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                                                       Calendar No. 565
112th Congress  }                                            {   Report

 2d Session     }                SENATE                      {  112-249
_______________________________________________________________________



       DEPARTMENT OF HOMELAND SECURITY AUTHORIZATION ACT OF 2012

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 1546

 TO AUTHORIZE CERTAIN PROGRAMS OF THE DEPARTMENT OF HOMELAND SECURITY, 
                         AND FOR OTHER PURPOSES




               December 13, 2012.--Ordered to be printed





                                _____

                  U.S. GOVERNMENT PRINTING OFFICE

                          WASHINGTON : 2012











        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware           SCOTT P. BROWN, Massachusetts
MARK L. PRYOR, Arkansas              JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana          RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri           ROB PORTMAN, Ohio
JON TESTER, Montana                  RAND PAUL, Kentucky
MARK BEGICH, Alaska                  JERRY MORAN, Kansas

                  Michael L. Alexander, Staff Director
       Beth M. Grossman, Deputy Staff Director and Chief Counsel
                       Jeffrey D. Ratner, Counsel
  Christian J. Beckner, Associate Staff Director for Homeland Security
                       Prevention and Protection
              Jason T. Barnosky, Professional Staff Member
               Blas Nunez-Neto, Professional Staff Member
               Nicholas A. Rossi, Minority Staff Director
                Mark B. LeDuc, Minority General Counsel
     Ryan M. Kaldahl, Minority Director of Homeland Security Policy
                  Trina Driessnack Tyrer, Chief Clerk











                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................1
III. Legislative History.............................................42
 IV. Section-by-Section Analysis.....................................45
  V. Evaluation of Regulatory Impact.................................82
 VI. Congressional Budget Office Cost Estimate.......................82
VII. Changes to Existing Law Made by the Bill, as Reported...........82














                                                       Calendar No. 565
112th Congress                                                   Report
                                 SENATE
 2d Session                                                     112-249

======================================================================



 
       DEPARTMENT OF HOMELAND SECURITY AUTHORIZATION ACT OF 2012

                                _______
                                

               December 13, 2012.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1546]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1546) to authorize 
certain programs of the Department of Homeland Security, and 
for other purposes, reports favorably thereon with an amendment 
in the nature of a substitute and recommends that the bill, as 
amended, do pass.

                         I. Purpose and Summary

    The Department of Homeland Security Authorization Act of 
2012 authorizes certain programs of the Department of Homeland 
Security, including appropriations for certain infrastructure 
protection, border security, and preparedness assistance 
programs. This Act is the first Department of Homeland Security 
authorization bill to be reported to the Senate since the 
creation of the Department in the Homeland Security Act of 2002 
(``HSA'') (P.L. 107-296), ten years ago in the wake of the 
terrorist attacks of September 11, 2001.

              II. Background and Need for the Legislation

    Eleven years ago the nation suffered the worst attack on 
the homeland since the surprise assault on Pearl Harbor 60 
years earlier. In the wake of the September 11, 2011 terrorist 
attacks, the government set out to strengthen our nation's 
defenses so that we would be better prepared to prevent and 
respond to future attacks. Soon after, the Department of 
Homeland Security (``DHS'') was established in order to align 
U.S. government agencies with responsibility for homeland 
security and enhance accountability for the protection of the 
nation against terrorist attacks. The Department's creation 
represented a reorganization of the executive branch on a scale 
not experienced since the establishment of the Department of 
Defense half a century earlier.\1\ The vast array of 
responsibilities given to the new Department, coupled with the 
enormity of its management and operational challenges, make it 
one of the largest and most complex cabinet agencies in the 
federal government.
---------------------------------------------------------------------------
    \1\P.L. 107-296; 6 U.S.C. Sec. Sec. 101 et seq.; see Harold C. 
Relyea, ``Organizing for Homeland Security,'' Presidential Studies 
Quarterly,'' vol. 33, Sept. 2003, pp. 499.
---------------------------------------------------------------------------
    Since the Department's creation, this Committee has engaged 
in constant oversight of DHS, its work, and its effectiveness. 
Over the past two years, this Committee has methodically 
examined key aspects of the Department in a series of eleven 
hearings aimed at assessing where the Department has succeeded 
and where it needs improvements to do so. By any measure, the 
creation and maturation of the Department of Homeland Security 
has made us safer. DHS has brought together and steadily 
integrated all or part of 22 disparate agencies, ensuring for 
the first time that there is a single department in the federal 
government whose primary role is protecting the nation's 
homeland security. Today more than 52,000 Transportation 
Security Administration (TSA) personnel serve on the frontlines 
at over 450 U.S. airports and countless rail and bus depots, 
protecting the safety of our transportation infrastructure. DHS 
now vets all passengers on flights to, from, and within the 
U.S. against government watchlists through the Secure Flight 
program. Many once disparate border operations have been 
consolidated and DHS has increased security at both our 
northern and southern borders. Since 2004, the number of Border 
Patrol agents along the U.S. northern and southern land borders 
has nearly doubled to over 21,000.\2\ DHS has deployed 
substantial technological resources along both the northern and 
southern land borders, including surveillance equipment, as 
well as over 650 miles of pedestrian and vehicle fencing along 
the southwest border.\3\ DHS has also dramatically increased 
the nation's ability to prepare for and respond to disasters, 
whether natural or man-made. The Federal Emergency Management 
Agency (FEMA) has not only enhanced the ability of State and 
local governments to respond to disasters but can also quickly 
deploy responders to disaster sites and provide substantial 
resources to assist those in need. Communication and 
coordination among federal, State and local officials has been 
strengthened to create a more unified network of prevention, 
response and recovery.
---------------------------------------------------------------------------
    \2\U.S. Border Patrol Fiscal Year Staffing Statistics, December 12, 
2011, available at http://www.cbp.gov/xp/cgov/border_security/
border_patrol/usbp_statistics/.
    \3\Department of Homeland Security, ``Secure and Manage Our 
Borders,'' July 20, 2011, available at http://www.dhs.gov/xabout/
gc_1240606351110.shtm#1.
---------------------------------------------------------------------------
    While America is stronger and more resilient as a result of 
these efforts, the threats to our homeland persist and continue 
to evolve. Al Qaeda and its affiliated and allied groups still 
pose a direct terrorist threat to the U.S. homeland, but this 
threat has become more disparate in recent years, as the 
ideology of violent Islamist extremism has inspired groups and 
individuals with no direct links to al Qaeda to engage in acts 
and plots of homegrown terrorism. DHS has responded by 
implementing programs such as the ``If You See Something Say 
Something'' campaign, increasing public awareness of indicators 
of terrorism, and emphasizing the importance of reporting 
suspicious activity to law enforcement authorities.\4\ In 
addition, DHS supports the work of 77 fusion centers across the 
nation that facilitate information sharing on a vast scale and 
disseminate critical homeland security information to State, 
local, and federal law enforcement agencies. One of the most 
important and telling result of these and other efforts is that 
there has been no successful 9/11-type attack on America by al 
Qaeda or its affiliates since September 11, 2001--an outcome 
almost no one would have predicted ten years ago.
---------------------------------------------------------------------------
    \4\See http://www.dhs.gov/files/reportincidents/see-something-say-
something.shtm.
---------------------------------------------------------------------------
    While DHS's successes are undeniable, there have also been 
disappointments. Some of the Department's investments in 
equipment and technology have paid dividends, but others have 
not produced as expected or have outlived their utility. For 
example, the ill-conceived SBInet program, meant to secure the 
nation's southern border, spent $770 million on a network of 
tower-based cameras, radars, and sensors that covers only 53 
miles of the border--a huge investment of taxpayer funding for 
a very limited payoff.\5\ In addition, DHS decided to terminate 
the failed Advanced Spectroscopic Portal program, designed to 
strengthen the nation's defenses against a nuclear terrorist 
attack, after over one billion dollars was invested. The need 
to make better investment decisions, especially in a distressed 
economy, has been an important consideration in the drafting of 
this legislation.
---------------------------------------------------------------------------
    \5\General Accountability Office (GAO) Report, Arizona Border 
Surveillance Technology: More Information on Plans and Costs Is Needed 
before Proceeding, GAO-12-22, November 4, 2011.
---------------------------------------------------------------------------
    Nearly eleven years after 9/11, it is appropriate to take 
stock of DHS's growth and make the Department a stronger and 
more efficient agency--one that can better take on the 
challenges of emerging threats and vulnerabilities. An integral 
part of achieving these objectives is ensuring that DHS is 
continually trying to become a more effective steward of 
taxpayer funds. To meet all these challenges, the Department 
will need to overcome ongoing roadblocks to integration--
forging its many components into an effective whole. This bill 
aims to accomplish three primary objectives: (1) strengthen 
DHS's ability to confront these threats and vulnerabilities, 
(2) make DHS more efficient in addressing them, and (3) provide 
DHS with the structure and flexibility it needs to accomplish 
its mission.

Addressing Emerging Threats and Persistent Vulnerabilities

    Eleven years after 9/11 our enemies continue to plan 
attacks against the United States. Indeed, according to 
experts, the country now faces a larger number of threats from 
more diverse and diffuse sources than ever before.\6\ Former 
National Counterterrorism Center Director Michael Leiter 
testified before this Committee in 2010 that ``Al-Qa`ida's 
affiliates' and allies' increasing ability to provide training, 
guidance, and support for attacks against the United States 
makes it more difficult to anticipate the precise nature of the 
next Homeland attack and determine from where it might 
come.''\7\ Although our ability to respond to emerging 
terrorist threats has improved greatly since 9/11, significant 
vulnerabilities remain.
---------------------------------------------------------------------------
    \6\Testimony of Federal Bureau of Investigation (FBI) Director 
Robert Mueller, ``Nine Years After 9/11: Confronting the Terrorist 
Threat to the Homeland'' before the U.S. Senate Committee on Homeland 
Security and Government Affairs, September 22, 2010. Director Mueller 
noted that ``the level of cooperation among Al Qaeda and other 
terrorist groups has changed in the past year suggesting that this 
collaboration and resulting threat to the homeland will increase. By 
sharing financial resources, training, tactical and operations 
expertise, and recruits, these groups have been able to withstand 
significant counterterrorism pressure from the United States, 
coalition, and local government forces.''
    \7\Testimony of National Counterterrorism Center (NCTC) Director 
Michael Leiter, ``Nine Years After 9/11: Confronting the Terrorist 
Threat to the Homeland'' before the U.S. Senate Committee on Homeland 
Security and Government Affairs, September 22, 2010.
---------------------------------------------------------------------------
    In the immediate aftermath of 9/11, many believed that the 
United States would inevitably face another al Qaeda attack. 
While the ensuing decade has seen a growing number of terrorist 
plots against the homeland, it is a testament to the tireless 
work of the Department of Homeland Security, the Federal Bureau 
of Investigation, and the Intelligence Community as a whole--as 
well as, in some instances, to the fast and brave work of a 
number of citizens who happened to be on hand for an attempted 
attack--that we have managed to avoid a large-scale terrorist 
attack by al Qaeda or its affiliates. The reforms that have 
been enacted by Congress played a large role in this success as 
well, providing the statutory framework for many of the most 
important security programs that our government has in place 
today.
    The killings of Osama Bin Laden and Anwar al Awlaki in 2011 
underscored the government's progress in dismantling al Qaeda's 
and its affiliates' senior leadership and hampering their 
ability to carry out attacks. But even as core al Qaeda in 
Afghanistan and Pakistan appears to have been weakened, other 
terrorist organizations, including al Qaeda's growing network 
of affiliates and allies, have stepped up their determination 
to strike inside the United States.
    Prior to 2009, al Qaeda's regional affiliates, such as al 
Qaeda in the Arabian Peninsula (AQAP), al-Shabaab, and al Qaeda 
in the Islamic Maghreb, were primarily focused on carrying out 
attacks within their own countries or regions and were not 
focused on North America or Europe. However, the past few years 
have seen a disturbing trend, as these affiliates begin to look 
towards the West.\8\
---------------------------------------------------------------------------
    \8\Testimony of NCTC Director Matthew Olson, ``Ten Years After 9/
11: Are We Safer?'' before the Senate Committee on Homeland Security 
and Governmental Affairs, September 13, 2011. Director Olson noted that 
``we face a much more diffuse and diversified threat, largely due to 
the emergence and evolution of regional affiliates who support al-Qaida 
core's strategy of creating a self-sustaining global extremist 
movement. To varying degrees, the affiliates have increased the scope 
of their operations, seeking to strike some U.S. and Western targets 
both inside and outside of their respective regions.''
---------------------------------------------------------------------------
    Since 2009, al Qaeda and its affiliates and allies have 
renewed their focus on launching attacks inside the United 
States. National Counterterrorism Center Director Leiter 
testified before the Committee that the number of serious 
attacks in 2009 and 2010 ``surpassed the number and pace of 
attempted attacks during any year since 9/11.''\9\ Fortunately, 
these efforts have for the most part failed; had they 
succeeded, they could have wrought severe damage and loss. For 
instance, since 2009:
---------------------------------------------------------------------------
    \9\Testimony of NCTC Director Michael Leiter, ``Nine Years After 9/
11: Confronting the Terrorist Threat to the Homeland'' before the U.S. 
Senate Committee on Homeland Security and Government Affairs, September 
22, 2010.
---------------------------------------------------------------------------
     Najibullah Zazi, a 24-year-old Afghani, was 
arrested in 2009 after buying materials to make bombs he was 
allegedly planning to detonate in the New York City subway. 
Zazi had previously attended an al Qaeda terrorist camp in 
Pakistan.
     Umar Farouk Abdulmutallab, an AQAP operative, 
nearly succeeded in blowing up Northwest Airlines Flight 253 
with explosives hidden in his underwear on Christmas Day in 
2009.
     Faisal Shahzad, a Pakistani-American who lived in 
the United States and was an operative of Tehrik-i Taliban 
Pakistan (TTP), a terrorist organization located in Pakistan 
that is allied with al Qaeda, attempted to explode a car bomb 
in Times Square on May 1, 2010.
     Al Qaeda in the Arabian Peninsula attempted in 
October 2010 to detonate explosives concealed within printers 
that were on cargo aircraft en route from the Middle East and 
Europe to the United States. This plot was thwarted only 
because of a timely tip from a foreign intelligence service.
    In addition to the threats posed by al Qaeda and its 
affiliates and allies, there is another dimension to the 
terrorist threat--that of homegrown terrorism. Over the past 
several years, dozens of U.S. citizens with no formal ties to 
al Qaeda or overseas terrorist groups have tried to attack 
their fellow Americans, either here or abroad. In many cases, 
these individuals have been radicalized or inspired by violent 
Islamist extremist propaganda, in the form of writings, audio 
tapes, and videos, all readily available for viewing on the 
Internet. For example:
     In June 2009, Carlos Leon Bledsoe (who had changed 
his name to Abdulhakim Muhammad) was arrested for killing one 
soldier and wounding another in a shooting at the U.S. Army-
Navy Career Center in Little Rock, Arkansas. Bledsoe had been 
radicalized by the teachings of Anwar al-Awlaki and had spent 
over a year in Yemen prior to the shooting.
     On November 5, 2009, U.S. Army Major Nidal Hasan 
opened fire at the Soldier Readiness Center at Fort Hood, 
killing thirteen people and wounding forty-three. Hasan had 
also become radicalized over time and followed the teachings of 
AQAP's Anwar al-Awlaki.
     In July 2011, Betim Kaziu, a U.S. citizen from 
Brooklyn, New York, was convicted on charges related to his 
attempts to join al Qaeda-linked groups. In February 2009, 
Kaziu and a friend traveled to Cairo, Egypt, where they planned 
to link up with either al-Shabaab or other terrorist 
organizations operating in places such as Iraq, Afghanistan, or 
Pakistan.
    Our government's efforts to prevent attacks from al Qaeda's 
affiliates and allies and from homegrown terrorists have thus 
far largely been successful, but vulnerabilities in our 
homeland defenses continue to pose challenges. These 
vulnerabilities range from the daunting task of keeping 
terrorists from boarding airplanes; to challenges in sharing 
time-sensitive information among intelligence, law enforcement, 
and private sector partners; to failed technology projects that 
have yet to deliver adequate threat-detection capabilities; to 
the challenge of coordinating first responders and ensuring 
that our nation is resilient in the aftermath of an attack.
    S. 1546 attempts to address many of these vulnerabilities 
and strengthen DHS's ability to confront the evolving 
challenges it faces today and will face in the future. In 
particular, the bill strengthens DHS activities aimed at 
preventing terrorist travel, including addressing weaknesses in 
our visa issuance process. It takes steps to improve security 
along the southern and northern land borders. It facilitates 
greater information sharing within DHS and between DHS and 
other federal, State, and local law enforcement agencies. It 
improves planning and coordination for catastrophic events. And 
it improves the Department's ability to address chemical, 
biological, radiological, and nuclear threats by reforming how 
the Department handles complex and large-scale technology 
acquisitions programs.

Preventing terrorist travel

    Preventing terrorists from attacking the United States was 
the impetus for creating the Department and remains a central 
mission of the Department, as set forth by the HSA.\10\ The 9/
11 Commission concluded that targeting terrorist travel was one 
of the most effective ways to address the threat posed by 
international terrorist groups.\11\ Every time that would-be 
terrorists attempt to travel across borders and are screened by 
law enforcement and immigration officials, they expose 
themselves to identification and interdiction. Since 9/11, the 
U.S. has made significant improvements in its ability to 
identify potential terrorists as they attempt to travel to the 
United States, thus preventing attacks long before they have 
any chance of happening.
---------------------------------------------------------------------------
    \10\6 U.S.C Sec. 111(b)(1)(A) (``The primary mission of the 
Department is to . . . prevent terrorist attacks within the United 
States. . . .'').
    \11\Final Report of the National Commission on Terrorist Attacks 
Upon the United States, July 22, 2004, p. 385. (``Recommendation: 
Targeting travel is at least as powerful a weapon against terrorists as 
targeting their money. The United States should combine terrorist 
travel intelligence, operations, and law enforcement in a strategy to 
intercept terrorists, find terrorist travel facilitators, and constrain 
terrorist mobility.'')
---------------------------------------------------------------------------
    As DHS Assistant Secretary for Policy David Heyman 
testified before this Committee in July 2011:

          Ten years ago, screening of passengers coming to the 
        United States was limited to the Department of State 
        visa process, if applicable, and the inspection of a 
        person by an immigration officer at the port of entry, 
        plus whatever processes were applied at foreign 
        airports and by foreign governments. Provision of 
        advance passenger information was voluntary and, even 
        when provided by air carriers, frequently contained 
        inaccurate or inconsistent data. There was no biometric 
        collection for visa applicants beyond photographs, nor 
        for aliens seeking admission to the United States. 
        There was very limited pre-departure screening of 
        passengers seeking to fly to the United States and 
        there was virtually no screening of any kind for 
        domestic flights beyond airport checkpoints. There was 
        no advance screening of passengers seeking admission 
        under the Visa Waiver Program (VWP) and interagency 
        sharing of information on terrorist threats was 
        minimal.\12\
---------------------------------------------------------------------------
    \12\Testimony of Assistant Secretary for Policy, DHS, David F. 
Heyman, ``Ten Years After 9/11: Preventing Terrorist Travel'' before 
the Senate Committee on Homeland Security and Governmental Affairs, 
July 13, 2011.

    Since 9/11, the nation has taken steps to address many of 
these vulnerabilities. The Aviation and Transportation Security 
Act of 2001, enacted barely two months after 9/11, requires all 
airlines flying to the United States to submit electronic 
passenger manifests that include personal identifying 
information and requires airlines to share the Passenger Name 
Record (PNR) data in their ticketing systems with the U.S. 
government.\13\ One year later, the Enhanced Border and Visa 
Security Act of 2002 incorporated a similar electronic 
passenger manifest requirement into our immigration laws, 
expressly authorizing that this vital information be used for 
the purposes of screening travelers attempting to enter the 
United States.\14\
---------------------------------------------------------------------------
    \13\P.L. 107-71, Sec. 115.
    \14\P.L. 107-173, Sec. 402.
---------------------------------------------------------------------------
    The Intelligence Reform and Terrorism Prevention Act of 
2004 (IRTPA)\15\ enacted numerous provisions to inhibit 
terrorist travel. Most broadly, it established the Director of 
National Intelligence (DNI) and the National Counterterrorism 
Center with the mission to synthesize and coordinate terrorism-
related intelligence across the government.\16\ More 
specifically, the law expanded the basis for keeping foreign 
nationals out of the U.S. by denying visas to those who 
participated in the commission of acts of torture or 
extrajudicial killings abroad or who are members of political, 
social, or other groups that endorse or espouse terrorist 
activity. It required the deployment of biometric technology at 
ports of entry (a biometric entry and exit system) and consular 
posts abroad to detect potential terrorist indicators on travel 
documents; established an Office of Visa and Passport Security; 
directed the President to enter into agreements with other 
nations to share information on lost and stolen travel 
documents, and required the training of consular officers in 
the detection of terrorist travel patterns and document fraud. 
IRTPA further strengthened the screening system by requiring 
that all individuals applying for visas be subjected to in-
person interviews at consular posts abroad. Lastly, IRTPA 
required that airline passengers (both domestic and 
international) be screened against the terrorist watchlist 
maintained by the FBI.
---------------------------------------------------------------------------
    \15\P.L. 108-458.
    \16\Final Report of the National Commission on Terrorist Attacks 
Upon the United States, July 22, 2004, p. 403 (``Breaking the older 
mold of national government organizations, this NCTC should be a center 
for joint operational planning and joint intelligence, staffed by 
personnel from the various agencies.'').
---------------------------------------------------------------------------
    Additional enhancements came several years later, with 
passage of The Implementing Recommendations of the 9/11 
Commission Act of 2007.\17\ The 2007 law strengthened the Visa 
Waiver Program (VWP)--a program under which nationals of 37 
countries that meet certain legal requirements are not required 
to obtain visas to enter the U.S.--by requiring these countries 
to share critical law enforcement information with the U.S. In 
response to this legislative mandate, DHS requires VWP 
countries to: (1) participate in Interpol's Lost and Stolen 
Travel Document database; (2) share biometric data on criminals 
electronically through Preventing and Combating Serious Crime 
(PCSC) agreements; and (3) enter into an HSPD-6 Terrorist 
Watchlist agreement to exchange biographical information about 
known and suspected terrorists. The Act also created the 
Electronic System for Travel Authorization (ESTA) in order to 
ensure that travelers from VWP countries were screened against 
public safety and immigration databases prior to their travel 
to the United States.
---------------------------------------------------------------------------
    \17\P.L. 110-53.
---------------------------------------------------------------------------
    As a result of this series of post-9/11 laws, the screening 
of potential travelers now begins when they make the decision 
to travel to the United States. Individuals requiring visas to 
travel to the United States are fingerprinted and interviewed 
at consular posts abroad, and their biometric and biographic 
information is checked against all of the U.S. government's law 
enforcement, immigration, and intelligence databases before 
visas are issued. Individuals from Visa Waver nations must 
submit their biographic information into the ESTA system, which 
checks the same databases to ensure that the potential traveler 
does not have any adverse information on file.
    Once an individual purchases a ticket to fly to the United 
States, the airlines provide Customs and Border Protection 
(CBP) with their Passenger Name Record data 72 hours before a 
plane is scheduled to depart. This data is checked against all 
of our law enforcement, immigration, and intelligence databases 
to identify any known terrorists or serious criminals. The PNR 
data is also run against the Automated Targeting System, which 
incorporates intelligence about known threats to determine 
which individuals should be looked at more closely. Once 
passengers begin to check in for their flight, the airlines 
transmit the passenger manifest trough CBP's Advance 
PassengerInformation System, which includes more identifying 
information that can be run against all of these automated 
systems. When travelers arrive in the United States, they are 
processed through the US-VISIT system which collects 
fingerprints of each of the traveler's ten fingers and a 
photograph that can be used to verify that the traveler is the 
same person who applied for a visa. The systems also check 
against the holdings of other biometric databases within the 
U.S. government.
    None of these checks were in place prior to 9/11, and the 
country is much safer today as a result of this layered system. 
It is also a fact, however, that no system is foolproof, and 
further improvements are needed to address remaining 
vulnerabilities and evolving threats. S. 1546 attempts to 
address some of the vulnerabilities in DHS screening and visa 
security programs.

Improving screening programs

    Terrorist groups are constantly seeking ways to counteract 
these significant post-9/11 security improvements. Targeting 
the ability of terrorists to travel is a key priority for DHS 
and the U.S. government, and identifying terrorists before they 
board an airplane bound for the United States remains the best 
method for securing international aviation. The Christmas Day 
attack in 2009, in which Umar Farouk Abdulmutallab successfully 
smuggled explosives onto a plane bound for the U.S., showed 
gaps in the coordination and integration of the Department's 
various screening programs.
    Section 507 of this bill seeks to address the Department's 
lack of a central coordination point for the various programs 
within the component agencies that seek to identify terrorists 
and prevent them from gaining access to the United States by 
creating the Office of International Travel Security and 
Screening, headed by an Assistant Secretary. The new office 
will bring together three key travel security programs and 
their personnel that are currently dispersed throughout the 
Department: US-VISIT, the Visa Waiver Program, and the 
Screening Coordination Office (SCO). The goal of this targeted 
reorganization is to ensure these three related programs are 
more closely coordinated among themselves and with the overall 
terrorist travel and screening efforts of the Department and to 
sharpen and elevate the focus on screening by putting a new 
Assistant Secretary in charge of improving DHS-wide screening 
activities.
    As the roles and responsibilities of the National 
Protection and Program Directorate (NPPD) have continued to 
evolve, the current placement of US-VISIT within the 
directorate appears increasingly to be an ill fit. NPPD's core 
missions today are focused on cybersecurity and infrastructure 
protection, while US-VISIT's core mission is providing 
screening services to DHS component agencies in order to verify 
identity and better identify potential terrorists and serious 
criminals.
    Placing US-VISIT within a newly formed Office of 
International Travel Security and Screening will better focus 
its efforts on interdicting terrorist travel.\18\ A recent GAO 
report requested by the Committee concluded that US-VISIT had 
failed to implement a system to identify potential visa 
overstays effectively, leading to backlogs of 1.6 million 
potential overstays that had been identified by an automated 
system but had yet to be verified.\19\ GAO also noted once 
again that DHS had failed to meet its statutory deadline to 
develop and implement a biometric exit program. Although DHS 
has recently made significant progress in addressing the 
overstay backlog, much work remains before our current systems 
are sufficiently reliable and effective. This realignment will 
provide badly needed oversight within DHS for this important 
program.
---------------------------------------------------------------------------
    \18\Effectively identifying visa overstays would enable DHS to 
address a key vulnerability: the 9/11 Commission found that six of the 
9/11 terrorists had overstayed their visas, and it recommended 
implementing a biometric exit system in order to better identify and 
apprehend dangerous individuals who overstayed their visas. Final 
Report of the National Commission on Terrorist Attacks Upon the United 
States, July 22, 2004, p. 385.
    \19\GAO Report, ``Overstay Enforcement: Additional Mechanisms for 
Collecting, Assessing, and Sharing Data Could Strengthen DHS's Efforts 
but Would Have Costs,'' GAO-11-411, April 15, 2011, p. 41.
---------------------------------------------------------------------------
    The VWP and the SCO are currently housed with in the Office 
of Policy. But while both offices may have some policy 
functions, they have important operational roles in preventing 
terrorist travel and securing international aviation--which 
suggests that they, too, are misplaced. The VWP, in particular, 
has become an important tool to promote information sharing 
with our close foreign partners. Building on a mandate in the 
Implementing the Recommendations of the 9/11 Commission 
Act,\20\ DHS requires that VWP nations share information about 
terrorists and serious criminals, including requiring that they 
share fingerprint information electronically through Preventing 
and Combating Serious Crime (PCSC) agreements. Unfortunately, 
GAO has reported that the VWP office, thus far, has signed PCSC 
agreements with only half of the 36 VWP nations and that DHS 
has yet to actually implement even one of these agreements.\21\ 
Bringing the VWP together with US-VISIT, the entity in charge 
of implementing the PCSC agreements at DHS, will hopefully 
enable DHS to move ahead more quickly in implement these 
important tools to prevent terrorist travel.
---------------------------------------------------------------------------
    \20\Implementing Recommendations of the 9/11 Commission Act of 2007 
(P.L. 110-53).
    \21\GAO Report, ``Visa Waiver Program: DHS Has Implemented the 
Electronic System for Travel Authorization, but Further Steps Needed to 
Address Potential Program Risks,'' GAO-11-335, May 5, 2011, p. 21.
---------------------------------------------------------------------------

Securing the visa issuing process

    After the 2009 Christmas Day attack, the Committee learned 
that Umar Farouk Abdulmutallab's father had expressed concerns 
about his son's radicalization to officials at the U.S. Embassy 
in Abuja, Nigeria but that these concerns had not been deemed 
sufficient at the time to revoke Abdulmutallab's visa. Failures 
to connect a number of different leads regarding Abdulmutallab 
by the intelligence community further compounded the problem. 
This bill addresses some of the key vulnerabilities revealed by 
this and other related events.
    To begin with, it addresses problems arising at visa-
issuing consular posts overseas--often our first line of 
defense against terrorists seeking entrance to the U.S. 
Congress attempted to shore up the visa-issuing process in 
section 802 of the HSA\22\ by creating the Visa Security 
Program (VSP), which places criminal investigators at select 
consular posts overseas as an added layer of security.
---------------------------------------------------------------------------
    \22\6 U.S.C. Sec. 236.
---------------------------------------------------------------------------
    A GAO report requested by the Committee revealed a number 
of problems with the implementation of the VSP. GAO found that 
most VSP units have not developed standard operating procedures 
despite a number of memoranda of understanding between DHS and 
the Department of State. The absence of standard procedures has 
brought uneven implementation of the program and confusion 
among VSP investigators and consular officers at those consular 
posts.\23\ GAO also found that VSP agents perform a number of 
investigative and administrative functions that do not relate 
to their VSP responsibilities, which can ``sometimes slow or 
limit visa security activities, and ICE does not track this 
information making it unable to identify the time spent on 
these activities.''\24\ Lastly, the report revealed 
disagreements between ICE investigators and Consular officers 
concerning what degree of association with terrorism was 
sufficient to revoke or deny a visa.\25\
---------------------------------------------------------------------------
    \23\GAO Report, ``Border Security: DHS's Visa Security Program 
Needs to Improve Performance Evaluation and Better Address Visa Risk 
Worldwide,'' GAO-11-315, April 21, 2011, pp. 15-16.
    \24\Id., p. 20.
    \25\Id., p. 18.
---------------------------------------------------------------------------
    Section 508 of the bill attempts to address some of these 
issues. The bill requires that DHS and the State Department 
institute standard operating procedures for the VSP and that 
they apply those procedures to all consular posts. The section 
also requires DHS and the State Department to review all visa 
issuing policies to ensure that all individuals associated with 
terrorism are denied visas to travel to the United States.
    The GAO report also outlines the difficulty ICE has had in 
meeting the goals outlined in its 2007 expansion plan for the 
program.\26\ ICE failed to establish nine posts identified for 
expansion in 2009 and 2010, and 11 of the 20 highest risk posts 
identified by a joint DHS/State assessment do not have VSP 
units. Section 508 requires DHS, in consultation with the 
Department of State, to develop a plan for deploying the VSP to 
all consular posts determined by the Secretary to be high risk. 
Addressing another GAO concern, this section also requires that 
DHS establish an electronic system for reviewing visas at all 
consular posts, which DHS is currently in the process of 
establishing.
---------------------------------------------------------------------------
    \26\Id., p. 24.
---------------------------------------------------------------------------
    Finally, section 508 requires DHS and the State Department 
to put in place, within one year of enactment, an electronic 
system for notifying airlines when the U.S. government has 
revoked someone's visa. Before the Christmas Day attack, the 
only mechanism to inform the airlines was to send a letter. 
Today, CBP works with the Regional Carrier Liaision Groups to 
inform airlines when visas are denied, but there is no 
electronic system in place for ensuring that individuals with 
revoked visas do not board airplanes bound for the United 
States. CBP has been working with the State Department to 
implement an electronic system for notifying the airlines of 
revoked visas. This bill codifies this effort, requiring that 
such a system be in place within one year of enactment. The 
section also stipulates that existing mechanisms, such as the 
Advance Passenger Information System outlined above, be 
utilized for this purpose in order to leverage existing 
government resources and minimize the burden on the airlines.

Securing the land border

    Securing the United States' land borders with Mexico and 
Canada presents significant challenges for DHS due to the 
borders' length, varied terrain, and daunting weather extremes. 
Each border presents a different challenge: the southwest 
border with Mexico has long been a flashpoint for illegal 
immigration and drug smuggling, while the northern border with 
Canada includes hundreds of miles of remote wilderness and 
mountain ranges that are very difficult to patrol. The Border 
Patrol is charged with preventing illegal entries across the 
land border between the nation's ports of entry while CBP's 
Office of Field Operations is charged with screening travelers 
and goods at the ports of entry to prevent the entry of 
dangerous people and goods, and at the same time facilitating 
commerce. This bill seeks to address several important 
challenges the Department faces in securing our land borders at 
and between the ports of entry, while upholding the nation's 
commitment to international travel and commerce.

