the purpose of ensuring Federal law enforcement officers have completed the training described in paragraph (2) and track their travel over a 6-month period. (5) The feasibility of staggering the flights of such officers to ensure the maximum amount of flights have a certified trained Federal officer on board. (b) Report.--Not later than 6 months after the date of enactment of this Act, the Secretary shall transmit to Congress a report on the results of the study. The report may be submitted in classified and redacted form.

* * * * * * *

TITLE XV--TRANSITION

Subtitle A--Reorganization Plan

SEC. 1501. [6 U.S.C. 541] 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. 1502. [6 U.S.C. 542] 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.

SEC. 1503. [6 U.S.C. 543] REVIEW OF CONGRESSIONAL COMMITTEE STRUCTURES.

It is the sense of Congress that each House of Congress should review its committee structure in light of the reorganization of responsibilities within the executive branch by the establishment of the Department.

Subtitle B--Transitional Provisions

SEC. 1511. [6 U.S.C. 551] 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) 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. (d) 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. (e) 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, and to any funds provided to the Coast Guard from the Sport Fish Restoration and Boating Trust Fund for boating safety programs.

SEC. 1512. [6 U.S.C. 552] 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. (f) Statutory Reporting Requirements.--Any statutory reporting requirement that applied to an agency, transferred to the Department under this Act, immediately before the effective date of this Act shall continue to apply following that transfer if the statutory requirement refers to the agency by name.

SEC. 1513. [6 U.S.C. 553] 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. 1514. [6 U.S.C. 554] NATIONAL IDENTIFICATION SYSTEM NOT AUTHORIZED.

Nothing in this Act shall be construed to authorize the development of a national identification system or card.

SEC. 1515. [6 U.S.C. 555] 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).

SEC. 1516. [6 U.S.C. 556] INCIDENTAL TRANSFERS.

The Director of the Office of Management and Budget, in consultation with the Secretary, is authorized and directed to make such additional incidental dispositions of personnel, assets, and liabilities held, used, arising from, available, or to be made available, in connection with the functions transferred by this Act, as the Director may determine necessary to accomplish the purposes of this Act.

SEC. 1517. [6 U.S.C. 557] REFERENCE.

With respect to any function transferred by or under this Act (including under a reorganization plan that becomes effective under section 1502) 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 XVII--CONFORMING AND TECHNICAL AMENDMENTS

* * * * * * *

SEC. 1702. EXECUTIVE SCHEDULE.

(a) * * *

* * * * * * *

(b) [5 U.S.C. 5315 note] 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 441 takes effect.

SEC. 1703. UNITED STATES SECRET SERVICE.

(a) * * * (b) [3 U.S.C. 202 note] 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. 1704. COAST GUARD.

(a) * * *

* * * * * * *

(g) [10 U.S.C. 101 note] Effective Date.--The amendments made by this section (other than subsection (f)) shall take effect on the date of transfer of the Coast Guard to the Department.

SEC. 1705. STRATEGIC NATIONAL STOCKPILE AND SMALLPOX VACCINE DEVELOPMENT.

(a) * * *

* * * * * * *

(b) [42 U.S.C. 247d-6b note] 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. 1706. TRANSFER OF CERTAIN SECURITY AND LAW ENFORCEMENT FUNCTIONS AND AUTHORITIES.

(a) * * *

* * * * * * *

(2) [40 U.S.C. 1315 note] Delegation of authority.--The Secretary may delegate authority for the protection of specific buildings to another Federal agency where, in the Secretary's discretion, the Secretary determines it necessary for the protection of that building.

* * * * * * *

SEC. 1708. [50 U.S.C. 1522 NOTE] NATIONAL BIO-WEAPONS DEFENSE ANALYSIS CENTER.

There is established in the Department of Defense a National Bio-Weapons Defense Analysis Center, whose mission is to develop countermeasures to potential attacks by terrorists using weapons of mass destruction.

* * * * * * *

Sec. 1714. [6 U.S.C. 103] Notwithstanding any other provision of this Act, any report, notification, or consultation addressing directly or indirectly the use of appropriated funds and stipulated by this Act to be submitted to, or held with, the Congress or any Congressional committee shall also be submitted to, or held with, the Committees on Appropriations of the Senate and the House of Representatives under the same conditions and with the same restrictions as stipulated by this Act.

TITLE XVIII--EMERGENCY COMMUNICATIONS

SEC. 1801. [6 U.S.C. 571] OFFICE OF EMERGENCY COMMUNICATIONS.

(a) In General.--There is established in the Department an Office of Emergency Communications. (b) Director.--The head of the office shall be the Director for Emergency Communications. The Director shall report to the Assistant Secretary for Cybersecurity and Communications. (c) Responsibilities.--The Director for Emergency Communications shall-- (1) assist the Secretary in developing and implementing the program described in section 7303(a)(1) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(a)(1)), except as provided in section 314; (2) administer the Department's responsibilities and authorities relating to the SAFECOM Program, excluding elements related to research, development, testing, and evaluation and standards; (3) administer the Department's responsibilities and authorities relating to the Integrated Wireless Network program; (4) conduct extensive, nationwide outreach to support and promote the ability of emergency response providers and relevant government officials to continue to communicate in the event of natural disasters, acts of terrorism, and other man-made disasters; (5) conduct extensive, nationwide outreach and foster the development of interoperable emergency communications capabilities by State, regional, local, and tribal governments and public safety agencies, and by regional consortia thereof; (6) provide technical assistance to State, regional, local, and tribal government officials with respect to use of interoperable emergency communications capabilities; (7) coordinate with the Regional Administrators regarding the activities of Regional Emergency Communications Coordination Working Groups under section 1805; (8) promote the development of standard operating procedures and best practices with respect to use of interoperable emergency communications capabilities for incident response, and facilitate the sharing of information on such best practices for achieving, maintaining, and enhancing interoperable emergency communications capabilities for such response; (9) coordinate, in cooperation with the National Communications System, the establishment of a national response capability with initial and ongoing planning, implementation, and training for the deployment of communications equipment for relevant State, local, and tribal governments and emergency response providers in the event of a catastrophic loss of local and regional emergency communications services; (10) assist the President, the National Security Council, the Homeland Security Council, and the Director of the Office of Management and Budget in ensuring the continued operation of the telecommunications functions and responsibilities of the Federal Government, excluding spectrum management; (11) establish, in coordination with the Director of the Office for Interoperability and Compatibility, requirements for interoperable emergency communications capabilities, which shall be nonproprietary where standards for such capabilities exist, for all public safety radio and data communications systems and equipment purchased using homeland security assistance administered by the Department, excluding any alert and warning device, technology, or system; (12) review, in consultation with the Assistant Secretary for Grants and Training, all interoperable emergency communications plans of Federal, State, local, and tribal governments, including Statewide and tactical interoperability plans, developed pursuant to homeland security assistance administered by the Department, but excluding spectrum allocation and management related to such plans; (13) develop and update periodically, as appropriate, a National Emergency Communications Plan under section 1802; (14) perform such other duties of the Department necessary to support and promote the ability of emergency response providers and relevant government officials to continue to communicate in the event of natural disasters, acts of terrorism, and other man- made disasters; and (15) perform other duties of the Department necessary to achieve the goal of and maintain and enhance interoperable emergency communications capabilities. (d) Performance of Previously Transferred Functions.--The Secretary shall transfer to, and administer through, the Director for Emergency Communications the following programs and responsibilities: (1) The SAFECOM Program, excluding elements related to research, development, testing, and evaluation and standards. (2) The responsibilities of the Chief Information Officer related to the implementation of the Integrated Wireless Network. (3) The Interoperable Communications Technical Assistance Program. (e) Coordination.--The Director for Emergency Communications shall coordinate-- (1) as appropriate, with the Director of the Office for Interoperability and Compatibility with respect to the responsibilities described in section 314; and (2) with the Administrator of the Federal Emergency Management Agency with respect to the responsibilities described in this title. (f) Sufficiency of Resources Plan.-- (1) Report.--Not later than 120 days after the date of enactment of this section, the Secretary shall submit to Congress a report on the resources and staff necessary to carry out fully the responsibilities under this title. (2) Comptroller general review.--The Comptroller General shall review the validity of the report submitted by the Secretary under paragraph (1). Not later than 60 days after the date on which such report is submitted, the Comptroller General shall submit to Congress a report containing the findings of such review.

SEC. 1802. [6 U.S.C. 572] NATIONAL EMERGENCY COMMUNICATIONS PLAN.

(a) In General.--The Secretary, acting through the Director for Emergency Communications, and in cooperation with the Department of National Communications System (as appropriate), shall, in cooperation with State, local, and tribal governments, Federal departments and agencies, emergency response providers, and the private sector, develop not later than 180 days after the completion of the baseline assessment under section 1803, and periodically update, a National Emergency Communications Plan to provide recommendations regarding how the United States should-- (1) support and promote the ability of emergency response providers and relevant government officials to continue to communicate in the event of natural disasters, acts of terrorism, and other man-made disasters; and (2) ensure, accelerate, and attain interoperable emergency communications nationwide. (b) Coordination.--The Emergency Communications Preparedness Center under section 1806 shall coordinate the development of the Federal aspects of the National Emergency Communications Plan. (c) Contents.--The National Emergency Communications Plan shall-- (1) include recommendations developed in consultation with the Federal Communications Commission and the National Institute of Standards and Technology for a process for expediting national voluntary consensus standards for emergency communications equipment for the purchase and use by public safety agencies of interoperable emergency communications equipment and technologies; (2) identify the appropriate capabilities necessary for emergency response providers and relevant government officials to continue to communicate in the event of natural disasters, acts of terrorism, and other man-made disasters; (3) identify the appropriate interoperable emergency communications capabilities necessary for Federal, State, local, and tribal governments in the event of natural disasters, acts of terrorism, and other man-made disasters; (4) recommend both short-term and long-term solutions for ensuring that emergency response providers and relevant government officials can continue to communicate in the event of natural disasters, acts of terrorism, and other man-made disasters; (5) recommend both short-term and long-term solutions for deploying interoperable emergency communications systems for Federal, State, local, and tribal governments throughout the Nation, including through the provision of existing and emerging technologies; (6) identify how Federal departments and agencies that respond to natural disasters, acts of terrorism, and other man-made disasters can work effectively with State, local, and tribal governments, in all States, and with other entities; (7) identify obstacles to deploying interoperable emergency communications capabilities nationwide and recommend short-term and long-term measures to overcome those obstacles, including recommendations for multijurisdictional coordination among Federal, State, local, and tribal governments; (8) recommend goals and timeframes for the deployment of emergency, command-level communications systems based on new and existing equipment across the United States and develop a timetable for the deployment of interoperable emergency communications systems nationwide; (9) recommend appropriate measures that emergency response providers should employ to ensure the continued operation of relevant governmental communications infrastructure in the event of natural disasters, acts of terrorism, or other man-made disasters; and (10) set a date, including interim benchmarks, as appropriate, by which State, local, and tribal governments, Federal departments and agencies, and emergency response providers expect to achieve a baseline level of national interoperable communications, as that term is defined under section 7303(g)(1) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(g)(1)).

