the designated officer under this clause (hereinafter referred to in this section as a "selected entity'') shall not perform certifications under this subsection. (ii) Contents.—A selected entity shall manage the accreditation process and oversee the certification process in accordance with the program established under this subsection and accredit qualified third parties to carry out the certification program established under this subsection. (B) Procedures and requirements for accreditation and certification.— (i) In general.—Any selected entity shall collaborate to develop procedures and requirements for the accreditation and certification processes under this subsection, in accordance with the program established under this subsection and guidelines developed under paragraph (2)(A)(ii). (ii) Contents and use.—The procedures and requirements developed under clause (i) shall— (I) ensure reasonable uniformity in any accreditation and certification processes if there is more than one selected entity; and (II) be used by any selected entity in conducting accreditations and overseeing the certification process under this subsection. (iii) Disagreement.—Any disagreement among selected entities in developing procedures under clause (i) shall be resolved by the designated officer. (C) Designation.—A selected entity may accredit any qualified third party to carry out the certification process under this subsection. (D) Disadvantaged business involvement.—In accrediting qualified third parties to carry out the certification process under this subsection, a selected entity shall ensure, to the extent practicable, that the third parties include qualified small, minority, women-owned, or disadvantaged business concerns when appropriate. The term "disadvantaged business concern'' means a small business that is owned and controlled by socially and economically disadvantaged individuals, as defined in section 124 of title 13, United States Code of Federal Regulations. (E) Treatment of other certifications.—At the request of any entity seeking certification, any selected entity may consider, as appropriate, other relevant certifications acquired by the entity seeking certification. If the selected entity determines that such other certifications are sufficient to meet the certification requirement or aspects of the certification requirement under this section, the selected entity may give credit to the entity seeking certification, as appropriate, to avoid unnecessarily duplicative certification requirements. (F) Third parties.—To be accredited under subparagraph (C), a third party shall— (i) demonstrate that the third party has the ability to certify private sector entities in accordance with the procedures and requirements developed under subparagraph (B); (ii) agree to perform certifications in accordance with such procedures and requirements; (iii) agree not to have any beneficial interest in or any direct or indirect control over— (I) a private sector entity for which that third party conducts a certification under this subsection; or (II) any organization that provides preparedness consulting services to private sector entities; (iv) agree not to have any other conflict of interest with respect to any private sector entity for which that third party conducts a certification under this subsection; (v) maintain liability insurance coverage at policy limits in accordance with the requirements developed under subparagraph (B); and (vi) enter into an agreement with the selected entity accrediting that third party to protect any proprietary information of a private sector entity obtained under this subsection. (G) Monitoring.— (i) In general.—The designated officer and any selected entity shall regularly monitor and inspect the operations of any third party conducting certifications under this subsection to ensure that the third party is complying with the procedures and requirements established under subparagraph (B) and all other applicable requirements. (ii) Revocation.—If the designated officer or any selected entity determines that a third party is not meeting the procedures or requirements established under subparagraph (B), the selected entity shall— (I) revoke the accreditation of that third party to conduct certifications under this subsection; and (II) review any certification conducted by that third party, as necessary and appropriate. (4) Annual review.— (A) In general.—The designated officer, in consultation with representatives of appropriate organizations that coordinate or facilitate the development and use of voluntary consensus standards, appropriate voluntary consensus standards development organizations, appropriate representatives of State and local governments, including emergency management officials, and each private sector advisory council created under section 102(f)(4), shall annually review the voluntary accreditation and certification program established under this subsection to ensure the effectiveness of such program (including the operations and management of such program by any selected entity and the selected entity's inclusion of qualified disadvantaged business concerns under paragraph (3)(D)) and make improvements and adjustments to the program as necessary and appropriate. (B) Review of standards.—Each review under subparagraph (A) shall include an assessment of the voluntary preparedness standard or standards used in the program under this subsection. (5) Voluntary participation.—Certification under this subsection shall be voluntary for any private sector entity. (6) Public listing.—The designated officer shall maintain and make public a listing of any private sector entity certified as being in compliance with the program established under this subsection, if that private sector entity consents to such listing. (c) Rule of Construction.—Nothing in this section may be construed as— (1) a requirement to replace any preparedness, emergency response, or business continuity standards, requirements, or best practices established— (A) under any other provision of federal law; or (B) by any sector-specific agency, as those agencies are defined under Homeland Security Presidential Directive-7; or (2) exempting any private sector entity seeking certification or meeting certification requirements under subsection (b) from compliance with all applicable statutes, regulations, directives, policies, and industry codes of practice.

TITLE VI—TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS

SEC. 601. [6 U.S.C. 331] TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL ORGANIZATIONS.