The Southwest border

    Almost 2,000 miles long and featuring rivers, mountain 
ranges, deserts, and major metropolitan areas adjacent to the 
border, the Southwest border region is home to some of the most 
violent and sophisticated smuggling networks in the western 
hemisphere. Over the past ten years, securing this border has 
been a major focus for Congress and DHS. Since 2001, the Border 
Patrol has seen its national staffing more than double, from 
9,800 to over 21,000, as Congress has sought to address illegal 
immigration and cross border smuggling. Staffing by CBP 
officers at the ports of entry has also increased by 58 percent 
in the past decade, to 20,379 in 2011.
    Major investments have also been made in using technology 
to secure the border, but serious questions have been raised by 
GAO and others concerning whether these investments have been 
sound.\27\ For example, the poorly conceived and executed 
SBInet program spent $770 million on a network of tower-based 
cameras, radars, sensors that link to a central common 
operating picture at a Border Patrol station. Although the 
Border Patrol appears to be content with the system that was 
delivered,\28\ it only covers 53 miles of the border--a huge 
investment of taxpayer funding for a very limited payoff. The 
Committee supported the Secretary's decision to terminate 
SBInet and deploy technology on a more targeted basis. But the 
Committee is troubled by a recent GAO report which found that 
DHS's current plan for deploying technology to the border does 
not incorporate performance metrics and that ``CBP has not 
documented the analysis justifying the specific types, 
quantities, and deployment locations of border surveillance 
technologies proposed in the Plan.''\29\ This analysis raises 
serious concerns that CBP may be repeating some of the mistakes 
that resulted in the cancellation of SBInet. Section 502 of the 
bill requires DHS to submit a report to the Committee detailing 
how it makes technology allocation decisions along the border. 
To address GAO's concerns, the Committee also strongly urges 
CBP to ensure that performance measures and deployment 
justifications are included in its border surveillance plans.
---------------------------------------------------------------------------
    \27\See, GAO Report, ``Secure Border Initiative: Observations on 
Selected Aspects of SBInet Program Implementation,'' GAO-08-131T, Oct. 
24, 2007; GAO Report, ``Secure Border Initiative: SBInet Planning and 
Management Improvements Needed to Control Risks,'' GAO-07-504T, Feb. 
27, 2007; GAO Report, ``Secure Border Initiative: DHS Needs to Address 
Significant Risks in Delivering Key Technology Investment,'' GAO-08-
1086, September 22, 2008; and GAO Report, ``Secure Border Initiative: 
DHS Needs to Reconsider Its Proposed Investment in Key Technology 
Program,'' GAO-10-340, May 5, 2010.
    \28\Based on numerous briefings with CBP staff and a site visit to 
the Border Patrol's Tucson Sector, April 1, 2010.
    \29\GAO Report, ``Arizona Border Surveillance Technology: More 
Information on Plans and Costs Is Needed before Proceeding,'' GAO-12-
22, November 4, 2011.
---------------------------------------------------------------------------
    Violence along the Southwest border has been fueled in part 
by bulk cash and guns illegally smuggled outbound from the 
United States to Mexico. In the 1980s and 1990s, CBP (then U.S. 
Customs) routinely inspected shipments leaving the U.S. but saw 
these inspections fade in the aftermath of the 9/11 terrorist 
attacks, when the agency was directed to focus on mitigating 
threats coming into the United States. In recent years the 
Committee has supported the reinstitution of a vigorous 
outbound inspections program by CBP. Outbound inspections are 
now once again taking place routinely along the southwest 
border.\30\ CBP is already conducting outbound operations on a 
risk-based basis at all land, air, and maritime ports of entry. 
Section 505 of this bill codifies the Outbound Inspections 
Program to ensure that CBP continues to conduct vigorous 
inspections of individuals and goods leaving the United States 
in the future. This section will not require additional 
resources to be implemented, because DHS already factors wait 
times into their current outbound operations, and CBP has the 
infrastructure and staffing currently in place along the land 
border to collect biographic data from people it inspects in 
order to register an individual's exit from the United 
States.\31\
---------------------------------------------------------------------------
    \30\Information on the history of outbound inspections and current 
practices is based on staff interviews with CBP and DHS officials on 
June 17, 2011, September 16, 2011, and September 19, 2011.
    \31\Id.
---------------------------------------------------------------------------

The Northern border

    Although the Border Patrol's Northern Border Strategy 
identifies achieving ``full situational awareness'' (a high 
probability that illegal activity will be detected) across the 
northern border as a key goal, GAO found in 2010 that only 
1,007 of the nearly 4,000 miles of the northern border met this 
standard.\32\ Only 32 of those miles were deemed to be under 
the Border Patrol's ``operational control,'' which means that 
there was a high probability that the Border Patrol could 
detect incursions and take a law enforcement response. Given 
the length and remoteness of the northern border, operational 
control along every inch of the border is not a realistic goal. 
However, DHS should have a better understanding of the illegal 
activity taking place along the northern border. Better use of 
technology, including surveillance with cameras and aircraft, 
could help increase effective control of the border. In recent 
years, DHS has largely focused its attention on the deployment 
of new technology across the southwest border. Section 506 
requires that DHS submit a plan for improving its ability to 
perceive activity at and between the ports of entry along the 
northern border. This plan must include an assessment of the 
assets or technologies deployed along the northern border and 
identify steps that will be taken to increase information 
sharing and coordination among all U.S. and Canadian law 
enforcement agencies along the border.
---------------------------------------------------------------------------
    \32\GAO Report, ``Border Security: Enhanced DHS Oversight and 
Assessment of Interagency Coordination Is Needed for the Northern 
Border,'' GAO-11-97, Dec. 17, 2010, p. 37.
---------------------------------------------------------------------------

Continuing to improve information sharing

    The capacity to analyze important threat information and 
quickly put that information in the hands of those who can 
prevent or respond to an attack is one of the Department's most 
critical missions. A number of recent cases illustrate that 
threats to the homeland often times originate locally, within 
our communities. However, the Federal government's view into 
local communities is limited. DHS must rely on its partners 
across the country--local police departments, fire departments, 
emergency managers, operators of critical infrastructure and 
the general public--to ensure that threats are detected and 
addressed.
    These partnerships save lives. In early 2011, a shipping 
company in Texas and a chemical supplier located in North 
Carolina independently contacted authorities to report 
suspicious attempts to purchase large quantities of phenol, a 
chemical that can be used to make explosives. The chemical 
company relayed the suspicious activity to the local FBI office 
in North Carolina and the shipping company informed the police 
department in Lubbock, Texas. Based on these tips, the FBI 
opened an investigation of Khalid Aldawsari, a Saudi exchange 
student studying in Texas. The FBI subsequently uncovered 
several of Aldawsari's incendiary postings on jihadist websites 
and emails indicating that he intended to use the chemical 
components to make explosives for attacking hydroelectric dams 
and nuclear power plants, among other targets. Before Aldawsari 
could act further, the FBI picked him up and charged with him 
attempted use of a weapon of mass destruction. Had it not been 
for the expeditious exchange of information between vigilant 
private businesses and State and Federal law enforcement, 
Khalid Aldawsari might have succeeded in launching a 
devastating attack against sensitive infrastructure or a local 
community.\33\
---------------------------------------------------------------------------
    \33\Department of Justice, Press Release, ``Texas Resident Arrested 
on Charge of Attempted Use of Weapon of Mass Destruction,'' February 
24, 2011, available at http://www.fbi.gov/dallas/press-releases/2011/
dl022411.htm.
---------------------------------------------------------------------------
    Since the Department's inception, it has continually 
strengthened its ability to collect, analyze, and disseminate 
intelligence to its Federal partners, State, local, and tribal 
governments, non-profit organizations, and the private sector. 
The DHS Office of Intelligence and Analysis has enhanced DHS's 
ability to convey intelligence on threats to the homeland in a 
manner that is useful and relevant to State and local law 
enforcement officers and first responders. The Department's 
support for State and local fusion centers--entities that bring 
together State, local, and Federal intelligence--is a focal 
point for this information sharing. Seventy-seven fusion 
centers, located in various states and major urban areas, help 
disseminate intelligence to front-line law enforcement, public 
safety, fire service, emergency response, public health, 
critical infrastructure protection, and private sector security 
personnel.
    The Secretary's role as the key intermediary between the 
Federal government and its State and local partners is one of 
the founding principles of the Department, enshrined in the 
HSA.\34\ Over the years, this function has developed even 
further. In August 2010, President Obama issued Executive Order 
13549, clarifying the Secretary's role as the Executive Agent 
(the lead Federal official) of the Classified National Security 
Information Program for State, Local, Tribal, and Private 
Sector Entities. Under the Executive Order, the Secretary is 
charged with managing the Classified National Security 
Information Program designed to safeguard and govern access to 
classified national security information shared by the Federal 
government with State, local, tribal, and private sector 
entities.
---------------------------------------------------------------------------
    \34\P.L. 107-296, Sec. 102(c); 6 U.S.C. Sec. 112(c).
---------------------------------------------------------------------------
    Section 602 of the underlying bill codifies the key 
concepts of the Classified National Security Information 
Program, as laid out in Executive Order 13549. Specifically, 
section 602 charges the Secretary with overseeing the program, 
including accreditation, inspection, and monitoring of 
facilities where classified information is used; processing 
security clearances for State, local government, Indian tribes, 
and private sector employees; and developing training to teach 
the proper safeguarding of classified information.
    DHS's role as a member of the intelligence community has 
evolved considerably since 2002. The Department was intended at 
its inception to have a key role in compiling and analyzing 
intelligence regarding threats to the homeland. To that end, 
the HSA created a Directorate of Information Analysis and 
Infrastructure Protection with responsibility to receive, 
analyze, and integrate law enforcement and intelligence 
information.\35\ Two years later, the Intelligence Reform and 
Terrorism Prevention Act amended the National Security Act of 
1947 to expand the definition of the ``intelligence community'' 
to include elements of the Department of Homeland Security 
concerned with the analysis of foreign intelligence.\36\ As a 
result, DHS became a full-fledged member of the Intelligence 
Community. In July 2005, DHS Secretary Michael Chertoff 
established an Office of Intelligence and Analysis headed by an 
Assistant Secretary for Information Analysis, who also served 
as the Chief Intelligence Officer for the Department.\37\ These 
changes were largely codified in 2007 by the Implementing 
Recommendations of the 9/11 Commission Act, which, among other 
things, formally established an Office of Intelligence & 
Analysis and established as its head an Under Secretary for 
Intelligence & Analysis (I&A;) who would also serve as the Chief 
Intelligence Officer of the Department.
---------------------------------------------------------------------------
    \35\P.L. 107-296, Sec. 201; 6 U.S.C. Sec. 121.
    \36\P.L. 108-458, Sec. 1073; 50 U.S.C. Sec. 401a.
    \37\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005, pp. 2-3.
---------------------------------------------------------------------------
    While the Department's intelligence functions have matured 
considerably since 2002, challenges remain. For instance, I&A; 
must compete with more established agencies like the Central 
Intelligence Agency and the National Security Agency for top 
talent. Traditional civilian intelligence agencies have 
repeatedly won out in the competition for talented and 
experienced intelligence personnel, largely because those 
agencies have greater hiring flexibilities that allow them to 
bring on highly skilled individuals quickly and with greater 
flexibility on pay levels than DHS, which has had to follow 
traditional civil service guidelines for its intelligence 
hires.
    The underlying bill addresses these disparate hiring 
systems and allows DHS to compete for talented intelligence 
analysts on the same playing field as other intelligence 
agencies. Section 603 of the bill provides the Secretary, with 
the concurrence of the DNI and the Director of the Office of 
Personnel Management (OPM), with authority to convert 
competitive service positions in I&A; to excepted service 
positions and the ability to establish new positions within I&A; 
in the excepted service if the Secretary determines those 
positions are necessary to carry out the intelligence functions 
of the Department. In addition, in order to ensure the 
equitable treatment of employees across the intelligence 
community, the Secretary, with the concurrence of either the 
DNI or the OPM Director, depending on the responsibilities of 
the employee, may authorize I&A; to adopt compensation 
authority, performance management authority, and scholarship 
authority that have been authorized for another element of the 
intelligence community. These changes are important steps that 
will strengthen the Department's ability to compete for first-
rate analytical talent.

Responding to catastrophic events

    Although the 9/11 terrorist attacks, and particularly the 
desire to prevent further attacks, provided the primary impetus 
for creating DHS, there has always been a strong focus on 
response to disasters, including natural disasters, as well. 
Indeed, FEMA was to be at the core of the new department as 
originally envisioned by the Hart-Rudman Commission. The 
planning and resources needed for natural disasters is often 
similar to preparations that should take place in anticipation 
of a man-made attack; an all-hazards approach strengthens the 
nation's ability to withstand an array of challenges.
    Nevertheless, planning for catastrophic events has posed a 
persistent challenge to DHS. In responding to disasters such as 
Hurricane Katrina and the Gulf oil spill, as well as in its 
preparedness for other significant threats--such as improvised 
nuclear devices and cyber security--DHS has been constrained by 
a lack of consistent planning. This has impaired the 
government's response efforts and will continue to do so if the 
problem is left unaddressed. Catastrophic planning is a 
challenge for a number of reasons. Planning for the 
``unthinkable'' is very difficult, and the necessary expertise 
is in short supply. Moreover, public and private sector 
leaders, who often serve for relatively short tenures, have not 
adequately focused resources or attention on this issue. Within 
the public sector, no one entity is charged with overseeing 
planning efforts across the federal government, and agencies 
with regulatory authority over relevant industries may lack 
adequate expertise in preparedness and response--making the 
planning even more challenging. Finally, a number of the most 
significant risks are to critical infrastructure owned or 
controlled by private companies, which complicates government 
planning efforts. The 2010 Gulf of Mexico oil spill--in which 
an explosion on the Deepwater Horizon offshore drilling rig 
resulted in the release of approximately 200 million gallons of 
oil into U.S. water--provided an example of this. Cyber 
security risks and risks to the electrical grid raise similar 
issues.
    To address this vulnerability, section 401 of the bill 
directs the President to ensure that comprehensive plans to 
address catastrophic events exist across the federal 
government. The bill requires the President to identify and 
prioritize the risks of different types of catastrophes, ensure 
that agencies are coordinating their planning for them, and 
review their plans. To support the President in these efforts, 
the bill requires the DHS Secretary to appoint an official 
within FEMA responsible for catastrophic incident planning. 
This official will lead DHS's planning for catastrophic 
incidents and lead, promote, and coordinate overall federal 
efforts.\38\ By identifying a federal official with overall 
responsibility for planning for catastrophic events, this bill 
ensures that someone is accountable for addressing this 
challenge.
---------------------------------------------------------------------------
    \38\S. 1546, Sec. 401.
---------------------------------------------------------------------------
    DHS, and specifically FEMA, must lead the federal 
government in preparation for, response to, recovery from and 
mitigation against disasters of any kind. After witnessing the 
conspicuous failures in the governments' response to Hurricane 
Katrina in 2005, the Committee published a report that detailed 
the failures at all levels of government. The Committee's 
report included over 80 recommendations, one of which was to 
replace FEMA with a new, stronger, more robust federal response 
agency. To create this new FEMA, and implement other 
recommendations from the report, Congress passed, and President 
Bush signed, the Post-Katrina Emergency Management Reform Act 
of 2006.
    Since the legislation, FEMA has made significant 
improvements in its response capabilities, but it continues to 
struggle in executing its recovery mission. For example, FEMA 
had many shortcomings in efficiently and effectively supporting 
the State and local government efforts to recover from 
Hurricane Katrina. Federal agencies providing assistance failed 
to coordinate, leaving state and local governments, along with 
disaster survivors, wondering where to turn for assistance. A 
number of provisions in this legislation seek to further 
enhance federal leadership and coordination for emergency 
response and longer-term recovery efforts.
    For instance, Section 403 requires the FEMA Administrator 
to ensure the preparedness of federal agencies to respond to 
and support the recovery from disasters. The section also 
requires each federal agency with response and recovery 
responsibilities to designate a senior official to ensure the 
agency coordinates with the FEMA Administrator and is prepared 
to carry its responsibilities. In addition, Section 404 seeks 
to ensure that the federal government coordinates disaster 
recovery by providing the President clear authority, in the 
event of a catastrophic incident, to form a temporary recovery 
commission comprised of the heads of relevant federal agencies 
and sufficiently staffed to coordinate support of state and 
local governments. Section 405 seeks to improve FEMA's delivery 
of response and recover operations and programs by 
strengthening management of the disaster reserve workforce. It 
seeks to accomplish this by reducing staff turnover during 
disaster recovery operations and requiring the development of 
policies for better administration of the disaster reserve 
workforce.
    The bill also requires FEMA to improve its management 
responsibilities in order to execute its mission more 
efficiently and competently. Section 406 requires the President 
to appoint a FEMA Deputy Administrator to serve as the Chief 
Management Officer who is required within one year to develop a 
strategy, in conjunction with DHS, to improve FEMA's 
management.

Chemical, biological, radiological and nuclear terrorist threats

    The U.S. must continue to be vigilant against and prevent 
the exploitation of chemical, biological, radiological, or 
nuclear (CBRN) materials to cause mass causalities. Though this 
threat is not new, it has evolved as the proliferation of and 
access to CBRN materials has increased. DHS and other 
government agencies have worked to reduce our vulnerability to 
a CBRN attack, but more must be done to mitigate this threat. 
This bill strengthens DHS's ability to meet these challenges in 
an efficient and effective manner.
    The Department's most important responsibility with respect 
to the CBRN threat is to keep CBRN weapons out of this country. 
To do that, the Department must use the combined capacity of 
its intelligence, law enforcement, inspection, planning, and 
operational agencies and must modernize and integrate 
information-sharing networks, deploy advanced screening, 
targeting and border security systems, and develop and deploy 
next-generation sensors and non-intrusive inspection equipment. 
Although the Department's frontline operational agencies are 
charged with preventing CBRN materials from entering the 
country, they depend on the Directorate of Science & Technology 
(S&T;)--the primary DHS entity responsible for research, 
development, and testing of new technologies and systems--to 
provide them with the best technologies available to detect the 
presence of such materials.
    DHS has invested billions of dollars to improve our ability 
to detect CBRN materials before they enter the country. Many of 
the Department's acquisitions programs have resulted in the 
deployment of new detection or inspection equipment and of 
systems that have increased the capabilities of operational 
agencies. In too many cases, however, large DHS investments 
have failed to improve the component agencies' ability to 
protect the nation from CBRN attacks--leaving us just as 
vulnerable to this growing threat as we were before the 
investments were made.\39\ Much of this work is directed by the 
Domestic Nuclear Detection Office at DHS, or DNDO.
---------------------------------------------------------------------------
    \39\GAO Report, ``DHS Science and Technology: Additional Steps 
Needed to Ensure Test and Evaluation Requirements Are Met,'' GAO-11-596 
, June 15, 2011, p.2 (``We have previously reported on several major 
DHS acquisitions that were deployed before appropriate T&E; was 
successfully completed.'').
---------------------------------------------------------------------------
    DHS's inability to develop and deploy effective CBRN 
detection technology has frustrated the Committee. For example, 
in 2004 DHS launched the Advanced Spectroscopic Portal (ASP) 
program to develop, procure, and deploy a new generation of 
radiation detection sensors capable of detecting and 
identifying nuclear and radiological materials concealed in 
cargo containers. Ultimately, the Department cancelled the ASP 
acquisition after nearly eight years of testing and retesting 
showed that the ASP program could not meet the operational 
requirements of the Customs and Border Protection agency. In 
February 2008, a report by an Independent Review Team (IRT) 
that examined DNDO's testing and evaluation practices for the 
ASP program concluded that the decision to award a five-year, 
$1.1 billion contract for ASP monitors was flawed from the 
start. The report found that the Department failed to verify 
that it had completed basic acquisition planning, testing and 
evaluation documents, including a Test and Evaluation Master 
Plan. Given the number of other major acquisitions or 
technology investments that the Department had underway at the 
time, the IRT recommended that DHS establish an independent 
entity to oversee operational testing and evaluation of such 
systems before they were approved for full-rate production or 
deployment.\40\
---------------------------------------------------------------------------
    \40\Final Report, Independent Review of the Department of Homeland 
Security Domestic Nuclear Detection Office Advanced Spectroscopic 
Portal, Feb. 20, 2008 (FOUO), p. 94. On file with the Committee.
---------------------------------------------------------------------------
    Section 703 of the bill attempts to address this IRT 
recommendation by creating an institutional check and balance 
within the Department's investment review process. It does so 
by codifying the position of Director of Testing and Evaluation 
in S&T; and providing for an independent test and evaluation 
process. The bill also requires the Director of Testing and 
Evaluation to coordinate closely with the Undersecretary of 
Management, the Chief Procurement Office, and the Chief 
Information Officer. Consistent with existing Department 
practice under DHS Management Directive 102.1, the Director of 
Testing and Evaluation will serve as a member of the 
Acquisition Review Board; review and approve all Test and 
Evaluation Master Plans and Operational Test and Evaluation 
Plans; appoint all Operational Test Agents; and oversee all 
operational testing and evaluation.
    S. 1546 also seeks to address the duplication of efforts 
between S&T; and DNDO. Given the budget constraints that the 
Department is currently facing, it cannot sustain two separate 
research and development agencies that develop countermeasures 
to nuclear and radiological terrorist threats. Presently, S&T; 
and DNDO have overlapping research and development authorities. 
S&T; conducts research and development to develop next-
generation chemical, biological, and explosive detection 
sensors and also develops countermeasures to respond to nuclear 
or radiological terrorist threats. DNDO conducts research and 
development on nuclear and radiological detection capabilities, 
but is also responsible for implementing the domestic portion 
of the Global Nuclear Detection Architecture. Unfortunately, 
this has placed DNDO in competition with S&T; for R&D; funding 
and hindered Department-wide coordination of R&D; investments.
    Sections 701 and 705 clarify that S&T; is the primary entity 
within DHS with authority to conduct research and development 
to prevent the importation of radiological and nuclear weapons. 
These provisions will eliminate redundant efforts and remove 
any confusion that might hinder S&T;'s ability to coordinate, 
integrate, and establish priorities for the Department's 
investments in research and technology. Under Section 705, DNDO 
would shed its R&D; authorities but would continue as a pivotal 
counterterrorism agency focused on strategic planning and 
coordination activities that will strengthen and unify the 
nuclear threat prevention and detection capabilities of the 
Department's operational agencies.
    Developing complex systems or technologies is an inherently 
difficult and expensive responsibility that is sometimes at 
odds with the mission of acquiring and deploying technologies 
and systems. Section 703 of the bill requires DHS to produce a 
five-year strategic plan to guide its research and technology 
development investments. The plan must include anticipated 
annual expenditures, annual milestones and objectives, and 
consideration of the needs of the operational components of the 
Department and State and local governments.
    Lastly, the bill addresses preparedness for and response to 
a CBRN attack. In the event of such an attack, police, 
firefighters, and emergency responders will be the first line 
of response and will be exposed to the risks of such an event. 
Section 413 requires that DHS develop guidelines for the 
protection and safety of first responders to an explosion or 
release of nuclear, biological, radiological, or chemical 
material, and to regularly review and revise the guidelines. In 
addition, section 414 requires DHS to develop and disseminate 
plume models that map the anticipated path of fallout from a 
CBRN attack, enabling planning and the implementation of rapid 
response activities.

Making the Department of Homeland Security more efficient

    As with every other agency in the federal government, the 
Department faces a future in which pressures on the federal 
budget require it to make do with less. The Department and its 
overseers must look for opportunities to make its programs more 
efficient. This bill takes a number of steps in that direction, 
eliminating certain grant programs, closing and consolidating 
offices, and putting in place a number of provisions to 
encourage cost-savings.

Grants

    FEMA administers a number of grant programs that award 
funding to State, local, tribal and private sector agencies for 
the purpose of strengthening the nation's ability to prevent, 
prepare for, or respond to natural disasters, terrorist attacks 
and other emergencies. Recipients can use their awards for 
several broad purposes--planning, organization, equipment, 
training, and exercises. Between 2002 and 2010, approximately 
$34 billion was appropriated for these programs, significantly 
contributing to our nation's readiness to prevent terrorist 
attacks and confront a variety of disasters.\41\
---------------------------------------------------------------------------
    \41\See, Alexandra E. Jordan, ``Collaborative Relationships 
Resulting from the Urban Area Security Initiative,'' Journal of 
Homeland Security and Emergency Management, Volume 7, Issue 1 (2010); 
National Emergency Management Association, ``The Homeland Security 
Grant Program: Keeping a Promise to the Nation,'' July 29, 2011; and 
The National Urban Area Security Initiative Association, ``A Report on 
the Effectiveness of the Urban Area Security Initiative Program,'' 
August 2011.
---------------------------------------------------------------------------
    S. 1546 takes several steps to ensure that these grants--
which have contributed immensely to the nation's security--are 
as effective and efficient as possible. The bill takes some 
immediate steps to reduce duplicative programs, eliminating the 
Emergency Operations Center (EOC) grant program and the 
Regional Catastrophic Preparedness Grant Program.\42\ While the 
EOC program, which provides funds to the states for equipping, 
upgrading, and constructing emergency operations centers, has 
played a valuable role in establishing and upgrading EOCs 
throughout the country, the same activities can be funded 
through the Emergency Management Performance Grants Program. 
Similarly, while the Regional Catastrophic Preparedness Grant 
Program has encouraged State and local governments to develop 
coordinated regional plans, these activities can be funded 
through State Homeland Security Grant Program (SHSGP) and the 
Urban Area Security Initiative (UASI).
---------------------------------------------------------------------------
    \42\S. 1546, Sec. Sec. 410 & 419.
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    S. 1546 also eliminates the Over-the-Road Bus Security 
Grant Program, which provides funding to intercity and charter 
bus operators to secure facilities and train employees.\43\ In 
addition, the bill also abolishes the U.S. Fire 
Administration's National Fire Academy Fellowship Program, 
which provides funding to senior firefighters to attend a 
three-week executive training course, and the DHS Scholars and 
Fellows Educational Program, which provides scholarships to 
students studying homeland security.\44\ These programs have 
proven valuable in the past, but with an increase in homeland 
security programs at universities all over the country, the 
need for DHS to provide scholarships to encourage students to 
study homeland security has diminished.
---------------------------------------------------------------------------
    \43\S. 1546, Sec. 407.
    \44\S. 1546, Sec. 121.
---------------------------------------------------------------------------
    The bill increases accountability for the Department's 
remaining preparedness grants, requiring FEMA to develop 
performance measures for the programs. Similar measures have 
been required in earlier legislation--specifically the Post-
Katrina Act and the Implementing Recommendations of the 9/11 
Commission Act of 2007 (9/11 Commission Recommendations 
Act).\45\ The Post-Katrina Act requires FEMA to establish a 
comprehensive assessment system for evaluating overall national 
preparedness, stating that the system must include ``clear and 
quantifiable performance measures, metrics, and outcomes.''\46\ 
It further mandates that FEMA report annually to Congress on 
these measures as part of a broader yearly assessment. The 9/11 
Commission Recommendations Act reiterates these requirements 
and also requires that states and high-risk urban areas 
receiving grants from FEMA conduct exercises to evaluate their 
progress.\47\ In accordance with the Redundancy Elimination and 
Enhanced Performance for Preparedness Grants Act, FEMA has been 
working with the National Academy of Public Administration to 
develop performance measures for the State Homeland Security 
Grant Program and the Urban Areas Security Initiative.\48\ 
These efforts are a positive step, but FEMA still needs to 
implement a comprehensive assessment system and performance 
measures for the other grants it administers--which this bill 
requires.\49\ Additionally, section 420 of the bill lays the 
groundwork for consolidating grant programs in a deliberate 
manner, requiring DHS to report to this Committee and the House 
Homeland Security Committee within 180 days on the suitability, 
feasibility, and efficiency of consolidating grants 
programs.\50\
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    \45\P.L. 109-295 & P.L. 110-53.
    \46\P.L. 109-295, Sec. 649; 6 U.S.C. Sec. 749.
    \47\P.L. 110-53.
    \48\P.L. 111-271; 6 U.S.C. Sec. 613.
    \49\S. 1546, Sec. 411.
    \50\S. 1546, Sec. 420.
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    While it is important to look for opportunities to reduce 
duplication and increase accountability, it is also important 
to ensure the continuation of effective programs. This bill 
reauthorizes four preparedness grants with proven records of 
success: the Port Security Grant Program,\51\ the Surface 
Transportation Security Grants (which include the Transit 
Security Grant Program, the Intercity Passenger Rail Security 
Grant Program, and the Freight Rail Security Grant 
Program),\52\ the Metropolitan Medical Response System 
(MMRS),\53\ and the Operation Stonegarden Grant Program.\54\ 
The bill makes several substantive changes to the Surface 
Transportation Grants, ensuring that the grants address 
regional and system-wide risk rather than focusing on risk to 
particular assets. The bill requires that a Regional Transit 
Security Working Group review and approve grant applications 
and that a Federal Security Director, or another federal 
official familiar with the region, review and rank 
applications.
---------------------------------------------------------------------------
    \51\S. 1546, Sec. 407.
    \52\S. 1546, Sec. 407.
    \53\S. 1546, Sec. 418.
    \54\S. 1546, Sec. 408.
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    MMRS was created in the aftermath of the 1995 Oklahoma City 
bombing and most recently authorized in the Post-Katrina 
Act.\55\ MMRS is unique among the preparedness grants in that 
it focuses on coordinating the medical system with first 
responders and emergency managers during mass casualty events. 
This bill includes several measures to improve the program, 
including extending MMRS to every State while limiting the 
total number of jurisdictions at the current level. This will 
broaden the reach of the program while keeping costs down.
---------------------------------------------------------------------------
    \55\P.L. 109-295, Sec. 635; 6 U.S.C. Sec. 723.
---------------------------------------------------------------------------
    Section 408 authorizes Operation Stonegarden grants to 
facilitate and enhance state, local and tribal government 
participation in border security efforts by funding additional 
patrols of our borders by local police units and operations in 
coordination with CBP. These local officers act as force 
multipliers, enabling a stronger presence along our Nation's 
borders. States located on the international border between the 
United States and Canada or the United States and Mexico, or 
with international water borders, are eligible for these 
grants.
    Section 409 of the bill extends the authorization for the 
Emergency Management Assistance Compact (EMAC) until 2016.\56\ 
EMAC is an interstate mutual aid agreement that facilitates the 
sharing of disaster response resources among states. Congress 
first approved EMAC in 1996,\57\ and it was reauthorized in the 
Post-Katrina Act.\58\ EMAC has been a valuable tool during many 
disasters, including Hurricane Katrina--where it brought 
resources to the Gulf Coast from throughout the United States. 
This bill authorizes spending for the program at $2 million per 
year.
---------------------------------------------------------------------------
    \56\S. 1546, Sec. 409.
    \57\P.L. 104-321.
    \58\P.L. 109-295, Sec. 661.
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Elimination and consolidation of DHS offices

    This bill takes a number of steps to streamline DHS, 
eliminating and consolidating several offices. Section 208 
eliminates the Office of Counternarcotics Enforcement (and 
associated presidential appointment), which is responsible for 
coordinating policy and operations within the Department for 
counternarcotics operations and for tracking and severing 
connections between illegal drug trafficking and terrorism. The 
Office has made progress toward fulfilling some of its 
responsibilities, but its policy-making functions directly 
overlap with those of the Office of Policy. The bill requires 
the Secretary to transfer the functions of the Office to 
another entity or individual within the Department, such as the 
Office of Policy.
    Section 214 of the bill eliminates the authorization for 
the Office of Cargo Security Policy.\59\ The SAFE Port Act 
authorized this office to coordinate policy development related 
to cargo security, but it was never established by the 
Department. This bill transfers the functions of this office to 
appropriate officials within the Office of Policy and 
eliminates the Department's obligation to maintain a dedicated 
office to carry out these functions. The bill (sections 206 and 
207) also officially abolishes two offices that DHS had 
previously eliminated through administrative reorganization: 
the Office of Domestic Preparedness and the Office of State and 
Local Government Coordination. Finally, section 116 
consolidates the Department's several youth preparedness 
programs into a single program. This will reduce duplicative 
efforts and promote the coordination of youth preparedness 
activities.
---------------------------------------------------------------------------
    \59\S. 1546, Sec. 214.
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Efficiency and cost-saving provisions

    The bill mandates significant changes in the way DHS 
obtains goods and services, thereby strengthening DHS's ability 
to acquire the technologies and systems it needs while keeping 
costs low. The bill also makes several management changes that 
will encourage cost-savings and requires the Department to find 
savings by consolidating and streamlining facilities and 
functions that are spread throughout the country. The key 
changes are detailed below.