SEC. 1803. [6 U.S.C. 573] ASSESSMENTS AND REPORTS.

(a) Baseline Assessment.--Not later than 1 year after the date of enactment of this section and not less than every 5 years thereafter, the Secretary, acting through the Director for Emergency Communications, shall conduct an assessment of Federal, State, local, and tribal governments that-- (1) defines the range of capabilities needed by emergency response providers and relevant government officials to continue to communicate in the event of natural disasters, acts of terrorism, and other man- made disasters; (2) defines the range of interoperable emergency communications capabilities needed for specific events; (3) assesses the current available capabilities to meet such communications needs; (4) identifies the gap between such current capabilities and defined requirements; and (5) includes a national interoperable emergency communications inventory to be completed by the Secretary of Homeland Security, the Secretary of Commerce, and the Chairman of the Federal Communications Commission that-- (A) identifies for each Federal department and agency-- (i) the channels and frequencies used; (ii) the nomenclature used to refer to each channel or frequency used; and (iii) the types of communications systems and equipment used; and (B) identifies the interoperable emergency communications systems in use by public safety agencies in the United States. (b) Classified Annex.--The baseline assessment under this section may include a classified annex including information provided under subsection (a)(5)(A). (c) Savings Clause.--In conducting the baseline assessment under this section, the Secretary may incorporate findings from assessments conducted before, or ongoing on, the date of enactment of this title. (d) Progress Reports.--Not later than one year after the date of enactment of this section and biennially thereafter, the Secretary, acting through the Director for Emergency Communications, shall submit to Congress a report on the progress of the Department in achieving the goals of, and carrying out its responsibilities under, this title, including-- (1) a description of the findings of the most recent baseline assessment conducted under subsection (a); (2) a determination of the degree to which interoperable emergency communications capabilities have been attained to date and the gaps that remain for interoperability to be achieved; (3) an evaluation of the ability to continue to communicate and to provide and maintain interoperable emergency communications by emergency managers, emergency response providers, and relevant government officials in the event of-- (A) natural disasters, acts of terrorism, or other man-made disasters, including Incidents of National Significance declared by the Secretary under the National Response Plan; and (B) a catastrophic loss of local and regional communications services; (4) a list of best practices relating to the ability to continue to communicate and to provide and maintain interoperable emergency communications in the event of natural disasters, acts of terrorism, or other man-made disasters; and (A) an evaluation of the feasibility and desirability of the Department developing, on its own or in conjunction with the Department of Defense, a mobile communications capability, modeled on the Army Signal Corps, that could be deployed to support emergency communications at the site of natural disasters, acts of terrorism, or other man-made disasters.

SEC. 1804. [6 U.S.C. 574] COORDINATION OF DEPARTMENT EMERGENCY COMMUNICATIONS GRANT PROGRAMS.

(a) Coordination of Grants and Standards Programs.--The Secretary, acting through the Director for Emergency Communications, shall ensure that grant guidelines for the use of homeland security assistance administered by the Department relating to interoperable emergency communications are coordinated and consistent with the goals and recommendations in the National Emergency Communications Plan under section 1802. (b) Denial of Eligibility for Grants.-- (1) In general.--The Secretary, acting through the Assistant Secretary for Grants and Planning, and in consultation with the Director for Emergency Communications, may prohibit any State, local, or tribal government from using homeland security assistance administered by the Department to achieve, maintain, or enhance emergency communications capabilities, if-- (A) such government has not complied with the requirement to submit a Statewide Interoperable Communications Plan as required by section 7303(f) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(f)); (B) such government has proposed to upgrade or purchase new equipment or systems that do not meet or exceed any applicable national voluntary consensus standards and has not provided a reasonable explanation of why such equipment or systems will serve the needs of the applicant better than equipment or systems that meet or exceed such standards; and (C) as of the date that is 3 years after the date of the completion of the initial National Emergency Communications Plan under section 1802, national voluntary consensus standards for interoperable emergency communications capabilities have not been developed and promulgated. (2) Standards.--The Secretary, in coordination with the Federal Communications Commission, the National Institute of Standards and Technology, and other Federal departments and agencies with responsibility for standards, shall support the development, promulgation, and updating as necessary of national voluntary consensus standards for interoperable emergency communications.

SEC. 1805. [6 U.S.C. 575] REGIONAL EMERGENCY COMMUNICATIONS COORDINATION.

(a) In General.--There is established in each Regional Office a Regional Emergency Communications Coordination Working Group (in this section referred to as an ``RECC Working Group''). Each RECC Working Group shall report to the relevant Regional Administrator and coordinate its activities with the relevant Regional Advisory Council. (b) Membership.--Each RECC Working Group shall consist of the following: (1) Non-federal.--Organizations representing the interests of the following: (A) State officials. (B) Local government officials, including sheriffs. (C) State police departments. (D) Local police departments. (E) Local fire departments. (F) Public safety answering points (9-1-1 services). (G) State emergency managers, homeland security directors, or representatives of State Administrative Agencies. (H) Local emergency managers or homeland security directors. (I) Other emergency response providers as appropriate. (2) Federal.--Representatives from the Department, the Federal Communications Commission, and other Federal departments and agencies with responsibility for coordinating interoperable emergency communications with or providing emergency support services to State, local, and tribal governments. (c) Coordination.--Each RECC Working Group shall coordinate its activities with the following: (1) Communications equipment manufacturers and vendors (including broadband data service providers). (2) Local exchange carriers. (3) Local broadcast media. (4) Wireless carriers. (5) Satellite communications services. (6) Cable operators. (7) Hospitals. (8) Public utility services. (9) Emergency evacuation transit services. (10) Ambulance services. (11) HAM and amateur radio operators. (12) Representatives from other private sector entities and nongovernmental organizations as the Regional Administrator determines appropriate. (d) Duties.--The duties of each RECC Working Group shall include-- (1) assessing the survivability, sustainability, and interoperability of local emergency communications systems to meet the goals of the National Emergency Communications Plan; (2) reporting annually to the relevant Regional Administrator, the Director for Emergency Communications, the Chairman of the Federal Communications Commission, and the Assistant Secretary for Communications and Information of the Department of Commerce on the status of its region in building robust and sustainable interoperable voice and data emergency communications networks and, not later than 60 days after the completion of the initial National Emergency Communications Plan under section 1802, on the progress of the region in meeting the goals of such plan; (3) ensuring a process for the coordination of effective multijurisdictional, multi-agency emergency communications networks for use during natural disasters, acts of terrorism, and other man-made disasters through the expanded use of emergency management and public safety communications mutual aid agreements; and (4) coordinating the establishment of Federal, State, local, and tribal support services and networks designed to address the immediate and critical human needs in responding to natural disasters, acts of terrorism, and other man-made disasters.

SEC. 1806. [6 U.S.C. 576] EMERGENCY COMMUNICATIONS PREPAREDNESS CENTER.

(a) Establishment.--There is established the Emergency Communications Preparedness Center (in this section referred to as the ``Center''). (b) Operation.--The Secretary, the Chairman of the Federal Communications Commission, the Secretary of Defense, the Secretary of Commerce, the Attorney General of the United States, and the heads of other Federal departments and agencies or their designees shall jointly operate the Center in accordance with the Memorandum of Understanding entitled, ``Emergency Communications Preparedness Center (ECPC) Charter''. (c) Functions.--The Center shall-- (1) serve as the focal point for interagency efforts and as a clearinghouse with respect to all relevant intergovernmental information to support and promote (including specifically by working to avoid duplication, hindrances, and counteractive efforts among the participating Federal departments and agencies)-- (A) the ability of emergency response providers and relevant government officials to continue to communicate in the event of natural disasters, acts of terrorism, and other man- made disasters; and (B) interoperable emergency communications; (2) prepare and submit to Congress, on an annual basis, a strategic assessment regarding the coordination efforts of Federal departments and agencies to advance-- (A) the ability of emergency response providers and relevant government officials to continue to communicate in the event of natural disasters, acts of terrorism, and other man- made disasters; and (B) interoperable emergency communications; (3) consider, in preparing the strategic assessment under paragraph (2), the goals stated in the National Emergency Communications Plan under section 1802; and (4) perform such other functions as are provided in the Emergency Communications Preparedness Center (ECPC) Charter described in subsection (b)(1).

SEC. 1807. [6 U.S.C. 577] URBAN AND OTHER HIGH RISK AREA COMMUNICATIONS CAPABILITIES.

(a) In General.--The Secretary, in consultation with the Chairman of the Federal Communications Commission and the Secretary of Defense, and with appropriate State, local, and tribal government officials, shall provide technical guidance, training, and other assistance, as appropriate, to support the rapid establishment of consistent, secure, and effective interoperable emergency communications capabilities in the event of an emergency in urban and other areas determined by the Secretary to be at consistently high levels of risk from natural disasters, acts of terrorism, and other man-made disasters. (b) Minimum Capabilities.--The interoperable emergency communications capabilities established under subsection (a) shall ensure the ability of all levels of government, emergency response providers, the private sector, and other organizations with emergency response capabilities-- (1) to communicate with each other in the event of an emergency; (2) to have appropriate and timely access to the Information Sharing Environment described in section 1016 of the National Security Intelligence Reform Act of 2004 (6 U.S.C. 321); and (3) to be consistent with any applicable State or Urban Area homeland strategy or plan.

SEC. 1808. [6 U.S.C. 578] DEFINITION.

In this title, the term ``interoperable'' has the meaning given the term ``interoperable communications'' under section 7303(g)(1) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(g)(1)).

SEC. 1809. [6 U.S.C. 579] INTEROPERABLE EMERGENCY COMMUNICATIONS GRANT PROGRAM.