(a) Findings.—Congress finds the following: (1) Members of the Armed Forces of the United States defend the freedom and security of our Nation. (2) Members of the Armed Forces of the United States have lost their lives while battling the evils of terrorism around the world. (3) Personnel of the Central Intelligence Agency (CIA) charged with the responsibility of covert observation of terrorists around the world are often put in harm's way during their service to the United States. (4) Personnel of the Central Intelligence Agency have also lost their lives while battling the evils of terrorism around the world. (5) Employees of the Federal Bureau of Investigation (FBI) and other Federal agencies charged with domestic protection of the United States put their lives at risk on a daily basis for the freedom and security of our Nation. (6) United States military personnel, CIA personnel, FBI personnel, and other Federal agents in the service of the United States are patriots of the highest order. (7) CIA officer Johnny Micheal Spann became the first American to give his life for his country in the War on Terrorism declared by President George W. Bush following the terrorist attacks of September 11, 2001. (8) Johnny Micheal Spann left behind a wife and children who are very proud of the heroic actions of their patriot father. (9) Surviving dependents of members of the Armed Forces of the United States who lose their lives as a result of terrorist attacks or military operations abroad receive a $6,000 death benefit, plus a small monthly benefit. (10) The current system of compensating spouses and children of American patriots is inequitable and needs improvement. (b) Designation of Johnny Micheal Spann Patriot Trusts.— Any charitable corporation, fund, foundation, or trust (or separate fund or account thereof) which otherwise meets all applicable requirements under law with respect to charitable entities and meets the requirements described in subsection (c) shall be eligible to characterize itself as a "Johnny Micheal Spann Patriot Trust''. (c) Requirements for the Designation of Johnny Micheal Spann Patriot Trusts.—The requirements described in this subsection are as follows: (1) Not taking into account funds or donations reasonably necessary to establish a trust, at least 85 percent of all funds or donations (including any earnings on the investment of such funds or donations) received or collected by any Johnny Micheal Spann Patriot Trust must be distributed to (or, if placed in a private foundation, held in trust for) surviving spouses, children, or dependent parents, grandparents, or siblings of 1 or more of the following: (A) members of the Armed Forces of the United States; (B) personnel, including contractors, of elements of the intelligence community, as defined in section 3(4) of the National Security Act of 1947; (C) employees of the Federal Bureau of Investigation; and (D) officers, employees, or contract employees of the United States Government, whose deaths occur in the line of duty and arise out of terrorist attacks, military operations, intelligence operations, or law enforcement operations or accidents connected with activities occurring after September 11, 2001, and related to domestic or foreign efforts to curb international terrorism, including the Authorization for Use of Military Force (Public Law 107-40; 115 Stat. 224). (2) Other than funds or donations reasonably necessary to establish a trust, not more than 15 percent of all funds or donations (or 15 percent of annual earnings on funds invested in a private foundation) may be used for administrative purposes. (3) No part of the net earnings of any Johnny Micheal Spann Patriot Trust may inure to the benefit of any individual based solely on the position of such individual as a shareholder, an officer or employee of such Trust. (4) None of the activities of any Johnny Micheal Spann Patriot Trust shall be conducted in a manner inconsistent with any law that prohibits attempting to influence legislation. (5) No Johnny Micheal Spann Patriot Trust may participate in or intervene in any political campaign on behalf of (or in opposition to) any candidate for public office, including by publication or distribution of statements. (6) Each Johnny Micheal Spann Patriot Trust shall comply with the instructions and directions of the Director of Central Intelligence, the Attorney General, or the Secretary of Defense relating to the protection of intelligence sources and methods, sensitive law enforcement information, or other sensitive national security information, including methods for confidentially disbursing funds. (7) Each Johnny Micheal Spann Patriot Trust that receives annual contributions totaling more than $1,000,000 must be audited annually by an independent certified public accounting firm. Such audits shall be filed with the Internal Revenue Service, and shall be open to public inspection, except that the conduct, filing, and availability of the audit shall be consistent with the protection of intelligence sources and methods, of sensitive law enforcement information, and of other sensitive national security information. (8) Each Johnny Micheal Spann Patriot Trust shall make distributions to beneficiaries described in paragraph (1) at least once every calendar year, beginning not later than 12 months after the formation of such Trust, and all funds and donations received and earnings not placed in a private foundation dedicated to such beneficiaries must be distributed within 36 months after the end of the fiscal year in which such funds, donations, and earnings are received. (9)(A) When determining the amount of a distribution to any beneficiary described in paragraph (1), a Johnny Micheal Spann Patriot Trust should take into account the amount of any collateral source compensation that the beneficiary has received or is entitled to receive as a result of the death of an individual described in paragraph (1). (B) Collateral source compensation includes all compensation from collateral sources, including life insurance, pension funds, death benefit programs, and payments by Federal, State, or local governments related to the death of an individual described in paragraph (1). (d) Treatment of Johnny Micheal Spann Patriot Trusts.—Each Johnny Micheal Spann Patriot Trust shall refrain from conducting the activities described in clauses (i) and (ii) of section 301(20)(A) of the Federal Election Campaign Act of 1971 so that a general solicitation of funds by an individual described in paragraph (1) of section 323(e) of such Act will be permissible if such solicitation meets the requirements of paragraph (4)(A) of such section. (e) Notification of Trust Beneficiaries.—Notwithstanding any other provision of law, and in a manner consistent with the protection of intelligence sources and methods and sensitive law enforcement information, and other sensitive national security information, the Secretary of Defense, the Director of the Federal Bureau of Investigation, or the Director of Central Intelligence, or their designees, as applicable, may forward information received from an executor, administrator, or other legal representative of the estate of a decedent described in subparagraph (A), (B), (C), or (D) of subsection (c)(1), to a Johnny Micheal Spann Patriot Trust on how to contact individuals eligible for a distribution under subsection (c)(1) for the purpose of providing assistance from such Trust: Provided, That, neither forwarding nor failing to forward any information under this subsection shall create any cause of action against any Federal department, agency, officer, agent, or employee. (f) Regulations.—Not later than 90 days after the date of enactment of this Act, the Secretary of Defense, in coordination with the Attorney General, the Director of the Federal Bureau of Investigation, and the Director of Central Intelligence, shall prescribe regulations to carry out this section.

TITLE VII—MANAGEMENT

SEC. 701. [6 U.S.C. 341] UNDER SECRETARY FOR MANAGEMENT.