Enhancing DHS's acquisition functions

    In its ten years of operations, DHS has often struggled to 
successfully plan, execute, and oversee contracts for the goods 
and services it buys from the private sector. GAO considers 
DHS's problems in this area of such great concern that it has 
cited acquisition management as a significant factor in GAO's 
decision to put DHS transformation and implementation on its 
``High Risk'' list.\60\ The DHS Inspector General (IG) also 
views acquisition as a major management challenge of the 
Department.\61\ Although GAO and the IG report that DHS has 
made progress in improving its acquisition functions, they both 
report that significant weaknesses remain.\62\ The Committee 
agrees with these assessments.
---------------------------------------------------------------------------
    \60\GAO designated the implementation and transformation of DHS as 
high risk in 2003. GAO last updated its high risk list in February, 
2011. GAO Report, ``High Risk Series: An Update,'' GAO-11-278, February 
2011.
    \61\See, e.g., GAO Report, ``Department of Homeland Security: 
Progress Made and Work Remaining in Implementing Homeland Security 
Missions 10 Years After 9/11,'' GAO-11-881, September 7, 2011; see 
also, Department of Homeland Security, Office of Inspector General, 
``Major Management Challenges Facing the Department of Homeland 
Security,'' OIG-11-11, November 10, 2010.
    \62\GAO Report, ``Department of Homeland Security: Progress Made 
and Work Remaining in Implementing Homeland Security Missions 10 Years 
After 9/11,'' GAO-11-881, September 7, 2011.
---------------------------------------------------------------------------
    The ability of DHS to ensure that acquisitions meet 
performance expectations while remaining on schedule and within 
cost is critical to the performance of DHS's missions. DHS 
spent over $13 billion on contracts in FY 2010--the equivalent 
of roughly a quarter of the Department's enacted budget 
authority. The Department currently manages over 80 major 
acquisitions with life cycle costs exceeding $300 million each, 
or hundreds of billions of dollars collectively. Acquisitions 
play an essential role in supporting the Department's missions 
of preventing terrorism, securing the borders, enforcing 
immigration laws, securing cyberspace, and responding to 
disasters. The Department's complex investments include nuclear 
detection equipment, passenger and baggage screening 
technologies, border surveillance systems, and the United 
States Coast Guard's fleet of surface and air assets.
    Managing the Department's investments would be difficult 
under the best of circumstances. Threats to the homeland are 
constantly evolving, and the technologies that DHS uses to 
combat those threats must also rapidly evolve. Moreover, DHS 
often must develop solutions to meet unique government security 
needs, because often there is little or no similar demand in 
the private sector to drive commercial development of those 
solutions. Unfortunately, the Department has tried to manage 
its investments without either well functioning internal 
processes or the personnel necessary to support successful 
projects. The result has been an embarrassing series of design 
failures and cost overruns.
    Several high-profile troubled contracts date to the early 
days of DHS--early TSA contracts for baggage screening 
equipment and the hiring of passenger and baggage screeners, 
for example.\63\ At that time, the Department's acquisition 
offices were woefully understaffed and, given the urgency of 
the new Department's missions, many projects were launched 
without the up-front planning that could have prevented cost 
overruns, schedule slippages, and design flaws. But despite 
substantial progress in strengthening acquisition policies and 
procedures and growing the acquisition workforce, DHS still 
faces enormous challenges in awarding and managing its 
contracts.
---------------------------------------------------------------------------
    \63\For a discussion of cost escalation under these contracts, see 
Department of Homeland Security, Office of Inspector General Report, 
``Evaluation of TSA's Contract for the Installation and Maintenance of 
Explosive Detection Equipment at United States Airports,'' OIG-04-44, 
September 1, 2004 and DHS Office of Inspector General Report, ``Review 
of the Transportation Security Administration's Management Controls 
Over the Screener Recruitment Program,'' OIG-06-18, December 1, 2005.
---------------------------------------------------------------------------
    The Deepwater program to modernize the U.S. Coast Guard's 
fleet of ships and aircraft is emblematic of the Department's 
continued struggles to control its contracts.\64\ Early on, the 
USCG placed both the management of the Deepwater program and 
construction responsibilities in the hands of the contractor, a 
joint venture between Lockheed Martin and Northrop Grumman. 
Without the USCG itself exerting adequate control over the 
program, this contracting model soon yielded waste. The 
contractor's retrofitting of eight small boats was so seriously 
flawed that the boats had to be pulled from use. Meanwhile, the 
need to correct design flaws in the construction of new vessels 
started to drive up costs for the program. In 2007, the USCG 
began to bring management of the program back in-house and 
strengthened controls over expenditures. Nonetheless, GAO 
reported in 2011 that the cost of the program would be at least 
$29.3 billion--about $5 billion over the Department's revised 
estimate in 2007 of $24.2 billion (and over $12 billion over 
the USCG's original estimate in 1998 of $17 billion). Moreover, 
GAO has cautioned that additional cost growth is looming and 
that the program as planned is ``unachievable'' given current 
and planned funding.\65\ While the Commandant of the Coast 
Guard contends that the GAO's conclusions are based on old data 
which fail to account for significant improvements in the Coast 
Guard's acquisition workforce, the program's track record 
provides ample reason for continued monitoring and oversight.
---------------------------------------------------------------------------
    \64\For a discussion of the development of Deepwater and related 
GAO reports on the program, see Report of the Committee on Commerce, 
Science and Transportation on S. 1194, the Coast Guard Authorization 
Act for Fiscal Years 2010 and 2011, S. Rept. 111-95, 111th Congress, 
1st Session.
    \65\GAO Report, ``Coast Guard: Action Needed as Approved Deepwater 
Program Remains Unachievable,'' GAO-11-743, July 28, 2011.
---------------------------------------------------------------------------
    Deepwater is far from alone on the list of the Department's 
difficulties in making cost-effective investments. Other high-
profile troubled acquisitions include the SBInet virtual fence 
and the Advanced Spectroscopic Portal radiation detection 
devices (whose cancellations are discussed above) and the 
Department's multiple failed attempts to structure a 
procurement to consolidate the Department's multiple financial 
systems.\66\ This bill therefore includes a number of 
provisions to address longstanding weaknesses in DHS's 
acquisition functions:
---------------------------------------------------------------------------
    \66\DHS Office of Inspector General Report, ``DHS Needs to Address 
Challenges to Its Financial Systems Consolidation Initiative,'' OIG-10-
95 (revised), July 8, 2010; see also, Washington Technology, ``DHS 
cancels $450M financial system modernization, considers cloud 
instead,'' May 18, 2011.

          Investment Review: Investment Review, a rigorous 
        process to thoughtfully and systematically review 
        significant investments before the Department agrees to 
        make them, is essential if the Department is to carry 
        out complex acquisitions that meet the Department's 
        mission needs in a cost-effective manner. The 
        Department has adopted procedures for the review of 
        major investments by an acquisition review board 
        composed of senior-level Department officials.\67\ 
        However, many projects have proceeded without full 
        review under these procedures or have been allowed to 
        proceed despite the lack of key planning procedures to 
        determine precisely either what a program's needs are 
        or how an acquisition should be planned and managed to 
        meet those needs in a cost-effective way. In examining 
        major DHS acquisitions in 2010, GAO found that more 
        than 40 major investments had proceeded without review, 
        and over half the programs examined by GAO lacked the 
        key planning documents that set operational 
        requirements and program baselines.\68\ Without this 
        basic planning, it is impossible for the Department to 
        determine what a project will really cost, how fast it 
        can be delivered, and whether it will ultimately be 
        useful. By creating a statutory requirement for a 
        formal investment review process as a requirement of 
        the HSA, section 101 of the bill establishes a 
        Department-level acquisition review board as a linchpin 
        for the management of DHS investments.
---------------------------------------------------------------------------
    \67\The Department's procedures for review of major acquisitions 
were issued in Acquisition Management Directive 102-01, interim 
version, in November 2008, and were finalized in January 2010 in 
Directive Number 102-01, Revision Number 01.
    \68\GAO Report, ``Department of Homeland Security: Assessments of 
Selected Complex Acquisitions,'' GAO-10-588SP, June 30, 2010.
---------------------------------------------------------------------------
          Acquisition Workforce: DHS historically has suffered 
        from a severe shortage of seasoned experts who are 
        trained to plan, negotiate, and oversee major 
        contracts. The Department has made significant progress 
        in hiring contracting officers and ensuring that 
        acquisition professionals are certified under federal 
        standards. The Department has also significantly 
        increased the resources and oversight capabilities of 
        the Office of the Chief Procurement Officer, resulting 
        in greater department-wide discipline over 
        procurements. Despite this progress, many programs 
        still lack the skilled professionals needed to ensure 
        that acquisitions meet performance expectations and 
        avoid cost overruns. This problem, unless aggressively 
        addressed, will become even more acute as DHS faces a 
        wave of retirements over the next few years.\69\ 
        Section 102 of the bill therefore establishes in 
        statute an Acquisition Professional Career Program, 
        codifying an approach that has been used effectively by 
        DHS as a means of building a cadre of trained 
        acquisition professionals. Section 103 requires DHS to 
        develop a long-term strategic plan for its acquisition 
        workforce.
---------------------------------------------------------------------------
    \69\The Department has reported that more than half of its 
procurement professionals are already eligible for retirement. DHS 
Office of the Chief Procurement Officer, Acquisition Human Capital 
Plan, March 2010, p. 13.
---------------------------------------------------------------------------
          Competition: The Committee applauds the significant 
        gains the Department has made in increasing the use of 
        competition in its procurements. The percentage of 
        contract dollars awarded through competition dipped 
        below 50 percent in FY 2006, due in large part, in the 
        Committee's view, to a lack of pre-negotiated contracts 
        for disaster relief and recovery services, which led to 
        an unacceptably high number of noncompetitive contracts 
        following Hurricane Katrina. Since then, the Department 
        has made steady progress in increasing competition, and 
        in FY 2010 achieved its highest rate of competition 
        ever, competing 86 percent of its contract dollars. The 
        Inspector General has produced several reports 
        discussing developments in the Department's competition 
        policies and identifying weaknesses in recordkeeping 
        related to competition.\70\ However, these reports have 
        not provided a full overview of the use of competition 
        at the Department, nor have they provided comprehensive 
        information on components' use of the exceptions under 
        the Competition in Contracting Act,\71\ which allow 
        agencies to award contracts under noncompetitive 
        procedures if justified by narrowly defined 
        circumstances, such as an unusual or compelling urgency 
        or the need to ensure that national security is not 
        compromised.\72\ The previous reports also do not give 
        appropriate credit to the Department for its strides in 
        increasing competition. Section 107 of the bill 
        therefore requires the IG to produce a new report 
        giving the Committee a broad, component-by-component 
        overview of the use of competition, in order to help 
        the Committee analyze how competition may be further 
        strengthened.
---------------------------------------------------------------------------
    \70\DHS Office of Inspector General Report, ``DHS Contracts Awarded 
Through Other Than Full and Open Competition During Fiscal Year 2007,'' 
OIG-09-94, August 2009; DHS Office of Inspector General, ``DHS 
Contracts Awarded Through Other Than Full and Open Competition During 
Fiscal Year 2008,'' OIG-10-71, March 2010; DHS Office of Inspector 
General, ``DHS Contracts Awarded Through Other Than Full and Open 
Competition During Fiscal Year 2010,'' OIG-11-41, February 2011.
    \71\41 U.S.C. Sec. 253.
    \72\Circumstances justifying noncompetitive contracts and 
procedures for entering such contracts are laid out at 41 U.S.C. 
Sec. 3303.
---------------------------------------------------------------------------
          Cost Estimates: DHS lacks sufficient analytical 
        capability to project the true life cycle costs of its 
        major investments. Incomplete or inaccurate cost 
        estimates hinder both DHS and Congress in making fully 
        informed budget decisions, weighing costs against 
        benefits, and assessing the significance of cost 
        increases over the life of a program. Lack of cost 
        estimates may also signal that DHS has not clearly 
        defined overall strategies or specific requirements for 
        investments, as was the case with the Transformation 
        and Systems Consolidation (TASC) program to consolidate 
        the financial management systems of DHS components. The 
        Committee asked for, but never received, a full life 
        cycle cost estimate for TASC from DHS before the 
        Department canceled the contract in May 2011. DHS 
        estimated a five-year value of the contract at $450 
        million, while the DHS IG cautioned that the full life 
        cycle cost of the program would exceed $1 billion.\73\ 
        TASC is hardly alone in this respect. In fact, in 
        conducting its review of major DHS acquisitions, GAO 
        found that DHS officials themselves expressed doubts 
        about the credibility, comprehensiveness and accuracy 
        of most program cost estimates.\74\ The Committee is 
        aware that DHS is working to strengthen its cost 
        estimating capabilities through establishment of an 
        office devoted to program accountability and risk 
        management, funded under the Office of the Chief 
        Procurement Officer. The Committee supports the goals 
        of this office but is concerned that the cost analysis 
        function of this office is not sufficiently elevated to 
        be fully effective across the Department. Section 109 
        of the bill, therefore, establishes a Cost Analysis 
        Division, which will report directly to the Under 
        Secretary for Management and which will be charged with 
        providing independent cost estimates of major programs.
---------------------------------------------------------------------------
    \73\Statement of James L. Taylor, Deputy Inspector General, DHS, 
before the Committee on Homeland Security, Subcommittee on Management, 
Investigations, and Oversight, U.S. House of Representatives, Oct. 29, 
2009; see DHS Office of Inspector General, ``DHS Needs to Address 
Challenges to Its Financial Systems Consolidation Initiative,'' OIG-10-
95, June 28, 2010.
    \74\GAO Report, ``Department of Homeland Security: Assessments of 
Selected Complex Acquisitions,'' GAO-10-588SP, June 30, 2010, p. 17.
---------------------------------------------------------------------------
          Innovation in Contract Management and Oversight: The 
        bill includes a number of provisions to encourage 
        adoption of leading practices in acquisition. For 
        example, section 105 of the bill requires DHS to 
        develop policies and oversight mechanisms for the use 
        of independent verification and validation (IV&V;), 
        which is a process for obtaining an unbiased review of 
        a program from experts who are independent from those 
        in the Department who develop, manage and fund the 
        program. The requirements of section 105 result from a 
        GAO report finding that DHS has not used the best 
        practices for IV&V; that are employed by other agencies 
        and the private sector.\75\ Section 106 of the bill 
        grants a five-year extension of DHS's ``Other 
        Transaction'' (OT) authority, which allows certain 
        flexibilities in procurement procedures when acquiring 
        cutting edge research and technology. While OT 
        transactions represent only a small portion of DHS 
        procurement dollars,\76\ they have been used for a 
        number of prototype projects deemed critical by DHS, 
        such as technology designed to detect chemical warfare 
        agents after a suspected or known chemical attack.\77\ 
        The bill also contains a provision (section 108) 
        requiring DHS to convene a study group to examine ways 
        in which DHS may use an ``open architecture'' approach 
        to acquisition, which can yield significant cost and 
        performance benefits.\78\ Under an open architecture 
        model, specifications of a project's design are public, 
        allowing anyone to develop components, devices and 
        programs that easily connect to the system. Compared to 
        closed, proprietary systems, open architecture systems 
        provide greater opportunities for companies to 
        participate in major acquisitions.
---------------------------------------------------------------------------
    \75\GAO Report, ``Information technology: DHS Needs To Improve Its 
Independent Acquisition Reviews,'' GAO-11-581, July 28, 2011.
    \76\According to the GAO, OT authority has been used primarily by 
the S&T; Directorate, which has entered 50 to 60 OT agreements since 
2004 with a total value of over $570 million.
    \77\GAO Report, ``Department of Homeland Security: Improvements 
Could Further Enhance Ability to Acquire Innovative Technologies Using 
Other Transaction Authority,'' GAO-08-1088, September 23, 2008.
    \78\S. 1546, Sec. 108.
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          Transparency: The broad scope of DHS's investments 
        makes Congressional oversight in this area challenging. 
        In addition, the Committee often hears complaints from 
        the private sector that the Department's lack of 
        forecasting of its acquisition needs makes it difficult 
        for companies to plan long-term investments to meet 
        those needs. Moreover, each of the Department's 
        components handles acquisition slightly differently, 
        creating a challenging environment for vendors and for 
        small companies in particular, to navigate. The bill 
        therefore contains a number of provisions that will 
        increase the flow of information about DHS acquisitions 
        to both Congress and the public. For example, section 
        101 of the bill requires quarterly reports to Congress 
        on DHS's major acquisitions, and section 110 requires 
        an annual Strategic Acquisition Plan that will be 
        available on the DHS website. Further, section 111 
        tasks the Under Secretary for Management with 
        undertaking a number of initiatives to improve the 
        transparency of the DHS acquisition process and promote 
        consistency in acquisition procedures across DHS.

Strengthening DHS's management function

    Though the Department has worked to better manage itself 
and its resources, including by instituting the DHS Efficiency 
Review Initiative in 2009,\79\ the need for improvement 
remains. The bill makes several targeted changes to the 
Department's management that will reduce costs and bring 
greater efficiency in both the near- and the long-term.
---------------------------------------------------------------------------
    \79\DHS Efficiency Review Fact Sheet, available at http://
www.dhs.gov/xabout/budget/
efficiency-review-fact-sheet.shtm. The DHS Efficiency Review Initiative 
is a Department-wide effort to reduce costs, improve efficiency, 
streamline operations, and eliminate duplication.
---------------------------------------------------------------------------
    For example, section 210 of the bill looks to enhance and 
clarify the authorities of the Chief Information Officer (CIO) 
of the Department. This section codifies provisions from DHS 
Management Directive 0007.1, which set forth the governing 
principles for integrating and managing IT throughout the 
Department. It also clearly affirms that the responsibilities 
of the CIO, consistent with the Paperwork Reduction Act of 1995 
and the Clinger-Cohen Act of 1996, include advising and 
assisting the Secretary and Department component heads, for all 
IT functions, including the IT priorities, policies, processes, 
standards, guidelines, and procedures of the Department.\80\ 
Clarifying the CIO's responsibilities in the Department, 
including with regard to the component agencies, will provide 
the DHS CIO with greater visibility over IT purchases 
throughout DHS and enable him or her to better leverage the 
needs of the Department to achieve cost savings and avoid 
duplication. Further, the bill requires DHS to complete an 
inventory of all software licenses in order to evaluate its 
long-term software licensing needs and make sure they are in 
line with Department priorities and resources. Performing an 
inventory of software licenses will help reduce potential 
duplication and limit any wasteful spending.\81\
---------------------------------------------------------------------------
    \80\S. 1546, Sec. 210.
    \81\S. 1546, Sec. 210.
---------------------------------------------------------------------------
    In a similar vein, FEMA has long struggled with management 
issues, resulting in inefficiencies and opportunities for 
waste, fraud, and abuse. The DHS IG, GAO, and others have 
released a number of reports calling attention to FEMA's 
deficiencies in different management areas--focusing in 
particular on financial, human capital, information technology, 
and performance management.\82\ While FEMA has made some 
progress in rectifying these problems, more must be done. To 
that end, this bill requires that the President appoint a FEMA 
Deputy Administrator to serve as the Chief Management Officer 
of that agency.\83\ Establishing an official with overall 
responsibility for management will ensure that these issues 
receive the attention they need and strengthen overall 
management practices at the agency. Further, to strengthen 
fraud prevention efforts, the bill mandates that FEMA report 
for each of the next five years on the number of employees and 
contractors trained under its fraud prevention training 
program.\84\ While this program was required in section 698 of 
Post-Katrina Act (6 U.S.C. Sec. 797), FEMA has yet to 
adequately conduct the training.\85\ This provision will enable 
Congress to more closely monitor the anti-fraud program and 
ensure that FEMA is meeting the requirements of the Post-
Katrina Act.
---------------------------------------------------------------------------
    \82\See Homeland Security Studies & Analysis Institute, ``Federal 
Emergency Management Agency Workforce Baseline Assessment,'' March 31, 
2010; National Academy of Public Administration, ``FEMA's Integration 
of Preparedness and Development of Robust Regional Offices,'' October 
2009; GAO Report, ``National Preparedness: FEMA Has Made Progress, but 
Needs to Complete and Integrate Planning, Exercise, and Assessment 
Efforts,'' GAO-09-369, April 30, 2009; DHS Office of Inspector General 
Report, ``FEMA Preparedness for the Next Catastrophic Disaster--An 
Update,'' OIG-10-123, September 2010; DHS Office of Inspector General, 
``Independent Auditors' Report on DHS' FY 2011 Financial Statements and 
Internal Control over Financial Reporting,'' OIG-12-07, November 2011.
    \83\S. 1546, Sec. 406.
    \84\S. 1546, Sec. 416.
    \85\P.L. 109-295, Sec. 698; 6 U.S.C. Sec. 797.
---------------------------------------------------------------------------

Reducing inefficiency and redundancy

    Several provisions in this legislation require the 
Secretary to examine avenues for eliminating redundancies and 
enhancing the Department's efficiency. DHS is a vast agency 
with multiple component entities, an environment that requires 
constant oversight to ensure the efficient use of resources.
    DHS has personnel, operations, facilities, and significant 
infrastructure in every State. Though these assets fall under 
the Department's jurisdiction, many of them operate or act 
independently of one another--under the direct control of 
various component agencies, such as Customs and Border 
Protection or Immigration and Customs Enforcement. Where the 
Department's components operate independently of one another in 
the field, they often have separate facilities, distinct 
administrative systems, and multiple overlapping logistics and 
acquisitions processes. These field operations do not benefit 
from adequate coordination of resources and consolidation of 
facilities and maintain redundant functions that could be 
streamlined to save money.
    Section 114 of this bill requires the Secretary to find 
substantial savings by consolidating and streamlining the 
Department's facilities and administrative and logistics 
functions that are spread throughout the country. First, this 
section requires the Secretary to designate areas around the 
country where there is a substantial physical presence of more 
than one component or operational entity of a component of the 
Department. Second, the Secretary must submit to this Committee 
and the House Homeland Security Committee, a report and 
implementation plan that examines the facilities and 
administrative and logistics functions of all components and 
operational entities of components within these designated 
areas and recommends consolidations in these designated areas. 
Finally, within two years of enactment, the Secretary is 
required to fully execute an implementation plan that would 
reduce aggregate expenditures on facilities and administrative 
and logistics functions in the designated areas by five 
percent. The Committee anticipates that this section will save 
the Department substantial sums by streamlining overlapping and 
redundant costs. Potential areas for savings include facility 
consolidation; operational efficiencies derived from improved 
planning and interoperability; and consolidation of 
administrative and logistics functions, including engineering 
services, facility maintenance, janitorial services, fleet 
vehicle services, shipping and receiving, facility security, 
procurement of goods and services, mail handling, 
administrative support, and IT support.
    Additionally, section 115 of the bill also directs DHS to 
conduct two studies that would improve the ability of Congress 
and the senior leadership of the Department to make informed 
decisions about potential cost savings and efficiencies across 
the operational components of the Department. Currently, 
Congress and senior decision-makers at the Department have 
limited insight into the cost drivers of DHS's operational 
activities, in part due to the way that budget requests are 
provided to Congress. These two studies would provide detailed 
information that would improve decision-making with respect to 
tradeoffs in a time of increasing resource constraints for the 
Department.
    The first part of section 115 requires a report from DHS on 
the management and administrative activities of the 
Department's operational components. The FY 2012-2016 Future 
Year Homeland Security Program (FYHSP) report identified $6.5 
billion in management and administrative expenditures in FY 
2011 for the Department's seven major operational components 
(Customs and Border Protection, Coast Guard, Federal Emergency 
Management Agency, Transportation Security Administration, 
Immigration and Customs Enforcement, Citizenship and 
Immigration Services, and the Secret Service) but provided no 
detailed breakdown about these expenditures. DHS has failed to 
provide additional detail in response to subsequent requests 
from the Committee. Given this situation, the bill mandates 
that DHS report to its primary authorizing committees within 
180 days with a detailed breakdown of these costs and identify 
potential cost savings and efficiencies with the components' 
management and administrative activities.
    Section 115 also requires DHS to report to its primary 
authorizing committees on its operational footprint and to 
study whether the Department is appropriately allocating its 
operational personnel. This study would be analogous to ``force 
allocation'' or ``resource allocation'' studies conducted by 
the Department of Defense with respect to the U.S. Armed 
Forces, and is intended to identify whether DHS is deploying 
personnel in a way that is consistent with its mission 
requirements and risk principles. The report requires the 
Secretary to recommend adjustments (either increases or 
decreases) to close gaps, reduce costs, and enhance 
efficiencies.
    Section 119 also requires the Department to utilize online 
reporting as the default format for congressionally mandated 
plans and reports. Putting these publications on 
performance.gov will limit unnecessary printing, thereby 
producing cost-savings.\86\
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    \86\S. 1546, Sec. 119.
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Providing the Department of Homeland Security with structure and 
        flexibility

    Over the years the structural foundation of DHS has begun 
to solidify. However, much of this structure does not exist in 
law. The basic foundation, laid down by the Homeland Security 
Act (HSA), has been shaped and reshaped by various 
reorganizations. This legislation preserves the Department's 
flexibility to fine tune its organization to meet new 
challenges, yet also recognizes that now, ten years after the 
Department's creation, solidifying the basic structure of the 
Department in law will help further DHS's maturation into a 
robust agency, one that is indispensable to safeguarding the 
nation from terrorists and preparing for and responding to 
natural disasters. To this end, the bill makes several 
important statutory changes that align the HSA with the current 
structure of the Department.
    DHS was the product of one of the largest government 
reorganizations in the history of our nation.\87\ The HSA 
merged all or part of 22 existing federal agencies into the 
newly created DHS. The law gave DHS the primary responsibility 
for protecting the nation's infrastructure; developing 
countermeasures against chemical, biological, radiological, and 
nuclear attacks; securing U.S. borders and transportation 
systems; organizing emergency preparedness and response 
efforts; conducting homeland security related research, 
development, technology, and acquisition programs; and 
coordinating homeland security activities with State and local 
governments and the private sector. The Department at once had 
to perform the many pre-existing missions of the component 
agencies, and also perform new homeland security missions that 
had not been envisioned before 2001 and which have continued to 
evolve in the years since.
---------------------------------------------------------------------------
    \87\6 U.S.C. Sec. Sec. 101 et seq.; see Harold C. Relyea, 
``Organizing for Homeland Security,'' Presidential Studies Quarterly, 
vol. 33, September 2003, p. 499.
---------------------------------------------------------------------------
    For this reason, Congress intentionally included in the HSA 
broad authority and discretion for the Secretary to organize 
the Department. Members understood that no one could predict, 
before the Department stood up, exactly how to best integrate 
its various components into a single Department with a common 
culture. Successive Administrations have altered the structure 
of the Department, as have successive Congresses. Indeed, since 
the Department's establishment, various laws and administrative 
reorganizations have significantly reshaped the Department, so 
much so that the HSA, in many instances, does not reflect the 
actual structure and operation of today's DHS. While some of 
the changes made have been of great and positive import, others 
have been less effective. In some cases, the lack of continuity 
of an established structure has been disruptive. In fact, based 
on perceived ill-effects of continuous reorganizations on the 
Department's ability to operate effectively, the appropriations 
committees, since fiscal year 2007, have prohibited the 
Department from using any funds for reorganizations under 
section 872 of the HSA, the Secretary's reorganization 
authority.\88\
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    \88\P.L. 110-28; P.L. 110-161, Sec. 546; U.S. Senate Committee on 
Appropriations Report to Accompany S. 1644, Department of Homeland 
Security Appropriations Act, 2008, 110 S. Rpt. 84.
---------------------------------------------------------------------------
    Now that the Department has matured, its component parts 
and disparate cultures have started to unify and its structure 
has begun to solidify. It is now important to recognize both 
the successful changes that have been made and that 
organizational stability has a place alongside organizational 
flexibility in ensuring the Department's success. In this vein, 
the underlying bill seeks to align the HSA with the actual 
structure of today's Department, while also taking care to 
ensure that, where necessary, the Department has the 
appropriate flexibility to adjust its structure to meet new 
challenges.

Creation of the Department of Homeland Security

    As noted above, the HSA moved part or the whole of 22 
existing agencies into the new Department of Homeland Security. 
Most notably, the HSA placed the Secret Service, the Federal 
Emergency Management Agency, the Customs Service, the 
Immigration and Naturalization Service, the Transportation 
Security Administration, and the U.S. Coast Guard, among 
others, under the auspices of the Department. The HSA created 
several overarching directorates to assist the new Secretary of 
Homeland Security in managing the new Department's disparate 
agencies: Information Analysis and Infrastructure 
Protection,\89\ Science & Technology,\90\ Border and 
Transportation Security,\91\ Emergency Preparedness and 
Response,\92\ and Management\93\\94\ Each directorate was to be 
headed by an Under Secretary, appointed by the President by and 
with the advice and consent of the Senate.\95\ Over the years, 
amendments to the HSA coupled with administrative 
reorganizations have made the actual structure of the 
department and the HSA virtually irreconcilable.
---------------------------------------------------------------------------
    \89\This new directorate was comprised of the National 
Infrastructure Protection Center of the FBI, the National 
Communications System of the Department of Defense, the Critical 
Infrastructure Assurance Office of the Department of Commerce, the 
National Infrastructure Simulation and Analysis Center of the 
Department of Energy (and the energy security and assurance activities 
of the Department of Energy), and the Federal Computer Incident 
Response Center of the General Services Administration. P.L. 107-296, 
Sec. 201(g); 6 U.S.C. Sec. 121(g).
    \90\The new Science & Technology directorate was comprised of 
various Department of Energy programs, including chemical and 
biological national security programs, nuclear smuggling programs, 
nuclear assessment programs, programs related to microbial pathogens, 
the Environmental Measurements Laboratory, the advanced scientific 
computing research programs at the Lawrence Livermore National 
Laboratory, and the National Bio-Weapons Defense Analysis Center of the 
Department of Defense. P.L. 107-296, Sec. 303; 6 U.S.C. Sec. 183. In 
addition, the HSA transferred the Plum Island Animal Disease Center 
from the Department of Agriculture to DHS, but did not specifically put 
it within the Science & Technology Directorate. P.L. 107-296, Sec. 310; 
6 U.S.C. Sec. 190.
    \91\Border and Transportation Security, which S. 1546 eliminates, 
was originally comprised of the U.S. Customs Service (formerly at 
Treasury), the Transportation Security Administration (formerly at the 
Department of Transportation), the Federal Protective Service (formerly 
at the General Services Administration), the Federal Law Enforcement 
Training Center (formerly at Treasury), and the Office for Domestic 
Preparedness (formerly at the Justice Department). P.L. 107-296, 
Sec. 403; 6 U.S.C. Sec. 203. In addition, the HSA directed the 
Commissioner of Immigration and Naturalization to transfer the 
functions and assets of the Border Patrol program, the detention and 
removal program, the intelligence and investigations program, and the 
inspections program to the Bureau of Border Security (later to be named 
U.S. Immigration and Customs Enforcement) under the auspices of BTS. 
P.L. 107-296, Sec. 441; 6 U.S.C. Sec. 251. Also, the HSA established 
within BTS, the Bureau of Citizenship and Immigration Services, 
comprised of the visa adjudication functions of the Immigration and 
Naturalization Service. P.L. 107-296, Sec. 441(b); 6 U.S.C. 
Sec. 251(b). Though not specifically designated for BTS or any 
particular directorate, the HSA also transferred 3,200 Department of 
Agriculture employees and their capabilities with respect to 
agricultural import and entry inspection to the Department. P.L. 107-
296, Sec. 421; 6 U.S.C. Sec. 231.
    \92\Emergency Preparedness & Response (EP&R;) was comprised of the 
Federal Emergency Management Agency; the Integrated Hazard Information 
System of the National Oceanic and Atmospheric Administration; the 
National Domestic Preparedness Office of the FBI; the Domestic 
Emergency Support Teams of the Department of Justice; the Office of 
Emergency Preparedness, the National Disaster Medical System, and the 
Metropolitan Medical Response System; and the Strategic National 
Stockpile of the Department of Health and Human Services. P.L. 107-296, 
Sec. 503; 6 U.S.C. Sec. 313. The HSA also directed that the Nuclear 
Incident Response Team, comprised of entities of the Department of 
Energy and Environmental Protection Agency that perform nuclear or 
radiological emergency support functions, would become an 
organizational unit of the Department. P.L. 107-296, Sec. 504; 6 U.S.C. 
Sec. 314.
    \93\The HSA transferred to the Under Secretary for Management's 
directorate, some of the functions performed by the Statistics Branch 
of the Office of Policy and Planning of the Immigration and 
Naturalization Service. P.L. 107-296, Sec. 701; 6 U.S.C. Sec. 341. The 
HSA also created a Chief Financial Officer, a Chief Information 
Officer, and a Chief Human Capital Officer. P.L. 107-296, 
Sec. Sec. 702, 703, and 704; 6 U.S.C. Sec. Sec. 342, 343, and 344.
    \94\P.L. 107-296; 6 U.S.C. Sec. Sec. 101, et seq. In addition to 
the central directorates, the HSA also created various other entities, 
including the Office for Civil Rights and Civil Liberties, P.L. 107-
296, Sec. 705; 6 U.S.C. Sec. 345; the Office for State and Local 
Government Coordination, P.L. 107-296, Sec. 801; 6 U.S.C. Sec. 361; an 
Office of International Affairs (P.L. 107-296, Sec. 879; 6 U.S.C. 
Sec. 459); an Office for National Capital Region Coordination, P.L. 
107-296, Sec. 882; 6 U.S.C. Sec. 462; and transferred other entities to 
the Department, including the Secret Service from Treasury, P.L. 107-
296, Sec. 821; 6 U.S.C. Sec. 381; and the US Coast Guard from the 
Department of Transportation P.L. 107-296, Sec. 1704;, 10 U.S.C. 
Sec. 101 note.
    \95\P.L. 107-296, Sec. 103; 6 U.S.C. Sec. 113.
    
