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— 1The 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''.

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(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.

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(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.).

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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.

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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.

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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) * * *

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(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.

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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

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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''.

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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.

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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

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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) * * *

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(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.

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

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(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).

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(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.

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Subtitle C—Reforms Relating to the Senior Executive Service

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

(a) * * *

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(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.

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Subtitle D—Academic Training

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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.

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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) * * *

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(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) * * *

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(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.