(a) In General.—The Under Secretary for Management shall serve as the Chief Management Officer and principal advisor to the Secretary on matters related to the management of the Department, including management integration and transformation in support of homeland security operations and programs. The Secretary, acting through the Under Secretary for Management, shall be responsible for the management and administration of the Department, including the following: (1) The budget, appropriations, expenditures of funds, accounting, and finance. (2) Procurement. (3) Human resources and personnel. (4) Information technology and communications systems. (5) Facilities, property, equipment, and other material resources. (6) Security for personnel, information technology and communications systems, facilities, property, equipment, and other material resources. (7) Strategic management planning and annual performance planning and identification and tracking of performance measures relating to the responsibilities of the Department. (8) Grants and other assistance management programs. (9) The management integration and transformation process, as well as the transition process, to ensure an efficient and orderly consolidation of functions and personnel in the Department and transition, including— (A) the development of a management integration strategy for the Department, and (B) before December 1 of any year in which a Presidential election is held, the development of a transition and succession plan, to be made available to the incoming Secretary and Under Secretary for Management, to guide the transition of management functions to a new Administration. (10) The conduct of internal audits and management analyses of the programs and activities of the Department. (11) Any other management duties that the Secretary may designate. (b) Immigration.— (1) In general.—In addition to the responsibilities described in subsection (a), the Under Secretary for Management shall be responsible for the following: (A) Maintenance of all immigration statistical information of the Bureau of Border Security and the Bureau of Citizenship and Immigration Services. Such statistical information shall include information and statistics of the type contained in the publication entitled "Statistical Yearbook of the Immigration and Naturalization Service'' prepared by the Immigration and Naturalization Service (as in effect immediately before the date on which the transfer of functions specified under section 441 takes effect), including region-by-region statistics on the aggregate number of applications and petitions filed by an alien (or filed on behalf of an alien) and denied by such bureau, and the reasons for such denials, disaggregated by category of denial and application or petition type. (B) Establishment of standards of reliability and validity for immigration statistics collected by such bureaus. (2) Transfer of functions.—In accordance with title XV, there shall be transferred to the Under Secretary for Management all functions performed immediately before such transfer occurs by the Statistics Branch of the Office of Policy and Planning of the Immigration and Naturalization Service with respect to the following programs: (A) The Border Patrol program. (B) The detention and removal program. (C) The intelligence program. (D) The investigations program. (E) The inspections program. (F) Adjudication of immigrant visa petitions. (G) Adjudication of naturalization petitions. (H) Adjudication of asylum and refugee applications. (I) Adjudications performed at service centers. (J) All other adjudications performed by the Immigration and Naturalization Service. (c) Appointment and Evaluation.—The Under Secretary for Management shall— (1) be appointed by the President, by and with the advice and consent of the Senate, from among persons who have— (A) extensive executive level leadership and management experience in the public or private sector; (B) strong leadership skills; (C) a demonstrated ability to manage large and complex organizations; and (D) a proven record in achieving positive operational results; (2) enter into an annual performance agreement with the Secretary that shall set forth measurable individual and organizational goals; and (3) be subject to an annual performance evaluation by the Secretary, who shall determine as part of each such evaluation whether the Under Secretary for Management has made satisfactory progress toward achieving the goals set out in the performance agreement required under paragraph (2).

SEC. 702. [6 U.S.C. 342] CHIEF FINANCIAL OFFICER.

(a) In General.—The Chief Financial Officer shall perform functions as specified in chapter 9 of title 31, United States Code, and, with respect to all such functions and other responsibilities that may be assigned to the Chief Financial Officer from time to time, shall also report to the Under Secretary for Management. (b) Program Analysis and Evaluation Function.— (1) Establishment of office of program analysis and evaluation.—Not later than 90 days after the date of enactment of this subsection, the Secretary shall establish an Office of Program Analysis and Evaluation within the Department (in this section referred to as the "Office''). (2) Responsibilities.—The Office shall perform the following functions: (A) Analyze and evaluate plans, programs, and budgets of the Department in relation to United States homeland security objectives, projected threats, vulnerability assessments, estimated costs, resource constraints, and the most recent homeland security strategy developed pursuant to section 874(b)(2). (B) Develop and perform analyses and evaluations of alternative plans, programs, personnel levels, and budget submissions for the Department in relation to United States homeland security objectives, projected threats, vulnerability assessments, estimated costs, resource constraints, and the most recent homeland security strategy developed pursuant to section 874(b)(2). (C) Establish policies for, and oversee the integration of, the planning, programming, and budgeting system of the Department. (D) Review and ensure that the Department meets performance-based budget requirements established by the Office of Management and Budget. (E) Provide guidance for, and oversee the development of, the Future Years Homeland Security Program of the Department, as specified under section 874. (F) Ensure that the costs of Department programs, including classified programs, are presented accurately and completely. (G) Oversee the preparation of the annual performance plan for the Department and the program and performance section of the annual report on program performance for the Department, consistent with sections 1115 and 1116, respectively, of title 31, United States Code. (H) Provide leadership in developing and promoting improved analytical tools and methods for analyzing homeland security planning and the allocation of resources. (I) Any other responsibilities delegated by the Secretary consistent with an effective program analysis and evaluation function. (3) Director of program analysis and evaluation.— There shall be a Director of Program Analysis and Evaluation, who— (A) shall be a principal staff assistant to the Chief Financial Officer of the Department for program analysis and evaluation; and (B) shall report to an official no lower than the Chief Financial Officer. (4) Reorganization.— (A) In general.—The Secretary may allocate or reallocate the functions of the Office, or discontinue the Office, in accordance with section 872(a). (B) Exemption from limitations.—Section 872(b) shall not apply to any action by the Secretary under this paragraph. (c) Notification Regarding Transfer or Reprogramming of Funds.—In any case in which appropriations available to the Department or any officer of the Department are transferred or reprogrammed and notice of such transfer or reprogramming is submitted to the Congress (including any officer, office, or Committee of the Congress), the Chief Financial Officer of the Department shall simultaneously submit such notice to the Select Committee on Homeland Security (or any successor to the jurisdiction of that committee) and the Committee on Government Reform of the House of Representatives, and to the Committee on Governmental Affairs of the Senate.

SEC. 703. [6 U.S.C. 343] CHIEF INFORMATION OFFICER.