(a) Establishment.--The Secretary shall establish the Interoperable Emergency Communications Grant Program to make grants to States to carry out initiatives to improve local, tribal, statewide, regional, national and, where appropriate, international interoperable emergency communications, including communications in collective response to natural disasters, acts of terrorism, and other man-made disasters. (b) Policy.--The Director for Emergency Communications shall ensure that a grant awarded to a State under this section is consistent with the policies established pursuant to the responsibilities and authorities of the Office of Emergency Communications under this title, including ensuring that activities funded by the grant-- (1) comply with the statewide plan for that State required by section 7303(f) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(f)); and (2) comply with the National Emergency Communications Plan under section 1802, when completed. (c) Administration.-- (1) In general.--The Administrator of the Federal Emergency Management Agency shall administer the Interoperable Emergency Communications Grant Program pursuant to the responsibilities and authorities of the Administrator under title V of the Act. (2) Guidance.--In administering the grant program, the Administrator shall ensure that the use of grants is consistent with guidance established by the Director of Emergency Communications pursuant to section 7303(a)(1)(H) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(a)(1)(H)). (d) Use of Funds.--A State that receives a grant under this section shall use the grant to implement that State's Statewide Interoperability Plan required under section 7303(f) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(f)) and approved under subsection (e), and to assist with activities determined by the Secretary to be integral to interoperable emergency communications. (e) Approval of Plans.-- (1) Approval as condition of grant.--Before a State may receive a grant under this section, the Director of Emergency Communications shall approve the State's Statewide Interoperable Communications Plan required under section 7303(f) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(f)). (2) Plan requirements.--In approving a plan under this subsection, the Director of Emergency Communications shall ensure that the plan-- (A) is designed to improve interoperability at the city, county, regional, State and interstate level; (B) considers any applicable local or regional plan; and (C) complies, to the maximum extent practicable, with the National Emergency Communications Plan under section 1802. (3) Approval of revisions.--The Director of Emergency Communications may approve revisions to a State's plan if the Director determines that doing so is likely to further interoperability. (f) Limitations on Uses of Funds.-- (1) In general.--The recipient of a grant under this section may not use the grant-- (A) to supplant State or local funds; (B) for any State or local government cost- sharing contribution; or (C) for recreational or social purposes. (2) Penalties.--In addition to other remedies currently available, the Secretary may take such actions as necessary to ensure that recipients of grant funds are using the funds for the purpose for which they were intended. (g) Limitations on Award of Grants.-- (1) National emergency communications plan required.--The Secretary may not award a grant under this section before the date on which the Secretary completes and submits to Congress the National Emergency Communications Plan required under section 1802. (2) Voluntary consensus standards.--The Secretary may not award a grant to a State under this section for the purchase of equipment that does not meet applicable voluntary consensus standards, unless the State demonstrates that there are compelling reasons for such purchase. (h) Award of Grants.--In approving applications and awarding grants under this section, the Secretary shall consider-- (1) the risk posed to each State by natural disasters, acts of terrorism, or other manmade disasters, including-- (A) the likely need of a jurisdiction within the State to respond to such risk in nearby jurisdictions; (B) the degree of threat, vulnerability, and consequences related to critical infrastructure (from all critical infrastructure sectors) or key resources identified by the Administrator or the State homeland security and emergency management plans, including threats to, vulnerabilities of, and consequences from damage to critical infrastructure and key resources in nearby jurisdictions; (C) the size of the population and density of the population of the State, including appropriate consideration of military, tourist, and commuter populations; (D) whether the State is on or near an international border; (E) whether the State encompasses an economically significant border crossing; and (F) whether the State has a coastline bordering an ocean, a major waterway used for interstate commerce, or international waters; and (2) the anticipated effectiveness of the State's proposed use of grant funds to improve interoperability. (i) Opportunity to Amend Applications.--In considering applications for grants under this section, the Administrator shall provide applicants with a reasonable opportunity to correct defects in the application, if any, before making final awards. (j) Minimum Grant Amounts.-- (1) States.--In awarding grants under this section, the Secretary shall ensure that for each fiscal year, except as provided in paragraph (2), no State receives a grant in an amount that is less than the following percentage of the total amount appropriated for grants under this section for that fiscal year: (A) For fiscal year 2008, 0.50 percent. (B) For fiscal year 2009, 0.50 percent. (C) For fiscal year 2010, 0.45 percent. (D) For fiscal year 2011, 0.40 percent. (E) For fiscal year 2012 and each subsequent fiscal year, 0.35 percent. (2) Territories and possessions.--In awarding grants under this section, the Secretary shall ensure that for each fiscal year, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the Virgin Islands each receive grants in amounts that are not less than 0.08 percent of the total amount appropriated for grants under this section for that fiscal year. (k) Certification.--Each State that receives a grant under this section shall certify that the grant is used for the purpose for which the funds were intended and in compliance with the State's approved Statewide Interoperable Communications Plan. (l) State Responsibilities.-- (1) Availability of funds to local and tribal governments.--Not later than 45 days after receiving grant funds, any State that receives a grant under this section shall obligate or otherwise make available to local and tribal governments-- (A) not less than 80 percent of the grant funds; (B) with the consent of local and tribal governments, eligible expenditures having a value of not less than 80 percent of the amount of the grant; or (C) grant funds combined with other eligible expenditures having a total value of not less than 80 percent of the amount of the grant. (2) Allocation of funds.--A State that receives a grant under this section shall allocate grant funds to tribal governments in the State to assist tribal communities in improving interoperable communications, in a manner consistent with the Statewide Interoperable Communications Plan. A State may not impose unreasonable or unduly burdensome requirements on a tribal government as a condition of providing grant funds or resources to the tribal government. (3) Penalties.--If a State violates the requirements of this subsection, in addition to other remedies available to the Secretary, the Secretary may terminate or reduce the amount of the grant awarded to that State or transfer grant funds previously awarded to the State directly to the appropriate local or tribal government. (m) Reports.-- (1) Annual reports by state grant recipients.--A State that receives a grant under this section shall annually submit to the Director of Emergency Communications a report on the progress of the State in implementing that State's Statewide Interoperable Communications Plans required under section 7303(f) of the Intelligence Reform and Terrorism Prevention Act of 2004 (6 U.S.C. 194(f)) and achieving interoperability at the city, county, regional, State, and interstate levels. The Director shall make the reports publicly available, including by making them available on the Internet website of the Office of Emergency Communications, subject to any redactions that the Director determines are necessary to protect classified or other sensitive information. (2) Annual reports to congress.--At least once each year, the Director of Emergency Communications shall submit to Congress a report on the use of grants awarded under this section and any progress in implementing Statewide Interoperable Communications Plans and improving interoperability at the city, county, regional, State, and interstate level, as a result of the award of such grants. (n) Rule of Construction.--Nothing in this section shall be construed or interpreted to preclude a State from using a grant awarded under this section for interim or long-term Internet Protocol-based interoperable solutions. (o) Authorization of Appropriations.--There are authorized to be appropriated for grants under this section-- (1) for fiscal year 2008, such sums as may be necessary; (2) for each of fiscal years 2009 through 2012, $400,000,000; and (3) for each subsequent fiscal year, such sums as may be necessary.

SEC. 1810. [6 U.S.C. 580] BORDER INTEROPERABILITY DEMONSTRATION PROJECT.

(a) In General.-- (1) Establishment.--The Secretary, acting through the Director of the Office of Emergency Communications (referred to in this section as the ``Director''), and in coordination with the Federal Communications Commission and the Secretary of Commerce, shall establish an International Border Community Interoperable Communications Demonstration Project (referred to in this section as the ``demonstration project''). (2) Minimum number of communities.--The Director shall select no fewer than 6 communities to participate in a demonstration project. (3) Location of communities.--No fewer than 3 of the communities selected under paragraph (2) shall be located on the northern border of the United States and no fewer than 3 of the communities selected under paragraph (2) shall be located on the southern border of the United States. (b) Conditions.--The Director, in coordination with the Federal Communications Commission and the Secretary of Commerce, shall ensure that the project is carried out as soon as adequate spectrum is available as a result of the 800 megahertz rebanding process in border areas, and shall ensure that the border projects do not impair or impede the rebanding process, but under no circumstances shall funds be distributed under this section unless the Federal Communications Commission and the Secretary of Commerce agree that these conditions have been met. (c) Program Requirements.--Consistent with the responsibilities of the Office of Emergency Communications under section 1801, the Director shall foster local, tribal, State, and Federal interoperable emergency communications, as well as interoperable emergency communications with appropriate Canadian and Mexican authorities in the communities selected for the demonstration project. The Director shall-- (1) identify solutions to facilitate interoperable communications across national borders expeditiously; (2) help ensure that emergency response providers can communicate with each other in the event of natural disasters, acts of terrorism, and other man-made disasters; (3) provide technical assistance to enable emergency response providers to deal with threats and contingencies in a variety of environments; (4) identify appropriate joint-use equipment to ensure communications access; (5) identify solutions to facilitate communications between emergency response providers in communities of differing population densities; and (6) take other actions or provide equipment as the Director deems appropriate to foster interoperable emergency communications. (d) Distribution of Funds.-- (1) In general.--The Secretary shall distribute funds under this section to each community participating in the demonstration project through the State, or States, in which each community is located. (2) Other participants.--A State shall make the funds available promptly to the local and tribal governments and emergency response providers selected by the Secretary to participate in the demonstration project. (3) Report.--Not later than 90 days after a State receives funds under this subsection the State shall report to the Director on the status of the distribution of such funds to local and tribal governments. (e) Maximum Period of Grants.--The Director may not fund any participant under the demonstration project for more than 3 years. (f) Transfer of Information and Knowledge.--The Director shall establish mechanisms to ensure that the information and knowledge gained by participants in the demonstration project are transferred among the participants and to other interested parties, including other communities that submitted applications to the participant in the project. (g) Authorization of Appropriations.--There is authorized to be appropriated for grants under this section such sums as may be necessary.

TITLE XIX--DOMESTIC NUCLEAR DETECTION OFFICE

SEC. 1901. [6 U.S.C. 591] DOMESTIC NUCLEAR DETECTION OFFICE.

(a) Establishment.--There shall be established in the Department a Domestic Nuclear Detection Office (referred to in this title as the ``Office''). The Secretary may request that the Secretary of Defense, the Secretary of Energy, the Secretary of State, the Attorney General, the Nuclear Regulatory Commission, and the directors of other Federal agencies, including elements of the Intelligence Community, provide for the reimbursable detail of personnel with relevant expertise to the Office. (b) Director.--The Office shall be headed by a Director for Domestic Nuclear Detection, who shall be appointed by the President.

SEC. 1902. [6 U.S.C. 592] MISSION OF OFFICE.