    
    Due to the Department's size and the breadth and newness of 
its mission, the HSA gave the President and Secretary of 
Homeland Security significant reorganization authority. It was 
anticipated that evolving terrorist threats and the growing 
pains of a young Department would require the ability of 
Congress and the Executive branch to monitor closely the 
management and operations of DHS with a view to adjusting its 
structure as conditions warranted. To ensure organizational 
flexibility, sections of the HSA provide both the President, 
for a limited period of time, and the Secretary of Homeland 
Security with authority to reorganize the Department to a 
certain extent.
    In addition to significant Executive Branch reorganizations 
of DHS, Congress has passed several major pieces of legislation 
that have dealt either in whole or in part with the 
organization of the Department, such as the Post-Katrina 
Emergency Management Reform Act (Post-Katrina Act), (P.L. 109-
295), the Security and Accountability for Every Port Act (SAFE 
Port Act) (P.L. 109-347), and the Implementing Recommendations 
of the 9/11 Commission Act of 2007 (P.L. 110-53).

Initial executive reorganization under Section 1502

    While the HSA dictated certain aspects of the new 
Department of Homeland Security, it also gave the President 
some flexibility regarding when and how to launch the new 
Department. Section 1502 of the HSA directed the President to 
submit a reorganization plan within 60 days of the Act's 
passage that would detail the exact structure of DHS, 
consistent with the broad congressional outlines specified in 
the HSA. Upon signing the HSA into law on November 25, 2002, 
President Bush transmitted his section 1502 reorganization 
plan. This document set deadlines for the transfer of agencies, 
programs, and functions to the new department, and specified 
related agency consolidations, reorganizations, and 
streamlinings.\96\ On January 30, 2003, consistent with section 
1502, President Bush submitted an additional modification to 
his original plan. This Reorganization Plan Modification, 
renamed the ``Bureau of Border Security'' the ``Bureau of 
Immigration and Customs Enforcement'' and renamed the ``Customs 
Service'' the ``Bureau of Customs and Border Protection.''\97\
---------------------------------------------------------------------------
    \96\See, Harold C. Relyea, ``Executive Branch Reorganization and 
Management Initiatives: A Brief Overview,'' Congressional Research 
Service, RL33441, November 26, 2008, p. 8.
    \97\President George W. Bush, Reorganization Plan for the 
Department of Homeland Security, Communication transmitted to Congress, 
January 7, 2003.
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Reorganization under Section 872

    Though the President's ability to reorganize the Department 
under section 1502 expired,\98\ the HSA provided the Secretary 
of Homeland Security with substantial permanent authority to 
restructure the Department. Section 872 of the Act gave the 
Secretary authority to ``allocate or reallocate functions among 
the officers of the Department, and may establish, consolidate, 
alter, or discontinue organizational units within the 
Department. . . .''\99\ This authority was broad, although it 
did not extend to the ``abolition of any agency, entity, 
organizational unit, program, or function established or 
required to be maintained by statute.''\100\
---------------------------------------------------------------------------
    \98\P.L. 107-296, Sec. 1502(d); 6 U.S.C. Sec. 542(d)).
    \99\P.L. 107-296, Sec. 872(a); 6 U.S.C. Sec. 452(a).
    \100\P.L. 107-296, Sec. 872(b)(2); 6 U.S.C. Sec. 452(b)(2).
---------------------------------------------------------------------------
    Section 872 reorganization authority was used extensively 
in the first four years of the Department's existence to alter 
and reorganize the structure, functions, and responsibilities 
of major entities within the Department. The first Secretary of 
Homeland Security, Tom Ridge, initially used his reorganization 
authority in May 2003 to establish an Office of Security and 
transfer to it responsibilities given to the Under Secretary of 
Management by the HSA.\101\ Both Secretary Ridge and his 
successor, Michael Chertoff, used section 872 authority to make 
major structural changes, discussed later, and to make minor 
alterations, such as changing the names of the United States 
Citizenship and Immigrations Services agency, the Immigration 
and Customs Enforcement agency, and the Customs and Border 
Protection agency;\102\ transferring the Air and Marine 
Operations program from ICE to CBP;\103\ transferring the 
Federal Air Marshal program and Explosives Unit from the TSA to 
ICE;\104\ consolidating the Office of Domestic Preparedness, 
the Office of State and Local Government Coordination, and the 
grant award functions of the Under Secretary for Emergency 
Preparedness & Response and the Administrator of TSA into the 
Office of State and Local Government Coordination and 
Preparedness;\105\ and re-titling the position of Under 
Secretary of Emergency Preparedness and Response as Under 
Secretary for Federal Emergency Management.\106\
---------------------------------------------------------------------------
    \101\Letter from Secretary Tom Ridge to the Honorable Susan 
Collins, Chair, Governmental Affairs Committee, U.S. Senate, May 23, 
2003.
    \102\Letter from Secretary Michael Chertoff to the Honorable 
Michael B. Enzi, Committee on Health, Education, Labor and Pensions, 
U.S. Senate, January 18, 2007.
    \103\Letter from Secretary Tom Ridge to the Honorable C.W. Young, 
Chairman, Committee on Appropriations, U.S. House of Representatives, 
September 24, 2004.
    \104\Letter from Secretary Tom Ridge to the Honorable Richard B. 
Cheney, President of the Senate, September 2, 2003.
    \105\Letter from Secretary Tom Ridge to the Honorable Harold 
Rogers, Chairman, Subcommittee on Homeland Security, Committee on 
Appropriations, U.S. House of Representatives, January 26, 2004.
    \106\Letter from Secretary Michael Chertoff to the Honorable John 
A. Boehner, Majority Leader, U.S. House of Representatives, April 4, 
2006.
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Reorganizations as the department matured

    In addition to the initial minor reorganizations, Secretary 
Chertoff used section 872 for several major reorganizations of 
the Department after 2003. In April 2005, he established DNDO 
to serve as the primary entity in the United States government 
to develop a global nuclear detection architecture and acquire 
and support the deployment of a domestic nuclear detection 
system to detect attempts to import or develop an unauthorized 
nuclear explosive device or radiological material.\107\ This 
reorganization transferred all radiological and nuclear 
detection and countermeasures functions originally given to the 
Science & Technology Directorate to the new DNDO office.
---------------------------------------------------------------------------
    \107\Letter from Secretary Michael Chertoff to the Honorable Joseph 
Lieberman, Committee on Homeland Security and Government Affairs, U.S. 
Senate, April 13, 2005.
---------------------------------------------------------------------------
    Secretary Chertoff also embarked on ``a comprehensive 
review of the Department's organization, operations, and 
policies.''\108\ This review, termed the Second Stage Review 
(2SR), involved 18 action teams reviewing all areas and 
functions of the Department. The review reached several 
significant conclusions, one of which was that a realignment of 
the DHS organization was required to maximize performance. In 
July 2005, Chertoff announced the implementation of several new 
structural reforms: ``(1) formation of a new, department-wide 
policy office; (2) significant improvements in how DHS manages 
its intelligence and information sharing responsibilities; (3) 
formation of a new operations coordination office and other 
measures to increase operational accountability; and (4) an 
important consolidation effort that integrates the Department's 
preparedness mission.''\109\
---------------------------------------------------------------------------
    \108\Statement by Secretary of Homeland Security Michael Chertoff 
before the House Appropriations Homeland Security Subcommittee, March 
2, 2005, available at http://www.dhs.gov/dhspublic/
display?theme=45&content;=4381&print;=true; Chris Strohm, ``New DHS 
Secretary Launches Total Review of Operations,'' GovExec.com Daily 
Briefing, March 2, 2003, available at http://www.Govexec.com/dailyfed/
0305/030205c1.htm.
    \109\Secretary Michael Chertoff, U.S. Department of Homeland 
Security Second Stage Review Remarks, July 13, 2005, p. 6.
---------------------------------------------------------------------------
    The reforms resulting from the 2SR initiative sought to 
forge a better integrated Department. In October 2005, 
Secretary Chertoff created the Office of Policy to centralize 
departmental policy planning and otherwise ``facilitate long-
term strategic planning and risk-based allocation of Department 
resources.''\110\ The office, to be headed by an Assistant 
Secretary, also included the Office of International Affairs, 
the Special Assistant to the Secretary for Private Sector 
Coordination, the Policy Planning Office and other elements of 
the Border and Transportation Security Directorate, the 
Homeland Security Advisory Committee, and the Office of 
Immigration Statistics. In addition to the policy office, the 
reorganization plan also established a separate Office of 
Intelligence and Analysis, which the HSA had conjoined with 
infrastructure protection under one directorate.\111\ The newly 
created Office of Intelligence and Analysis was elevated to ``a 
stand-alone office in order to reach across the Department to 
manage the integration of DHS intelligence activities.''\112\ 
Next, the Secretary established the Office of Operations 
Coordination, headed by a Director, to coordinate operations 
across the Department's components.\113\ Though the Department 
had originally intended the Directorate of Border and 
Transportation Security to execute this function, this 
reorganization plan transferred those responsibilities to the 
new office and requested that Congress eliminate the position 
of Under Secretary for Border and Transportation Security 
(BTS).\114\
---------------------------------------------------------------------------
    \110\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005.
    \111\P.L. 107-296, Sec. 201; 6 U.S.C. Sec. 121.
    \112\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005.
    \113\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005.
    \114\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005. This bill seeks to eliminate the 
position of Under Secretary for BTS.
---------------------------------------------------------------------------
    This reorganization plan also separated preparedness 
functions from response and recovery and put the latter 
functions under a new umbrella directorate named the 
Directorate of Preparedness.\115\ This directorate, which 
absorbed the Office of Infrastructure Protection, also included 
preparedness programs located in the Office of State and Local 
Government Coordination and Preparedness, key preparedness 
programs of the Emergency Preparedness and Response 
Directorate, a newly created Chief Medical Officer, the U.S. 
Fire Administration, the Office of the National Capital Region 
Coordination, and a unified Office of Cyber Security and 
Telecommunications.\116\ Lastly, the reorganization plan 
elevated the Federal Law Enforcement Training Center from an 
element of the Bureau of Transportation Security to a free 
standing entity reporting to the Deputy Secretary; moved the 
Federal Air Marshal Service, which had previously been moved 
from TSA to ICE, back to TSA; merged the Office of Legislative 
Affairs and the intergovernmental coordination resources of the 
State and Local Government Coordination and Preparedness Office 
into a new Office of Legislative and Intergovernmental Affairs 
(OLIA) to be headed by an Assistant Secretary; renamed the 
Office of State and Local Government Coordination and 
Preparedness, without the elements that had been transferred to 
the Directorate for Preparedness, as the Office for 
Intergovernmental Affairs within OLIA; and returned the Office 
of Security to the purview of the Under Secretary for 
Management.\117\
---------------------------------------------------------------------------
    \115\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005. Under this reorganization, the 
Directorate of Information Analysis and Infrastructure Protection 
(IAIP) was renamed the Directorate for Preparedness, which integrated 
preparedness and responder-training functions into a single 
directorate.
    \116\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005.
    \117\Letter from Secretary Michael Chertoff to the Honorable Bart 
Gordon, Ranking Minority Member, Committee on Science, U.S. House of 
Representatives, July 13, 2005. The Office of Security had originally 
reported to the Deputy Secretary of Homeland Security.


Additional Legislative Reforms

    Congress has also altered the Department's structures and 
functions over the years. In December 2004, Congress passed the 
Intelligence Reform and Terrorism Prevention Act (IRTPA) to 
implement many of the recommendations of the 9/11 Commission 
and reform the nation's intelligence apparatus. IRTPA had a 
profound structural impact on the intelligence community and 
made many policy changes that affected DHS. It also implemented 
a few structural changes within the Department. For instance, 
IRTPA required the establishment of the Office of 
Counternarcotics Enforcement (which the Act that accompanies 
this report eliminates) to coordinate policy and operations 
within the Department with respect to stopping the entry of 
illegal drugs into the United States.\118\ IRTPA also 
established the Office of Geospatial Management within the 
Office of the Chief Information Officer to institute and carry 
out a program to provide for the efficient use of geospatial 
information.\119\
---------------------------------------------------------------------------
    \118\P.L. 108-458, Sec. 7407.
    \119\P.L. 108-458, Sec. 8201.
---------------------------------------------------------------------------
    Congress made larger changes following Hurricane Katrina. 
The Post-Katrina Act, passed in October 2006, substantially 
reorganized the preparedness, response, and recovery functions 
of the Department in the wake of Hurricane Katrina. Most 
notably, the Post-Katrina Act eliminated the Under Secretary 
for Emergency Preparedness and Response and reconstituted the 
Federal Emergency Management Agency as a distinct entity within 
DHS.\120\ It further sought to reunite the preparedness and 
response functions that had been bifurcated as a result of the 
2SR reorganization. Thus, FEMA absorbed many of the entities 
within the former Preparedness Directorate, including the U.S. 
Fire Administration, the Office of Grants and Training, the 
Chemical Stockpile Emergency Preparedness Division, the 
Radiological Emergency Preparedness Program, the Office of 
National Capital Region Coordination, and the Office of State 
and Local Government Coordination.\121\
---------------------------------------------------------------------------
    \120\P.L. 109-295. Under the Homeland Security Act, FEMA had been 
part of a larger directorate.
    \121\P.L. 109-295; see also, Letter from Secretary Michael Chertoff 
to the Honorable Bart Gordon, Ranking Minority Member, Committee on 
Science, U.S. House of Representatives, July 13, 2005.
---------------------------------------------------------------------------
    Other components of the former Preparedness Directorate 
that were not absorbed into the new FEMA were instead folded 
into a new structure. Using his section 872 reorganization 
authority, the Secretary combined and renamed these vestiges of 
the directorate the National Protection and Programs 
Directorate (NPPD).\122\ NPPD, headed by an Under Secretary 
appointed by the President by and with the advice and consent 
of the Senate, was established to strengthen risk management 
efforts for critical infrastructure, synchronize Department-
wide doctrine for homeland security protection initiatives, and 
deliver grants and related preparedness programs and training 
activities.\123\ This entity now contains the Office of 
Infrastructure Protection, the Office of Cyber Security and 
Communications,\124\ the Office of Intergovernmental 
Programs,\125\ and the United States Visitor and Immigrant 
Status Indicator Technology program.\126\ The Post-Katrina Act 
also established the Office of Emergency Communications with 
responsibility for enhancing public safety and interoperability 
of emergency communications.\127\ Through its reorganization 
authority, DHS located this office within NPPD as part of the 
Office of Cyber Security and Communications.\128\
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    \122\Letter from Secretary Michael Chertoff to the Honorable 
Michael B. Enzi, Committee on Health, Education, Labor and Pensions, 
U.S. Senate, January 18, 2007.
    \123\Letter from Secretary Michael Chertoff to the Honorable 
Michael B. Enzi, Committee on Health, Education, Labor and Pensions, 
U.S. Senate, January 18, 2007.
    \124\This office combined the already-extant Office of Cyber 
Security and Communications and the Office of the Manager of the 
National Communications System, with the new Office of Emergency 
Communications. See, Letter from Secretary Michael Chertoff to the 
Honorable Michael B. Enzi, Committee on Health, Education, Labor and 
Pensions, U.S. Senate, January 18, 2007.
    \125\An earlier reorganization had moved several employees of the 
State and Local Government Coordination and Preparedness Office to the 
Office of Legislative and Intergovernmental Affairs (OLIA) and had 
moved several more employees to the now extant Preparedness 
Directorate. This latest reorganization moved the employees who 
transferred to OLIA to NPPD to serve as the focal point for 
coordination with State and local officials and the employees who went 
to the Preparedness Directorate to FEMA to focus on developing 
preparedness and emergency management capabilities with State and local 
stakeholders.
    \126\Letter from Secretary Michael Chertoff to the Honorable 
Michael B. Enzi, Committee on Health, Education, Labor and Pensions, 
U.S. Senate, January 18, 2007.
    \127\P.L. 109-295.
    \128\Letter from Secretary Michael Chertoff to the Honorable 
Michael B. Enzi, Committee on Health, Education, Labor and Pensions, 
U.S. Senate, January 18, 2007.
---------------------------------------------------------------------------
    The Post-Katrina Act made several other smaller changes to 
the Department. For instance, the bill codified the Chief 
Medical Officer (CMO) of the Department, a position that had 
been created administratively in a prior reorganization, to 
serve as focal point for all medical issues within 
Department.\129\ In order to help fulfill the CMO's 
responsibilities, the Secretary used his 872 authority to 
create the Office of Health Affairs and put the CMO in charge 
of it.\130\ Finally, the bill codified and renamed the National 
Operations Center to serve as the principal coordinator for 
real-time information awareness within the Department.\131\
---------------------------------------------------------------------------
    \129\P.L. 109-295.
    \130\Letter from Secretary Michael Chertoff to the Honorable 
Michael B. Enzi, Committee on Health, Education, Labor and Pensions, 
U.S. Senate, January 18, 2007.
    \131\P.L. 109-295.
---------------------------------------------------------------------------
    Also in October 2006, Congress passed the Security and 
Accountability for Every Port Act (SAFE Port Act), which 
mandated several structural alterations to the Department.\132\ 
The SAFE Port Act codified the DNDO, created previously by the 
Secretary through his section 872 authority, as the primary 
entity responsible for coordinating efforts ``to detect and 
protect against the unauthorized importation, possession, 
storage, transportation, development, or use of a nuclear 
explosive device, fissile material, or radiological material'' 
and ``to protect against attack using such devices. . .''\133\ 
The SAFE Port Act also established an Office of Cargo Security 
Policy within the Department's Office of Policy.\134\ The 
Office of Cargo Security Policy (which is eliminated by the Act 
that this report accompanies) was originally intended to 
coordinate all Department policies relating to cargo 
security.\135\ Additionally, the SAFE Ports Act established a 
Director of Trade Policy to advise on Department policies 
relating to the trade and customs revenue functions of the 
Department.\136\
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    \132\P.L. 109-347.
    \133\P.L. 109-347, Sec. 501.
    \134\P.L. 109-347, Sec. 301.
    \135\P.L. 109-347, Sec. 301.
    \136\P.L. 109-347, Sec. 401.
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    In August 2007, Congress passed the Implementing 
Recommendations of the 9/11 Commission Act. This bill not only 
established many important programs within the Department, but 
it also made some important structural changes. For instance, 
section 531 of the act codified the Office of Intelligence and 
Analysis at the Department and codified the role of the Under 
Secretary of Intelligence and Analysis as the Department's 
Chief Intelligence Officer.\137\ This office had previously 
been created through the use of the Secretary's section 872 
authority. The bill created the National Biosurveillance 
Integration Center to enhance the capability of the Department 
to identify, characterize, localize, and track a biological 
event of national concern.\138\ The bill also clarified and 
strengthened the Under Secretary for Management's role as the 
Chief Management Officer of the Department.\139\
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    \137\P.L. 110-53.
    \138\P.L. 110-53, Sec. 1101.
    \139\P.L. 110-53.
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    Various appropriations measures have also tweaked DHS's 
structure. For instance, the Department of Homeland Security 
Appropriations Act for FY 2010, moved the Office of 
Intergovernmental Affairs from FEMA to the Office of the 
Secretary.\140\ The Office of Intergovernmental Affairs had 
previously been shifted to FEMA by Secretary Chertoff's January 
2007 reorganization and consisted of assets and employees that 
were split off from an earlier realignment of the State and 
Local Government Coordination and Preparedness Office.
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    \140\P.L. 111-31.
    
    
Realigning the Homeland Security Act with DHS's current structure

    S. 1546 makes several technical amendments to the HSA that 
help to realign the law with the current structure of DHS. For 
instance, the bill eliminates the Bureau of Transportation 
Security which had been created by the HSA but was eliminated 
by Secretary Chertoff in October 2005.\141\ The bill also 
changes the name of the Bureau of Border Security to U.S. 
Immigration and Customs Enforcement January 2003 and updates 
the name of the Bureau of Citizenship and Immigration Services 
to U.S. Citizenship and Immigration Services.\142\ 
Additionally, the bill formally eliminates the former Office of 
Domestic Preparedness, which was eliminated in practice through 
the use of section 872 reorganization authority.\143\ This bill 
disaggregates the responsibilities of the Office of 
Intelligence & Analysis and the Office of Infrastructure 
Protection and codifies them in separate sections of the 
HSA.\144\ The bill also updates the list of officers of the 
Department in section 103 of the HSA to reflect the addition of 
the Under Secretary of Intelligence and Analysis.\145\
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    \141\S. 1546, Sec. 216.
    \142\S. 1546, Sec. 216.
    \143\S. 1546, Sec. 206.
    \144\S. 1546, Sec. 301.
    \145\S. 1546, Sec. 604.
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    Other changes include the codification of the Office of 
Policy, which Secretary Chertoff created in 2005, and elevation 
of the head of the office from an Assistant Secretary to an 
Under Secretary, something the Secretary could not do 
administratively but that places the position at an 
organizational level commensurate with its 
responsibilities.\146\ The bill also codifies the basic 
structure of the National Protection and Programs Directorate, 
another entity created by Secretary Chertoff, but refocuses its 
scope from a catchall directorate to one focused on 
infrastructure protection and resilience.\147\ The bill 
eliminates the Office of State and Local Government 
Coordination which has been essentially gutted by prior 
reorganizations, and transfers its remaining functions 
involving intergovernmental relations to the Office of 
Intergovernmental Affairs.\148\ The bill also updates some of 
the responsibilities of the Office of International Affairs, 
the Chief Information Officer, the Chief Medical Officer, the 
Domestic Nuclear Detection Office, and the Science & Technology 
Directorate.\149\
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    \146\S. 1546, Sec. 201.
    \147\S. 1546, Sec. 301.
    \148\S. 1546, Sec. 207.
    \149\S. 1546, Sec. Sec. 202, 210, 203, 705 & 701.
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    Finally, this bill ensures that the Department is afforded 
the structural flexibility it needs, but within a stable 
statutory framework. Section 872 of the HSA gives the Secretary 
authority to allocate or reallocate functions among officers of 
the Department and the ability to ``establish, consolidate, 
alter, or discontinue organizational units within the 
Department.''\150\ This bill amends section 872 to give the 
Secretary authority to reallocate functions and establish, 
consolidate, alter, or discontinue organizational units within 
the Department as long as the HSA or other statutes do not 
establish those entities or functions or require their 
continued existence.\151\ This provision recognizes the 
Department's need for flexibility as it matures but 
acknowledges that a consistent structure required by statute 
should set the parameters for that growth.
---------------------------------------------------------------------------
    \150\P.L. 107-296, Sec. 872(a); 6 U.S.C. Sec. 452(a). This 
authority did not extend to the abolition of any entity required to be 
maintained by the HSA and required 60 days notice to appropriate 
congressional committees.
    \151\S. 1546, Sec. 209.
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                        III. Legislative History

    On September 13, 2011, Senators Lieberman and Collins 
introduced S. 1546, and the bill was referred to the Committee 
on Homeland Security and Governmental Affairs. The Committee 
considered S. 1546 at a business meeting that began on 
September 14, 2011, and continued on September 21, 2011. S. 
1546 was ordered reported favorably by roll call vote of 9-1 
with several adopted amendments:
     A Collins-McCaskill amendment requires that any 
savings within DHS due to programs being consolidated or 
terminated by this bill be returned to the Treasury rather than 
retained by DHS. Senators Lieberman, Levin, Akaka, Pryor, 
McCaskill, Begich, Collins, Coburn, McCain, and Johnson were 
present when the amendment was adopted by a voice vote.
     An amendment offered by Senators Collins, Portman, 
McCaskill, and Brown stipulates that the Secretary of DHS may 
not require a contractor competing for a federal contract to 
submit information regarding political contributions and 
spending in connection with the solicitation or awarding of a 
DHS contract. Senators Lieberman, Levin, Akaka, Carper, Pryor, 
Landrieu, Tester, Begich, Collins, Coburn, Brown, McCain, 
Johnson, Portman, and Paul were present when the amendment was 
adopted by a voice vote.
     A modified Akaka amendment strengthens agriculture 
inspection operations by requiring CBP to ensure that it has 
the necessary personnel, opportunities for career advancement, 
training, and equipment for its inspectors to perform 
effectively. It also establishes a bi-directional rotation 
program between CBP and USDA to ensure that the agencies 
responsible for operations and policy, respectively, are well 
coordinated. Senators Lieberman, Akaka, Carper, McCaskill, 
Tester, Begich, Collins, Coburn, and Paul were present when the 
amendment was adopted en bloc by voice vote.
     An amendment offered by Senators Akaka and Coburn 
stipulates that for plans and reports that DHS is required by 
Congress to produce, the Department must utilize online 
reporting as the default format. This amendment will limit the 
unnecessary printing of plans and reports and ensure all DHS 
plans and reports are available on the public website that was 
established by the GPRA Modernization Act of 2010. Senators 
Lieberman, Akaka, Carper, McCaskill, Tester, Begich, Collins, 
Coburn, and Paul were present when the amendment was adopted en 
bloc by voice vote.
     A Coburn amendment, as modified, requires DHS to 
report to Congress within 60 days of the end of each fiscal 
year the amount of federal funding provided to each State and 
major urban area fusion center. Senators Lieberman, Akaka, 
Carper, Pryor, McCaskill, Begich, Collins, Coburn, McCain, 
Johnson, and Paul were present when the amendment was adopted 
by voice vote.
     A Coburn amendment adds ``fusion centers'' into a 
study by the Comptroller General of the United States, required 
by the bill, which will determine if there is duplication and 
overlap among functions of the various task forces within DHS 
that serve maritime Border States. The amendment was adopted by 
voice vote with Senators Lieberman, Levin, Akaka, Carper, 
Pryor, McCaskill, Collins, Coburn, McCain, Johnson, and Paul 
present.
     A Coburn amendment, as modified, requires GAO to 
examine the budget of the Office of Policy and its overlap with 
component policy offices. The amendment was adopted en bloc by 
voice vote with Senators Lieberman, Akaka, Carper, McCaskill, 
Tester, Begich, Collins, Coburn, and Paul present.
     A Coburn amendment requires DHS to report to 
Congress on the amount of travel expenses incurred by its 
political appointees in 2011. The amendment was adopted en bloc 
by voice vote with Senators Lieberman, Akaka, Carper, 
McCaskill, Tester, Begich, Collins, Coburn, and Paul present.
     A Coburn amendment, as modified, tasks GAO with 
reporting to Congress on the quality and effectiveness of DHS 
intelligence analysis capabilities. The amendment was adopted 
en bloc by voice vote with Senators Lieberman, Akaka, Carper, 
McCaskill, Tester, Begich, Collins, Coburn, and Paul present.
     A Coburn amendment eliminates the National Fire 
Academy Fellowship Program and the DHS Scholars and Fellows 
Educational Program. The amendment was adopted en bloc by voice 
vote with Senators Lieberman, Akaka, Carper, McCaskill, Tester, 
Begich, Collins, Coburn, and Paul present.
     A Coburn amendment requires OMB to render a 
decision, within 90 days of enactment, regarding the amount of 
unobligated funds sitting in the Customs User Fees Account. The 
amendment was adopted en bloc by voice vote with Senators 
Lieberman, Akaka, Carper, McCaskill, Tester, Begich, Collins, 
Coburn, and Paul present.
     An amendment offered by Senator Coburn requires 
that not later than one year after the date of the enactment, 
the Secretary shall submit a plan to develop and implement 
processes to collect information about the subgrantees that 
receive grant funding including, at a minimum, the name of the 
subgrantee, the award amount, and the capability being 
acquired. The amendment was adopted en bloc by voice vote with 
Senators Lieberman, Akaka, Carper, McCaskill, Tester, Begich, 
Collins, Coburn, and Paul present.
     An amendment offered by Senator Coburn, as 
modified, requires DHS to report to Congress on the total 
expected costs of constructing the St. Elizabeths campus for 
the new DHS headquarters. The amendment was adopted en bloc by 
voice vote with Senators Lieberman, Akaka, Carper, McCaskill, 
Tester, Begich, Collins, Coburn, and Paul present.
     A Coburn amendment, as modified, requires that no 
later than one year after the date of enactment, the Secretary 
shall submit a plan to develop and implement processes that 
require grant recipients to provide contingency plans that 
include options for sustaining preparedness capabilities in the 
absence of federal funds. Additionally, grant recipients should 
identify ongoing projects that will need federal funding beyond 
the grant period and the amount of money needed to complete the 
project(s) along with options to sustain the capability should 
federal funds be reduced or eliminated. The amendment was 
adopted en bloc by voice vote with Senators Lieberman, Akaka, 
Carper, McCaskill, Tester, Begich, Collins, Coburn, and Paul 
present.
     An amendment offered by Senator Coburn eliminates 
the Over-the Road Bus Transit Grant Program. The amendment was 
adopted by voice vote with Senators Lieberman, Levin, Akaka, 
Pryor, McCaskill, Tester, Collins, Coburn, Johnson, and Paul 
present.
     A Carper amendment requires GAO to assess the 
extent to which DHS has a process in place or can develop a 
performance metrics system to account for results achieved 
though the award of federal grants to DHS-supported State and 
major urban area fusion centers. The amendment was adopted by 
voice vote, with Senators Lieberman, Akaka, Carper, Pryor, 
Landrieu, McCaskill, Tester, Begich, Collins, McCain, Johnson, 
Paul, and Moran present.
     A Carper amendment, as modified, requires that the 
workforce staffing plan developed for CBP and ICE under section 
501 of the bill include a discussion of the optimal levels of 
staffing necessary to promote integrity and professionalism in 
the workforce and to investigate allegations of misconduct. The 
amendment was adopted en bloc by voice vote, with Senators 
Lieberman, Akaka, Carper, McCaskill, Tester, Begich, Collins, 
Coburn, and Paul present.
     An amendment offered by Senators Brown and Carper, 
as modified, requires the Department of Homeland Security to 
obtain a clean audit and submit a report discussing its plans 
to implement a new financial system at the Department. The 
amendment was adopted by voice vote with Senators Lieberman, 
Akaka, Carper, Pryor, Landrieu, McCaskill, Tester, Begich, 
Collins, Brown, McCain, Johnson, Paul, and Moran present.
     A Pryor-Landrieu amendment, as modified, 
establishes an integrated National Mitigation Framework, as 
identified in Presidential Preparedness Directive-8 (PPD-8). 
The amendment was adopted by voice vote with Senators 
Lieberman, Levin, Akaka, Carper, Pryor, McCaskill, Begich, 
Collins, Coburn, McCain, Johnson, and Paul present.
     A McCain-Landrieu amendment, as modified, provides 
Border Patrol agents access to Federal lands along the 
southwest border for routine motorized patrols and the 
deployment of temporary tactical infrastructure and 
surveillance and detection equipment. The amendment was adopted 
by a roll call vote of 13-4. Senators Carper, Pryor, Landrieu, 
McCaskill, Begich, Collins, McCain, Johnson, and Paul were 
recorded as a yes vote; Senators Coburn, Brown, Portman, and 
Moran were recorded as yes by proxy; Senators Lieberman, Akaka, 
and Tester were recorded as a no vote; and Senator Levin was 
recorded as no by proxy.
     A McCain amendment, as modified, conditions the 
use of cost-plus contracts at DHS on written determination by 
the Acquisition Review Board (created in this bill) that a 
program is so complex and technically challenging that it is 
not practicable to use a fixed-price type contract. The 
amendment was adopted en bloc by voice vote with Senators 
Lieberman, Akaka, Carper, McCaskill, Tester, Begich, Collins, 
Coburn, and Paul present.
     A Landrieu amendment, as modified, requires the 
development of a technology and infrastructure plan for border 
security including land ports of entry. The amendment was 
adopted by voice vote with Senators Lieberman, Akaka, Carper, 
Pryor, Landrieu, McCaskill, Begich, Collins, McCain, Johnson, 
and Paul present.
     A Paul amendment, as modified and amended by a 
Levin second-degree amendment, requires DHS to protect all 
constitutional rights, including those related to First 
Amendment activity and lawful gun and ammunition purchases, in 
conducting all investigative, analytical, and other activities. 
It also requires that existing annual privacy training for DHS 
be expanded to include relevant training on First Amendment 
issues for managerial and operational personnel. The amendment 
was adopted en bloc by voice vote with Senators Lieberman, 
Akaka, Carper, McCaskill, Tester, Begich, Collins, Coburn, and 
Paul present.
     A Paul amendment, as modified, requires the DHS 
Inspector General to complete by December 30, 2013, an audit of 
each fusion center's compliance with internal privacy and civil 
liberties guidelines and policies. The amendment was adopted en 
bloc by voice vote, with Senators Lieberman, Akaka, Carper, 
McCaskill, Tester, Begich, Collins, Coburn, and Paul present.
     An amendment offered by Senator Paul, as amended 
by a Levin second-degree amendment, ensures that DHS 
establishes and follows guidelines to protect Americans' 
constitutional rights and civil liberties with respect to the 
activities described in section 213 ``Countering Homegrown 
Violent Extremism.'' The amendment was adopted by voice vote 
with Senators Lieberman, Levin, Akaka, Pryor, Tester, Collins, 
Coburn, and Paul present.
     The Levin second-degree amendment was adopted by 
roll call vote of 9-8, with Senators Levin, Akaka, Pryor, 
Tester, and Paul voting yes; Senators Landrieu, McCaskill, 
Begich, and McCain voting yes by proxy; Senators Lieberman, 
Collins, Coburn, and Johnson voting no; and Senators Carper, 
Brown, Portman, and Moran voting no by proxy.
     A Paul amendment, as modified, requires DHS to 
submit to the House and Senate Homeland Security Committees a 
report detailing the operational guidelines in place to ensure 
that DHS employees understand First Amendment protected rights 
and that all DHS activities are being conducted legally. The 
amendment was adopted en bloc by voice vote with Senators 
Lieberman, Akaka, Carper, McCaskill, Tester, Begich, Collins, 
Coburn, and Paul present.
     A Paul amendment, as modified, requires the 
Secretary to submit a report to Congress on the Department's 
use of Z Backscatter Van technology. The amendment was adopted 
en bloc by voice vote with Senators Lieberman, Akaka, Carper, 
McCaskill, Tester, Begich, Collins, Coburn, and Paul present.
     A Paul amendment, as modified, requires the newly 
established Office of International Travel Security and 
Screening to analyze and report on the number of refugees that 
do not apply for Permanent Legal Resident status. The amendment 
was adopted en bloc by voice vote with Senators Lieberman, 
Akaka, Carper, McCaskill, Tester, Begich, Collins, Coburn, and 
Paul present.
     A Paul amendment, as modified, places a hiring 
freeze on DHS for all non-emergency personnel, until the 
unemployment rate drops to 8 percent. The amendment was adopted 
by a roll call vote of 9-8 with Senators Tester, Collins, 
Coburn, Johnson, and Paul as yes votes; Senators Brown, McCain, 
Portman, and Moran as yes by proxy; Senators Lieberman, Levin, 
Akaka, Carper, Pryor, and McCaskill as no votes; and Senators 
Landrieu and Begich as no by proxy. Members present for the 
adoption of the modification were Lieberman, Levin, Akaka, 
Carper, Pryor, McCaskill, Tester, Collins, Coburn, Johnson, and 
Paul present.
     A Paul amendment, as modified, requires DHS to 
submit a report to Congress on the feasibility, potential for 
enhanced performance, and cost savings associated with the 
consolidation of all Department offices responsible for 
emergency communications and interoperability functions, or a 
partial consolidation of such offices. The amendment was 
adopted en bloc by voice vote with Senators Lieberman, Akaka, 
Carper, McCaskill, Tester, Begich, Collins, Coburn, and Paul 
present.
     A Begich-Landrieu amendment, as modified, requires 
DHS's Acquisition Professional Career Program to provide 
individuals training on acquisition policy relating to small 
business concerns. The amendment was adopted by voice vote with 
Senators Lieberman, Akaka, Carper, McCaskill, Begich, Collins, 
Coburn, McCain, Johnson, and Paul present.
    The Committee ordered the bill, as amended, reported 
favorably on September 21, 2011, by a roll call vote of 9-1. 
Senators Lieberman, Akaka, Carper, Pryor, Landrieu, McCaskill, 
Tester, Begich, and Collins voted in favor of the bill while 
Senator Paul voted in opposition. Senators Levin, Brown, and 
Portman asked to be recorded in favor of the bill by proxy, 
while Senators Coburn, McCain, Johnson, and Moran asked to be 
recorded against the bill by proxy.