(a) In General.—The Chief Information Officer shall report to the Secretary, or to another official of the Department, as the Secretary may direct. (b) Geospatial Information Functions.— (1) Definitions.—As used in this subsection: (A) Geospatial information.—The term "geospatial information'' means graphical or digital data depicting natural or manmade physical features, phenomena, or boundaries of the earth and any information related thereto, including surveys, maps, charts, remote sensing data, and images. (B) Geospatial technology.—The term "geospatial technology'' means any technology utilized by analysts, specialists, surveyors, photogrammetrists, hydrographers, geodesists, cartographers, architects, or engineers for the collection, storage, retrieval, or dissemination of geospatial information, including— (i) global satellite surveillance systems; (ii) global position systems; (iii) geographic information systems; (iv) mapping equipment; (v) geocoding technology; and (vi) remote sensing devices. (2) Office of geospatial management.— (A) Establishment.—The Office of Geospatial Management is established within the Office of the Chief Information Officer. (B) Geospatial information officer.— (i) Appointment.—The Office of Geospatial Management shall be administered by the Geospatial Information Officer, who shall be appointed by the Secretary and serve under the direction of the Chief Information Officer. (ii) Functions.—The Geospatial Information Officer shall assist the Chief Information Officer in carrying out all functions under this section and in coordinating the geospatial information needs of the Department. (C) Coordination of geospatial information.—The Chief Information Officer shall establish and carry out a program to provide for the efficient use of geospatial information, which shall include— (i) providing such geospatial information as may be necessary to implement the critical infrastructure protection programs; (ii) providing leadership and coordination in meeting the geospatial information requirements of those responsible for planning, prevention, mitigation, assessment and response to emergencies, critical infrastructure protection, and other functions of the Department; and (iii) coordinating with users of geospatial information within the Department to assure interoperability and prevent unnecessary duplication. (D) Responsibilities.—In carrying out this subsection, the responsibilities of the Chief Information Officer shall include— (i) coordinating the geospatial information needs and activities of the Department; (ii) implementing standards, as adopted by the Director of the Office of Management and Budget under the processes established under section 216 of the E-Government Act of 2002 (44 U.S.C. 3501 note), to facilitate the interoperability of geospatial information pertaining to homeland security among all users of such information within— (I) the Department; (II) State and local government; and (III) the private sector; (iii) coordinating with the Federal Geographic Data Committee and carrying out the responsibilities of the Department pursuant to Office of Management and Budget Circular A-16 and Executive Order 12906; and (iv) making recommendations to the Secretary and the Executive Director of the Office for State and Local Government Coordination and Preparedness on awarding grants to— (I) fund the creation of geospatial data; and (II) execute information sharing agreements regarding geospatial data with State, local, and tribal governments. (3) Authorization of appropriations.—There are authorized to be appropriated such sums as may be necessary to carry out this subsection for each fiscal year.

SEC. 704. [6 U.S.C. 344] CHIEF HUMAN CAPITAL OFFICER.

The Chief Human Capital Officer shall report to the Secretary, or to another official of the Department, as the Secretary may direct and shall ensure that all employees of the Department are informed of their rights and remedies under chapters 12 and 23 of title 5, United States Code, by— (1) participating in the 2302(c) Certification Program of the Office of Special Counsel; (2) achieving certification from the Office of Special Counsel of the Department's compliance with section 2302(c) of title 5, United States Code; and (3) informing Congress of such certification not later than 24 months after the date of enactment of this Act.

SEC. 705. [6 U.S.C. 345] ESTABLISHMENT OF OFFICER FOR CIVIL RIGHTS AND CIVIL LIBERTIES.

(a) In General.—The Officer for Civil Rights and Civil Liberties, who shall report directly to the Secretary, shall— (1) review and assess information concerning abuses of civil rights, civil liberties, and profiling on the basis of race, ethnicity, or religion, by employees and officials of the Department; (2) make public through the Internet, radio, television, or newspaper advertisements information on the responsibilities and functions of, and how to contact, the Officer; (3) assist the Secretary, directorates, and offices of the Department to develop, implement, and periodically review Department policies and procedures to ensure that the protection of civil rights and civil liberties is appropriately incorporated into Department programs and activities; (4) oversee compliance with constitutional, statutory, regulatory, policy, and other requirements relating to the civil rights and civil liberties of individuals affected by the programs and activities of the Department; (5) coordinate with the Privacy Officer to ensure that— (A) programs, policies, and procedures involving civil rights, civil liberties, and privacy considerations are addressed in an integrated and comprehensive manner; and (B) Congress receives appropriate reports regarding such programs, policies, and procedures; and (6) investigate complaints and information indicating possible abuses of civil rights or civil liberties, unless the Inspector General of the Department determines that any such complaint or information should be investigated by the Inspector General. (b) Report.—The Secretary shall submit to the President of the Senate, the Speaker of the House of Representatives, and the appropriate committees and subcommittees of Congress on an annual basis a report on the implementation of this section, including the use of funds appropriated to carry out this section, and detailing any allegations of abuses described under subsection (a)(1) and any actions taken by the Department in response to such allegations.

SEC. 706. [6 U.S.C. 346] CONSOLIDATION AND CO-LOCATION OF OFFICES.

Not later than 1 year after the date of the enactment of this Act, the Secretary shall develop and submit to Congress a plan for consolidating and co-locating— (1) any regional offices or field offices of agencies that are transferred to the Department under this Act, if such officers are located in the same municipality; and (2) portions of regional and field offices of other Federal agencies, to the extent such offices perform functions that are transferred to the Secretary under this Act.

SEC. 707. [6 U.S.C. 347] QUADRENNIAL HOMELAND SECURITY REVIEW.