(a) Mission.--The Office shall be responsible for coordinating Federal efforts to detect and protect against the unauthorized importation, possession, storage, transportation, development, or use of a nuclear explosive device, fissile material, or radiological material in the United States, and to protect against attack using such devices or materials against the people, territory, or interests of the United States and, to this end, shall-- (1) serve as the primary entity of the United States Government to further develop, acquire, and support the deployment of an enhanced domestic system to detect and report on attempts to import, possess, store, transport, develop, or use an unauthorized nuclear explosive device, fissile material, or radiological material in the United States, and improve that system over time; (2) enhance and coordinate the nuclear detection efforts of Federal, State, local, and tribal governments and the private sector to ensure a managed, coordinated response; (3) establish, with the approval of the Secretary and in coordination with the Attorney General, the Secretary of Defense, and the Secretary of Energy, additional protocols and procedures for use within the United States to ensure that the detection of unauthorized nuclear explosive devices, fissile material, or radiological material is promptly reported to the Attorney General, the Secretary, the Secretary of Defense, the Secretary of Energy, and other appropriate officials or their respective designees for appropriate action by law enforcement, military, emergency response, or other authorities; (4) develop, with the approval of the Secretary and in coordination with the Attorney General, the Secretary of State, the Secretary of Defense, and the Secretary of Energy, an enhanced global nuclear detection architecture with implementation under which-- (A) the Office will be responsible for the implementation of the domestic portion of the global architecture; (B) the Secretary of Defense will retain responsibility for implementation of Department of Defense requirements within and outside the United States; and (C) the Secretary of State, the Secretary of Defense, and the Secretary of Energy will maintain their respective responsibilities for policy guidance and implementation of the portion of the global architecture outside the United States, which will be implemented consistent with applicable law and relevant international arrangements; (5) ensure that the expertise necessary to accurately interpret detection data is made available in a timely manner for all technology deployed by the Office to implement the global nuclear detection architecture; (6) conduct, support, coordinate, and encourage an aggressive, expedited, evolutionary, and transformational program of research and development to generate and improve technologies to detect and prevent the illicit entry, transport, assembly, or potential use within the United States of a nuclear explosive device or fissile or radiological material, and coordinate with the Under Secretary for Science and Technology on basic and advanced or transformational research and development efforts relevant to the mission of both organizations; (7) carry out a program to test and evaluate technology for detecting a nuclear explosive device and fissile or radiological material, in coordination with the Secretary of Defense and the Secretary of Energy, as appropriate, and establish performance metrics for evaluating the effectiveness of individual detectors and detection systems in detecting such devices or material-- (A) under realistic operational and environmental conditions; and (B) against realistic adversary tactics and countermeasures; (8) support and enhance the effective sharing and use of appropriate information generated by the intelligence community, law enforcement agencies, counterterrorism community, other government agencies, and foreign governments, as well as provide appropriate information to such entities; (9) further enhance and maintain continuous awareness by analyzing information from all Office mission-related detection systems; and (10) perform other duties as assigned by the Secretary.

SEC. 1903. [6 U.S.C. 593] HIRING AUTHORITY.

In hiring personnel for the Office, the Secretary shall have the hiring and management authorities provided in section 1101 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note). The term of appointments for employees under subsection (c)(1) of such section may not exceed 5 years before granting any extension under subsection (c)(2) of such section.

SEC. 1904. [6 U.S.C. 594] TESTING AUTHORITY.

(a) In General.--The Director shall coordinate with the responsible Federal agency or other entity to facilitate the use by the Office, by its contractors, or by other persons or entities, of existing Government laboratories, centers, ranges, or other testing facilities for the testing of materials, equipment, models, computer software, and other items as may be related to the missions identified in section 1902. Any such use of Government facilities shall be carried out in accordance with all applicable laws, regulations, and contractual provisions, including those governing security, safety, and environmental protection, including, when applicable, the provisions of section 309. The Office may direct that private sector entities utilizing Government facilities in accordance with this section pay an appropriate fee to the agency that owns or operates those facilities to defray additional costs to the Government resulting from such use. (b) Confidentiality of Test Results.--The results of tests performed with services made available shall be confidential and shall not be disclosed outside the Federal Government without the consent of the persons for whom the tests are performed. (c) Fees.--Fees for services made available under this section shall not exceed the amount necessary to recoup the direct and indirect costs involved, such as direct costs of utilities, contractor support, and salaries of personnel that are incurred by the United States to provide for the testing. (d) Use of Fees.--Fees received for services made available under this section may be credited to the appropriation from which funds were expended to provide such services.

SEC. 1905. [6 U.S.C. 595] RELATIONSHIP TO OTHER DEPARTMENT ENTITIES AND FEDERAL AGENCIES.

The authority of the Director under this title shall not affect the authorities or responsibilities of any officer of the Department or of any officer of any other department or agency of the United States with respect to the command, control, or direction of the functions, personnel, funds, assets, and liabilities of any entity within the Department or any Federal department or agency.

SEC. 1906. [6 U.S.C. 596] CONTRACTING AND GRANT MAKING AUTHORITIES.

The Secretary, acting through the Director for Domestic Nuclear Detection, in carrying out the responsibilities under paragraphs (6) and (7) of section 1902(a), shall-- (1) operate extramural and intramural programs and distribute funds through grants, cooperative agreements, and other transactions and contracts; (2) ensure that activities under paragraphs (6) and (7) of section 1902(a) include investigations of radiation detection equipment in configurations suitable for deployment at seaports, which may include underwater or water surface detection equipment and detection equipment that can be mounted on cranes and straddle cars used to move shipping containers; and (3) have the authority to establish or contract with 1 or more federally funded research and development centers to provide independent analysis of homeland security issues and carry out other responsibilities under this title.

SEC. 1907. [6 U.S.C. 596A] JOINT ANNUAL INTERAGENCY REVIEW OF GLOBAL NUCLEAR DETECTION ARCHITECTURE.

(a) Annual Review.-- (1) In general.--The Secretary, the Attorney General, the Secretary of State, the Secretary of Defense, the Secretary of Energy, and the Director of National Intelligence shall jointly ensure interagency coordination on the development and implementation of the global nuclear detection architecture by ensuring that, not less frequently than once each year-- (A) each relevant agency, office, or entity-- (i) assesses its involvement, support, and participation in the development, revision, and implementation of the global nuclear detection architecture; and (ii) examines and evaluates components of the global nuclear detection architecture (including associated strategies and acquisition plans) relating to the operations of that agency, office, or entity, to determine whether such components incorporate and address current threat assessments, scenarios, or intelligence analyses developed by the Director of National Intelligence or other agencies regarding threats relating to nuclear or radiological weapons of mass destruction; and (B) each agency, office, or entity deploying or operating any nuclear or radiological detection technology under the global nuclear detection architecture-- (i) evaluates the deployment and operation of nuclear or radiological detection technologies under the global nuclear detection architecture by that agency, office, or entity; (ii) identifies performance deficiencies and operational or technical deficiencies in nuclear or radiological detection technologies deployed under the global nuclear detection architecture; and (iii) assesses the capacity of that agency, office, or entity to implement the responsibilities of that agency, office, or entity under the global nuclear detection architecture. (2) Technology.--Not less frequently than once each year, the Secretary shall examine and evaluate the development, assessment, and acquisition of radiation detection technologies deployed or implemented in support of the domestic portion of the global nuclear detection architecture. (b) Annual Report on Joint Interagency Review.-- (1) In general.--Not later than March 31 of each year, the Secretary, the Attorney General, the Secretary of State, the Secretary of Defense, the Secretary of Energy, and the Director of National Intelligence, shall jointly submit a report regarding the implementation of this section and the results of the reviews required under subsection (a) to-- (A) the President; (B) the Committee on Appropriations, the Committee on Armed Services, the Select Committee on Intelligence, and the Committee on Homeland Security and Governmental Affairs of the Senate; and (C) the Committee on Appropriations, the Committee on Armed Services, the Permanent Select Committee on Intelligence, the Committee on Homeland Security, and the Committee on Science and Technology of the House of Representatives. (2) Form.--The annual report submitted under paragraph (1) shall be submitted in unclassified form to the maximum extent practicable, but may include a classified annex. (c) Definition.--In this section, the term ``global nuclear detection architecture'' means the global nuclear detection architecture developed under section 1902.

TITLE XX--HOMELAND SECURITY GRANTS

SEC. 2001. [6 U.S.C. 601] DEFINITIONS.

In this title, the following definitions shall apply: (1) Administrator.--The term ``Administrator'' means the Administrator of the Federal Emergency Management Agency. (2) Appropriate committees of congress.--The term ``appropriate committees of Congress'' means-- (A) the Committee on Homeland Security and Governmental Affairs of the Senate; and (B) those committees of the House of Representatives that the Speaker of the House of Representatives determines appropriate. (3) Critical infrastructure sectors.--The term ``critical infrastructure sectors'' means the following sectors, in both urban and rural areas: (A) Agriculture and food. (B) Banking and finance. (C) Chemical industries. (D) Commercial facilities. (E) Commercial nuclear reactors, materials, and waste. (F) Dams. (G) The defense industrial base. (H) Emergency services. (I) Energy. (J) Government facilities. (K) Information technology. (L) National monuments and icons. (M) Postal and shipping. (N) Public health and health care. (O) Telecommunications. (P) Transportation systems. (Q) Water. (4) Directly eligible tribe.--The term ``directly eligible tribe'' means-- (A) any Indian tribe-- (i) that is located in the continental United States; (ii) that operates a law enforcement or emergency response agency with the capacity to respond to calls for law enforcement or emergency services; (iii)(I) that is located on or near an international border or a coastline bordering an ocean (including the Gulf of Mexico) or international waters; (II) that is located within 10 miles of a system or asset included on the prioritized critical infrastructure list established under section 210E(a)(2) or has such a system or asset within its territory; (III) that is located within or contiguous to 1 of the 50 most populous metropolitan statistical areas in the United States; or (IV) the jurisdiction of which includes not less than 1,000 square miles of Indian country, as that term is defined in section 1151 of title 18, United States Code; and (iv) that certifies to the Secretary that a State has not provided funds under section 2003 or 2004 to the Indian tribe or consortium of Indian tribes for the purpose for which direct funding is sought; and (B) a consortium of Indian tribes, if each tribe satisfies the requirements of subparagraph (A). (5) Eligible metropolitan area.--The term ``eligible metropolitan area'' means any of the 100 most populous metropolitan statistical areas in the United States. (6) High-risk urban area.--The term ``high-risk urban area'' means a high-risk urban area designated under section 2003(b)(3)(A). (7) Indian tribe.--The term ``Indian tribe'' has the meaning given that term in section 4(e) of the Indian Self-Determination Act (25 U.S.C. 450b(e)). (8) Metropolitan statistical area.--The term ``metropolitan statistical area'' means a metropolitan statistical area, as defined by the Office of Management and Budget. (9) National special security event.--The term ``National Special Security Event'' means a designated event that, by virtue of its political, economic, social, or religious significance, may be the target of terrorism or other criminal activity. (10) Population.--The term ``population'' means population according to the most recent United States census population estimates available at the start of the relevant fiscal year. (11) Population density.--The term ``population density'' means population divided by land area in square miles. (12) Qualified intelligence analyst.--The term ``qualified intelligence analyst'' means an intelligence analyst (as that term is defined in section 210A(j)), including law enforcement personnel-- (A) who has successfully completed training to ensure baseline proficiency in intelligence analysis and production, as determined by the Secretary, which may include training using a curriculum developed under section 209; or (B) whose experience ensures baseline proficiency in intelligence analysis and production equivalent to the training required under subparagraph (A), as determined by the Secretary. (13) Target capabilities.--The term ``target capabilities'' means the target capabilities for Federal, State, local, and tribal government preparedness for which guidelines are required to be established under section 646(a) of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 746(a)). (14) Tribal government.--The term ``tribal government'' means the government of an Indian tribe.