                    IV. Section-by-Section Analysis


Section 1. Short title

    This section provides the bill's short title, Department of 
Homeland Security Authorization Act of 2012.

                   TITLE I--MANAGEMENT AND EFFICIENCY

Section 101. Department of Homeland Security investment review

    Section 101 adds new section 836 to the HSA (P.L. 107-296; 
6 U.S.C. Sec. 391, et seq.) establishing in statute a review 
process for evaluating the progress and status of major 
acquisitions at critical points in the acquisition life cycle. 
This high-level review of major acquisitions is intended to 
prevent projects from moving forward when there is a high risk 
of failure, and to identify problems and needed modifications 
as early as possible.
    New subsection 836(a) requires the Secretary to establish a 
process for the review of the Department's acquisitions at 
critical points in the acquisition life cycle.
    New subsection 836(b) establishes the purpose of that 
process as providing a consistent method to evaluate the 
progress and status of acquisitions, above certain threshold 
amounts as determined by the Secretary, at critical points in 
the acquisition life cycle, inform investment decisions, 
strengthen acquisition oversight, and improve resource 
management throughout the Department. New subsection 836(c) 
requires the Secretary to establish an Acquisition Review Board 
and appoint appropriate Department officials to serve on the 
Board, including the Director of Cost Analysis, whose position 
is created in section 109 of this Act. Subsection 836(c) also 
grants the Secretary the discretion to establish subordinate 
boards and councils reporting to the Acquisition Review Board.
    New subsection 836(d) directs the Secretary to establish 
risk-based criteria for the review of investments by the 
Acquisition Review Board and any subordinate boards and 
councils, which should include dollar thresholds. While new 
subsection 836(d) gives the Secretary flexibility to set 
thresholds for different levels of review, the Committee 
cautions against raising current thresholds that trigger 
Department-level review by the Deputy Secretary or Under 
Secretary for Management.\152\ Indeed, the Committee encourages 
the Department to ensure review by the Acquisition Review Board 
of any investment when the risk of failure may result in 
significant loss of taxpayer funds or may jeopardize the 
success of a program.
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    \152\Under the Department's current practice, the approving 
official for movement of acquisitions through life cycle milestones is, 
generally, the Deputy Secretary (or the Under Secretary for Management 
upon designation of the Deputy Secretary) for ``Level 1'' acquisitions 
(whose life cycle costs are at or above $1 billion), or the Under 
Secretary for Management for ``Level 2'' acquisitions (whose life cycle 
costs are $300 million or more). The approving official for ``Level 3'' 
acquisitions (whose life cycle costs are less than $300 million) is 
generally the component head or, upon designation by the component 
head, the Component Acquisition Executive.
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    New section 836 of the HSA also creates two reporting 
requirements related to the Acquisition Review Board process. 
First, new paragraph 836(e)(1) requires that, not later than 
three business days after signature of any acquisition decision 
memorandum of the Acquisition Review Board, the Under Secretary 
for Management must give a copy of the memorandum, together 
with a copy of the Letter of Assessment signed by the Director 
of Testing and Evaluation, to this Committee and the House 
Homeland Security Committee.
    Second, pursuant to new paragraph 836(e)(2), the Under 
Secretary for Management must give a quarterly report to the 
Congressional authorizing committees detailing the status of 
each acquisition subject to the Acquisition Review Board 
process. In addition to a brief description of the investment 
and the status of its review by the Acquisition Review Board, 
the quarterly reports should contain the estimated life-cycles 
cost of the acquisition (as well as the basis for the 
estimate), an indication of whether the Acquisition Review 
Board has reviewed and approved key planning documents 
(including, among other items, a Concept of Operations, a 
Statement of Mission Need, and an Analysis of Alternatives), 
and an indication of whether a certified program manager has 
been assigned to the acquisition. The quarterly reports also 
must contain an identification of acquisitions that have not 
met cost, schedule or performance expectations and a 
description of the corrective measures implemented or planned 
for such acquisitions.
    The Committee does not intend or expect the quarterly 
reports to impose an undue burden on the Department. Rather, 
the Committee expects the Department to satisfy the requirement 
by providing for each investment a concise summary containing 
charts and brief descriptions, preferably limited to one or two 
pages for each investment.

Section 102. Acquisition Professional Career Program

    Since it began operations in 2003, the Department has 
worked to overcome a severe shortage of skilled acquisition 
professionals to plan, negotiate, and oversee the Department's 
contracts. In 2008, the Department established an Acquisition 
Professional Career Program to foster the recruitment, 
training, certification, and retention of qualified acquisition 
personnel.
    Subsection 102(a) establishes the Acquisition Professional 
Career Program in statute, thereby ensuring that the Department 
will continue to strengthen the program.
    Subsection 102(b) provides that the program will provide 
training in key acquisition career fields supporting the entire 
life cycle of acquisitions, including the positions of contract 
specialist, program manager, logistician, systems engineer, 
cost estimator, and information technology acquisition 
specialist. Pursuant to an amendment offered by Senator Begich, 
the program will include training on acquisition policy 
relating to small business concerns as defined under section 3 
of the Small Business Act (P.L. 85-536; 15 U.S.C. Sec. 632).
    In order for participants in the program to gain a broad 
perspective on how acquisitions support the Department's 
missions, subsection 102(d) provides that to the extent 
practicable, the Department should strive to have participants 
complete, at a minimum, three rotational assignments throughout 
different components or offices of the Department. Individual 
assignments should last at least one year, unless otherwise 
approved by the Secretary.
    In order to provide the Department flexibility in 
structuring the program, section 102 does not mandate a minimum 
number of participants in the Acquisition Professional Career 
Program. Rather, subsection 102(e) states that the size of the 
program shall be commensurate with available funding and 
consistent with the projected acquisition workforce needs 
established in the strategic plan for the Department's 
acquisition workforce required under section 103. The Committee 
supports the Department's end strength goal of 300 participants 
in the program, as articulated in the President's Fiscal Year 
2012 Congressional Justification for Departmental Management 
and Operations.
    Additionally, subsection 102(f) provides that nothing in 
the section shall be construed to conflict with or supersede 
the authority vested in the Administrator for Federal 
Procurement Policy. The Committee expects that the Department 
will leverage, where appropriate, government-wide procurement 
training opportunities, such as those offered by the Federal 
Acquisition Institute.

Section 103. Strategic plan for acquisition workforce

    Subsection 103(a) requires the Department to address its 
historical shortage of acquisition personnel by developing a 
long-term strategic plan for the recruitment, retention, and 
training of the Department's acquisition workforce. The 
subsection requires the Secretary to complete the initial plan 
within one year of this bill's enactment and to produce 
subsequent reports at least every three years thereafter.
    Subsection 103(a) also requires the reports to be 
consistent with any requirements issued by the Administrator 
for Federal Procurement Policy and to include an identification 
of gaps in capabilities in each component, covering at a 
minimum, the key acquisition career fields identified for the 
Acquisition Professional Career Program established under 
section 102. The plans must also contain projections for 
personnel needed for each acquisition career field in each 
component as well as a plan and projected schedule for training 
the acquisition workforce.
    Subsection 103(b) requires the Secretary to deliver a copy 
of each plan to this Committee and the House Homeland Security 
Committee.

Section 104. Notification to Congress of major awards

    Section 104 requires the Secretary to notify this Committee 
and the House Homeland Security Committee at least three 
business days before either: making a contract award, other 
transaction agreement, or task and delivery order exceeding 
$10,000,000; or announcing the intention to make such an award. 
The bill provides an exception to this notification in 
instances where the Secretary determines that compliance with 
the reporting requirement would pose a substantial risk to 
human life, health, or safety. Under such circumstances, the 
notification shall be made not later than five business days 
after such an award is made.

Section 105. Independent verification and validation

    Section 105 promotes responsible use of independent 
verification and validation (IV&V;) as a process for the 
independent evaluation of the integrity and quality of major 
acquisitions. IV&V; is a process whereby organizations can 
reduce the risks inherent in system development and acquisition 
efforts by having a knowledgeable party who is independent of 
the developer determine whether the system or product meets the 
users' needs and fulfills its intended purpose. GAO recently 
reported to the Committee that, when used properly, IV&V; 
provides an objective assessment of a project's processes, as 
well as risks throughout its life cycle, and helps ensure that 
programs meet performance, schedule, and budget targets.\153\
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    \153\GAO Report, ``Information Technology: DHS Needs To Improve Its 
Independent Acquisition Reviews,'' GAO-11-581, July 28, 2011.
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    Subsection 105(a) requires the Chief Procurement Officer of 
the Department, in consultation with the Chief Information 
Officer of the Department, to issue guidance on use of IV&V.; 
The guidance must contain a definition of IV&V; for consistent 
use by Department components and identify risk-based criteria 
to be considered by Department officials when deciding whether 
to employ IV&V.; The guidance also must include appropriate 
thresholds above which acquisitions may not proceed without 
IV&V; unless authorized to do so by the Acquisition Review Board 
established under section 836 of the HSA, as added by section 
101. Also, the subsection requires the guidance to ensure, 
where reasonable and appropriate, that Federal government 
resources are used to perform IV&V.;
    Subsection 105(a) also requires the new guidance to include 
procedures for ensuring the managerial, financial, and 
technical independence of providers of IV&V; from the personnel 
who develop, manage, and perform acquisitions, so that 
assessments of programs through IV&V; are truly unbiased. 
Additionally, subsection 105(a) requires the new guidance to 
include methods for integrating IV&V; results into program 
management; procedures to monitor and ensure implementation of 
the guidance and to take corrective actions, where necessary; 
and mechanisms to collect, analyze, and evaluate the 
effectiveness of IV&V; data.
    Subsection 105(b) states that the development of the 
guidance shall be considered an inherently governmental 
function to ensure that federal employees at the Department and 
not contractors control the policies that shape the IV&V; 
guidance.
    Subsection 105(c) creates two simple reporting requirements 
related to IV&V.; First, it stipulates that the quarterly 
reports on major acquisitions required by section 836(e)(2) of 
the HSA, as added by section 101 of this Act, shall include an 
indication of whether an acquisition has been granted initial 
approval to proceed by the Acquisition Review Board without a 
plan for IV&V;, and if so, an explanation of the decision not to 
employ IV&V.; Subsection 105(c) also contains a short-term 
reporting requirement for the Chief Procurement Officer to 
report to Congress, not later than 270 days after the date of 
enactment of this Act, on actions the Department takes to 
improve the use of IV&V; for the eight programs reviewed by GAO 
for its July 28, 2011 report.

Section 106. Other transaction authority

    Section 106 provides for a long-term extension of the 
Department's ``Other Transaction'' (OT) authority, which gives 
the Department certain flexibilities to diverge from general 
procurement rules to attract nontraditional contractors to 
research, develop, and test innovative technologies. Section 
831 of the HSA, as originally passed by Congress, granted OT 
authority to the Department through 2009. The authority has 
been extended several times on a year-to-year basis through the 
appropriations process.\154\ Section 106 amends section 831 of 
the HSA to provide OT authority until September 30, 2016. 
Additionally, in order to provide the Committee a basis on 
which to evaluate future requests to extend OT authority, 
section 106 requires GAO to conduct a review of the 
Department's use of the authority, to be completed at least a 
year before expiration of the authority, i.e., not later than 
September 30, 2015.
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    \154\The authority was extended until September 30, 2008 in the 
Consolidated Appropriations Act, 2008, Pub. L. 110-161, Dec. 26, 2007. 
It again was extended until September 30, 2009 in the Consolidated 
Security, Disaster Assistance, and Continuing Appropriations Act, 2009, 
Pub. L. 110-329, September 30, 2011, and until September 30, 2010 in 
the Department of Homeland Security Appropriations Act of 2010, Pub. L. 
111-83, Oct. 28, 2009. The authority then lapsed until the Department 
of Defense and Full-Year Continuing Appropriations Act, 2011, P.L. 112-
10, April 15, 2011, extended it until September 30, 2011.
---------------------------------------------------------------------------

Section 107. Report on competition

    Section 107 requires the Inspector General of the 
Department to prepare a report analyzing the use of competition 
in the award of contracts by the Department under the 
Competition in Contracting Act (P.L. 98-369; 41 U.S.C. 
Sec. Sec. 3301 et seq.). The section requires the report to be 
completed not later than 270 days from the date of enactment of 
this Act and to include, for each component of the Department, 
the total number and dollar value of new contracts for each of 
the last three fiscal years for which data is available, and, 
of that total number, the number of contracts entered into 
without full and open competition. The section also requires 
data over the same time period for contracts awarded under 
competition after receipt of only one offer, in order to help 
the Committee understand how often the Department's 
requirements or solicitations fail to attract bids from 
multiple vendors. Additionally, the section requires the 
Inspector General to provide a statistical analysis of the 
statutory exceptions used by the Department to enter contracts 
without full and open competition, a discussion of the trends 
in competition in each component, and a comparison of the 
Department's use of full and open competition with such use by 
other major contracting agencies.

Section 108. Open architecture study

    Section 108 establishes a working group within the 
Department to examine potential use of an open architecture 
approach to acquisitions. The open architecture model promotes 
use of modular, interoperable systems that adhere to standards 
with open interfaces. Under this approach, a procuring agency 
publishes, to the greatest extent possible, standards for the 
system and its components, thereby reducing the amount of 
proprietary information used in the system and opening the door 
to all companies producing goods or services that meet the 
required standards. Thus, open architecture can reduce costs 
and increase competition.
    With the goal of encouraging greater use of open 
architecture, subsection 108(a) requires the Under Secretary of 
Management, within 90 days of the bill's enactment, to 
establish a working group within the Department to study ways 
in which to use open architecture to improve performance, 
reduce costs, and increase opportunities for competition.
    Subsection 108(b) requires the study to include input from 
the Department's Chief Procurement Officer, the Department's 
Chief Information Officer, the Chief Acquisition Executives of 
each of the Department's components, the Heads of Contracting 
Activity of each of the Department's components, the Director 
of Acquisition Support and Operations Analysis of the Science 
and Technology Directorate, and any other official designated 
by the Under Secretary for Management.
    Subsection 108(c) requires that not later than 270 days 
after the date of enactment of this Act, the Under Secretary 
must submit this Committee and the House Homeland Security 
Committee a report assessing the current use of open 
architecture by the Department, making recommendations on the 
benefits of expanded use of open architecture, describing 
internal capabilities necessary for executing acquisitions 
under an open architecture model, and identifying, as 
appropriate, acquisitions for which use of open architecture 
would be beneficial. The subsection further directs that 
participants in the study should draw on lessons from the use 
of open architecture at the Department of Defense.
    Subsection (d) defines ``open architecture'' as the 
employment of business and technical practices that yield 
modular, interoperable systems that adhere to standards with 
open interfaces, with a goal of encouraging competitive 
proposals from multiple qualified sources and rapid 
incorporation of innovative technologies into systems.
    Finally, subsection (e) states that the study shall be 
deemed completed upon submission of the report.

Section 109. Cost Analysis Division

    Section 109 adds new section 837 to the HSA (P.L. 107-296; 
6 U.S.C. Sec. Sec. 391 et seq.) to create a Cost Analysis 
Division (CAD) within the Department. New section 837(a) 
establishes the CAD to ensure that program cost estimates are 
accurate reflections of program requirements and that cost 
estimates increase the capability of the Department to make 
informed investment decisions, budget formulation, measurement 
of progress, and accountability. Section 837(a) also requires 
the CAD to report directly to the Under Secretary for 
Management.
    New HSA section 837(b) details the duties of the CAD, which 
include validating program life-cycle cost estimates as part of 
the investment review board process established by section 101 
of this Act; prescribing policies and procedures for cost 
estimation and cost analysis in the Department; and providing 
assistance, training, and oversight of the cost analysis 
capabilities of the components of the Department.
    New HSA section 837(c)(1) establishes the position of the 
Director of Cost Analysis, who will head the CAD and serve as 
the principal advisor to the Secretary and other senior 
officials of the Department on cost estimation and cost 
analysis. New HSA section 837(c)(2) directs the Secretary to 
ensure that the Director of Cost Analysis promptly receives the 
results of all cost estimates and cost analysis conducted by 
components of the Department for major acquisitions and has 
access to other records and data necessary to carry out the 
duties of the CAD.

Section 110. Strategic acquisition plan

    Section 110 adds a new section 838 to the HSA requiring the 
Department to annually publish on its website a publicly 
available strategic acquisition plan. This plan will assist the 
Department in saving money by causing it to determine and 
articulate overall goals, principles, and objectives of planned 
acquisitions as well as the anticipated procurement needs of 
the Department, with both a one-year projection and a longer-
term projection, which must be at least five years. This plan 
will include program-level needs, any anticipated multi-year 
procurements, and expected major changes in ongoing or planned 
procurements. Lastly, the strategic plan should also include 
any plans for utilizing strategic sourcing through department-
wide or government-wide contract vehicles (i.e., obtaining 
better prices by pooling the government's buying power through 
fewer contract vehicles).

Section 111. Transparency and innovation in acquisition

    Section 111 adds new section 839 to the HSA, requiring the 
Under Secretary for Management to ensure that acquisition 
personnel adequately communicate the acquisition needs of the 
Department to the private sector and nongovernmental 
organizations. The section also requires the Under Secretary to 
ensure that the Department's website includes all the necessary 
information on programs, policies and initiatives that 
encourage small businesses to participate in the acquisition 
process. Further, the website will have to include information 
to guide interactions between the Department and vendors and 
information on the Department's procurements. The section also 
charges the Under Secretary with promoting the use of 
consistent terminology and definitions in solicitations, 
contracts, grants, and other transactions where the Department 
interacts with the private sector in order to simplify the 
process for those seeking to work with the Department.
    Section 111 seeks to enhance the Department's knowledge of 
what the private sector has to offer by encouraging the 
appropriate use of requests for information and other means of 
acquiring knowledge about the marketplace before a solicitation 
is issued. Also, to improve communication between the 
Department and the private sector, section 111 specifies that 
debriefings with offerors who were unsuccessful should provide 
adequate explanation as to why they did not receive an award. 
The purpose of post-award debriefings is for the contracting 
officer to provide information on the government's evaluation 
of proposals and to answer an offeror's reasonable questions 
about the source selection process. Debriefings can provide 
important information to companies to help them improve their 
proposals for future solicitations. The Committee is concerned, 
however, that debriefings too often are perfunctory and provide 
little useful insight to unsuccessful offerors.

Section 112. Disaster relief procurement authorities

    Section 112 helps conform the Department's procurement 
authorities to that of the Federal Acquisition Regulation (FAR) 
and eliminates an unnecessary step in the registration process 
for the registry of companies who are capable of providing 
goods and services for disaster response and recovery. 
Subsection 112(a) repeals two Department-specific procurement 
rules that subsequent FAR regulations have rendered obsolete: 
section 692 of the Post-Katrina Emergency Management Reform Act 
of 2006 (Post-Katrina Act) (6 U.S.C. Sec. 792), which limits 
the tiers, or layers, of subcontractors who may perform the 
principal work of the contract; and section 695 of the Post-
Katrina Act (6 U.S.C. Sec. 794), which limits the length of 
noncompetitive contracts. In 2009, the FAR Council issued a 
government-wide rule to limit the length of contracts awarded 
noncompetitively under unusual and compelling circumstances to 
no longer than one year, unless the head of the agency 
determines that exceptional circumstances apply.\155\ In 2010, 
the FAR adopted a final government-wide rule minimizing 
excessive pass-through charges by contractors from 
subcontractors, or from tiers of subcontractors, that add no or 
negligible value.\156\
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    \155\Federal Acquisition Regulation (FAR) Case 2007-008, 74 Fed. 
Reg. 52849, Oct. 14, 2009.
    \156\FAR Case 2008-031, 75 Fed. Reg. 77745, 77747, Dec. 13,2010.
---------------------------------------------------------------------------
    Section 112(b) eliminates a duplicative requirement for the 
Administrator of the Federal Emergency Management Agency (FEMA) 
to verify registration information submitted by contractors 
wishing to be listed on the registry of contractors willing to 
perform disaster or emergency relief activities. Such 
verification is performed at the time of a contract award, and 
therefore the current requirement for verification at the time 
of registration is duplicative and wastes FEMA's resources. 
Section 112(b) also makes a technical change to reflect the 
current inclusion of the registry in the Central Contractor 
Registration database.

Section 113. Special emergency procurement authority for domestic 
        emergency operations

    Section 113 amends section 32A of the Office of Federal 
Procurement Policy (OFPP) Act (41 U.S.C. Sec.  1903) to provide 
certain special procurement authorities for domestic emergency 
operations. Currently, the OFPP Act authorizes special 
procurement authorities to support contingency operations or to 
facilitate defense against or recovery from nuclear, 
biological, chemical, or radiological attacks. These 
authorities include increases to the micro-purchase and 
simplified acquisition thresholds (which allow for simplified 
procedures for purchases that fall below certain dollar 
thresholds) and the ability to procure property and services 
under streamlined rules applicable to commercial items. Section 
113 authorizes the use of these flexible procurement 
authorities to assist in the response to and recovery from 
natural disasters and other emergency situations. Use of the 
special rules is limited to instances when the Secretary, or a 
designee at the Chief Procurement Officer level or higher, in 
consultation with the Administrator of FEMA, approves use to 
provide support for an emergency or disaster as defined under 
section 102 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (Stafford Act) (42 U.S.C. Sec. 5112), 
or when the Secretary determines federal assistance is needed 
to supplement State and local efforts and capabilities to save 
lives and to protect property and public health and safety, or 
to lessen or avert a threat of a catastrophe in any part of the 
United States.

Section 114. Field efficiencies report and implementation plan

    This section requires the Secretary to submit, not later 
than 9 months after the date of enactment of this Act, a report 
and implementation plan to this Committee and the House 
Homeland Security Committee that examines the facilities and 
administrative and logistic functions of components or 
operational entities of components of the Department that are 
located within certain designated geographic areas. The section 
directs the Secretary to designate geographic areas where there 
is a substantial physical presence of more than one component 
or operational entity of a component of the Department 
(excluding the National Capital Region) and report on the 
potential for consolidation of the facilities of each component 
or operational entity of a component within the region and the 
administrative and logistics functions of each component or 
operational entity of a component within the region and 
additional ways to improve unity of effort and cost savings. 
Specifically, the section states that the report and 
implementation plan must examine the potential for 
consolidation of administrative and logistics functions, 
including engineering services, facility maintenance, 
janitorial services, fleet vehicle services, shipping and 
receiving, facility security, procurement of goods and 
services, mail handling, administrative support, and 
information technology and telecommunications services and 
support.
    The section also requires that the report and 
implementation plan make a five percent reduction in the 
aggregate amount of expenditures on all Department facilities, 
administrative and logistics functions, and operational 
activities in the regions designated by the Secretary. Finally, 
the section requires that the plan must be fully implemented 
within two years after the date of the bill's enactment.

Section 115. Cost savings and efficiency reviews

    Subsection (a) requires the Secretary, not later than 270 
days after enactment, to submit this Committee and the House 
Homeland Security Committee a report that provides a detailed 
accounting of the management and administrative expenditures 
and activities of the Department's component agencies and 
identifies possible cost savings and efficiencies in those 
expenditures for each component.
    Subsection (b) requires the Secretary, acting through the 
Under Secretary for Management, to conduct a study within 270 
days after enactment that examines the size, experience level, 
and geographic distribution of the operational personnel of the 
Department and to submit to this Committee and the House 
Homeland Security Committee a report that details the findings 
of the study and recommends adjustments to close gaps in 
capabilities, reduce costs, and enhance efficiencies.

Section 116. Consolidation of youth programs

    This section requires the Secretary to consolidate all 
youth preparedness education programs of the Department into a 
single program.

Section 117. Reversion to Treasury of excess funds

    This section specifies that any budgetary savings achieved 
through eliminating or consolidating programs as directed by 
this Act, be returned to the general fund of the Treasury 
rather than remain in the relevant appropriations account.

Section 118. Prohibition on collection of political information

    Section 118 adds new section 890A to the HSA to prohibit 
the Department from requiring contractors to submit information 
on political contributions or spending as part of the 
contracting process. The Committee believes that transparency 
of political contributions is a worthy goal but requiring the 
disclosure of political information directly to federal 
agencies in the context of the contracting process--rather than 
to the Federal Election Commission in the context of disclosure 
rules with general applicability--inadvertently would create 
the appearance that contract award decisions could be 
predicated on or influenced by political contributions or 
considerations.
    New HSA subsection 890A(a) prohibits the Secretary from 
requiring the submission of political information related to a 
contractor, subcontractor, or any partner, officer director or 
employee of the contractor or subcontractor as part of the 
solicitation process, during the course of contract 
performance, or any time prior to final contract closeout.
    New HSA subsection 890A(b) clarifies the scope of the 
prohibition by setting out the types of procurement actions 
subject to the prohibition, which include procurement of 
commercial items, non-commercial procurements, and task and 
delivery orders under indefinite delivery/indefinite quantity 
contracts.
    New HSA subsection 890A(c) provides a rule of construction 
clarifying that the section shall not be construed as waiving, 
superseding, restricting or limiting the application of the 
Federal Election Campaign Act of 1971 or preventing federal 
regulatory or law enforcement agencies from collecting or 
receiving information authorized by law; or precluding the 
Defense Contract Audit Agency or other audit agencies from 
accessing information for the purpose of identifying allowable 
costs.
    New HSA subsection 890A(d) defines the terms ``contractor'' 
and ``political information.'' ``Political information'' is 
defined as information relating to political spending, 
including any payment consisting of a contribution, 
expenditure, independent expenditure, or disbursement for an 
electioneering communication that is made by the contractor, 
any of its partners, officers, directors or employees, or any 
of its affiliates or subsidiaries to a candidate or on behalf 
of a candidate for election for Federal office, to a political 
committee, to a political party, to a third party entity with 
the intention or reasonable expectation that it would use the 
payment to make independent expenditures or electioneering 
communications, or that is otherwise made with respect to any 
election for Federal office, party affiliation, and voting 
history.

Section 119. Format of plans and reports submitted to Congress

    Section 119 requires that when the Department submits 
statutorily mandated reports to Congress, they make the reports 
available online and in a searchable and machine readable 
format at Performance.gov (established by the Government 
Performance and Results Act (GPRA) Modernization Act of 2010). 
The Department must also take actions to limit the unnecessary 
printing of plans and reports and notify the Secretary of the 
Senate, the Clerk of the House of Representatives, and relevant 
congressional committees when a report is available online. 
This section is consistent with the Freedom of Information Act 
and does not require the disclosure of information that is 
normally exempt under that statute.

Section 120. Travel expenses of political appointees

    This section mandates a report no later than December 31, 
2011 on the travel expenses of political appointees within the 
Department during fiscal year 2011, including the destination 
and purpose of each trip, the number of official travelers on 
the trip, whether government-owned transport vehicles were 
used, and overall costs.

Section 121. Elimination of duplicative fellowship programs

    Subsection (a) prohibits the Secretary from providing funds 
to the Harvard Fire Executive Fellowship Program.
    Subsection (b) terminates the Homeland Security Scholars 
and Fellows program.
    Subsection (c) provides that grants made before the 
enactment of this Act will remain in force for the duration of 
the grant.

Section 122. Information of subgrantees

    Subsection (a) requires the FEMA Administrator to submit 
within one year of enactment of this Act a plan to develop and 
implement processes to collect and track sub-grantee 
information for each of its non-disaster preparedness grants.
    Subsection (b) requires that the plan require the 
collection and tracking of identification information on the 
sub-grantee, award amounts, and the capability acquired; 
describe how this information will be collected; and explain 
how FEMA will determine whether grant recipients are receiving 
funding from several grants programs to fully fund a single 
project.

Section 123. Improving financial accountability and management

    Section 123 requires the Department to take necessary steps 
to successfully complete an audit of its finances by an 
accounting firm as required by the Chief Financial Officers Act 
of 1990 (P.L. 101-576). The Department of Homeland Security is 
one of only two federal agencies who have yet to achieve a 
clean audit, also known as an unqualified opinion. The 
Department received a qualified opinion on its financial audit 
for fiscal year 2011, the first time that accountants have been 
able to complete an audit since its inception.
    Section 123(a) defines the terms ``qualified opinion'' and 
``unqualified opinion.''
    Subsection (b) requires the Department to take certain 
steps to ensure compliance with the Department of Homeland 
Security Financial Accountability Act (P.L. 108-300). First, 
for fiscal years 2012 and 2013, the Department must take steps 
to ensure that the balance sheet and associated statement of 
custodial activity are submitted in order to obtain a qualified 
or unqualified opinion. Second, for fiscal years 2014 and 2015, 
the Department must then take steps to ensure that the full set 
of consolidated financial statements of the Department are 
submitted in order to obtain a qualified or unqualified 
opinion. Finally, for fiscal year 2016 and all subsequent 
years, the Department must ensure that the full set of 
consolidated financial statements be submitted with the goal of 
obtaining an unqualified opinion.
    Subsection (c) requires the Department's Chief Financial 
Officer to submit a report to Congress on the progress of 
meeting audit requirements no later than 270 days after 
enactment of the Act and annually thereafter until an 
unqualified opinion is submitted. This report must include the 
plans of the Department to obtain a qualified or unqualified 
opinion and describe the plans and resources dedicated to 
meeting the given deadlines.
    Subsection (d) requires the Chief Financial Officer of the 
Department to submit a report not later than 270 after 
enactment of this Act to this Committee and the House Homeland 
Security Committee and the Comptroller General of the United 
States on the Department's plans and resources needed to 
modernize the Department's financial systems. The report must 
discuss the continued use of existing financial systems 
(including an assessment of the cost and feasibility of using 
such systems), the challenges and opportunities of implementing 
a new financial system and associated financial controls, and 
the lessons learned from prior attempts by the Department to 
develop a financial system like the Transformation and Systems 
Consolidation (TASC) program. Additionally, not later than 180 
days after submission, the section directs the Comptroller 
General to review the Department's report and submit to this 
Committee and the House Homeland Security Committee a report 
assessing the status of the Department's financial system 
modernization efforts, an evaluation of the Department's 
report, an assessment of the plans and developments made by the 
Department for modernizing their financial system and any 
recommendations for improving their plans.