(a) Requirement.— (1) Quadrennial reviews required.—In fiscal year 2009, and every 4 years thereafter, the Secretary shall conduct a review of the homeland security of the Nation (in this section referred to as a "quadrennial homeland security review''). (2) Scope of reviews.—Each quadrennial homeland security review shall be a comprehensive examination of the homeland security strategy of the Nation, including recommendations regarding the long-term strategy and priorities of the Nation for homeland security and guidance on the programs, assets, capabilities, budget, policies, and authorities of the Department. (3) Consultation.—The Secretary shall conduct each quadrennial homeland security review under this subsection in consultation with— (A) the heads of other Federal agencies, including the Attorney General, the Secretary of State, the Secretary of Defense, the Secretary of Health and Human Services, the Secretary of the Treasury, the Secretary of Agriculture, and the Director of National Intelligence; (B) key officials of the Department; and (C) other relevant governmental and nongovernmental entities, including State, local, and tribal government officials, members of Congress, private sector representatives, academics, and other policy experts. (4) Relationship with future years homeland security program.—The Secretary shall ensure that each review conducted under this section is coordinated with the Future Years Homeland Security Program required under section 874. (b) Contents of Review.—In each quadrennial homeland security review, the Secretary shall— (1) delineate and update, as appropriate, the national homeland security strategy, consistent with appropriate national and Department strategies, strategic plans, and Homeland Security Presidential Directives, including the National Strategy for Homeland Security, the National Response Plan, and the Department Security Strategic Plan; (2) outline and prioritize the full range of the critical homeland security mission areas of the Nation; (3) describe the interagency cooperation, preparedness of Federal response assets, infrastructure, budget plan, and other elements of the homeland security program and policies of the Nation associated with the national homeland security strategy, required to execute successfully the full range of missions called for in the national homeland security strategy described in paragraph (1) and the homeland security mission areas outlined under paragraph (2); (4) identify the budget plan required to provide sufficient resources to successfully execute the full range of missions called for in the national homeland security strategy described in paragraph (1) and the homeland security mission areas outlined under paragraph (2); (5) include an assessment of the organizational alignment of the Department with the national homeland security strategy referred to in paragraph (1) and the homeland security mission areas outlined under paragraph (2); and (6) review and assess the effectiveness of the mechanisms of the Department for executing the process of turning the requirements developed in the quadrennial homeland security review into an acquisition strategy and expenditure plan within the Department. (c) Reporting.— (1) In general.—Not later than December 31 of the year in which a quadrennial homeland security review is conducted, the Secretary shall submit to Congress a report regarding that quadrennial homeland security review. (2) Contents of report.—Each report submitted under paragraph (1) shall include— (A) the results of the quadrennial homeland security review; (B) a description of the threats to the assumed or defined national homeland security interests of the Nation that were examined for the purposes of that review; (C) the national homeland security strategy, including a prioritized list of the critical homeland security missions of the Nation; (D) a description of the interagency cooperation, preparedness of Federal response assets, infrastructure, budget plan, and other elements of the homeland security program and policies of the Nation associated with the national homeland security strategy, required to execute successfully the full range of missions called for in the applicable national homeland security strategy referred to in subsection (b)(1) and the homeland security mission areas outlined under subsection (b)(2); (E) an assessment of the organizational alignment of the Department with the applicable national homeland security strategy referred to in subsection (b)(1) and the homeland security mission areas outlined under subsection (b)(2), including the Department's organizational structure, management systems, budget and accounting systems, human resources systems, procurement systems, and physical and technical infrastructure; (F) a discussion of the status of cooperation among Federal agencies in the effort to promote national homeland security; (G) a discussion of the status of cooperation between the Federal Government and State, local, and tribal governments in preventing terrorist attacks and preparing for emergency response to threats to national homeland security; (H) an explanation of any underlying assumptions used in conducting the review; and (I) any other matter the Secretary considers appropriate. (3) Public availability.—The Secretary shall, consistent with the protection of national security and other sensitive matters, make each report submitted under paragraph (1) publicly available on the Internet website of the Department. (d) Authorization of Appropriations.—There are authorized to be appropriated such sums as may be necessary to carry out this section.

TITLE VIII—COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS

Subtitle A—Coordination with Non-Federal Entities

SEC. 801. [6 U.S.C. 361] OFFICE FOR STATE AND LOCAL GOVERNMENT COORDINATION.

(a) Establishment.—There is established within the Office of the Secretary the Office for State and Local Government Coordination, to oversee and coordinate departmental programs for and relationships with State and local governments. (b) Responsibilities.—The Office established under subsection (a) shall— (1) coordinate the activities of the Department relating to State and local government; (2) assess, and advocate for, the resources needed by State and local government to implement the national strategy for combating terrorism; (3) provide State and local government with regular information, research, and technical support to assist local efforts at securing the homeland; and (4) develop a process for receiving meaningful input from State and local government to assist the development of the national strategy for combating terrorism and other homeland security activities.

Subtitle B—Inspector General

[SEC. 811. REPEALED]

* * * * * * *

SEC. 812. LAW ENFORCEMENT POWERS OF INSPECTOR GENERAL AGENTS.

(a) * * * * * * * * * * (b) [5 U.S.C. app. 6 note] Promulgation of Initial Guidelines.— (1) Definition.—In this subsection, the term "memoranda of understanding'' means the agreements between the Department of Justice and the Inspector General offices described under section 6(e)(3) of the Inspector General Act of 1978 (5 U.S.C. App.) (as added by subsection (a) of this section) that— (A) are in effect on the date of enactment of this Act; and (B) authorize such offices to exercise authority that is the same or similar to the authority under section 6(e)(1) of such Act. (2) In general.—Not later than 180 days after the date of enactment of this Act, the Attorney General shall promulgate guidelines under section 6(e)(4) of the Inspector General Act of 1978 (5 U.S.C. App.) (as added by subsection (a) of this section) applicable to the Inspector General offices described under section 6(e)(3) of that Act. (3) Minimum requirements.—The guidelines promulgated under this subsection shall include, at a minimum, the operational and training requirements in the memoranda of understanding. (4) No lapse of authority.—The memoranda of understanding in effect on the date of enactment of this Act shall remain in effect until the guidelines promulgated under this subsection take effect. (c) [5 U.S.C. app. 6 note] Effective Dates.— (1) In general.—Subsection (a) shall take effect 180 days after the date of enactment of this Act. (2) Initial guidelines.—Subsection (b) shall take effect on the date of enactment of this Act.