Subtitle A--Grants to States and High-Risk Urban Areas

SEC. 2002. [6 U.S.C. 603] HOMELAND SECURITY GRANT PROGRAMS.

(a) Grants Authorized.--The Secretary, through the Administrator, may award grants under sections 2003 and 2004 to State, local, and tribal governments. (b) Programs Not Affected.--This subtitle shall not be construed to affect any of the following Federal programs: (1) Firefighter and other assistance programs authorized under the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2201 et seq.). (2) Grants authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). (3) Emergency Management Performance Grants under the amendments made by title II of the Implementing Recommendations of the 9/11 Commission Act of 2007. (4) Grants to protect critical infrastructure, including port security grants authorized under section 70107 of title 46, United States Code, and the grants authorized under title XIV and XV of the Implementing Recommendations of the 9/11 Commission Act of 2007 and the amendments made by such titles. (5) The Metropolitan Medical Response System authorized under section 635 of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 723). (6) The Interoperable Emergency Communications Grant Program authorized under title XVIII. (7) Grant programs other than those administered by the Department. (c) Relationship to Other Laws.-- (1) In general.--The grant programs authorized under sections 2003 and 2004 shall supercede all grant programs authorized under section 1014 of the USA PATRIOT Act (42 U.S.C. 3714). (2) Allocation.--The allocation of grants authorized under section 2003 or 2004 shall be governed by the terms of this subtitle and not by any other provision of law.

SEC. 2003. [6 U.S.C. 604] URBAN AREA SECURITY INITIATIVE.

(a) Establishment.--There is established an Urban Area Security Initiative to provide grants to assist high-risk urban areas in preventing, preparing for, protecting against, and responding to acts of terrorism. (b) Assessment and Designation of High-Risk Urban Areas.-- (1) In general.--The Administrator shall designate high-risk urban areas to receive grants under this section based on procedures under this subsection. (2) Initial assessment.-- (A) In general.--For each fiscal year, the Administrator shall conduct an initial assessment of the relative threat, vulnerability, and consequences from acts of terrorism faced by each eligible metropolitan area, including consideration of-- (i) the factors set forth in subparagraphs (A) through (H) and (K) of section 2007(a)(1); and (ii) information and materials submitted under subparagraph (B). (B) Submission of information by eligible metropolitan areas.--Prior to conducting each initial assessment under subparagraph (A), the Administrator shall provide each eligible metropolitan area with, and shall notify each eligible metropolitan area of, the opportunity to-- (i) submit information that the eligible metropolitan area believes to be relevant to the determination of the threat, vulnerability, and consequences it faces from acts of terrorism; and (ii) review the risk assessment conducted by the Department of that eligible metropolitan area, including the bases for the assessment by the Department of the threat, vulnerability, and consequences from acts of terrorism faced by that eligible metropolitan area, and remedy erroneous or incomplete information. (3) Designation of high-risk urban areas.-- (A) Designation.-- (i) In general.--For each fiscal year, after conducting the initial assessment under paragraph (2), and based on that assessment, the Administrator shall designate high-risk urban areas that may submit applications for grants under this section. (ii) Additional areas.-- Notwithstanding paragraph (2), the Administrator may-- (I) in any case where an eligible metropolitan area consists of more than 1 metropolitan division (as that term is defined by the Office of Management and Budget) designate more than 1 high-risk urban area within a single eligible metropolitan area; and (II) designate an area that is not an eligible metropolitan area as a high-risk urban area based on the assessment by the Administrator of the relative threat, vulnerability, and consequences from acts of terrorism faced by the area. (iii) Rule of construction.-- Nothing in this subsection may be construed to require the Administrator to-- (I) designate all eligible metropolitan areas that submit information to the Administrator under paragraph (2)(B)(i) as high-risk urban areas; or (II) designate all areas within an eligible metropolitan area as part of the high-risk urban area. (B) Jurisdictions included in high-risk urban areas.-- (i) In general.--In designating high-risk urban areas under subparagraph (A), the Administrator shall determine which jurisdictions, at a minimum, shall be included in each high-risk urban area. (ii) Additional jurisdictions.--A high-risk urban area designated by the Administrator may, in consultation with the State or States in which such high- risk urban area is located, add additional jurisdictions to the high- risk urban area. (c) Application.-- (1) In general.--An area designated as a high-risk urban area under subsection (b) may apply for a grant under this section. (2) Minimum contents of application.--In an application for a grant under this section, a high-risk urban area shall submit-- (A) a plan describing the proposed division of responsibilities and distribution of funding among the local and tribal governments in the high-risk urban area; (B) the name of an individual to serve as a high-risk urban area liaison with the Department and among the various jurisdictions in the high-risk urban area; and (C) such information in support of the application as the Administrator may reasonably require. (3) Annual applications.--Applicants for grants under this section shall apply or reapply on an annual basis. (4) State review and transmission.-- (A) In general.--To ensure consistency with State homeland security plans, a high-risk urban area applying for a grant under this section shall submit its application to each State within which any part of that high-risk urban area is located for review before submission of such application to the Department. (B) Deadline.--Not later than 30 days after receiving an application from a high-risk urban area under subparagraph (A), a State shall transmit the application to the Department. (C) Opportunity for state comment.--If the Governor of a State determines that an application of a high-risk urban area is inconsistent with the State homeland security plan of that State, or otherwise does not support the application, the Governor shall-- (i) notify the Administrator, in writing, of that fact; and (ii) provide an explanation of the reason for not supporting the application at the time of transmission of the application. (5) Opportunity to amend.--In considering applications for grants under this section, the Administrator shall provide applicants with a reasonable opportunity to correct defects in the application, if any, before making final awards. (d) Distribution of Awards.-- (1) In general.--If the Administrator approves the application of a high-risk urban area for a grant under this section, the Administrator shall distribute the grant funds to the State or States in which that high- risk urban area is located. (2) State distribution of funds.-- (A) In general.--Not later than 45 days after the date that a State receives grant funds under paragraph (1), that State shall provide the high-risk urban area awarded that grant not less than 80 percent of the grant funds. Any funds retained by a State shall be expended on items, services, or activities that benefit the high-risk urban area. (B) Funds retained.--A State shall provide each relevant high-risk urban area with an accounting of the items, services, or activities on which any funds retained by the State under subparagraph (A) were expended. (3) Interstate urban areas.--If parts of a high- risk urban area awarded a grant under this section are located in 2 or more States, the Administrator shall distribute to each such State-- (A) a portion of the grant funds in accordance with the proposed distribution set forth in the application; or (B) if no agreement on distribution has been reached, a portion of the grant funds determined by the Administrator to be appropriate. (4) Certifications regarding distribution of grant funds to high-risk urban areas.--A State that receives grant funds under paragraph (1) shall certify to the Administrator that the State has made available to the applicable high-risk urban area the required funds under paragraph (2). (e) Authorization of Appropriations.--There are authorized to be appropriated for grants under this section-- (1) $850,000,000 for fiscal year 2008; (2) $950,000,000 for fiscal year 2009; (3) $1,050,000,000 for fiscal year 2010; (4) $1,150,000,000 for fiscal year 2011; (5) $1,300,000,000 for fiscal year 2012; and (6) such sums as are necessary for fiscal year 2013, and each fiscal year thereafter.

SEC. 2004. [6 U.S.C. 605] STATE HOMELAND SECURITY GRANT PROGRAM.