Section 124. Limitation on use of cost-plus contracts

    Section 124, which was added to the bill by an amendment 
offered by Senator McCain, requires the Department to adopt new 
rules limiting, and ensuring appropriate use of, cost-
reimbursement type contracts, commonly referred to as ``cost-
plus'' contracts. Under a cost-plus contract, the government 
pays a contractor for all reasonable costs incurred in the 
performance of the contract, instead of paying a fixed price. 
The Committee recognizes that the Department's level of use of 
cost-type contracts is well below that of other major 
contracting agencies, including the Department of Defense.\157\ 
Nonetheless, the Committee remains concerned that the 
Department at times has used cost-plus contracts when it could 
have used fixed price contracts, or has failed to convert cost-
plus contracts to fixed-price contracts once requirements have 
been developed.
---------------------------------------------------------------------------
    \157\Id.
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    Subsection (a) lays down a general presumption against use 
of cost-plus contracts by requiring the Secretary, within 120 
days of the date of enactment of this Act, to issue a 
regulation prohibiting the Department from entering into cost-
plus contracts for the production of major systems.
    Subsection (b) requires the Under Secretary of Management, 
in consultation with the Acquisition Review Board, to determine 
the appropriate contract type for the development of a major 
system at the time the Board approves the Department's 
investment in the system. Subsection (b) further allows the 
Under Secretary to authorize use of a cost-plus contract only 
upon written determination that: (1) the major system is so 
complex and technically challenging that it is not practicable 
to use a fixed-price type contract; (2) all reasonable efforts 
have been made to develop sufficient requirements that would 
allow for use of a fixed-price contract; and (3) despite these 
efforts, the Department cannot define requirements sufficiently 
to allow for use of a fixed-price contract.
    Subsection (c) prohibits use of cost-plus contracts for 
other types of procurements (i.e., procurements other than 
those for major systems) unless a contracting officer makes a 
determination in writing that a cost-plus contract is required 
by the level of program risk and that steps will be taken to 
allow for follow-on contracts to be awarded on a fixed-price 
basis. Use of a cost-plus contract must be approved by the head 
of contracting activity.
    Subsection (d) ensures that, consistent with the reporting 
requirements of section 104, the Secretary will notify this 
Committee and the House Homeland Security Committee at least 3 
business days before making a cost-plus award.
    Subsection (e) provides definitions for the section for 
``major system,'' ``development of a major system,'' and 
``production of a major system,'' with the intent of defining 
these terms for purpose of this section in a manner consistent 
with the Department's current definitions.

Section 125. Safeguarding constitutionally protected activity

    This section specifies that in the course of carrying out 
their work, employees of the Department may not violate the 
constitutional rights of any individual, including rights to 
bear arms, of political association, to petition government, 
and other speech or activity protected by the Constitution. 
This section prohibits targeting an individual based solely on 
race, religion or color. This section further requires that 
Department employees receive annual training on privacy 
matters, including protected speech and activity under the 
Constitution.

Section 126. Secretary guidelines for protecting constitutional rights 
        and civil liberties

    This section specifies that within 60 days of enactment, 
the Secretary must submit two reports to Congress: first, a 
report that details the operational guidelines that Department 
employees shall follow to uphold the constitutional rights of 
citizens of the United States while carrying out their duties; 
and second, a report that details how the Secretary will ensure 
that all Departmental employees are trained to uphold 
constitutional rights of citizens, as well as the operational 
guidelines issued by the Secretary to ensure that all 
activities of the Department are conducted legally.

                  TITLE II--STRUCTURE AND ORGANIZATION

Section 201. Under Secretary for Policy

    This section codifies the Office of Policy, originally 
created administratively by Secretary Chertoff in 2005, and 
elevates the head of the office, currently an Assistant 
Secretary, to an Under Secretary position--consistent with 
similar positions in other large and diverse cabinet 
departments.
    Subsection (a) amends the HSA by redesignating HSA section 
601 (P.L. 107-296, Sec. 601; 6 U.S.C. Sec. 331) as section 890B 
and creates a new section 601 which establishes in the 
Department an Under Secretary for Policy, appointed by the 
President, by and with the advice and consent of the Senate. 
This subsection also states that the Under Secretary shall 
serve as the principal policy advisor to the Secretary; 
coordinate and provide overall direction and supervision of 
policy development for the Department; work with the Under 
Secretary for Management and the General Counsel of the 
Department to ensure that the development of the budget of the 
Department is compatible with the priorities, strategic plans, 
and policies established by the Secretary; conduct long-range, 
strategic planning; and carry out such other responsibilities 
as the Secretary determines appropriate.
    Subsection (b) provides that the individual serving as 
Assistant Secretary for Policy on the date of enactment, may 
serve as the Under Secretary for Policy until the date on which 
an appointment to the position of Under Secretary for Policy is 
made.
    Subsection (c) makes technical and conforming amendments to 
the HSA.
    Subsection (d) requires that the Comptroller General of the 
United States to submit, not later than 270 days after 
enactment, a report on the Office of Policy and related policy 
efforts throughout the Department to this Committee and the 
House Homeland Security Committee.

Section 202. Office of International Affairs

    This section replaces section 879 of the HSA (P.L. 107-296, 
Sec. 879; 6 U.S.C. Sec. 459) with new language that strengthens 
the Office of International Affairs.
    New HSA subsection 879(a) tracks the current statutory 
language and provides for the establishment of the Office of 
International Affairs but diverges from the previously codified 
provision by elevating the head of the office, formerly ``a 
senior official appointed by the Secretary,'' to a 
presidentially-appointed and Senate-confirmed Assistant 
Secretary.
    New HSA subsection 879(b) sets forth the updated 
responsibilities of the Assistant Secretary. This section 
provides that the Assistant Secretary shall (1) coordinate the 
Department's various international activities; (2) develop and 
update an international strategic plan; (3) provide guidance to 
components of the Department on executing international 
activities and to employees of the Department who are deployed 
overseas; (4) identify areas for homeland security information 
and training exchange; and (5) track and be familiar with all 
of the Department's international activities, including travel 
by its personnel, and all spending by the Federal government 
for international assistance activities relating to homeland 
security.

Section 203. Chief Medical Officer

    This section amends section 516 of the HSA (P.L. 107-296, 
Sec. 516; 6 U.S.C. Sec. 321E) to provide that the Chief Medical 
Officer shall also have the title of Assistant Secretary for 
Health Affairs--a title that the Chief Medical Officer has been 
given administratively. Additionally, this section adds several 
new items to the statutory responsibilities of the office, 
including ensuring that the Department's workforce has science-
based policy, standards, requirements, and metrics for 
occupational safety and health, providing medical expertise for 
the components of the Department with respect to medical and 
public health matters, and developing guidance for catastrophic 
events with human, animal, agricultural, or environmental 
health consequences.

Section 204. Quadrennial Homeland Security Review

    Subsection (a) amends section 707 of the HSA (P.L. 107-296, 
Sec. 707; 6 U.S.C. Sec. 347) by changing the deadline for 
reporting to Congress on the next Quadrennial Homeland Security 
Review (QHSR) from the end of calendar year 2013 to the date in 
early 2014 on which the Fiscal Year 2015 budget request is 
delivered to Congress. This synchronizes the deadline for the 
QHSR to match that of the Quadrennial Defense Review (QDR). 
Additionally, this subsection requires the Secretary to 
coordinate the QHSR with the QDR and any other major strategic 
reviews relating to diplomacy, intelligence, or other national 
security issues. It also amends HSA section 707 to require the 
Secretary, not later than two years after a QHSR report is 
submitted, to submit a midterm review of implementation that 
describes progress made in implementing QHSR recommendations 
and preparations for the next QHSR.
    Subsection (b) makes technical and conforming amendments to 
the HSA.

Section 205. Designation of foreign terrorist organizations

    The Antiterrorism and Effective Death Penalty Act of 1996 
gives the Secretary of State, in consultation with the 
Secretary of the Treasury and the Attorney General, authority 
to designate a foreign group as a terrorist organization (P.L. 
104-132, Sec. 302; 8 U.S.C. Sec. 1189). Section 205 of this 
bill updates the 1996 law, by requiring the Secretary of State, 
when designating a foreign group as a terrorist organization, 
also to consult with two relevant officials whose positions did 
not exist in 1996: the Secretary of Homeland Security and the 
Director of National Intelligence.

Section 206. Office for Domestic Preparedness Termination

    Section 206 strikes section 430 of the HSA (P.L. 107-296, 
Sec. 430; 6 U.S.C. Sec. 238) and eliminates the authorization 
for the Office of Domestic Preparedness.
    Subsection (b) permits an individual who is serving on the 
day before the date of enactment of this Act, under an 
appointment by the President, by and with the advice and 
consent of the Senate pursuant to section 430, to continue 
serving in that position.
    Subsection (c) provides that if there is no incumbent, or 
in the event there is an incumbent, on the day after the 
incumbent leaves their position, the Administrator of the 
Federal Emergency Management Agency may perform or delegate the 
responsibilities that were set out in section 430.
    Subsection (d) makes technical and conforming amendments to 
the HSA.

Section 207. State and Local Government Coordination

    Subsection (a) of section 207 amends section 801 of the HSA 
(P.L. 107-296, Sec. 801; 6 U.S.C. Sec. 361), by eliminating the 
Office for State and Local Government Coordination and updating 
section 801 to reflect the existence of the Office of 
Intergovernmental Affairs within the Office of the Secretary. 
It also eliminates references in other sections of the HSA to 
the Office for State and Local Government Coordination. These 
changes build on an earlier shift of the Office of 
Intergovernmental Affairs' budget, from FEMA to the Office of 
the Secretary, in the FY 2007 Department of Homeland 
appropriations act.\158\ Though the Office's budget has been 
shifted, an authorization to reflect this change has been 
lacking.
---------------------------------------------------------------------------
    \158\P.L. 109-295; Conference Committee Report 109-699, p. 114, 
September 28, 2006.
---------------------------------------------------------------------------
    Subsection (b) of section 207 provides that the Secretary, 
within 30 days, must transfer to the Office of 
Intergovernmental Affairs any responsibility under HSA section 
801 and any responsibility which had previously been 
transferred to an office other than the Office of 
Intergovernmental Affairs by the Secretary pursuant to her HSA 
section 872 (P.L. 107-296, Sec. 872; 6 U.S.C. Sec. 452) 
reorganization authority or by an act of Congress, to the 
Office of Intergovernmental Affairs.
    Subsection (c) makes technical and conforming amendments to 
the HSA.

Section 208. Termination of Office of Counternarcotics Enforcement

    Subsection (a) strikes section 878 of the HSA (P.L. 107-
296, Sec. 878; 6 U.S.C. Sec. 458) which establishes the Office 
of Counternarcotics Enforcement. Subsection (a) provides that 
the Office of Counternarcotics Enforcement and the Director of 
the Office may continue to perform any functions of the Office 
or the Director until the earlier of the date on which the 
function is transferred or 180 days after enactment.
    Subsection (b) provides that within 180 days of enactment, 
the Secretary shall determine whether to transfer certain 
responsibilities of the Office of Counternarcotics Enforcement 
to another appropriate official in the Department. 
Additionally, subsection (b) requires the Secretary to report 
to this Committee and the House Homeland Security Committee a 
notification regarding any function not transferred.
    Subsection (c) makes technical and conforming amendments to 
the HSA.

Section 209. Reorganization authority

    Section 209 of the Act amends section 872 of the HSA (P.L. 
107-296, Sec. 872; 6 U.S.C. Sec. 452) to limit the Secretary's 
reorganization authority. This provision maintains that 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 may not discontinue, abolish, substantially 
consolidate, alter, or transfer any agency, entity, 
organizational unit, program, or function that is established 
or required to be maintained by statute.
    In addition, although the Secretary may not on her own 
derogate from statutory organizational mandates, section 209 
does authorize her to do so if the President determines that 
because of an imminent threat to homeland security, it is 
necessary to transfer, reassign, or consolidate a function, 
power, or duty vested by law in the Department, or an officer, 
official, or agency thereof. If the President invokes the 
exception, however, the President must notify appropriate 
congressional committees of the transfer, reassignment, or 
consolidation and such transfer, assignment, or consolidation 
remains in effect only until the President determines that the 
threat to homeland security has terminated or is no longer 
imminent.
    Finally, section 209 requires that within 30 days of any 
allocation, assignment, consolidation, alteration, 
establishment, or discontinuance under this section, the 
President or Secretary must publish in the Federal Register, 
the reason for the action taken and a list of statutory 
provisions affected by the reorganization.

Section 210. Chief Information Officer

    Section 210 amends the statutory responsibilities of the 
Office of the Chief Information Officer (CIO) to reflect the 
current duties of the office and bring it in line with that of 
CIOs in other federal agencies.
    Subsection 210(a) of the bill amends section 703 of the HSA 
(P.L. 107-296, Sec. 703; 6 U.S.C. Sec. 343) by adding a new 
subsection 703(b) to detail the responsibilities of the CIO. 
These responsibilities include: (1) requiring the CIO to advise 
and assist the Secretary, heads of the components and other 
senior officers in the Department on activities relating to 
programs and operations of IT functions at the Department; (2) 
establishing the Department's IT priorities and the processes, 
standards, guidelines and procedures for carrying out those 
priorities; (3) coordinating and ensuring the implementation of 
the IT priorities and policies within the Department; (4) 
taking the lead in capital planning and IT investment 
management; (5) coordinating with the Chief Procurement Officer 
on the acquisition, development, and integration of information 
systems; (6) reviewing and approving, with the Chief 
Procurement Officer, any IT acquisition over a threshold 
determined by the Secretary; (7) coordinating with relevant 
officials in the Department to ensure that the IT systems that 
make up and support the Department's information sharing 
environment meet the standards contained in section 1016 of the 
Intelligence Reform and Terrorism Prevention Act of 2004 (6 
U.S.C. Sec. 485); (8) fulfilling the requirements of 44 U.S.C. 
Sec. 3506, which lays out federal agency responsibilities for 
information resources management, and 40 U.S.C. Sec. 11315, 
which lays out the duties of agency CIOs; and (9) performing 
such other responsibilities as the Secretary may prescribe.
    Subsection (b) achieves cost-savings by requiring the 
Department to determine which software licenses are necessary 
and which ones can be eliminated or consolidated. Specifically, 
this subsection requires that the CIO, within 180 days of 
enactment of the Act and every two years thereafter, conduct a 
Department-wide inventory in consultation with component CIOs 
of all existing software licenses that are both utilized and 
unutilized. This inventory should also include an assessment of 
the needs of the Department and components for software 
licenses over the next two fiscal years and examine how the 
Department can best leverage savings on these software licenses 
through economies of scale. This subsection also requires the 
CIO to create a plan to reduce software licenses and achieve 
cost savings by bringing the number of software licenses in 
line with the defined needs of the Department within 90 days of 
the completion of the inventory. This also requires a general 
prohibition on the procurement of new software licenses unless 
the Department CIO deems that the purchase of new licenses or 
amending the number of needed licenses to be necessary. This 
prohibition would end when the needs of the department exceed 
the number of existing and unused licenses. Under this 
subsection, the Department is required to submit a copy of each 
inventory and plan to this Committee and the House Homeland 
Security Committee.

Section 211. Department of Homeland Security headquarters

    Subsection (a) requires the Secretary of Homeland Security 
to consolidate the location of the headquarters of the 
Department of Homeland Security and the headquarters of the 
components of the Department of Homeland Security.
    Subsection (b) requires the Secretary to ensure that the 
consolidation required in subsection (a) occurs at the East and 
West Campuses of St. Elizabeths Hospital in the District of 
Columbia. It also directs the Secretary to ensure the 
availability of adequate parking and infrastructure to support 
the Department's offices and employees.
    Subsection (b) requires the Secretary to ensure that the 
consolidation required in subsection (a) occurs at the East and 
West Campuses of St. Elizabeths Hospital in the District of 
Columbia. It also directs the Secretary to ensure the 
availability of adequate parking and infrastructure to support 
the Department's offices and employees.
    Subsection (c) requires that any Department component in 
the National Capital Region that does not relocate to St. 
Elizabeths Hospital be consolidated in as few locations within 
the National Capital Region as possible, although it mandates a 
component's inclusion in the consolidation only if there are no 
adverse impacts to the component's mission.
    Subsection (d) requires the Secretary, in consultation with 
the Administrator of General Services, to submit a report 
within 180 days after enactment on the total costs to complete 
each of the three phases of construction of the consolidation 
project.
    This subsection also requires subsequent reports 60 days 
after final appropriations are provided for each fiscal year 
that the project is funded starting with FY 2012.
    Each report submitted under the subsection must include the 
full costs for the facility to be operational, the amount of 
funding expended or obligated by DHS or GSA for the most recent 
and all preceding fiscal years, the fiscal implications for the 
delay of the project, and an estimate of cost avoidances as 
calculated by the most recent and each previous completion 
schedule.

Section 212. Future Years Homeland Security Program

    This section amends section 874 of the HSA (P.L. 107-296, 
Sec. 874; 6 U.S.C. Sec. 454) by requiring that the Future Years 
Homeland Security Program, which details resource allocation 
plans and projections for the next five years, be submitted not 
later than 30 days after the date on which the President's 
budget request is submitted.

Section 213. Countering homegrown terrorism

    Section 213 directs the Department to focus resources on 
confronting the threat of violent extremism domestically, 
including domestic threats posed by the ideology identified by 
the 9/11 Commission as motivating Islamist terrorism.
    Subsection 213(a) states the Congress's findings regarding 
the threat of violent extremism, including the ideology of 
Islamist terrorism as identified by the 9/11 Commission.
    Subsection 213(b) requires the Secretary of the Department 
of Homeland Security to designate an official to coordinate 
efforts within the Department to counter violent extremism, 
including extremism fueled by the ideology that gives rise to 
Islamist terrorism.
    Subsection 213(c) requires the Secretary to provide written 
notification to this Committee and the House Homeland Security 
Committee of the designee within 15 days of appointment.
    Subsection 213(d) requires the Department, within 90 days 
of the bill's enactment, to provide a report to this Committee 
and the House Homeland Security Committee that details the 
Department's strategy to counter domestic violent extremism, 
including the ideology of Islamist terrorism. The report must 
also detail the offices of the Department that have 
responsibilities related to countering violent extremism; the 
number of Department employees and funding dedicated to such 
activities; the metrics that are used to measure the 
effectiveness of the Department's activities related to 
combating violent extremism in the United States; and the work 
of the Department to ensure that its activities in this area 
comply with applicable laws regarding civil rights and civil 
liberties.

Section 214. Office of Cargo Security Policy

    Subsection 214(a) repeals section 431 of the HSA (P.L. 107-
296, Sec. 431; 6 U.S.C. Sec. 239) which established the Office 
of Cargo Security Policy within the Office of Policy.
    Subsection 214(b) transfers all functions and 
responsibilities of the Office of Cargo Security Policy to 
appropriate officials within the Office of Policy.

Section 215. Reports on emergency communications and interoperability 
        functions

    Subsection 215(a) requires the Secretary to submit to 
Congress and the Government Accountability Office (GAO) an 
assessment of the functions and resources of all of the 
Department's emergency communications and interoperability 
efforts. The assessment should include an examination of each 
of the four major Department offices responsible for 
communications policies and programs--the National 
Communications System (NCS), the Office of Emergency 
Communications (OEC), the Federal Emergency Management Agency's 
(FEMA) Disaster Emergency Communications Division (DEC), and 
the Science and Technology Directorate's Office of 
Interoperability and Compatibility (OIC). This review must be 
completed and submitted within 90 days of enactment of this 
legislation.
    Subsection 215(b) instructs GAO, within 90 days of 
receiving the Department report required by Subsection 215(a), 
to evaluate the report and provide to Congress its own written 
analysis of the feasibility and impact of partially or fully 
consolidating emergency communications programs within DHS. 
GAO's analysis should include an assessment of the costs and 
benefits that would result from a consolidation of the DHS 
emergency communications offices.

Section 216. Technical and conforming amendments

    Subsection 216(a) makes several technical amendments to 
update the HSA, to reflect the current structure of the 
Department. First, this section eliminates the Directorate of 
Border and Transportation Security and transfers most of its 
functions and responsibilities to the Secretary. Second, this 
section renames the Bureau of Border Security, U.S. Immigration 
and Customs Enforcement and renames the Bureau of Citizenship 
and Immigration Services, U.S. Citizenship and Immigration 
Services. Finally, this section eliminates several report 
requirements that have since expired.
    Subsection (b) makes technical amendments to the HSA.

          TITLE III--INFRASTRUCTURE PROTECTION AND RESILIENCE

Section 301. Infrastructure Protection and Resilience Directorate

    This section codifies what is currently known as the 
National Protection and Programs Directorate, created 
administratively by Secretary Chertoff in 2007, and renames it 
the Infrastructure Protection and Resilience Directorate.
    Subsection (a) makes several technical changes to the HSA 
and separates the responsibilities of the Office of 
Intelligence and Analysis and the Office of Infrastructure 
Protection, which had been grouped under one subsection in the 
HSA. This subsection removes infrastructure protection 
responsibilities from section 201 of the HSA (P.L. 107-296, 
Sec. 201; 6 U.S.C. Sec. 121), putting them in a new section of 
the HSA, and refocuses section 201 on the responsibilities of 
the Office of Intelligence and Analysis.
    Subsection (b) establishes in the HSA a new Subtitle E, the 
Infrastructure Protection and Resilience Directorate (IPRD), 
and a new section 241 which sets forth the IPRD's structure and 
responsibilities. It provides that an Under Secretary, 
appointed by the President by and with the advice and consent 
of the Senate, will lead IPRD, makes IPRD responsible for 
coordinating critical infrastructure protection and resiliency 
activities within the Department and ensuring that the Federal 
Protective Service protects federal facilities, and any other 
duties the Secretary prescribes. This new section 241 also 
lists the responsibilities of the Office of Infrastructure 
Protection that were moved in subsection 301(a) of the bill.
    Finally, subsection (b) maintains that the individual 
servicing as Under Secretary for National Protection and 
Programs on the day before the date of enactment of the Act, 
may serve as the Under Secretary for Infrastructure Protection 
and Resilience.

Section 302. Federal Protective Service

    This section codifies the Federal Protective Service (FPS) 
agency as a component of the new Infrastructure Protection and 
Resilience Directorate established by this act.
    Subsection (a) codifies the FPS as an agency within IPRD 
whose Director reports to the Under Secretary for 
Infrastructure Protection and Resilience. It also authorizes 
the Secretary to assess and collect fees for the costs of 
providing protective services to other agencies, and requires 
the Director of the Office of Management and Budget to adjust 
fees as necessary to carry this section.
    Subsection (b) makes technical and conforming amendments to 
the U.S. Code.

             TITLE IV--PREPAREDNESS, RESPONSE, AND RECOVERY

Section 401. Catastrophic incident planning

    Subsection (a) amends the Post-Katrina Emergency Management 
Reform Act of 2006 (P.L. 109-295, Oct. 4, 2006) (6 U.S.C. 
Sec. Sec. 701, et seq.) (the Post-Katrina Act) to include a 
definition for the term ``critical infrastructure.'' It defines 
``critical infrastructure'' to mean the same as in section 
1016(e) of the USA PATRIOT Act (42 U.S.C. Sec. 5195c(e)).
    Subsection (b) amends section 653 of the Post-Katrina Act 
(6 U.S.C. Sec. 753) to require the President to ensure that 
comprehensive plans exist to prevent, prepare for, protect 
against, respond to, and recover from natural disasters, acts 
of terrorism, and other man-made disasters, including 
catastrophic incidents.
    Subsection (c) adds a new section to the HSA that directs 
the Secretary of the Department of Homeland Security to 
designate a senior official within FEMA to be responsible for 
catastrophic incident planning.
    Subsection (d) makes technical and conforming amendments to 
the table of contents in the HSA.

Section 402. Preparedness of individuals and communities

    Subsection (a) adds a new section 527 to the HSA to require 
the FEMA Administrator to enhance and promote the preparedness 
of individuals and communities for natural disasters, acts of 
terrorism, and other man-made disasters and to designate a 
senior official to coordinate and oversee such efforts.
    Subsection (b) makes technical and conforming amendments to 
the table of contents of the HSA.

Section 403. Federal response and recovery preparedness officials

    Subsection (a) amends Title V of the HSA (P.L. 107-296; 6 
U.S.C. Sec. Sec. 311, et seq.) to require the FEMA 
Administrator to ensure the preparedness of Federal agencies to 
respond to and support recovery from disasters, including by 
ensuring the development and implementation of the National 
Response Framework and the National Disaster Recovery 
Framework. The National Response Framework sets out the guiding 
principles that enable responders to prepare for and provide a 
unified national response to disasters and emergencies, while 
the National Disaster Recovery Framework is a guide that 
provides a flexible structure enabling disaster recovery 
managers to operate in a unified and collaborative manner to 
support disaster-impacted States, Tribes, Territorial and local 
jurisdictions.
    The subsection also requires the head of each Federal 
agency with responsibilities under the National Response 
Framework or the National Disaster Recovery Framework to 
designate a senior official to ensure preparedness for carrying 
out such responsibilities and for coordinating disaster 
response and recovery efforts.
    Subsection (b) makes technical and conforming amendments to 
the table of contents of the HSA.

Section 404. Recovery

    Subsection (a) amends section 102 of the Stafford Act's 
(P.L. 93-288, 102; 42 U.S.C. 5122) definition of major disaster 
to cover certain acts of terrorism or other man-made disasters 
not included under the current definition.
    Subsection (b) amends section 102 of the Stafford Act (42 
U.S.C. Sec. 5122) to provide a definition for the terms 
``recovery'', ``National Disaster Recovery Framework'' and 
``catastrophic incident.''
    Subsection (c) describes some recovery assistance that may 
be provided to assist State and local governments in recovering 
from disasters.
    Subsection (d) adds a new section 327 to the Stafford Act 
to give the President authority, in the event of a catastrophic 
incident, to form a temporary recovery commission comprised of 
the heads of relevant agencies to coordinate the federal 
government's efforts in support of State and local governments 
in disaster recovery activities.

Section 405. Enhancing response and recovery operations and programs

    Subsection (a) adds new section 529 to the HSA to improve 
the efficiency, continuity, quality, and accuracy of services 
performed in response and recovery operations and programs. 
Specifically, it seeks to improve the performance of FEMA's 
disaster reserve workforce by: (1) strengthening its 
leadership; (2) improving continuity of staffing by relying 
more extensively on employees deployed for longer periods of 
time; and (3) requiring the FEMA Administrator to develop 
policies and procedures for administration of response and 
recovery operations and programs, minimum standards and 
guidelines for the disaster reserve workforce, and policies and 
procedures for contractors that support response and recovery 
operations and programs.
    Subsection (b) makes technical and conforming amendments to 
the table of contents of the HSA.
    Subsection (c) amends section 306 of the Stafford Act (P.L. 
93-288, Sec. 306; 42 U.S.C. Sec. 5149) to allow federal 
agencies to hire permanent seasonal employees under section 
306(b) of the Stafford Act to perform services authorized under 
the Stafford Act.

Section 406. Department and agency officials

    Subsection (a) amends section 514 of the HSA (P.L. 107-296, 
Sec. 514; 6 U.S.C. Sec. 321c) to require that the President 
appoint a FEMA Deputy Administrator to serve as the Chief 
Management Officer at FEMA.
    Subsection (b) requires that the Chief Management Officer 
and the Under Secretary for Management at DHS submit to 
Congress a strategy within one year of the bill's enactment for 
improving management at FEMA.

Section 407. Infrastructure protection assistance

    Subsection (a) authorizes $249.5 million for the Port 
Security Grant Program for fiscal year 2012.
    Subsection (b) authorizes $224.5 million for the Public 
Transportation and Railroad Security Grant Programs, combined, 
in fiscal year 2012. This subsection also requires that the 
Secretary ensure grants under these programs are awarded on the 
basis of remediating risk region- or system-wide, that all 
applications are reviewed and approved by the local Regional 
Transit Security Working Group and either the local Federal 
Security Director or another federal official designated by the 
Secretary, and it also requires a report to this Committee and 
the House Homeland Security Committee in any year in which more 
the 50 percent of funds available for public transportation and 
railroad security grants are awarded for the purpose of 
securing or remediating risk to specific physical assets.
    Subsection (c) repeals section 1532 of the Implementing 
Recommendations of the 9/11 Commission Act of 2007 (P.L. 110-
53, Sec. 1532; 6 U.S.C. Sec. 1182), which authorized the 
Secretary to award grants for over-the-road security.

Section 408. Federal-State border security cooperation

    Subsection (a) adds new section 2041 to the HSA to 
authorize the Secretary to award Operation Stonegarden grants 
to States to facilitate and enhance participation by States, 
local government, and Indian tribes in border security efforts. 
The subsection requires that in allocating funds, the 
Administrator must consider an assessment of risk, the 
anticipated effectiveness of the grant, and the results of peer 
review evaluation of grant applications. This subsection 
authorizes current spending levels for the program--$55 million 
through FY 2017.
    Subsection (b) makes technical and conforming amendments to 
the table of contents of the HSA.

Section 409. Emergency Management Assistance Compact

    This section amends section 611 of the Post-Katrina Act 
(P.L. 109-2956, Sec. 611; U.S.C. Sec. 761) to authorize 
$2,000,000 per year through fiscal year 2016 for the FEMA 
Administrator to make grants to administer the Emergency 
Management Assistance Compact, an interstate mutual aid 
agreement that facilitates the sharing of disaster response 
resources among states.

Section 410. Repeal of Emergency Operations Center Grant Program

    This section amends the Stafford Act (P.L. 93-288; 42 
U.S.C. Sec. Sec. 5121, et seq.) to repeal the authorization of 
the Emergency Operations Center Grant Program, which provides 
grants to states for equipping, upgrading, and constructing 
State and local emergency operations centers. The section 
further provides that grants made before the enactment of this 
Act will remain in force for the duration of the grant. Section 
410 also states that it does not alter the Emergency Management 
Performance Grants Program, which allows grant funds to pay for 
equipping, upgrading, and constructing State and local 
emergency operations centers.

Section 411. Performance measures

    This section requires the FEMA Administrator to develop and 
implement performance metrics for grants administered by FEMA 
in accordance with the comprehensive system established by 
section 649 of the Post-Katrina Act (P.L. 109-2956, Sec. 649; 6 
U.S.C. Sec. 749).

Section 412. Communications planning

    Subsection (a) amends the HSA to add a new section 
requiring the Secretary, in consultation with State and local 
governments and other relevant federal agencies to develop 
communications plans, including prescripted messages and 
message templates, to provide critical protective information 
to people in the event of a natural disaster, acts of 
terrorism, and other man-made disasters, including catastrophic 
incidents involving the use of weapons of mass destruction.
    Subsection (b) makes technical and conforming amendments to 
the HSA.

Section 413. Guidelines concerning weapons of mass destruction

    Subsection (a) amends the HSA to add a new section 
requiring the Secretary, in coordination with State and local 
governments, other relevant federal agencies, and emergency 
response providers and public health organizations, to develop 
guidelines for the protection and safety of responders to an 
explosion or release of nuclear, biological, radiological, or 
chemical material, and to regularly review and revise the 
guidelines.
    Subsection (b) makes technical and conforming amendments to 
the HSA.

Section 414. Plume modeling

    Subsection (a) amends the HSA to add a new section 
directing the Secretary to develop and disseminate plume models 
that describe the likely path of fallout from a nuclear, 
radiological, chemical, or biological explosion or release and 
which incorporate protective action guidance for use by 
appropriate response officials to enable rapid response 
activities.
    Subsection (b) makes technical and conforming amendments to 
the table of contents in the HSA.

Section 415. Identification of disaster management resources

    This section amends 31 U.S.C. Sec. 1105 to require that the 
President include in his annual budget submission to Congress a 
description of resources identified to support the 
preparedness, response, and recovery duties of each Federal 
agency with responsibilities under the National Response 
Framework and the National Disaster Recovery Framework.

Section 416. Antifraud training

    This section amends section 698 of the Post-Katrina Act 
(P.L. 109-2956, Sec. 698; 6 U.S.C. Sec. 797) to require the 
FEMA Administrator to report annually for five years on the 
number of employees and contractors trained under the fraud 
prevention training program required by that section.

Section 417. Information technology

    This section requires the FEMA Administrator to implement a 
policy requiring approval by FEMA's Chief Information Officer 
for information technology purchases above a threshold 
established by the FEMA Administrator.

Section 418. Metropolitan Medical Response System

    Subsection (a) amends section 2001 of the HSA (P.L. 107-
296, Sec. 2001; 6 U.S.C. Sec. 601) to include a definition for 
the term ``mass casualty incident.''
    Subsection (b) authorizes the Metropolitan Medical Response 
System to assist State, local, and tribal governments prepare 
for and respond to mass casualty incidents resulting from 
disasters or terrorist attacks. It extends the system to all 
states but caps the total number of jurisdictions at the 
current level. It authorizes $41,000,000 for FY 2012 through 
2014.
    Subsection (c) requires the FEMA Administrator and the DHS 
Chief Medical Official to conduct a review of the Metropolitan 
Medical Response System. They must submit the results of this 
review to this Committee and the House Homeland Security 
Committee within 180 days of enactment of this Act.
    Subsection (d) makes technical and conforming amendments to 
the HSA and the Post-Katrina Act.

Section 419. Regional Catastrophic Grant Program

    This section prohibits the FEMA Administrator from awarding 
grants under the Regional Catastrophic Preparedness Grant 
Program.

Section 420. Report on consolidation of grant programs

    This section requires the Secretary to submit to this 
Committee and the House Homeland Security Committee, not later 
than 180 days after the date of enactment of this Act, a report 
on the suitability, feasibility, and efficiency of 
consolidating grant programs administered by the Department, 
other than grants awarded in conjunction with a major disaster 
or emergency declared under the Stafford Act.

Section 421. Grant program contingency plans

    This section requires the FEMA Administrator to submit to 
Congress a plan to require recipients of non-disaster 
preparedness grants to provide to FEMA contingency plans that 
include options to sustain preparedness capabilities in the 
absence or reduction of Federal funds.