Subtitle C—United States Secret Service

SEC. 821. [6 U.S.C. 381] FUNCTIONS TRANSFERRED.

In accordance with title XV, there shall be transferred to the Secretary the functions, personnel, assets, and obligations of the United States Secret Service, which shall be maintained as a distinct entity within the Department, including the functions of the Secretary of the Treasury relating thereto.

Subtitle D—Acquisitions

SEC. 831. [6 U.S.C. 391] RESEARCH AND DEVELOPMENT PROJECTS.

(a) Authority.—Until September 30, 2009 and subject to subsection (d), the Secretary may carry out a pilot program under which the Secretary may exercise the following authorities: (1) In general.—When the Secretary carries out basic, applied, and advanced research and development projects, including the expenditure of funds for such projects, the Secretary may exercise the same authority (subject to the same limitations and conditions) with respect to such research and projects as the Secretary of Defense may exercise under section 2371 of title 10, United States Code (except for subsections (b) and (f)), after making a determination that the use of a contract, grant, or cooperative agreement for such project is not feasible or appropriate. The annual report required under subsection (b) of this section, as applied to the Secretary by this paragraph, shall be submitted to the President of the Senate and the Speaker of the House of Representatives. (2) Prototype projects.—The Secretary may, under the authority of paragraph (1), carry out prototype projects in accordance with the requirements and conditions provided for carrying out prototype projects under section 845 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160). In applying the authorities of that section 845, subsection (c) of that section shall apply with respect to prototype projects under this paragraph, and the Secretary shall perform the functions of the Secretary of Defense under subsection (d) thereof. (b) Report.—Not later than 2 years after the effective date of this Act, and annually thereafter, the Comptroller General shall report to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate on— (1) whether use of the authorities described in subsection (a) attracts nontraditional Government contractors and results in the acquisition of needed technologies; and (2) if such authorities were to be made permanent, whether additional safeguards are needed with respect to the use of such authorities. (c) Procurement of Temporary and Intermittent Services.— The Secretary may— (1) procure the temporary or intermittent services of experts or consultants (or organizations thereof) in accordance with section 3109(b) of title 5, United States Code; and (2) whenever necessary due to an urgent homeland security need, procure temporary (not to exceed 1 year) or intermittent personal services, including the services of experts or consultants (or organizations thereof), without regard to the pay limitations of such section 3109. (d) Additional Requirements.— (1) In general.—The authority of the Secretary under this section shall terminate September 30, 2009, unless before that date the Secretary— (A) issues policy guidance detailing the appropriate use of that authority; and (B) provides training to each employee that is authorized to exercise that authority. (2) Report.—The Secretary shall provide an annual report to the Committees on Appropriations of the Senate and the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Homeland Security of the House of Representatives detailing the projects for which the authority granted by subsection (a) was used, the rationale for its use, the funds spent using that authority, the outcome of each project for which that authority was used, and the results of any audits of such projects. (e) Definition of Nontraditional Government Contractor.—In this section, the term "nontraditional Government contractor'' has the same meaning as the term "nontraditional defense contractor'' as defined in section 845(e) of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103- 160; 10 U.S.C. 2371 note).

SEC. 832. [6 U.S.C. 392] PERSONAL SERVICES.

The Secretary— (1) may procure the temporary or intermittent services of experts or consultants (or organizations thereof) in accordance with section 3109 of title 5, United States Code; and (2) may, whenever necessary due to an urgent homeland security need, procure temporary (not to exceed 1 year) or intermittent personal services, including the services of experts or consultants (or organizations thereof), without regard to the pay limitations of such section 3109.

SEC. 833. [6 U.S.C. 393] SPECIAL STREAMLINED ACQUISITION AUTHORITY.

(a) Authority.— (1) In general.—The Secretary may use the authorities set forth in this section with respect to any procurement made during the period beginning on the effective date of this Act and ending September 30, 2007, if the Secretary determines in writing that the mission of the Department (as described in section 101) would be seriously impaired without the use of such authorities. (2) Delegation.—The authority to make the determination described in paragraph (1) may not be delegated by the Secretary to an officer of the Department who is not appointed by the President with the advice and consent of the Senate. (3) Notification.—Not later than the date that is 7 days after the date of any determination under paragraph (1), the Secretary shall submit to the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate— (A) notification of such determination; and (B) the justification for such determination. (b) Increased Micro-Purchase Threshold For Certain Procurements.— (1) In general.—The Secretary may designate certain employees of the Department to make procurements described in subsection (a) for which in the administration of section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428) the amount specified in subsections (c), (d), and (f) of such section 32 shall be deemed to be $7,500. (2) Number of employees.—The number of employees designated under paragraph (1) shall be— (A) fewer than the number of employees of the Department who are authorized to make purchases without obtaining competitive quotations, pursuant to section 32(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 428(c)); (B) sufficient to ensure the geographic dispersal of the availability of the use of the procurement authority under such paragraph at locations reasonably considered to be potential terrorist targets; and (C) sufficiently limited to allow for the careful monitoring of employees designated under such paragraph. (3) Review.—Procurements made under the authority of this subsection shall be subject to review by a designated supervisor on not less than a monthly basis. The supervisor responsible for the review shall be responsible for no more than 7 employees making procurements under this subsection. (c) Simplified Acquisition Procedures.— (1) In general.—With respect to a procurement described in subsection (a), the Secretary may deem the simplified acquisition threshold referred to in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)) to be— (A) in the case of a contract to be awarded and performed, or purchase to be made, within the United States, $200,000; and (B) in the case of a contract to be awarded and performed, or purchase to be made, outside of the United States, $300,000. * * * * * * * (d) Application of Certain Commercial Items Authorities.— (1) In general.—With respect to a procurement described in subsection (a), the Secretary may deem any item or service to be a commercial item for the purpose of Federal procurement laws. (2) Limitation.—The $5,000,000 limitation provided in section 31(a)(2) of the Office of Federal Procurement Policy Act (41 U.S.C. 427(a)(2)) and section 303(g)(1)(B) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(B)) shall be deemed to be $7,500,000 for purposes of property or services under the authority of this subsection. (3) Certain authority.—Authority under a provision of law referred to in paragraph (2) that expires under section 4202(e) of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 10 U.S.C. 2304 note) shall, notwithstanding such section, continue to apply for a procurement described in subsection (a). (e) Report.—Not later than 180 days after the end of fiscal year 2005, the Comptroller General shall submit to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives a report on the use of the authorities provided in this section. The report shall contain the following: (1) An assessment of the extent to which property and services acquired using authorities provided under this section contributed to the capacity of the Federal workforce to facilitate the mission of the Department as described in section 101. (2) An assessment of the extent to which prices for property and services acquired using authorities provided under this section reflected the best value. (3) The number of employees designated by each executive agency under subsection (b)(1). (4) An assessment of the extent to which the Department has implemented subsections (b)(2) and (b)(3) to monitor the use of procurement authority by employees designated under subsection (b)(1). (5) Any recommendations of the Comptroller General for improving the effectiveness of the implementation of the provisions of this section.