(a) Establishment.--There is established a State Homeland Security Grant Program to assist State, local, and tribal governments in preventing, preparing for, protecting against, and responding to acts of terrorism. (b) Application.-- (1) In general.--Each State may apply for a grant under this section, and shall submit such information in support of the application as the Administrator may reasonably require. (2) Minimum contents of application.--The Administrator shall require that each State include in its application, at a minimum-- (A) the purpose for which the State seeks grant funds and the reasons why the State needs the grant to meet the target capabilities of that State; (B) a description of how the State plans to allocate the grant funds to local governments and Indian tribes; and (C) a budget showing how the State intends to expend the grant funds. (3) Annual applications.--Applicants for grants under this section shall apply or reapply on an annual basis. (c) Distribution to Local and Tribal Governments.-- (1) In general.--Not later than 45 days after receiving grant funds, any State receiving a grant under this section shall make available to local and tribal governments, consistent with the applicable State homeland security plan-- (A) not less than 80 percent of the grant funds; (B) with the consent of local and tribal governments, items, services, or activities having a value of not less than 80 percent of the amount of the grant; or (C) with the consent of local and tribal governments, grant funds combined with other items, services, or activities having a total value of not less than 80 percent of the amount of the grant. (2) Certifications regarding distribution of grant funds to local governments.--A State shall certify to the Administrator that the State has made the distribution to local and tribal governments required under paragraph (1). (3) Extension of period.--The Governor of a State may request in writing that the Administrator extend the period under paragraph (1) for an additional period of time. The Administrator may approve such a request if the Administrator determines that the resulting delay in providing grant funding to the local and tribal governments is necessary to promote effective investments to prevent, prepare for, protect against, or respond to acts of terrorism. (4) Exception.--Paragraph (1) shall not apply to the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, or the Virgin Islands. (5) Direct funding.--If a State fails to make the distribution to local or tribal governments required under paragraph (1) in a timely fashion, a local or tribal government entitled to receive such distribution may petition the Administrator to request that grant funds be provided directly to the local or tribal government. (d) Multistate Applications.-- (1) In general.--Instead of, or in addition to, any application for a grant under subsection (b), 2 or more States may submit an application for a grant under this section in support of multistate efforts to prevent, prepare for, protect against, and respond to acts of terrorism. (2) Administration of grant.--If a group of States applies for a grant under this section, such States shall submit to the Administrator at the time of application a plan describing-- (A) the division of responsibilities for administering the grant; and (B) the distribution of funding among the States that are parties to the application. (e) Minimum Allocation.-- (1) In general.--In allocating funds under this section, the Administrator shall ensure that-- (A) except as provided in subparagraph (B), each State receives, from the funds appropriated for the State Homeland Security Grant Program established under this section, not less than an amount equal to-- (i) 0.375 percent of the total funds appropriated for grants under this section and section 2003 in fiscal year 2008; (ii) 0.365 percent of the total funds appropriated for grants under this section and section 2003 in fiscal year 2009; (iii) 0.36 percent of the total funds appropriated for grants under this section and section 2003 in fiscal year 2010; (iv) 0.355 percent of the total funds appropriated for grants under this section and section 2003 in fiscal year 2011; and (v) 0.35 percent of the total funds appropriated for grants under this section and section 2003 in fiscal year 2012 and in each fiscal year thereafter; and (B) for each fiscal year, American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the Virgin Islands each receive, from the funds appropriated for the State Homeland Security Grant Program established under this section, not less than an amount equal to 0.08 percent of the total funds appropriated for grants under this section and section 2003. (2) Effect of multistate award on state minimum.-- Any portion of a multistate award provided to a State under subsection (d) shall be considered in calculating the minimum State allocation under this subsection. (f) Authorization of Appropriations.--There are authorized to be appropriated for grants under this section-- (1) $950,000,000 for each of fiscal years 2008 through 2012; and (2) such sums as are necessary for fiscal year 2013, and each fiscal year thereafter.

SEC. 2005. [6 U.S.C. 606] GRANTS TO DIRECTLY ELIGIBLE TRIBES.

(a) In General.--Notwithstanding section 2004(b), the Administrator may award grants to directly eligible tribes under section 2004. (b) Tribal Applications.--A directly eligible tribe may apply for a grant under section 2004 by submitting an application to the Administrator that includes, as appropriate, the information required for an application by a State under section 2004(b). (c) Consistency With State Plans.-- (1) In general.--To ensure consistency with any applicable State homeland security plan, a directly eligible tribe applying for a grant under section 2004 shall provide a copy of its application to each State within which any part of the tribe is located for review before the tribe submits such application to the Department. (2) Opportunity for comment.--If the Governor of a State determines that the application of a directly eligible tribe is inconsistent with the State homeland security plan of that State, or otherwise does not support the application, not later than 30 days after the date of receipt of that application the Governor shall-- (A) notify the Administrator, in writing, of that fact; and (B) provide an explanation of the reason for not supporting the application. (d) Final Authority.--The Administrator shall have final authority to approve any application of a directly eligible tribe. The Administrator shall notify each State within the boundaries of which any part of a directly eligible tribe is located of the approval of an application by the tribe. (e) Prioritization.--The Administrator shall allocate funds to directly eligible tribes in accordance with the factors applicable to allocating funds among States under section 2007. (f) Distribution of Awards to Directly Eligible Tribes.--If the Administrator awards funds to a directly eligible tribe under this section, the Administrator shall distribute the grant funds directly to the tribe and not through any State. (g) Minimum Allocation.-- (1) In general.--In allocating funds under this section, the Administrator shall ensure that, for each fiscal year, directly eligible tribes collectively receive, from the funds appropriated for the State Homeland Security Grant Program established under section 2004, not less than an amount equal to 0.1 percent of the total funds appropriated for grants under sections 2003 and 2004. (2) Exception.--This subsection shall not apply in any fiscal year in which the Administrator-- (A) receives fewer than 5 applications under this section; or (B) does not approve at least 2 applications under this section. (h) Tribal Liaison.--A directly eligible tribe applying for a grant under section 2004 shall designate an individual to serve as a tribal liaison with the Department and other Federal, State, local, and regional government officials concerning preventing, preparing for, protecting against, and responding to acts of terrorism. (i) Eligibility for Other Funds.--A directly eligible tribe that receives a grant under section 2004 may receive funds for other purposes under a grant from the State or States within the boundaries of which any part of such tribe is located and from any high-risk urban area of which it is a part, consistent with the homeland security plan of the State or high-risk urban area. (j) State Obligations.-- (1) In general.--States shall be responsible for allocating grant funds received under section 2004 to tribal governments in order to help those tribal communities achieve target capabilities not achieved through grants to directly eligible tribes. (2) Distribution of grant funds.--With respect to a grant to a State under section 2004, an Indian tribe shall be eligible for funding directly from that State, and shall not be required to seek funding from any local government. (3) Imposition of requirements.--A State may not impose unreasonable or unduly burdensome requirements on an Indian tribe as a condition of providing the Indian tribe with grant funds or resources under section 2004. (k) Rule of Construction.--Nothing in this section shall be construed to affect the authority of an Indian tribe that receives funds under this subtitle.

SEC. 2006. [6 U.S.C. 607] TERRORISM PREVENTION.

(a) Law Enforcement Terrorism Prevention Program.-- (1) In general.--The Administrator shall ensure that not less than 25 percent of the total combined funds appropriated for grants under sections 2003 and 2004 is used for law enforcement terrorism prevention activities. (2) Law enforcement terrorism prevention activities.--Law enforcement terrorism prevention activities include-- (A) information sharing and analysis; (B) target hardening; (C) threat recognition; (D) terrorist interdiction; (E) overtime expenses consistent with a State homeland security plan, including for the provision of enhanced law enforcement operations in support of Federal agencies, including for increased border security and border crossing enforcement; (F) establishing, enhancing, and staffing with appropriately qualified personnel State, local, and regional fusion centers that comply with the guidelines established under section 210A(i); (G) paying salaries and benefits for personnel, including individuals employed by the grant recipient on the date of the relevant grant application, to serve as qualified intelligence analysts; (H) any other activity permitted under the Fiscal Year 2007 Program Guidance of the Department for the Law Enforcement Terrorism Prevention Program; and (I) any other terrorism prevention activity authorized by the Administrator. (3) Participation of underrepresented communities in fusion centers.--The Administrator shall ensure that grant funds described in paragraph (1) are used to support the participation, as appropriate, of law enforcement and other emergency response providers from rural and other underrepresented communities at risk from acts of terrorism in fusion centers. (b) Office for State and Local Law Enforcement.-- (1) Establishment.--There is established in the Policy Directorate of the Department an Office for State and Local Law Enforcement, which shall be headed by an Assistant Secretary for State and Local Law Enforcement. (2) Qualifications.--The Assistant Secretary for State and Local Law Enforcement shall have an appropriate background with experience in law enforcement, intelligence, and other counterterrorism functions. (3) Assignment of personnel.--The Secretary shall assign to the Office for State and Local Law Enforcement permanent staff and, as appropriate and consistent with sections 506(c)(2), 821, and 888(d), other appropriate personnel detailed from other components of the Department to carry out the responsibilities under this subsection. (4) Responsibilities.--The Assistant Secretary for State and Local Law Enforcement shall-- (A) lead the coordination of Department- wide policies relating to the role of State and local law enforcement in preventing, preparing for, protecting against, and responding to natural disasters, acts of terrorism, and other man-made disasters within the United States; (B) serve as a liaison between State, local, and tribal law enforcement agencies and the Department; (C) coordinate with the Office of Intelligence and Analysis to ensure the intelligence and information sharing requirements of State, local, and tribal law enforcement agencies are being addressed; (D) work with the Administrator to ensure that law enforcement and terrorism-focused grants to State, local, and tribal government agencies, including grants under sections 2003 and 2004, the Commercial Equipment Direct Assistance Program, and other grants administered by the Department to support fusion centers and law enforcement-oriented programs, are appropriately focused on terrorism prevention activities; (E) coordinate with the Science and Technology Directorate, the Federal Emergency Management Agency, the Department of Justice, the National Institute of Justice, law enforcement organizations, and other appropriate entities to support the development, promulgation, and updating, as necessary, of national voluntary consensus standards for training and personal protective equipment to be used in a tactical environment by law enforcement officers; and (F) conduct, jointly with the Administrator, a study to determine the efficacy and feasibility of establishing specialized law enforcement deployment teams to assist State, local, and tribal governments in responding to natural disasters, acts of terrorism, or other man-made disasters and report on the results of that study to the appropriate committees of Congress. (5) Rule of construction.--Nothing in this subsection shall be construed to diminish, supercede, or replace the responsibilities, authorities, or role of the Administrator.

SEC. 2007. [6 U.S.C. 608] PRIORITIZATION.

(a) In General.--In allocating funds among States and high- risk urban areas applying for grants under section 2003 or 2004, the Administrator shall consider, for each State or high- risk urban area-- (1) its relative threat, vulnerability, and consequences from acts of terrorism, including consideration of-- (A) its population, including appropriate consideration of military, tourist, and commuter populations; (B) its population density; (C) its history of threats, including whether it has been the target of a prior act of terrorism; (D) its degree of threat, vulnerability, and consequences related to critical infrastructure (for all critical infrastructure sectors) or key resources identified by the Administrator or the State homeland security plan, including threats, vulnerabilities, and consequences related to critical infrastructure or key resources in nearby jurisdictions; (E) the most current threat assessments available to the Department; (F) whether the State has, or the high-risk urban area is located at or near, an international border; (G) whether it has a coastline bordering an ocean (including the Gulf of Mexico) or international waters; (H) its likely need to respond to acts of terrorism occurring in nearby jurisdictions; (I) the extent to which it has unmet target capabilities; (J) in the case of a high-risk urban area, the extent to which that high-risk urban area includes-- (i) those incorporated municipalities, counties, parishes, and Indian tribes within the relevant eligible metropolitan area, the inclusion of which will enhance regional efforts to prevent, prepare for, protect against, and respond to acts of terrorism; and (ii) other local and tribal governments in the surrounding area that are likely to be called upon to respond to acts of terrorism within the high-risk urban area; and (K) such other factors as are specified in writing by the Administrator; and (2) the anticipated effectiveness of the proposed use of the grant by the State or high-risk urban area in increasing the ability of that State or high-risk urban area to prevent, prepare for, protect against, and respond to acts of terrorism, to meet its target capabilities, and to otherwise reduce the overall risk to the high-risk urban area, the State, or the Nation. (b) Types of Threat.--In assessing threat under this section, the Administrator shall consider the following types of threat to critical infrastructure sectors and to populations in all areas of the United States, urban and rural: (1) Biological. (2) Chemical. (3) Cyber. (4) Explosives. (5) Incendiary. (6) Nuclear. (7) Radiological. (8) Suicide bombers. (9) Such other types of threat determined relevant by the Administrator.