Section 422. National mitigation framework

    This section amends section 504 of the HSA (P.L. 107-296, 
Sec. 504; 6 U.S.C. Sec. 314) to require the FEMA Administrator 
to develop and implement the National Mitigation Framework.

Section 423. Nonemergency personnel hiring freeze

    This section requires the Secretary to temporarily freeze 
the number of full-time equivalent positions (FTEs) within the 
Department that do not involve emergency operations. Under the 
section, the Secretary must, within 30 days after the date of 
enactment, identify all positions in the Department that do not 
involve emergency operations. Then the Secretary is forbidden 
to increase the number of FTEs within the Department that do 
not involve emergency operations until the date on which the 
national unemployment rate falls to 8 percent or less.

                        TITLE V--BORDER SECURITY

Section 501. Workforce staffing plan

    This section requires certain DHS component agencies to 
address deficiencies in the coordination of resource allocation 
that have been found by the Government Accountability Office.
    Subsection (a) adds new section 447 to the HSA to require 
U.S. Customs and Border Protection (CBP) and U.S. Immigration 
and Customs Enforcement (ICE) to develop a workforce staffing 
plan within one year of this bill's enactment and annually 
thereafter through 2017. This plan should detail the optimal 
level of staffing required by the agencies to carry out their 
responsibilities, describe the process through which staffing 
allocation decisions are made, link these decisions to threat 
analyses, and describe the coordination between CBP and ICE 
staffing plans to secure specific segments of the border. The 
Secretary must submit the workforce staffing plan to this 
Committee and the House Homeland Security Committee.
    Subsection (b) makes a clerical amendment to the table of 
contents in the HSA.

Section 502. Border technology and infrastructure plan

    Subsection (a) requires the Secretary of Homeland Security 
to develop a plan for deploying technology and infrastructure 
resources to the borders. This plan must include: a detailed 
assessment of the need for infrastructure and technology at or 
near the international borders, including at the ports of 
entry, the ways in which these needs will be addressed; the 
methods used by drug and alien smuggling organizations and 
countermeasures that can address those methods; benchmarks and 
systems for measuring the security of the borders and to assess 
the flow of legal commerce; and whether there are alternate 
ways of achieving these goals, including public-private 
partnerships, consultations with local officials, and 
opportunities for small businesses.
    Subsection (b) allows the Secretary to use plans and 
reports already required by law to meet this requirement.

Section 503. Surge deployment

    Subsection (a) adds new section 448 to the HSA to authorize 
the Commissioner of CBP to deploy existing surge teams to the 
ports of entry in order to respond to intelligence-related 
threats or to augment existing agency operations in situations 
where additional staffing is needed for a limited period of 
time.
    Subsection (b) makes clerical changes to the table of 
contents of the HSA.

Section 504. Enhanced training for Border Patrol agents

    Subsection (a) adds new section 449 to the HSA to require 
the Secretary to enhance the training provided to Border Patrol 
agents in the field to ensure that they are adequately prepared 
to deal with the specific situation at the stations they are 
deployed to. It requires that the training provided include 
station specific threat analyses and enforcement plans to 
ensure that Border Patrol agents understand enforcement 
priorities and how their deployments reflect those priorities. 
It also requires that agents receive training on survival 
skills, and on how to effectively and respectfully communicate 
with the public.
    Subsection (b) makes clerical changes to the table of 
contents of the HSA.

Section 505. Outbound inspections

    This section codifies the Department's current outbound 
inspections program, in which CBP engages in targeted 
inspections of individuals who are exiting the United States at 
air, land, and sea ports of entry. The purpose of this section 
is to ensure that CBP continues to vigorously enforce laws 
regarding the inspection of individuals and goods leaving the 
United States. CBP already conducts outbound operations on a 
risk-based basis at all land, air, and maritime ports of entry. 
It is the intent of this section to require CBP to maintain 
those programs, not to require the deployment of additional 
resources.
    Subsection (a) requires that CBP institute an outbound 
inspections program at land, air, and maritime ports of entry.
    Subsection (b) requires CBP to leverage existing resources 
and capabilities within the Department to ensure that risk-
based outbound inspections are conducted routinely and that 
these inspections are conducted safely and efficiently. CBP is 
also required to develop a strategy to mitigate the efforts of 
smuggling organizations to circumvent outbound inspections, and 
to collect identifying information that can be used by the 
entry/exit system maintained by US-VISIT on individuals that 
are inspected through the program.
    Subsection (c) requires that these outbound inspections not 
add significantly to wait times at the border.

Section 506. Situational awareness of the northern border

    This section requires the Secretary of Homeland Security to 
develop a plan to enhance the Department's knowledge of and 
access to information about activity along the nearly 3,000 
miles of northern border in order to address problems 
identified by a Government Accountability Office report 
requested by the Committee.
    Subsection (a) defines the ``northern border'' as the land 
and maritime border between the United States and Canada, and 
defines ``situational awareness'' as the perception of activity 
at and between the air, land, and maritime ports of entry.
    Subsection (b) requires the Secretary to submit a plan for 
improving situational awareness over the northern border within 
180 days of enactment. The plan must include an assessment of 
the current assets and technologies deployed to the northern 
border, a description of other assets that may be needed to 
improve situational awareness, and an analysis of how the 
Department will improve information sharing and coordination 
among law enforcement agencies operating along the northern 
border.

Section 507. Office of International Travel Security and Screening

    Subsection (a) adds new section 431 to the HSA to establish 
an Office of International Travel Security and Screening 
(ITSS), headed by an Assistant Secretary, with primary 
responsibility for US-VISIT, the Visa Waiver Program, and the 
Screening Coordination Office. The Assistant Secretary is 
charged with developing a strategic plan and coordinating all 
activities within DHS related to identifying, interdicting, and 
preventing terrorist travel. The ITSS is also charged with 
generating an annual report to Congress concerning the 
characteristics of individuals who overstay the terms of their 
admission into the United States each year.
    Subsection (b) requires that the Assistant Secretary for 
ITSS develop a plan for fully implementing the biometric entry 
and exit system that section 217 of the Immigration and 
Nationality Act (P.L. 82-414; 8 U.S.C. Sec. 1187) previously 
required and submit it to this Committee and the House Homeland 
Security Committee within 270 days of enactment. Additionally, 
the Secretary must conduct a review of this system to ensure 
that all entry and exit records for air and sea passengers are 
being accurately matched, and that biographic exit data 
collected by the outbound inspections program authorized by 
section 505 of this bill is used to generate a statistically 
significant picture of the situation along the border. The 
review is also required to determine whether visa overstay 
rates should be used instead of visa denial rates for the 
purposes of determining eligibility for the Visa Waiver 
Program.
    Subsection (c) requires the Secretary, not later than a 
year after enactment of the Act, to place ITSS office within 
the Department.

Section 508. Visa Security

    This section adds new section 449A to the HSA to address 
structural problems with and insufficient progress in 
implementation of the Visa Security Program (VSP), which places 
criminal investigators at consular posts overseas as an added 
layer of security in the visa issuing process. Subsection (a) 
amends the HSA to require DHS and the Department of State 
(State) to implement an electronic system to notify airlines 
when a traveler's visa has been cancelled and to do so by 
utilizing existing DHS systems for communicating electronically 
with the airlines.
    Subsection (b) requires DHS and State to issue standard 
operating procedures at all consular posts, and to implement a 
system for mediating visa revocation decisions. It requires DHS 
and State to review all visa issuing policies to ensure that 
all individuals associated with terrorism are denied visas, and 
to develop a plan for deploying visa security officers to all 
high-risk consular posts.
    Lastly, subsection (c) requires DHS to provide adequate 
training for visa security officers, including training on 
fraud detection and day-to-day consular operations, and to 
ensure that visa security officers are not bypassed for 
promotion because of their participation in the program.

Section 509. Report on border security task forces, drug intelligence 
        centers, and State and major urban area fusion centers

    Subsection (a) requires that the Comptroller General 
conduct a study on interagency border security task forces, 
drug intelligence and information sharing centers, and fusion 
centers along the land or maritime borders, and submit the 
results of the study to this Committee and the House Homeland 
Security Committee within 270 days of enactment.
    Subsection (b) requires that the report include the number 
and funding of these interagency forums, an evaluation of their 
missions and functions, and an assessment of their costs and 
benefits including suggestions for how they may be improved.

Section 510. Enhanced agriculture inspection

    Subsection (a) adds new section 421A to the HSA to 
strengthen the agriculture inspection mission of U.S. Customs 
and Border Protection (CBP). It requires the Secretary, acting 
through the Commissioner of CBP, to establish appropriate 
career paths, identify training opportunities, and develop 
staffing retention plans for CBP Agriculture Specialists. It 
also requires an evaluation of the equipment support available 
to agriculture inspection stations and authorizes an 
interagency rotation program between agriculture inspection 
personnel of CBP and the Department of Agriculture.
    Subsection (b) requires the Secretary, acting through the 
Commissioner of CBP, to submit to this Committee and the House 
Homeland Security Committee a report on the status of previous 
improvement action plans and on the implementation of 
provisions of this section. Additionally, the Secretary, acting 
through the Commissioner of CBP, must also submit the results 
of the equipment review, required under subsection (a), within 
270 days of enactment of this Act.
    Subsection (c) makes technical and conforming amendments to 
the table of contents in the HSA.

Section 511. Report on status of unobligated balances in U.S. Customs 
        and Border Protection Customs User Fee Account

    This section requires the Secretary of Homeland Security to 
submit a report to this Committee and the House Homeland 
Security Committee regarding the status of $640,000,000 in 
unobligated balances in the Customs User Fee Account within 90 
days of enactment.

Section 512. Government Accountability Office report

    Subsection (a) requires the Comptroller General to submit, 
within one year of enactment, a report analyzing the 
effectiveness of offices within the Department that promote 
integrity and investigate allegations of misconduct at CBP and 
ICE to this Committee and the House Homeland Security 
Committee.
    Subsection (b) requires that this report to evaluate the 
Department's efforts to address corruption, including an 
assessment of the scope and level of activities related to 
corruption (e.g. investigations, arrests, etc.), and to make 
recommendations on how to improve the integrity and 
professionalism of the workforce. The report also must address 
integrity training efforts within the Department and the 
overall impact that corruption has on funding.

Section 513. Border security on certain federal lands

    This section requires that DHS be given access to federal 
lands within 100 miles of the southern border with Mexico in 
order to conduct routine motorized patrols and erect temporary 
infrastructure.
    Subsection (a) defines federal lands as all land under 
control of the Secretary of Agriculture and the Secretary of 
the Interior.
    Subsection (b) requires that DHS be given access to these 
lands, and directs the Secretary of Homeland Security to ensure 
that security activities on federal lands protect natural and 
cultural resources.
    Subsection (c) requires DHS to submit an annual inventory 
of costs incurred by federal agencies as a result of illegal 
border activity.
    Subsection (d) clarifies that this new authority for DHS 
does not apply to any private or State-owned land within the 
boundaries of federal lands.

Section 514. Z Backscatter Van technology report

    Subsection (a) requires the Secretary submit a report to 
Congress on the Department of Homeland Security's use of Z 
Backscatter Van technology to provide images of the inner 
contents of containers and vehicles, not later than one year 
after the date of enactment of the legislation.
    Subsection (b) identifies certain elements which must be 
included in the report. Specifically, it requires the report to 
include a list of agencies or offices that use the Z 
Backscatter Van technology, information regarding the 
technology's detection capabilities, information regarding the 
privacy protections and privacy training used in conjunction 
with the equipment, and information regarding any lawsuits or 
complaints filed against the Department regarding the use of 
this section.
    Finally, subsection (c) permits the Secretary to submit a 
classified annex to the report.

Section 515. Refugee status report

    This section requires the Secretary to submit a report to 
this Committee and the House Homeland Security Committee 
identifying the number of refugees that applied for legal 
permanent resident status within one year of enactment.

       TITLE VI--INTELLIGENCE AND INFORMATION SHARING PROVISIONS

Section 601. Authorization of intelligence activities

    Subsection (a) provides that funds authorized or made 
available to the Department for intelligence activities are 
deemed to be specifically authorized by Congress pursuant to 
section 504 of the National Security Act of 1947 (P.L. 80-235; 
50 U.S.C. Sec. 414) which conditions the obligation of funds 
for intelligence activities on a specific authorization from 
Congress.
    Subsection (b) makes clear that the authorization for the 
Department's intelligence activities under this bill do not 
constitute authority for the conduct of any intelligence 
activity which is not otherwise authorized by the Constitution 
or the laws of the United States.

Section 602. Classified National Security Information Program for 
        States, Local Government, Indian Tribes, and Private Sector 
        Entities

    Subsection 602(a) adds to the HSA a new section (210G), 
entitled Classified National Security Information Program for 
States, Local Government, Indian Tribes, and Private Sector 
Entities.
    New HSA subsection 210G(a) provides definitions for the 
terms ``classified information'' and ``Program.''
    New HSA subsection 210G(b) establishes a Classified 
National Security Information Program for States, Local 
Government, Indian Tribes, and Private Sector Entities 
(Program) to safeguard and govern access to classified 
information shared by the Federal government with States, local 
government, Indian tribes, and private sector entities.
    New HSA subsection 210G(c) describes the Secretary's 
responsibilities as manager of the Program. Specifically, the 
Secretary is charged with overseeing Program accreditation, 
periodic inspection, and monitoring of all facilities where 
classified information is used or stored that are owned or 
operated by a State, local government, or Indian tribe; 
processing and tracking applications for security clearances 
for an employee of a State, local government, Indian tribe, or 
private entity; developing and maintaining a security profile 
of facilities owned or operated by a State, local government, 
or Indian tribe that have access to classified information; 
developing training for all employees of a State, local 
government, Indian tribe, or private entity who have been 
determined eligible for access to classified information; and 
any other responsibilities given to the Secretary by the 
President.
    New HSA subsection 210G(d) provides that the Department, 
not later than December 31, 2012, and every year thereafter 
until December 31, 2024, shall submit to this Committee and the 
House Homeland Security Committee a report of the activities of 
the Department under Executive Order 13549, or any successor 
thereto, and this section. Executive Order 13549 establishes 
the Program that is codified by section 210G.
    New HSA subsection 210G(e) provides that not later than one 
year after the date of enactment of this section, the 
Secretary, in coordination with the Secretary of Defense, the 
Director of National Intelligence, and the Director of the 
Office of Personnel Management, shall submit to this Committee 
and the House Homeland Security Committee a report on the 
activities conducted by the Federal Government to support the 
efficient management and verification of security clearances, 
including by employees of States, local governments, Indian 
tribes, and private sector entities.
    Subsection 602(b) makes technical and conforming amendments 
to the HSA.

Section 603. Flexible personnel management at the Office of 
        Intelligence and Analysis

    This section amends the HSA by adding a new section 846, 
granting to the Secretary several appointment and compensation 
flexibilities to assist in recruiting and retaining key 
personnel in the Office of Intelligence and Analysis.
    Under subsection (a) of new section 846, the Secretary is 
authorized, in coordination with the Director of the Office of 
Personnel Management, to convert competitive service positions 
(and the incumbents of such position) within the Office and to 
establish new positions in the excepted service classification 
within the Office, if the Secretary determines such converted 
or new excepted-service positions are necessary to carry to out 
the intelligence functions of the Department. The Secretary 
would also have latitude to fix the level of basic pay for 
these positions, not to exceed the basic pay of level III of 
the Executive Schedule, and to appoint individuals to these 
positions without regard to competitive-hiring requirements.
    Under subsection (b) of new section 846, the Secretary may 
allow the Office of Intelligence and Analysis to adopt 
compensation authority, performance management authority, and 
scholarship authority that has been authorized for other 
elements of the intelligence community, if adoption of that 
authority by the Office would improve the management and 
performance of the intelligence community overall. The 
Secretary's authority under this subsection may be exercised 
only with the concurrence of the Director of National 
Intelligence, or for those matters that fall under the 
responsibilities of OPM, may be exercised only in coordination 
with the Director of OPM. The Secretary must notify this 
Committee, the House Homeland Security Committee, and the 
Senate and House Select Committees on Intelligence within 60 
days after any such authority takes effect at the Office if 
Intelligence and Analysis.

Section 604. Under Secretary for Intelligence and Analysis technical 
        correction

    This section amends section 103(a) of the HSA (P.L. 107-
296, Sec. 103(a); 6 U.S.C. Sec. 113) by inserting a new 
paragraph that lists the Under Secretary for Intelligence and 
Analysis as an officer of the Department.

Section 605. Fusion center funding report

    This section requires the Secretary to submit to this 
Committee and the House Homeland Security Committee, not later 
than 60 days after the end of fiscal year 2012 and each year 
thereafter through fiscal year 2016, a report detailing the 
amount of federal funds provided directly or indirectly to each 
State and major urban area fusion center during the fiscal 
year.

Section 606. Report on fusion centers

    Subsection (a) requires the Comptroller General to submit, 
not later than 270 days after the date of enactment, a report 
to this Committee and the House Homeland Security Committee 
that evaluates the process, or feasibility of developing a 
process, under which the Office of Intelligence and Analysis 
assesses the results achieved from the award of grants that 
support the activities of State and major urban area fusion 
centers.
    Subsection (b) requires that the report include a 
discussion of whether the Office of Intelligence and Analysis 
has, or could develop, a process that: (1) establishes and 
requires reporting relating to measurable results each State 
and major urban area fusion center is expected to achieve with 
grant funding; (2) establishes annual performance targets 
towards achieving those measurable results; (3) allows the 
office to review how State and major urban area fusion centers 
propose to use grant funds, evaluate the activities of State 
and major urban area fusion centers, and assess whether State 
and major urban area fusion centers are using grant funds to 
achieve priority capabilities; (4) establishes a means to track 
and measure progress towards achieving performance targets and 
expected results; and (5) assesses progress and results 
achieved by State and major urban area fusion centers and uses 
this information to inform decisions regarding grant funding.

Section 607. GAO report on analytical capabilities

    This section requires the Comptroller General, not later 
than a year after enactment, to submit to this Committee and 
the House Homeland Security Committee an unclassified report on 
the analytical capabilities of the Department in the area of 
intelligence. This section requires that this report include an 
analysis of the reliance on contractors, a description of 
whether the Department develops analysts with the proper level 
of specialization, a description of whether there are 
duplicative intelligence analysis organizations within DHS and 
whether there are any gaps, and a description of the accuracy 
and usefulness of the analytical products produced by the 
Department.

Section 608. Audit on privacy and civil liberties and update on privacy 
        and civil liberties impact assessments

    Subsection (a) requires the DHS Inspector General, not 
later than one year after the date of enactment, to conduct an 
audit on the activities of the Department to ensure that State 
and local fusion centers take appropriate measures to protect 
privacy and civil liberties and to submit a report on the 
results of the audit to this Committee and the House Homeland 
Security Committee.
    Subsection (b) requires the DHS Privacy Officer, not later 
than 180 days after enactment, to update the Privacy Impact 
Assessment for the State, Local, and Regional Fusion Center 
Initiative completed in 2008 pursuant to the Implementing 
Recommendations of the 9/11 Commission Act of 2007 and to 
submit the updated assessment to this Committee and the House 
Homeland Security Committee.
    Subsection (c) requires the DHS Officer for Civil Liberties 
and Civil Rights, not later than 180 days after enactment, to 
update the Civil Liberties Impact Assessment for the State, 
Local and Regional Fusion Center Initiative (completed in 2008 
pursuant to the Implementing Recommendations of the 9/11 
Commission Act of 2007) and to submit the updated assessment to 
this Committee and the House Homeland Security Committee.

              TITLE VII--SCIENCE AND TECHNOLOGY PROVISIONS

Section 701. Directorate of Science and Technology

    Section 701(a) amends section 301 of the HSA (P.L. 107-296, 
Sec. 301; 6 U.S.C. Sec. 181) to clarify that the responsibility 
of the Science & Technology (S&T;) Directorate is to act as the 
principal entity in the Department responsible for research, 
development, testing, and evaluation of new technologies in the 
Department.
    Section (b) amends section 302 of the HSA to restore the 
S&T; Under Secretary's authority to conduct research and 
development of technologies to counter all types of nuclear and 
radiological terrorist threats. This authority had been 
transferred to the Domestic Nuclear Detection Office by the 
SAFE Port Act (P.L. 109-347, Sec. 501). This section also 
bolsters S&T;'s ability to reconstitute an integrated, all-
hazards portfolio of nuclear and radiological countermeasures 
research that will include the development of prevention, 
detection, mitigation, response and recovery capabilities; it 
will end the fragmentation that has prevented the Department 
from achieving synergies through integrating research on the 
most serious terrorist threats; and it will end the 
compartmentalization that has prevented S&T; from carrying out 
its primary mission of strategic planning and its 
responsibilities for ``establishing priorities'' for the 
Department's research and development funding.
    Section (b) also clarifies the Directorate's authority and 
responsibility to coordinate and conduct strategic planning 
within the Department for basic, advanced, and applied research 
and development; makes clear the Under Secretary's 
responsibility to support the Department's acquisition of 
systems and technologies by providing the Secretary with 
independent assessments; and builds on S&T;'s existing 
capabilities by codifying its role in providing technical 
assistance to all Department entities for the development, 
testing, evaluation, and acquisition of systems and 
technologies.
    Section (c) amends section 307 of the HSA (P.L. 107-296, 
Sec. 307; 6 U.S.C. Sec. 187) to clarify that the Homeland 
Security Advanced Research Projects Agency must focus its 
resources on high-priority research areas, including border and 
maritime security, cyber security, aviation security, 
transportation security, catastrophic response and recovery 
capabilities, and other important homeland security missions.

Section 702. Director of Testing and Evaluation

    Section 702 amends section 308 of the HSA (P.L. 107-296, 
Sec. 308; 6 U.S.C. Sec. 188) by adding a new subsection (d) 
that codifies the existing non-statutory position of Director 
of Testing and Evaluation in the S&T; Directorate.
    New HSA subsection (d)(1) defines the term ``operational 
testing and evaluation activity.''
    New HSA subsection (d)(2) establishes the position of 
Director of Testing and Evaluation within the Directorate of 
Science & Technology.
    New HSA subsection (d)(3)(A) states that the Director will 
serve as the principal adviser to the Under Secretary for S&T; 
for all testing and evaluation activities in the Department.
    New HSA subsection (d)(3)(B) sets forth the 
responsibilities, authorities, and functions of the Director. 
It is intended that these responsibilities, authorities, and 
functions will codify existing Department policy pursuant to 
Management Directive 102-1 and track the delegation of 
authority set forth in Delegation Number 10003. The Director 
will establish testing and evaluation policies, procedures, 
standards, and practices within the Department; will provide 
the Acquisition Review Board with independent assessments of 
operational testing and evaluation activities; and will serve 
as an internal control within the investment review process 
established by this bill.
    New HSA subsection (d)(3)(C) also requires that the 
Director of Testing and Evaluation have prompt access to all 
testing, evaluation and acquisition records and data within the 
Department that the Director determines necessary to carry out 
the Director's functions and may designate observers to be 
present for all stages of operational testing and evaluation 
activity.

Section 703. Five-Year research and development investment plan; 
        technology readiness assessment process; and availability of 
        testing facilities and equipment

    Section 703 adds three new sections to the HSA. First, new 
HSA section 319 requires the Secretary, acting through the 
Under Secretary for Science & Technology, to develop a five-
year research and development investment plan to guide all 
expenditures by the Department for basic, advanced, or applied 
research and technology development activities. New section 
319(c) requires the plan to set forth anticipated annual 
research and development expenditures for each fiscal year 
until 2017; establish annual milestones and objectives for 
those investments; and account for the operational requirements 
of State and local governments. Submission of the plan is 
required within 180 days of enactment and each year thereafter.
    Second, new HSA section 320 requires the Secretary to 
establish a uniform, Department-wide process for evaluating and 
assessing the maturity and readiness level of new or 
established technologies and systems.
    Finally, new HSA section 321 authorizes the Under Secretary 
for Science & Technology to make available to any person or 
entity, for an appropriate fee, the services of any center or 
testing facility owned and operated by the Department for 
testing of technology designed to advance the homeland security 
mission.

Section 704. National Academy of Sciences report

    This section directs the Secretary to enter into an 
agreement with the National Research Council to produce a ten-
year update of its post-9/11 report, ``Making the Nation Safer: 
The Role of Science and Technology in Countering Terrorism.''
    Subsection (a) provides definitions for the ``2002 report'' 
and the ``National Research Council.''
    Subsection (b) requires the Secretary, within 90 days of 
the enactment of the Act, to enter into an agreement with the 
National Research Council to write the report required by this 
section.
    Subsection (c) requires that the report assess progress 
since the original 2002 report and make recommendations to 
guide the Federal government to strengthen and improve homeland 
security over the next decade.
    Subsection (d) requires that the report be submitted to 
this Committee and the House Homeland Security Committee not 
later than one year after enactment of this Act.
    Subsection (e) requires that the report must be submitted 
in unclassified form, but may include a classified annex.

Section 705. Domestic Nuclear Detection Office

    This section strengthens the capacity of the Domestic 
Nuclear Detection Office (DNDO) to carry out its primary 
mission of coordinating the implementation of the domestic 
portion of the Global Nuclear Detection Architecture. Further, 
it focuses DNDO's resources on planning and coordinating 
nuclear detection activities across the Department; 
accelerating the deployment of commercially available radiation 
detection equipment to federal, State, and local agencies; and 
integrating the Department's prevention, intelligence, and law 
enforcement functions with its existing radiation detection 
capabilities.
    Subsection (a) clarifies DNDO's authorities for strategic 
planning and interagency coordination of the Department's 
nuclear threat prevention and detection programs and 
capabilities. Paragraph (1) eliminates the duplicative 
requirement that DNDO also function as a second science and 
technology agency in the Department responsible for conducting 
high-risk research and development. Paragraph (3) clarifies and 
strengthens DNDO's authority to coordinate strategic planning 
and investments within the Department and with other agencies 
and State and local entities, to detect and prevent illegal 
trafficking in nuclear or radiological weapons-making materials 
or technology. Paragraph (4) encourages DNDO to support and 
enhance information sharing with State and local agencies.
    Section (b) adds new section 1908 to the HSA that provides 
DNDO with new authority to carry out its coordinating functions 
within the Department and with other federal agencies by 
requiring DNDO to prepare a Department-wide five-year strategic 
plan and consolidated budget of investments to strengthen and 
integrate the capabilities of all agencies in the Department 
that carry out nuclear threat detection and prevention missions 
in the domestic portion of the Global Nuclear Detection 
Architecture. This subsection also requires the Director of 
DNDO to submit the plan to this Committee and the House 
Homeland Security Committee within 270 days of the date of 
enactment. Additionally, the Director is required to provide an 
update on the plan within two years of its initial submission.

Section 706. Flexible personnel management at the Science and 
        Technology Directorate

    This section provides that, in filling scientific and 
engineering positions in the Science and Technology Directorate 
requiring an advanced degree, the Secretary may make 
appointments without regard to competitive hiring requirements. 
This authority will expire on January 1, 2014.

Section 707.Technical and conforming amendments

    This section makes certain technical and conforming 
amendments to the table of contents of the HSA.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b) of rule XXVI 
of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact.

             VI. Congressional Budget Office Cost Estimate

    The cost estimate prepared by the Congressional Budget 
Office was not available for inclusion in this report. The 
estimate will be provided separately when it is available.

       VII. Changes to Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
S. 1546 as reported are shown as follows (existing law proposed 
to be omitted is enclosed in brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman):

                       TITLE VI HOMELAND SECURITY

CHAPTER 1 HOMELAND SECURITY ORGANIZATION

           *       *       *       *       *       *       *



Subchapter I. Department of Homeland Security

           *       *       *       *       *       *       *



SEC. 112. SECRETARY; FUNCTIONS.

    (a) Secretary.--
          (1) In general.--There is a Secretary of Homeland 
        Security, appointed by the President, by and with the 
        advice and consent of the Senate.
          (2) Head of department.--The Secretary is the head of 
        the Department and shall have direction, authority, and 
        control over it.
          (3) Functions vested in secretary.--All functions of 
        all officers, employees, and organizational units of 
        the Department are vested in the Secretary.
    (b) Functions.--The Secretary--
          (1) except as otherwise provided by this chapter, may 
        delegate any of the Secretary's functions to any 
        officer, employee, or organizational unit of the 
        Department;
          (2) shall have the authority to make contracts, 
        grants, and cooperative agreements, and to enter into 
        agreements with other executive agencies, as may be 
        necessary and proper to carry out the Secretary's 
        responsibilities under this chapter or otherwise 
        provided by law; and
          (3) shall take reasonable steps to ensure that 
        information systems and databases of the Department are 
        compatible with each other and with appropriate 
        databases of other Departments.
    (c) Coordination with Non-Federal entities.--With respect 
to homeland security, the Secretary shall coordinate through 
[the Office of State and Local Coordination (established under 
section 361 of this title)] the Office of Intergovernmental 
Affairs described under section 801 (including the provision of 
training and equipment) with State and local government 
personnel, agencies, and authorities, with the private sector, 
and with other entities, including by--
          (1) coordinating with State and local government 
        personnel, agencies, and authorities, and with the 
        private sector, to ensure adequate planning, equipment, 
        training, and exercise activities;
          (2) coordinating and, as appropriate, consolidating, 
        the Federal Government's communications and systems of 
        communications relating to homeland security with State 
        and local government personnel, agencies, and 
        authorities, the private sector, other entities, and 
        the public; and
          (3) distributing or, as appropriate, coordinating the 
        distribution of, warnings and information to State and 
        local government personnel, agencies, and authorities 
        and to the public.
    (d) Meetings of National Security Council.--The Secretary 
may, subject to the direction of the President, attend and 
participate in meetings of the National Security Council.
    (e) Issuance of Regulations.--The issuance of regulations 
by the Secretary shall be governed by the provisions of chapter 
5 of Title 5, except as specifically provided in this chapter, 
in laws granting regulatory authorities that are transferred by 
this chapter, and in laws enacted after November 25, 2002.
    (f) Special Assistant to the Secretary.--The Secretary 
shall appoint a Special Assistant to the Secretary who shall be 
responsible for--
          (1) creating and fostering strategic communications 
        with the private sector to enhance the primary mission 
        of the Department to protect the American homeland;
          (2) advising the Secretary on the impact of the 
        Department's policies, regulations, processes, and 
        actions on the private sector;
          (3) interfacing with other relevant Federal agencies 
        with homeland security missions to assess the impact of 
        these agencies' actions on the private sector;
          (4) creating and managing private sector advisory 
        councils composed of representatives of industries and 
        associations designated by the Secretary to--
                  (A) advise the Secretary on private sector 
                products, applications, and solutions as they 
                relate to homeland security challenges;
                  (B) advise the Secretary on homeland security 
                policies, regulations, processes, and actions 
                that affect the participating industries and 
                associations; and
                  (C) advise the Secretary on private sector 
                preparedness issues, including effective 
                methods for--
                          (i) promoting voluntary preparedness 
                        standards to the private sector; and
                          (ii) assisting the private sector in 
                        adopting voluntary preparedness 
                        standards;
          (5) working with Federal laboratories, federally 
        funded research and development centers, other 
        federally funded organizations, academia, and the 
        private sector to develop innovative approaches to 
        address homeland security challenges to produce and 
        deploy the best available technologies for homeland 
        security missions;
          (6) promoting existing public-private partnerships 
        and developing new public-private partnerships to 
        provide for collaboration and mutual support to address 
        homeland security challenges;
          (7) assisting in the development and promotion of 
        private sector best practices to secure critical 
        infrastructure;
          (8) providing information to the private sector 
        regarding voluntary preparedness standards and the 
        business justification for preparedness and promoting 
        to the private sector the adoption of voluntary 
        preparedness standards;
          (9) coordinating industry efforts, with respect to 
        functions of the Department of Homeland Security, to 
        identify private sector resources and capabilities that 
        could be effective in supplementing Federal, State, and 
        local government agency efforts to prevent or respond 
        to a terrorist attack;
          (10) coordinating with [the Directorate of Border and 
        Transportation Security] Commissioner, Customs and 
        Border Protection and the Assistant Secretary for Trade 
        Development of the Department of Commerce on issues 
        related to the travel and tourism industries; and
          (11) consulting with [the Office of State and Local 
        Government Coordination and Preparedness] the Office of 
        Intergovernmental Affairs on all matters of concern to 
        the private sector, including the tourism industry.
    (g) Standards Policy.--All standards activities of the 
Department shall be conducted in accordance with section 12(d) 
of the National Technology Transfer Advancement Act of 1995 (15 
U.S.C. 272 note) and Office of Management and Budget Circular 
A-119.