SEC. 834. [6 U.S.C. 394] UNSOLICITED PROPOSALS.

(a) Regulations Required.—Within 1 year of the date of enactment of this Act, the Federal Acquisition Regulation shall be revised to include regulations with regard to unsolicited proposals. (b) Content of Regulations.—The regulations prescribed under subsection (a) shall require that before initiating a comprehensive evaluation, an agency contact point shall consider, among other factors, that the proposal— (1) is not submitted in response to a previously published agency requirement; and (2) contains technical and cost information for evaluation and overall scientific, technical or socioeconomic merit, or cost-related or price-related factors.

SEC. 835. [6 U.S.C. 395] PROHIBITION ON CONTRACTS WITH CORPORATE EXPATRIATES.

(a) In General.—The Secretary may not enter into any contract with a foreign incorporated entity which is treated as an inverted domestic corporation under subsection (b), or any subsidiary of such an entity. (b) Inverted Domestic Corporation.—For purposes of this section, a foreign incorporated entity shall be treated as an inverted domestic corporation if, pursuant to a plan (or a series of related transactions)— (1) the entity completes before, on, or after the date of enactment of this Act, the direct or indirect acquisition of substantially all of the properties held directly or indirectly by a domestic corporation or substantially all of the properties constituting a trade or business of a domestic partnership; (2) after the acquisition at least 80 percent of the stock (by vote or value) of the entity is held— (A) in the case of an acquisition with respect to a domestic corporation, by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation; or (B) in the case of an acquisition with respect to a domestic partnership, by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership; and (3) the expanded affiliated group which after the acquisition includes the entity does not have substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group. (c) Definitions and Special Rules.— (1) Rules for application of subsection (b).—In applying subsection (b) for purposes of subsection (a), the following rules shall apply: (A) Certain stock disregarded.—There shall not be taken into account in determining ownership for purposes of subsection (b)(2)— (i) stock held by members of the expanded affiliated group which includes the foreign incorporated entity; or (ii) stock of such entity which is sold in a public offering related to the acquisition described in subsection (b)(1). (B) Plan deemed in certain cases.—If a foreign incorporated entity acquires directly or indirectly substantially all of the properties of a domestic corporation or partnership during the 4-year period beginning on the date which is 2 years before the ownership requirements of subsection (b)(2) are met, such actions shall be treated as pursuant to a plan. (C) Certain transfers disregarded.—The transfer of properties or liabilities (including by contribution or distribution) shall be disregarded if such transfers are part of a plan a principal purpose of which is to avoid the purposes of this section. (D) Special rule for related partnerships.—For purposes of applying subsection (b) to the acquisition of a domestic partnership, except as provided in regulations, all domestic partnerships which are under common control (within the meaning of section 482 of the Internal Revenue Code of 1986) shall be treated as I partnership. (E) Treatment of certain rights.—The Secretary shall prescribe such regulations as may be necessary to— (i) treat warrants, options, contracts to acquire stock, convertible debt instruments, and other similar interests as stock; and (ii) treat stock as not stock. (2) Expanded affiliated group.—The term "expanded affiliated group'' means an affiliated group as defined in section 1504(a) of the Internal Revenue Code of 1986 (without regard to section 1504(b) of such Code), except that section 1504 of such Code shall be applied by substituting "more than 50 percent'' for "at least 80 percent'' each place it appears. (3) Foreign incorporated entity.—The term "foreign incorporated entity'' means any entity which is, or but for subsection (b) would be, treated as a foreign corporation for purposes of the Internal Revenue Code of 1986. (4) Other definitions.—The terms "person'', "domestic'', and "foreign'' have the meanings given such terms by paragraphs (1), (4), and (5) of section 7701(a) of the Internal Revenue Code of 1986, respectively. (d) Waivers.—The Secretary shall waive subsection (a) with respect to any specific contract if the Secretary determines that the waiver is required in the interest of national security. * * * * * * *

Subtitle E—Human Resources Management

SEC. 841. [6 U.S.C. 411] ESTABLISHMENT OF HUMAN RESOURCES MANAGEMENT SYSTEM.