SEC. 2008. [6 U.S.C. 609] USE OF FUNDS.

(a) Permitted Uses.--The Administrator shall permit the recipient of a grant under section 2003 or 2004 to use grant funds to achieve target capabilities related to preventing, preparing for, protecting against, and responding to acts of terrorism, consistent with a State homeland security plan and relevant local, tribal, and regional homeland security plans, through-- (1) developing and enhancing homeland security, emergency management, or other relevant plans, assessments, or mutual aid agreements; (2) designing, conducting, and evaluating training and exercises, including training and exercises conducted under section 512 of this Act and section 648 of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 748); (3) protecting a system or asset included on the prioritized critical infrastructure list established under section 210E(a)(2); (4) purchasing, upgrading, storing, or maintaining equipment, including computer hardware and software; (5) ensuring operability and achieving interoperability of emergency communications; (6) responding to an increase in the threat level under the Homeland Security Advisory System, or to the needs resulting from a National Special Security Event; (7) establishing, enhancing, and staffing with appropriately qualified personnel State, local, and regional fusion centers that comply with the guidelines established under section 210A(i); (8) enhancing school preparedness; (9) supporting public safety answering points; (10) paying salaries and benefits for personnel, including individuals employed by the grant recipient on the date of the relevant grant application, to serve as qualified intelligence analysts, regardless of whether such analysts are current or new full-time employees or contract employees; (11) paying expenses directly related to administration of the grant, except that such expenses may not exceed 3 percent of the amount of the grant; (12) any activity permitted under the Fiscal Year 2007 Program Guidance of the Department for the State Homeland Security Grant Program, the Urban Area Security Initiative (including activities permitted under the full-time counterterrorism staffing pilot), or the Law Enforcement Terrorism Prevention Program; and (13) any other appropriate activity, as determined by the Administrator. (b) Limitations on Use of Funds.-- (1) In general.--Funds provided under section 2003 or 2004 may not be used-- (A) to supplant State or local funds, except that nothing in this paragraph shall prohibit the use of grant funds provided to a State or high-risk urban area for otherwise permissible uses under subsection (a) on the basis that a State or high-risk urban area has previously used State or local funds to support the same or similar uses; or (B) for any State or local government cost- sharing contribution. (2) Personnel.-- (A) In general.--Not more than 50 percent of the amount awarded to a grant recipient under section 2003 or 2004 in any fiscal year may be used to pay for personnel, including overtime and backfill costs, in support of the permitted uses under subsection (a). (B) Waiver.--At the request of the recipient of a grant under section 2003 or 2004, the Administrator may grant a waiver of the limitation under subparagraph (A). (3) Limitations on discretion.-- (A) In general.--With respect to the use of amounts awarded to a grant recipient under section 2003 or 2004 for personnel costs in accordance with paragraph (2) of this subsection, the Administrator may not-- (i) impose a limit on the amount of the award that may be used to pay for personnel, or personnel-related, costs that is higher or lower than the percent limit imposed in paragraph (2)(A); or (ii) impose any additional limitation on the portion of the funds of a recipient that may be used for a specific type, purpose, or category of personnel, or personnel-related, costs. (B) Analysts.--If amounts awarded to a grant recipient under section 2003 or 2004 are used for paying salary or benefits of a qualified intelligence analyst under subsection (a)(10), the Administrator shall make such amounts available without time limitations placed on the period of time that the analyst can serve under the grant. (4) Construction.-- (A) In general.--A grant awarded under section 2003 or 2004 may not be used to acquire land or to construct buildings or other physical facilities. (B) Exceptions.-- (i) In general.--Notwithstanding subparagraph (A), nothing in this paragraph shall prohibit the use of a grant awarded under section 2003 or 2004 to achieve target capabilities related to preventing, preparing for, protecting against, or responding to acts of terrorism, including through the alteration or remodeling of existing buildings for the purpose of making such buildings secure against acts of terrorism. (ii) Requirements for exception.-- No grant awarded under section 2003 or 2004 may be used for a purpose described in clause (i) unless-- (I) specifically approved by the Administrator; (II) any construction work occurs under terms and conditions consistent with the requirements under section 611(j)(9) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5196(j)(9)); and (III) the amount allocated for purposes under clause (i) does not exceed the greater of $1,000,000 or 15 percent of the grant award. (5) Recreation.--Grants awarded under this subtitle may not be used for recreational or social purposes. (c) Multiple-Purpose Funds.--Nothing in this subtitle shall be construed to prohibit State, local, or tribal governments from using grant funds under sections 2003 and 2004 in a manner that enhances preparedness for disasters unrelated to acts of terrorism, if such use assists such governments in achieving target capabilities related to preventing, preparing for, protecting against, or responding to acts of terrorism. (d) Reimbursement of Costs.-- (1) Paid-on-call or volunteer reimbursement.--In addition to the activities described in subsection (a), a grant under section 2003 or 2004 may be used to provide a reasonable stipend to paid-on-call or volunteer emergency response providers who are not otherwise compensated for travel to or participation in training or exercises related to the purposes of this subtitle. Any such reimbursement shall not be considered compensation for purposes of rendering an emergency response provider an employee under the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.). (2) Performance of federal duty.--An applicant for a grant under section 2003 or 2004 may petition the Administrator to use the funds from its grants under those sections for the reimbursement of the cost of any activity relating to preventing, preparing for, protecting against, or responding to acts of terrorism that is a Federal duty and usually performed by a Federal agency, and that is being performed by a State or local government under agreement with a Federal agency. (e) Flexibility in Unspent Homeland Security Grant Funds.-- Upon request by the recipient of a grant under section 2003 or 2004, the Administrator may authorize the grant recipient to transfer all or part of the grant funds from uses specified in the grant agreement to other uses authorized under this section, if the Administrator determines that such transfer is in the interests of homeland security. (f) Equipment Standards.--If an applicant for a grant under section 2003 or 2004 proposes to upgrade or purchase, with assistance provided under that grant, new equipment or systems that do not meet or exceed any applicable national voluntary consensus standards developed under section 647 of the Post- Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 747), the applicant shall include in its application an explanation of why such equipment or systems will serve the needs of the applicant better than equipment or systems that meet or exceed such standards.

Subtitle B--Grants Administration

SEC. 2021. [6 U.S.C. 611] ADMINISTRATION AND COORDINATION.

(a) Regional Coordination.--The Administrator shall ensure that-- (1) all recipients of grants administered by the Department to prevent, prepare for, protect against, or respond to natural disasters, acts of terrorism, or other man-made disasters (excluding assistance provided under section 203, title IV, or title V of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133, 5170 et seq., and 5191 et seq.)) coordinate, as appropriate, their prevention, preparedness, and protection efforts with neighboring State, local, and tribal governments; and (2) all high-risk urban areas and other recipients of grants administered by the Department to prevent, prepare for, protect against, or respond to natural disasters, acts of terrorism, or other man-made disasters (excluding assistance provided under section 203, title IV, or title V of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133, 5170 et seq., and 5191 et seq.)) that include or substantially affect parts or all of more than 1 State coordinate, as appropriate, across State boundaries, including, where appropriate, through the use of regional working groups and requirements for regional plans. (b) Planning Committees.-- (1) In general.--Any State or high-risk urban area receiving a grant under section 2003 or 2004 shall establish a planning committee to assist in preparation and revision of the State, regional, or local homeland security plan and to assist in determining effective funding priorities for grants under sections 2003 and 2004. (2) Composition.-- (A) In general.--The planning committee shall include representatives of significant stakeholders, including-- (i) local and tribal government officials; and (ii) emergency response providers, which shall include representatives of the fire service, law enforcement, emergency medical response, and emergency managers. (B) Geographic representation.--The members of the planning committee shall be a representative group of individuals from the counties, cities, towns, and Indian tribes within the State or high-risk urban area, including, as appropriate, representatives of rural, high-population, and high-threat jurisdictions. (3) Existing planning committees.--Nothing in this subsection may be construed to require that any State or high-risk urban area create a planning committee if that State or high-risk urban area has established and uses a multijurisdictional planning committee or commission that meets the requirements of this subsection. (c) Interagency Coordination.-- (1) In general.--Not later than 12 months after the date of enactment of the Implementing Recommendations of the 9/11 Commission Act of 2007, the Secretary (acting through the Administrator), the Attorney General, the Secretary of Health and Human Services, and the heads of other agencies providing assistance to State, local, and tribal governments for preventing, preparing for, protecting against, and responding to natural disasters, acts of terrorism, and other man- made disasters, shall jointly-- (A) compile a comprehensive list of Federal grant programs for State, local, and tribal governments for preventing, preparing for, protecting against, and responding to natural disasters, acts of terrorism, and other man- made disasters; (B) compile the planning, reporting, application, and other requirements and guidance for the grant programs described in subparagraph (A); (C) develop recommendations, as appropriate, to-- (i) eliminate redundant and duplicative requirements for State, local, and tribal governments, including onerous application and ongoing reporting requirements; (ii) ensure accountability of the programs to the intended purposes of such programs; (iii) coordinate allocation of grant funds to avoid duplicative or inconsistent purchases by the recipients; (iv) make the programs more accessible and user friendly to applicants; and (v) ensure the programs are coordinated to enhance the overall preparedness of the Nation; (D) submit the information and recommendations under subparagraphs (A), (B), and (C) to the appropriate committees of Congress; and (E) provide the appropriate committees of Congress, the Comptroller General, and any officer or employee of the Government Accountability Office with full access to any information collected or reviewed in preparing the submission under subparagraph (D). (2) Scope of task.--Nothing in this subsection shall authorize the elimination, or the alteration of the purposes, as delineated by statute, regulation, or guidance, of any grant program that exists on the date of the enactment of the Implementing Recommendations of the 9/11 Commission Act of 2007, nor authorize the review or preparation of proposals on the elimination, or the alteration of such purposes, of any such grant program. (d) Sense of Congress.--It is the sense of Congress that, in order to ensure that the Nation is most effectively able to prevent, prepare for, protect against, and respond to all hazards, including natural disasters, acts of terrorism, and other man-made disasters-- (1) the Department should administer a coherent and coordinated system of both terrorism-focused and all- hazards grants; (2) there should be a continuing and appropriate balance between funding for terrorism-focused and all- hazards preparedness, as reflected in the authorizations of appropriations for grants under the amendments made by titles I and II, as applicable, of the Implementing Recommendations of the 9/11 Commission Act of 2007; and (3) with respect to terrorism-focused grants, it is necessary to ensure both that the target capabilities of the highest risk areas are achieved quickly and that basic levels of preparedness, as measured by the attainment of target capabilities, are achieved nationwide.

SEC. 2022. [6 U.S.C. 612] ACCOUNTABILITY.

(a) Audits of Grant Programs.-- (1) Compliance requirements.-- (A) Audit requirement.--Each recipient of a grant administered by the Department that expends not less than $500,000 in Federal funds during its fiscal year shall submit to the Administrator a copy of the organization-wide financial and compliance audit report required under chapter 75 of title 31, United States Code. (B) Access to information.--The Department and each recipient of a grant administered by the Department shall provide the Comptroller General and any officer or employee of the Government Accountability Office with full access to information regarding the activities carried out related to any grant administered by the Department. (C) Improper payments.--Consistent with the Improper Payments Information Act of 2002 (31 U.S.C. 3321 note), for each of the grant programs under sections 2003 and 2004 of this title and section 662 of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 762), the Administrator shall specify policies and procedures for-- (i) identifying activities funded under any such grant program that are susceptible to significant improper payments; and (ii) reporting any improper payments to the Department. (2) Agency program review.-- (A) In general.--Not less than once every 2 years, the Administrator shall conduct, for each State and high-risk urban area receiving a grant administered by the Department, a programmatic and financial review of all grants awarded by the Department to prevent, prepare for, protect against, or respond to natural disasters, acts of terrorism, or other man-made disasters, excluding assistance provided under section 203, title IV, or title V of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133, 5170 et seq., and 5191 et seq.). (B) Contents.--Each review under subparagraph (A) shall, at a minimum, examine-- (i) whether the funds awarded were used in accordance with the law, program guidance, and State homeland security plans or other applicable plans; and (ii) the extent to which funds awarded enhanced the ability of a grantee to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other man-made disasters. (C) Authorization of appropriations.--In addition to any other amounts authorized to be appropriated to the Administrator, there are authorized to be appropriated to the Administrator for reviews under this paragraph-- (i) $8,000,000 for each of fiscal years 2008, 2009, and 2010; and (ii) such sums as are necessary for fiscal year 2011, and each fiscal year thereafter. (3) Office of inspector general performance audits.-- (A) In general.--In order to ensure the effective and appropriate use of grants administered by the Department, the Inspector General of the Department each year shall conduct audits of a sample of States and high- risk urban areas that receive grants administered by the Department to prevent, prepare for, protect against, or respond to natural disasters, acts of terrorism, or other man-made disasters, excluding assistance provided under section 203, title IV, or title V of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133, 5170 et seq., and 5191 et seq.). (B) Determining samples.--The sample selected for audits under subparagraph (A) shall be-- (i) of an appropriate size to-- (I) assess the overall integrity of the grant programs described in subparagraph (A); and (II) act as a deterrent to financial mismanagement; and (ii) selected based on-- (I) the size of the grants awarded to the recipient; (II) the past grant management performance of the recipient; (III) concerns identified by the Administrator, including referrals from the Administrator; and (IV) such other factors as determined by the Inspector General of the Department. (C) Comprehensive auditing.--During the 7- year period beginning on the date of enactment of the Implementing Recommendations of the 9/11 Commission Act of 2007, the Inspector General of the Department shall conduct not fewer than 1 audit of each State that receives funds under a grant under section 2003 or 2004. (D) Report by the inspector general.-- (i) In general.--The Inspector General of the Department shall submit to the appropriate committees of Congress an annual consolidated report regarding the audits completed during the fiscal year before the date of that report. (ii) Contents.--Each report submitted under clause (i) shall describe, for the fiscal year before the date of that report-- (I) the audits conducted under subparagraph (A); (II) the findings of the Inspector General with respect to the audits conducted under subparagraph (A); (III) whether the funds awarded were used in accordance with the law, program guidance, and State homeland security plans and other applicable plans; and (IV) the extent to which funds awarded enhanced the ability of a grantee to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism and other man-made disasters. (iii) Deadline.--For each year, the report required under clause (i) shall be submitted not later than December 31. (E) Public availability on website.--The Inspector General of the Department shall make each audit conducted under subparagraph (A) available on the website of the Inspector General, subject to redaction as the Inspector General determines necessary to protect classified and other sensitive information. (F) Provision of information to administrator.--The Inspector General of the Department shall provide to the Administrator any findings and recommendations from audits conducted under subparagraph (A). (G) Evaluation of grants management and oversight.--Not later than 1 year after the date of enactment of the Implementing Recommendations of the 9/11 Commission Act of 2007, the Inspector General of the Department shall review and evaluate the grants management and oversight practices of the Federal Emergency Management Agency, including assessment of and recommendations relating to-- (i) the skills, resources, and capabilities of the workforce; and (ii) any additional resources and staff necessary to carry out such management and oversight. (H) Authorization of appropriations.--In addition to any other amounts authorized to be appropriated to the Inspector General of the Department, there are authorized to be appropriated to the Inspector General of the Department for audits under subparagraph (A)-- (i) $8,500,000 for each of fiscal years 2008, 2009, and 2010; and (ii) such sums as are necessary for fiscal year 2011, and each fiscal year thereafter. (4) Performance assessment.--In order to ensure that States and high-risk urban areas are using grants administered by the Department appropriately to meet target capabilities and preparedness priorities, the Administrator shall-- (A) ensure that any such State or high-risk urban area conducts or participates in exercises under section 648(b) of the Post- Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 748(b)); (B) use performance metrics in accordance with the comprehensive assessment system under section 649 of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 749) and ensure that any such State or high-risk urban area regularly tests its progress against such metrics through the exercises required under subparagraph (A); (C) use the remedial action management program under section 650 of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 750); and (D) ensure that each State receiving a grant administered by the Department submits a report to the Administrator on its level of preparedness, as required by section 652(c) of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 752(c)). (5) Consideration of assessments.--In conducting program reviews and performance audits under paragraphs (2) and (3), the Administrator and the Inspector General of the Department shall take into account the performance assessment elements required under paragraph (4). (6) Recovery audits.--The Administrator shall conduct a recovery audit (as that term is defined by the Director of the Office of Management and Budget under section 3561 of title 31, United States Code) for any grant administered by the Department with a total value of not less than $1,000,000, if the Administrator finds that-- (A) a financial audit has identified improper payments that can be recouped; and (B) it is cost effective to conduct a recovery audit to recapture the targeted funds. (7) Remedies for noncompliance.-- (A) In general.--If, as a result of a review or audit under this subsection or otherwise, the Administrator finds that a recipient of a grant under this title has failed to substantially comply with any provision of law or with any regulations or guidelines of the Department regarding eligible expenditures, the Administrator shall-- (i) reduce the amount of payment of grant funds to the recipient by an amount equal to the amount of grants funds that were not properly expended by the recipient; (ii) limit the use of grant funds to programs, projects, or activities not affected by the failure to comply; (iii) refer the matter to the Inspector General of the Department for further investigation; (iv) terminate any payment of grant funds to be made to the recipient; or (v) take such other action as the Administrator determines appropriate. (B) Duration of penalty.--The Administrator shall apply an appropriate penalty under subparagraph (A) until such time as the Administrator determines that the grant recipient is in full compliance with the law and with applicable guidelines or regulations of the Department. (b) Reports by Grant Recipients.-- (1) Quarterly reports on homeland security spending.-- (A) In general.--As a condition of receiving a grant under section 2003 or 2004, a State, high-risk urban area, or directly eligible tribe shall, not later than 30 days after the end of each Federal fiscal quarter, submit to the Administrator a report on activities performed using grant funds during that fiscal quarter. (B) Contents.--Each report submitted under subparagraph (A) shall at a minimum include, for the applicable State, high-risk urban area, or directly eligible tribe, and each subgrantee thereof-- (i) the amount obligated to that recipient under section 2003 or 2004 in that quarter; (ii) the amount of funds received and expended under section 2003 or 2004 by that recipient in that quarter; and (iii) a summary description of expenditures made by that recipient using such funds, and the purposes for which such expenditures were made. (C) End-of-year report.--The report submitted under subparagraph (A) by a State, high-risk urban area, or directly eligible tribe relating to the last quarter of any fiscal year shall include-- (i) the amount and date of receipt of all funds received under the grant during that fiscal year; (ii) the identity of, and amount provided to, any subgrantee for that grant during that fiscal year; (iii) the amount and the dates of disbursements of all such funds expended in compliance with section 2021(a)(1) or under mutual aid agreements or other sharing arrangements that apply within the State, high-risk urban area, or directly eligible tribe, as applicable, during that fiscal year; and (iv) how the funds were used by each recipient or subgrantee during that fiscal year. (2) Annual report.--Any State applying for a grant under section 2004 shall submit to the Administrator annually a State preparedness report, as required by section 652(c) of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 752(c)). (c) Reports by the Administrator.-- (1) Federal preparedness report.--The Administrator shall submit to the appropriate committees of Congress annually the Federal Preparedness Report required under section 652(a) of the Post-Katrina Emergency Management Reform Act of 2006 (6 U.S.C. 752(a)). (2) Risk assessment.-- (A) In general.--For each fiscal year, the Administrator shall provide to the appropriate committees of Congress a detailed and comprehensive explanation of the methodologies used to calculate risk and compute the allocation of funds for grants administered by the Department, including-- (i) all variables included in the risk assessment and the weights assigned to each such variable; (ii) an explanation of how each such variable, as weighted, correlates to risk, and the basis for concluding there is such a correlation; and (iii) any change in the methodologies from the previous fiscal year, including changes in variables considered, weighting of those variables, and computational methods. (B) Classified annex.--The information required under subparagraph (A) shall be provided in unclassified form to the greatest extent possible, and may include a classified annex if necessary. (C) Deadline.--For each fiscal year, the information required under subparagraph (A) shall be provided on the earlier of-- (i) October 31; or (ii) 30 days before the issuance of any program guidance for grants administered by the Department. (3) Tribal funding report.--At the end of each fiscal year, the Administrator shall submit to the appropriate committees of Congress a report setting forth the amount of funding provided during that fiscal year to Indian tribes under any grant program administered by the Department, whether provided directly or through a subgrant from a State or high- risk urban area.