(a) Authority.— (1) Sense of congress.—It is the sense of Congress that— (A) it is extremely important that employees of the Department be allowed to participate in a meaningful way in the creation of any human resources management system affecting them; (B) such employees have the most direct knowledge of the demands of their jobs and have a direct interest in ensuring that their human resources management system is conducive to achieving optimal operational efficiencies; (C) the 21st century human resources management system envisioned for the Department should be one that benefits from the input of its employees; and (D) this collaborative effort will help secure our homeland. * * * * * * * (b) Effect on Personnel.— (1) Nonseparation or nonreduction in grade or compensation of full-time personnel and part-time personnel holding permanent positions.—Except as otherwise provided in this Act, the transfer under this Act of full-time personnel (except special Government employees) and part-time personnel holding permanent positions shall not cause any such employee to be separated or reduced in grade or compensation for 1 year after the date of transfer to the Department. (2) Positions compensated in accordance with executive schedule.—Any person who, on the day preceding such person's date of transfer pursuant to this Act, held a position compensated in accordance with the Executive Schedule prescribed in chapter 53 of title 5, United States Code, and who, without a break in service, is appointed in the Department to a position having duties comparable to the duties performed immediately preceding such appointment shall continue to be compensated in such new position at not less than the rate provided for such position, for the duration of the service of such person in such new position. (3) Coordination rule.—Any exercise of authority under chapter 97 of title 5, United States Code (as amended by subsection (a)), including under any system established under such chapter, shall be in conformance with the requirements of this subsection.

SEC. 842. [6 U.S.C. 412] LABOR-MANAGEMENT RELATIONS.

(a) Limitation on Exclusionary Authority.— (1) In general.—No agency or subdivision of an agency which is transferred to the Department pursuant to this Act shall be excluded from the coverage of chapter 71 of title 5, United States Code, as a result of any order issued under section 7103(b)(1) of such title 5 after June 18, 2002, unless— (A) the mission and responsibilities of the agency (or subdivision) materially change; and (B) a majority of the employees within such agency (or subdivision) have as their primary duty intelligence, counterintelligence, or investigative work directly related to terrorism investigation. (2) Exclusions allowable.—Nothing in paragraph (1) shall affect the effectiveness of any order to the extent that such order excludes any portion of an agency or subdivision of an agency as to which— (A) recognition as an appropriate unit has never been conferred for purposes of chapter 71 of such title 5; or (B) any such recognition has been revoked or otherwise terminated as a result of a determination under subsection (b)(1). (b) Provisions Relating to Bargaining Units.— (1) Limitation relating to appropriate units.—Each unit which is recognized as an appropriate unit for purposes of chapter 71 of title 5, United States Code, as of the day before the effective date of this Act (and any subdivision of any such unit) shall, if such unit (or subdivision) is transferred to the Department pursuant to this Act, continue to be so recognized for such purposes, unless— (A) the mission and responsibilities of such unit (or subdivision) materially change; and (B) a majority of the employees within such unit (or subdivision) have as their primary duty intelligence, counterintelligence, or investigative work directly related to terrorism investigation. (2) Limitation relating to positions or employees.—No position or employee within a unit (or subdivision of a unit) as to which continued recognition is given in accordance with paragraph (1) shall be excluded from such unit (or subdivision), for purposes of chapter 71 of such title 5, unless the primary job duty of such position or employee— (A) materially changes; and (B) consists of intelligence, counterintelligence, or investigative work directly related to terrorism investigation. In the case of any positions within a unit (or subdivision) which are first established on or after the effective date of this Act and any employees first appointed on or after such date, the preceding sentence shall be applied disregarding subparagraph (A). (c) Waiver.—If the President determines that the application of subsections (a), (b), and (d) would have a substantial adverse impact on the ability of the Department to protect homeland security, the President may waive the application of such subsections 10 days after the President has submitted to Congress a written explanation of the reasons for such determination. (d) Coordination Rule.—No other provision of this Act or of any amendment made by this Act may be construed or applied in a manner so as to limit, supersede, or otherwise affect the provisions of this section, except to the extent that it does so by specific reference to this section. (e) Rule of Construction.—Nothing in section 9701(e) of title 5, United States Code, shall be considered to apply with respect to any agency or subdivision of any agency, which is excluded from the coverage of chapter 71 of title 5, United States Code, by virtue of an order issued in accordance with section 7103(b) of such title and the preceding provisions of this section (as applicable), or to any employees of any such agency or subdivision or to any individual or entity representing any such employees or any representatives thereof.

SEC. 843. [6 U.S.C. 413] USE OF COUNTERNARCOTICS ENFORCEMENT ACTIVITIES IN CERTAIN EMPLOYEE PERFORMANCE APPRAISALS.

(a) In General.—Each subdivision of the Department that is a National Drug Control Program Agency shall include as one of the criteria in its performance appraisal system, for each employee directly or indirectly involved in the enforcement of Federal, State, or local narcotics laws, the performance of that employee with respect to the enforcement of Federal, State, or local narcotics laws, relying to the greatest extent practicable on objective performance measures, including— (1) the contribution of that employee to seizures of narcotics and arrests of violators of Federal, State, or local narcotics laws; and (2) the degree to which that employee cooperated with or contributed to the efforts of other employees, either within the Department or other Federal, State, or local agencies, in counternarcotics enforcement. (b) Definitions.—For purposes of this section— (1) the term "National Drug Control Program Agency'' means— (A) a National Drug Control Program Agency, as defined in section 702(7) of the Office of National Drug Control Policy Reauthorization Act of 1998 (as last in effect); and (B) any subdivision of the Department that has a significant counternarcotics responsibility, as determined by— (i) the counternarcotics officer, appointed under section 878; or (ii) if applicable, the counternarcotics officer's successor in function (as determined by the Secretary); and (2) the term "performance appraisal system'' means a system under which periodic appraisals of job performance of employees are made, whether under chapter 43 of title 5, United States Code, or 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.