SEC. 113. OTHER OFFICERS

    (a) Deputy Secretary; Under Secretaries.--There are the 
following officers, appointed by the President, by and with the 
advice and consent of the Senate:
          (1) A Deputy Secretary of Homeland Security, who 
        shall be the Secretary's first assistant for purposes 
        of subchapter III of chapter 33 of Title 5.
          (2) An Under Secretary for Science and Technology.
          (3) An [Under Secretary for Border and Transportation 
        Security] Under Secretary for Policy.
          (4) An Administrator of the Federal Emergency 
        Management Agency.
          (5) A Director of [the Bureau of] U.S. Citizenship 
        and Immigration Services.
          (6) An Under Secretary for Management.
          (7) A Director of the Office of Counternarcotics 
        Enforcement.
          (8) An Under [Secretary responsible for overseeing 
        critical infrastructure protection, cybersecurity, and 
        other related programs of the Department] Secretary for 
        Infrastructure Protection and Resilience.
          (9) An Under Secretary for Intelligence and Analysis.
          [(9)](10) Not more than 12 Assistant Secretaries.
          [(10)](11) A General Counsel, who shall be the chief 
        legal officer of the Department.
    (b) Inspector General.--There shall be in the Department an 
Office of Inspector General and an Inspector General at the 
head of such office, as provided in the Inspector General Act 
of 1978 (5 U.S.C. App.).
    (c) Commandant of the Coast Guard.--To assist the Secretary 
in the performance of the Secretary's functions, there is a 
Commandant of the Coast Guard, who shall be appointed as 
provided in section 44 of Title 14 and who shall report 
directly to the Secretary. In addition to such duties as may be 
provided in this chapter and as assigned to the Commandant by 
the Secretary, the duties of the Commandant shall include those 
required by section 2 of Title 14.
    (d) Other Officers.--To assist the Secretary in the 
performance of the Secretary's functions, there are the 
following officers, appointed by the President:
          (1) A Director of the Secret Service.
          (2) A Chief Information Officer.
          (3) An Officer for Civil Rights and Civil Liberties.
          (4) A Director for Domestic Nuclear Detection.
    (e) Chief Financial Officer.--There shall be in the 
Department a Chief Financial Officer, as provided in chapter 9 
of Title 31.
    (f) Performance of Specific Functions.--Subject to the 
provisions of this chapter, every officer of the Department 
shall perform the functions specified by law for the official's 
office or prescribed by the Secretary.

           *       *       *       *       *       *       *


Subchapter II. Information Analysis and Infrastructure Protection

           *       *       *       *       *       *       *



SEC. 121. [INFORMATION AND ANALYSIS AND INFRASTRUCTURE PROTECTION] 
                    INTELLIGENCE AND ANALYSIS.

    (a) Intelligence and Analysis [and Infrastructure 
Protection].--There shall be in the Department an Office of 
Intelligence and Analysis[ and an Office of Infrastructure 
Protection].
    (b) Under Secretary for Intelligence and Analysis[ and 
Assistant Secretary for Infrastructure Protection].--
          (1) Office of intelligence and analysis.--The Office 
        of Intelligence and Analysis shall be headed by an 
        Under Secretary for Intelligence and Analysis, who 
        shall be appointed by the President, by and with the 
        advice and consent of the Senate.
          (2) Chief intelligence officer.--The Under Secretary 
        for Intelligence and Analysis shall serve as the Chief 
        Intelligence Officer of the Department.
          [(3) Office of infrastructure protection.--The Office 
        of Infrastructure Protection shall be headed by an 
        Assistant Secretary for Infrastructure Protection, who 
        shall be appointed by the President.]
    (c) Discharge of Responsibilities.--The Secretary shall 
ensure that the responsibilities of the Department relating to 
information analysis[ and infrastructure protection], including 
those described in subsection (d) of this section, are carried 
out through the Under Secretary for Intelligence and Analysis[ 
or the Assistant Secretary for Infrastructure Protection, as 
appropriate].
    (d) Responsibilities of Secretary Relating to Intelligence 
and Analysis[ and Infrastructure Protection].--The 
responsibilities of the Secretary relating to intelligence and 
analysis [and infrastructure protection] shall be as follows:
          (1) To access, receive, and analyze law enforcement 
        information, intelligence information, and other 
        information from agencies of the Federal Government, 
        State and local government agencies (including law 
        enforcement agencies), and private sector entities, and 
        to integrate such information, in support of the 
        mission responsibilities of the Department and the 
        functions of the National Counterterrorism Center 
        established under section 119 of the National Security 
        Act of 1947 (50 U.S.C. 404o), in order to--
                  (A) identify and assess the nature and scope 
                of terrorist threats to the homeland;
                  (B) detect and identify threats of terrorism 
                against the United States; and
                  (C) understand such threats in light of 
                actual and potential vulnerabilities of the 
                homeland.
          [(2) To carry out comprehensive assessments of the 
        vulnerabilities of the key resources and critical 
        infrastructure of the United States, including the 
        performance of risk assessments to determine the risks 
        posed by particular types of terrorist attacks within 
        the United States (including an assessment of the 
        probability of success of such attacks and the 
        feasibility and potential efficacy of various 
        countermeasures to such attacks).]
          [(3)](2) To integrate, in coordination with the 
        Office of Infrastructure Protection, relevant 
        information, analysis, and vulnerability assessments 
        (regardless of whether such information, analysis or 
        assessments are provided by or produced by the 
        Department) in order to--
                  (A) identify priorities for protective and 
                support measures regarding terrorist and other 
                threats to homeland security by the Department, 
                other agencies of the Federal Government, 
                State, and local government agencies and 
                authorities, the private sector, and other 
                entities; and
                  (B) prepare finished intelligence and 
                information products in both classified and 
                unclassified formats, as appropriate, whenever 
                reasonably expected to be of benefit to a 
                State, local, or tribal government (including a 
                State, local, or tribal law enforcement agency) 
                or a private sector entity.
          [(4)](3) To ensure, pursuant to section 122 of this 
        title, the timely and efficient access by the 
        Department to all information necessary to discharge 
        the responsibilities under this section, including 
        obtaining such information from other agencies of the 
        Federal Government.
          [(5) To develop a comprehensive national plan for 
        securing the key resources and critical infrastructure 
        of the United States, including power production, 
        generation, and distribution systems, information 
        technology and telecommunications systems (including 
        satellites), electronic financial and property record 
        storage and transmission systems, emergency 
        preparedness communications systems, and the physical 
        and technological assets that support such systems.
          [(6) To recommend measures necessary to protect the 
        key resources and critical infrastructure of the United 
        States in coordination with other agencies of the 
        Federal Government and in cooperation with State and 
        local government agencies and authorities, the private 
        sector, and other entities.]
          [(7)](4) To review, analyze, and make recommendations 
        for improvements to the policies and procedures 
        governing the sharing of information within the scope 
        of the information sharing environment established 
        under section 485 of this title, including homeland 
        security information, terrorism information, and 
        weapons of mass destruction information, and any 
        policies, guidelines, procedures, instructions, or 
        standards established under that section.
          [(8)](5) To disseminate, as appropriate, information 
        analyzed by the Department within the Department, to 
        other agencies of the Federal Government with 
        responsibilities relating to homeland security, and to 
        agencies of State and local governments and private 
        sector entities with such responsibilities in order to 
        assist in the deterrence, prevention, preemption of, or 
        response to, terrorist attacks against the United 
        States.
          [(9)](6) To consult with the Director of National 
        Intelligence and other appropriate intelligence, law 
        enforcement, or other elements of the Federal 
        Government to establish collection priorities and 
        strategies for information, including law enforcement-
        related information, relating to threats of terrorism 
        against the United States through such means as the 
        representation of the Department in discussions 
        regarding requirements and priorities in the collection 
        of such information.
          [(10)](7) To consult with State and local governments 
        and private sector entities to ensure appropriate 
        exchanges of information, including law enforcement-
        related information, relating to threats of terrorism 
        against the United States.
          [(11)](8) To ensure that--
                  (A) any material received pursuant to this 
                chapter is protected from unauthorized 
                disclosure and handled and used only for the 
                performance of official duties; and
                  (B) any intelligence information under this 
                chapter is shared, retained, and disseminated 
                consistent with the authority of the Director 
                of National Intelligence to protect 
                intelligence sources and methods under the 
                National Security Act of 1947 (50 U.S.C. 401 et 
                seq.) and related procedures and, as 
                appropriate, similar authorities of the 
                Attorney General concerning sensitive law 
                enforcement information.
          [(12)](9) To request additional information from 
        other agencies of the Federal Government, State and 
        local government agencies, and the private sector 
        relating to threats of terrorism in the United States, 
        or relating to other areas of responsibility assigned 
        by the Secretary, including the entry into cooperative 
        agreements through the Secretary to obtain such 
        information.
          [(13)](10) To establish and utilize, in conjunction 
        with the chief information officer of the Department, a 
        secure communications and information technology 
        infrastructure, including data-mining and other 
        advanced analytical tools, in order to access, receive, 
        and analyze data and information in furtherance of the 
        responsibilities under this section, and to disseminate 
        information acquired and analyzed by the Department, as 
        appropriate.
          [(14)](11) To ensure, in conjunction with the chief 
        information officer of the Department, that any 
        information databases and analytical tools developed or 
        utilized by the Department--
                  (A) are compatible with one another and with 
                relevant information databases of other 
                agencies of the Federal Government; and
                  (B) treat information in such databases in a 
                manner that complies with applicable Federal 
                law on privacy.
          [(15)](12) To coordinate training and other support 
        to the elements and personnel of the Department, other 
        agencies of the Federal Government, and State and local 
        governments that provide information to the Department, 
        or are consumers of information provided by the 
        Department, in order to facilitate the identification 
        and sharing of information revealed in their ordinary 
        duties and the optimal utilization of information 
        received from the Department.
          [(16)](13) To coordinate with elements of the 
        intelligence community and with Federal, State, and 
        local law enforcement agencies, and the private sector, 
        as appropriate.
          [(17)](14) To provide intelligence and information 
        analysis and support to other elements of the 
        Department.
          [(18)](15) To coordinate and enhance integration 
        among the intelligence components of the Department, 
        including through strategic oversight of the 
        intelligence activities of such components.
          [(19)](16) To establish the intelligence collection, 
        processing, analysis, and dissemination priorities, 
        policies, processes, standards, guidelines, and 
        procedures for the intelligence components of the 
        Department, consistent with any directions from the 
        President and, as applicable, the Director of National 
        Intelligence.
          [(20)](17) To establish a structure and process to 
        support the missions and goals of the intelligence 
        components of the Department.
          [(21)](18) To ensure that, whenever possible, the 
        Department--
                  (A) produces and disseminates unclassified 
                reports and analytic products based on open-
                source information; and
                  (B) produces and disseminates such reports 
                and analytic products contemporaneously with 
                reports or analytic products concerning the 
                same or similar information that the Department 
                produced and disseminated in a classified 
                format.
          [(22)](19) To establish within the Office of 
        Intelligence and Analysis an internal continuity of 
        operations plan.
          [(23)](20) Based on intelligence priorities set by 
        the President, and guidance from the Secretary and, as 
        appropriate, the Director of National Intelligence--
                  (A) to provide to the heads of each 
                intelligence component of the Department 
                guidance for developing the budget pertaining 
                to the activities of such component; and
                  (B) to present to the Secretary a 
                recommendation for a consolidated budget for 
                the intelligence components of the Department, 
                together with any comments from the heads of 
                such components.
          [(24)](21) To perform such other duties relating to 
        such responsibilities as the Secretary may provide.
          [(25) To prepare and submit to the Committee on 
        Homeland Security and Governmental Affairs of the 
        Senate and the Committee on Homeland Security in the 
        House of Representatives, and to other appropriate 
        congressional committees having jurisdiction over the 
        critical infrastructure or key resources, for each 
        sector identified in the National Infrastructure 
        Protection Plan, a report on the comprehensive 
        assessments carried out by the Secretary of the 
        critical infrastructure and key resources of the United 
        States, evaluating threat, vulnerability, and 
        consequence, as required under this subsection. Each 
        such report--
                  [(A) shall contain, if applicable, actions or 
                countermeasures recommended or taken by the 
                Secretary or the head of another Federal agency 
                to address issues identified in the 
                assessments;
                  [(B) shall be required for fiscal year 2007 
                and each subsequent fiscal year and shall be 
                submitted not later than 35 days after the last 
                day of the fiscal year covered by the report; 
                and
                  [(C) may be classified.]
    (e) Staff.--
          (1) In general.--The Secretary shall provide the 
        Office of Intelligence and Analysis and the Office of 
        Infrastructure Protection with a staff of analysts 
        having appropriate expertise and experience to assist 
        such offices in discharging responsibilities under this 
        section.
          (2) Private sector analysts.--Analysts under this 
        subsection may include analysts from the private 
        sector.
          (3) Security clearances.--Analysts under this 
        subsection shall possess security clearances 
        appropriate for their work under this section.
    (f) Detail of Personnel.--
          (1) In general.--In order to assist the Office of 
        Intelligence and Analysis and the Office of 
        Infrastructure Protection in discharging 
        responsibilities under this section, personnel of the 
        agencies referred to in paragraph (2) may be detailed 
        to the Department for the performance of analytic 
        functions and related duties.
          (2) Covered agencies.--The agencies referred to in 
        this paragraph are as follows:
                  (A) The Department of State.
                  (B) The Central Intelligence Agency.
                  (C) The Federal Bureau of Investigation.
                  (D) The National Security Agency.
                  (E) The National Geospatial-Intelligence 
                Agency.
                  (F) The Defense Intelligence Agency.
                  (G) Any other agency of the Federal 
                Government that the President considers 
                appropriate.
          (3) Cooperative agreements.--The Secretary and the 
        head of the agency concerned may enter into cooperative 
        agreements for the purpose of detailing personnel under 
        this subsection.
          (4) Basis.--The detail of personnel under this 
        subsection may be on a reimbursable or non-reimbursable 
        basis.
    (g) Functions Transferred.--In accordance with subchapter 
XII of this chapter, there shall be transferred to the 
Secretary, for assignment to the Office of Intelligence and 
Analysis and the Office of Infrastructure Protection [under 
this section], the functions, personnel, assets, and 
liabilities of the following:
          (1) The National Infrastructure Protection Center of 
        the Federal Bureau of Investigation (other than the 
        Computer Investigations and Operations Section), 
        including the functions of the Attorney General 
        relating thereto.
          (2) The National Communications System of the 
        Department of Defense, including the functions of the 
        Secretary of Defense relating thereto.
          (3) The Critical Infrastructure Assurance Office of 
        the Department of Commerce, including the functions of 
        the Secretary of Commerce relating thereto.
          (4) The National Infrastructure Simulation and 
        Analysis Center of the Department of Energy and the 
        energy security and assurance program and activities of 
        the Department, including the functions of the 
        Secretary of Energy relating thereto.
          (5) The Federal Computer Incident Response Center of 
        the General Services Administration, including the 
        functions of the Administrator of General Services 
        relating thereto.

           *       *       *       *       *       *       *


Subchapter III. Science and Technology in Support of Homeland Security

           *       *       *       *       *       *       *



[SEC. 181. UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY.

    There shall be in the Department a Directorate of Science 
and Technology headed by an Under Secretary for Science and 
Technology.]

SEC. 181. DIRECTORATE OF SCIENCE AND TECHNOLOGY.

    (a) In General.--There shall be in the Department a 
Directorate of Science Technology headed by an Under Secretary 
for Science and Technology.
    (b) Responsibilities.--The Directorate of Science and 
Technology shall serve as the primary research, development, 
testing, and evaluation agency in the Department.

SEC. 182. RESPONSIBILITIES AND AUTHORITIES OF THE UNDER SECRETARY FOR 
                    SCIENCE AND TECHNOLOGY.

    The Secretary, acting through the Under Secretary for 
Science and Technology, shall have the responsibility for--
          (1) advising the Secretary regarding research and 
        development efforts and priorities in support of the 
        Department's missions;
          (2) developing, in consultation with other 
        appropriate executive agencies, a national policy and 
        strategic plan for, identifying priorities, goals, 
        objectives and policies for, and coordinating the 
        Federal Government's civilian efforts to identify and 
        develop countermeasures to chemical, biological, [FN1] 
        and other emerging terrorist threats, including the 
        development of comprehensive, research-based definable 
        goals for such efforts and development of annual 
        measurable objectives and specific targets to 
        accomplish and evaluate the goals for such efforts;
          (3) supporting the Under Secretary for Intelligence 
        and Analysis and the Assistant Secretary for 
        Infrastructure Protection, by assessing and testing 
        homeland security vulnerabilities and possible threats;
          (4) conducting basic and applied research, 
        development, demonstration, testing, and evaluation 
        activities that are relevant to any or all elements of 
        the Department, through both intramural and extramural 
        programs, except that such responsibility does not 
        extend to human health-related research and development 
        activities;
          (5) establishing priorities for, directing, funding, 
        and conducting national research, development, test and 
        evaluation, and procurement of technology and systems 
        for--
                  (A) preventing the importation of chemical, 
                biological,[,] radiological, nuclear, and 
                related weapons and material; and
                  (B) detecting, preventing, protecting 
                against, and responding to terrorist attacks;
          (6) establishing a system for transferring homeland 
        security developments or technologies to Federal, 
        State, local government, and private sector entities;
          (7) entering into work agreements, joint 
        sponsorships, contracts, or any other agreements with 
        the Department of Energy regarding the use of the 
        national laboratories or sites and support of the 
        science and technology base at those facilities;
          (8) collaborating with the Secretary of Agriculture 
        and the Attorney General as provided in section 8401 of 
        Title 7;
          (9) collaborating with the Secretary of Health and 
        Human Services and the Attorney General in determining 
        any new biological agents and toxins that shall be 
        listed as ``select agents'' in Appendix A of part 72 of 
        title 42, Code of Federal Regulations, pursuant to 
        section 262a of Title 42;
          (10) supporting United States leadership in science 
        and technology;
          (11) establishing and administering the primary 
        research and development activities of the Department, 
        including the long-term research and development needs 
        and capabilities for all elements of the Department;
          (12) coordinating and integrating all research, 
        development, demonstration, testing, and evaluation 
        activities of the Department, including conducting 
        strategic planning and providing technical assistance 
        for such activities within the Department;
          (13) coordinating with other appropriate executive 
        agencies in developing and carrying out the science and 
        technology agenda of the Department to reduce 
        duplication and identify unmet needs; [and]
          (14) developing and overseeing the administration of 
        guidelines for merit review of research and development 
        projects throughout the Department, and for the 
        dissemination of research conducted or sponsored by the 
        Department[.]; and
          (15) supporting the acquisition of technologies and 
        systems by the Department by providing--
                  (A) the Secretary with independent 
                assessments; and
                  (B) technical assistance within the 
                Department for development, testing, and 
                evaluation;
          (16) conducting strategic planning within the 
        Department for basic, advanced, and applied research 
        and development; and
          (17) providing technical assistance within the 
        Department for the development, testing, evaluation, 
        and acquisition of technologies.

           *       *       *       *       *       *       *


SEC. 187. HOMELAND SECURITY ADVANCED RESEARCH PROJECTS AGENCY.

    (a) Definitions.--In this section:
          (1) Fund.--The term ``Fund'' means the Acceleration 
        Fund for Research and Development of Homeland Security 
        Technologies established in subsection (c) of this 
        section.
          (2) Homeland security research.--The term ``homeland 
        security research'' means research relevant to the 
        detection of, prevention of, protection against, 
        response to, attribution of, and recovery from homeland 
        security threats, particularly acts of terrorism.
          (3) HSARPA.--The term ``HSARPA'' means the Homeland 
        Security Advanced Research Projects Agency established 
        in subsection (b) of this section.
          (4) Under secretary.--The term ``Under Secretary'' 
        means the Under Secretary for Science and Technology.
    (b) Homeland Security Advanced Research Projects Agency.--
          (1) Establishment.--There is established the Homeland 
        Security Advanced Research Projects Agency.
          (2) Director.--HSARPA shall be headed by a Director, 
        who shall be appointed by the Secretary. The Director 
        shall report to the Under Secretary.
          (3) Responsibilities.--The Director shall administer 
        the Fund to award competitive, merit-reviewed grants, 
        cooperative agreements or contracts to public or 
        private entities, including businesses, federally 
        funded research and development centers, and 
        universities. The Director shall administer the Fund 
        to--
                  (A) support basic and applied homeland 
                security research to promote revolutionary 
                changes in technologies that would promote 
                homeland security;
                  (B) advance the development, testing and 
                evaluation, and deployment of critical homeland 
                security technologies to strengthen border and 
                maritime security, cyber security, aviation 
                security, transportation security, catastrophic 
                response and recovery capabilities, and other 
                homeland security missions; and
                  (C) accelerate the prototyping and deployment 
                of technologies that would address homeland 
                security vulnerabilities.
          (4) Targeted competitions.--The Director may solicit 
        proposals to address specific vulnerabilities 
        identified by the Director.
          (5) Coordination.--The Director shall ensure that the 
        activities of HSARPA are coordinated with those of 
        other relevant research agencies, and may run projects 
        jointly with other agencies.
          (6) Personnel.--In hiring personnel for HSARPA, the 
        Secretary shall have the hiring and management 
        authorities described in section 1101 of the Strom 
        Thurmond National Defense Authorization Act for Fiscal 
        Year 1999 (5 U.S.C. 3104 note; Public Law 105-261). The 
        term of appointments for employees under subsection 
        (c)(1) of that section may not exceed 5 years before 
        the granting of any extension under subsection (c)(2) 
        of that section.
          (7) Demonstrations.--The Director, periodically, 
        shall hold homeland security technology demonstrations 
        to improve contact among technology developers, vendors 
        and acquisition personnel.
    (c) Fund.--
          (1) Establishment.--There is established the 
        Acceleration Fund for Research and Development of 
        Homeland Security Technologies, which shall be 
        administered by the Director of HSARPA.
          (2) Authorization of appropriations.--There are 
        authorized to be appropriated $500,000,000 to the Fund 
        for fiscal year 2003 and such sums as may be necessary 
        thereafter.
          (3) Coast guard.--Of the funds authorized to be 
        appropriated under paragraph (2), not less than 10 
        percent of such funds for each fiscal year through 
        fiscal year 2005 shall be authorized only for the Under 
        Secretary, through joint agreement with the Commandant 
        of the Coast Guard, to carry out research and 
        development of improved ports, waterways and coastal 
        security surveillance and perimeter protection 
        capabilities for the purpose of minimizing the 
        possibility that Coast Guard cutters, aircraft, 
        helicopters, and personnel will be diverted from non-
        homeland security missions to the ports, waterways and 
        coastal security mission.

   Subchapter IV. [Directorate of] Border and Transportation Security


    PART A. [UNDER SECRETARY FOR] BORDER AND TRANSPORTATION SECURITY


[SEC. 201. UNDER SECRETARY FOR BORDER AND TRANSPORTATION SECURITY.

    [There shall be in the Department a Directorate of Border 
and Transportation Security headed by an Under Secretary for 
Border and Transportation Security.]

SEC. 202. [RESPONSIBILITIES] BORDER AND TRANSPORTATION 
                    RESPONSIBILITIES.

    The Secretary[, acting through the Under Secretary for 
Border and Transportation Security,] shall be responsible for 
the following:
          (1) Preventing the entry of terrorists and the 
        instruments of terrorism into the United States.
          (2) Securing the borders, territorial waters, ports, 
        terminals, waterways, and air, land, and sea 
        transportation systems of the United States, including 
        managing and coordinating those functions transferred 
        to the Department at ports of entry.
          (3) Carrying out the immigration enforcement 
        functions vested by statute in, or performed by, the 
        Commissioner of Immigration and Naturalization (or any 
        officer, employee, or component of the Immigration and 
        Naturalization Service) immediately before the date on 
        which the transfer of functions specified under section 
        251 of this title takes effect.
          (4) Establishing and administering rules, in 
        accordance with section 236 of this title, governing 
        the granting of visas or other forms of permission, 
        including parole, to enter the United States to 
        individuals who are not a citizen or an alien lawfully 
        admitted for permanent residence in the United States.
          (5) Establishing national immigration enforcement 
        policies and priorities.
          (6) Except as provided in part C of this subchapter, 
        administering the customs laws of the United States.
          (7) Conducting the inspection and related 
        administrative functions of the Department of 
        Agriculture transferred to the Secretary of Homeland 
        Security under section 231 of this title.
          (8) In carrying out the foregoing responsibilities, 
        ensuring the speedy, orderly, and efficient flow of 
        lawful traffic and commerce.

           *       *       *       *       *       *       *


                 PART B. UNITED STATES CUSTOMS SERVICE


SEC. 211. ESTABLISHMENT; COMMISSIONER OF CUSTOMS.

    (a) Establishment.--There is established in the Department 
the United States Customs Service, under the authority of the 
[Under Secretary for Border and Transportation Security] 
Secretary, which shall be vested with those functions 
including, but not limited to those set forth in section 215(7) 
of this title, and the personnel, assets, and liabilities 
attributable to those functions.
    (b) Commissioner of Customs.--
          (1) In general.--There shall be at the head of the 
        Customs Service a Commissioner of Customs, who shall be 
        appointed by the President, by and with the advice and 
        consent of the Senate.
          (2) Omitted.
          (3) Continuation in office.--The individual serving 
        as the Commissioner of Customs on the day before the 
        effective date of this chapter may serve as the 
        Commissioner of Customs on and after such effective 
        date until a Commissioner of Customs is appointed under 
        paragraph (1).

           *       *       *       *       *       *       *


PART C. MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *



SEC. 234. PRESERVATION OF TRANSPORTATION SECURITY ADMINISTRATION AS A 
                    DISTINCT ENTITY.

    (a) In General.--Notwithstanding any other provision of 
this chapter, and subject to subsection (b) of this section, 
the Transportation Security Administration shall be maintained 
as a distinct entity within the Department under the [Under 
Secretary for Border Transportation and Security] Secretary.
    (b) Sunset.--Subsection (a) of this section shall cease to 
apply 2 years after November 25, 2002.

           *       *       *       *       *       *       *


[SEC. 238. OFFICE FOR DOMESTIC PREPAREDNESS.

    [(a) In General.--The Office for Domestic Preparedness 
shall be within the Directorate of Border and Transportation 
Security.
    [(b) Director.--There shall be a Director of the Office for 
Domestic Preparedness, who shall be appointed by the President, 
by and with the advice and consent of the Senate. The Director 
of the Office for Domestic Preparedness shall report directly 
to the Under Secretary for Border and Transportation Security.
    [(c) Responsibilities.--The Office for Domestic 
Preparedness shall have the primary responsibility within the 
executive branch of Government for the preparedness of the 
United States for acts of terrorism, including--
          [(1) coordinating preparedness efforts at the Federal 
        level, and working with all State, local, tribal, 
        parish, and private sector emergency response providers 
        on all matters pertaining to combating terrorism, 
        including training, exercises, and equipment support;
          [(2) coordinating or, as appropriate, consolidating 
        communications and systems of communications relating 
        to homeland security at all levels of government;
          [(3) directing and supervising terrorism preparedness 
        grant programs of the Federal Government (other than 
        those programs administered by the Department of Health 
        and Human Services) for all emergency response 
        providers;
          [(4) incorporating the Strategy priorities into 
        planning guidance on an agency level for the 
        preparedness efforts of the Office for Domestic 
        Preparedness;
          [(5) providing agency-specific training for agents 
        and analysts within the Department, other agencies, and 
        State and local agencies and international entities;
          [(6) as the lead executive branch agency for 
        preparedness of the United States for acts of 
        terrorism, cooperating closely with the Federal 
        Emergency Management Agency, which shall have the 
        primary responsibility within the executive branch to 
        prepare for and mitigate the effects of nonterrorist-
        related disasters in the United States;
          [(7) assisting and supporting the Secretary, in 
        coordination with other Directorates and entities 
        outside the Department, in conducting appropriate risk 
        analysis and risk management activities of State, 
        local, and tribal governments consistent with the 
        mission and functions of the Directorate;
          [(8) those elements of the Office of National 
        Preparedness of the Federal Emergency Management Agency 
        which relate to terrorism, which shall be consolidated 
        within the Department in the Office for Domestic 
        Preparedness established under this section; and
          [(9) helping to ensure the acquisition of 
        interoperable communication technology by State and 
        local governments and emergency response providers.
    [(d) Fiscal Years 2003 and 2004.--During fiscal year 2003 
and fiscal year 2004, the Director of the Office for Domestic 
Preparedness established under this section shall manage and 
carry out those functions of the Office for Domestic 
Preparedness of the Department of Justice (transferred under 
this section) before September 11, 2001, under the same terms, 
conditions, policies, and authorities, and with the required 
level of personnel, assets, and budget before September 11, 
2001.]

           *       *       *       *       *       *       *


[SEC. 239. OFFICE OF CARGO SECURITY POLICY.

    [(a) Establishment.--There is established within the 
Department an Office of Cargo Security Policy (referred to in 
this section as the ``Office'').
    [(b) Purpose.--The Office shall--
          [(1) coordinate all Department policies relating to 
        cargo security; and
          [(2) consult with stakeholders and coordinate with 
        other Federal agencies in the establishment of 
        standards and regulations and to promote best 
        practices.
      [(c) Director.--
          [(1) Appointment.--The Office shall be headed by a 
        Director, who shall--
                  [(A) be appointed by the Secretary; and
                  [(B) report to the Assistant Secretary for 
                Policy.
          [(2) Responsibilities.--The Director shall--
                  [(A) advise the Assistant Secretary for 
                Policy in the development of Department-wide 
                policies regarding cargo security;
                  [(B) coordinate all policies relating to 
                cargo security among the agencies and offices 
                within the Department relating to cargo 
                security; and
                  [(C) coordinate the cargo security policies 
                of the Department with the policies of other 
                executive agencies.]

           *       *       *       *       *       *       *


               PART D--IMMIGRATION ENFORCEMENT FUNCTIONS


SEC. 251. TRANSFER OF FUNCTIONS TO SECRETARY [UNDER SECRETARY FOR 
                    BORDER AND TRANSPORTATION SECURITY].

    In accordance with subchapter XII of this chapter (relating 
to transition provisions), there shall be transferred from the 
Commissioner of Immigration and Naturalization to the [Under 
Secretary for Border and Transportation Security] Secretary all 
functions performed under the following programs, and all 
personnel, assets, and liabilities pertaining to such programs, 
immediately before such transfer occurs:
          (1) The Border Patrol program.
          (2) The detention and removal program.
          (3) The intelligence program.
          (4) The investigations program.
          (5) The inspections program.

SEC. 252. [ESTABLISHMENT OF BUREAU OF BORDER SECURITY] UNITED STATES 
                    IMMIGRATION AND CUSTOMS ENFORCEMENT.

    (a) [Establishment of Bureau] U.S. Immigration and Customs 
Enforcement._
          (1) In general.--There shall be in the Department of 
        Homeland Security [a bureau to be known as the ``Bureau 
        of Border Security''] an agency to be known as ``U.S. 
        Immigration and Customs Enforcement''.
          [(2) Assistant secretary.--The head of the Bureau of 
        Border Security shall be the Assistant Secretary of the 
        Bureau of Border Security, who--
                  [(A) shall report directly to the Under 
                Secretary for Border and Transportation 
                Security; and
                  [(B) shall have a minimum of 5 years 
                professional experience in law enforcement, and 
                a minimum of 5 years of management experience.]
          (2) Assistant secretary.--The head of U.S. 
        Immigration and Customs Enforcement shall be the 
        Assistant Secretary of U.S. Immigration and Customs 
        Enforcement, who--
                  (A) shall also have the title of Director of 
                U.S. Immigration and Customs Enforcement; and
                  (B) shall have a minimum of--
                          (i) 5 years of professional 
                        experience in law enforcement; and
                          (ii) 5 years of management 
                        experience.
          (3) Functions.--The Assistant Secretary of [the 
        Bureau of Border Security] U.S. Immigration and Customs 
        Enforcement--
                  (A) shall establish the policies for 
                performing such functions as are--
                          (i) transferred to the [Under 
                        Secretary for Border and Transportation 
                        Security] Secretary by section 251 of 
                        this title and delegated to the 
                        Assistant Secretary of U.S. Immigration 
                        and Customs Enforcement by the [Under 
                        Secretary for Border and Transportation 
                        Security] Secretary; or
                          (ii) otherwise vested in the 
                        Assistant Secretary of U.S. Immigration 
                        and Customs Enforcement by law;
                  (B) shall oversee the administration of such 
                policies; and
                  (C) shall advise the [Under Secretary for 
                Border and Transportation Security] Under 
                Secretary for Policy with respect to any policy 
                or operation of [the Bureau of Border Security] 
                U.S. Immigration and Customs Enforcement that 
                may affect [the Bureau of Citizenship and 
                Immigration Services] U.S. Citizenship and 
                Immigration Services established under part E 
                of this subchapter, including potentially 
                conflicting policies or operations.
          (4) Program to collect information relating to 
        foreign students.--The Assistant Secretary of [the 
        Bureau of Border Security] U.S. Immigration and Customs 
        Enforcement shall be responsible for administering the 
        program to collect information relating to nonimmigrant 
        foreign students and other exchange program 
        participants described in section 1372 of Title 8, 
        including the Student and Exchange Visitor Information 
        System established under that section, and shall use 
        such information to carry out the enforcement functions 
        of [the Bureau] U.S. Immigration and Customs 
        Enforcement.
          (5) Managerial rotation program.--
                  (A) In general.--Not later than 1 year after 
                the date on which the transfer of functions 
                specified under section 251 of this title takes 
                effect, the Assistant Secretary of [the Bureau 
                of Border Security] U.S. Immigration and 
                Customs Enforcement shall design and implement 
                a managerial rotation program under which 
                employees of [such bureau] U.S. Immigration and 
                Customs Enforcement holding positions involving 
                supervisory or managerial responsibility and 
                classified, in accordance with chapter 51 of 
                Title 5, as a GS-14 or above, shall--
                          (i) gain some experience in all the 
                        major functions performed by [such 
                        bureau] U.S. Immigration and Customs 
                        Enforcement; and
                          (ii) work in at least one local 
                        office of [such bureau] U.S. 
                        Immigration and Customs Enforcement.
                  (B) Report.--Not later than 2 years after the 
                date on which the transfer of functions 
                specified under section 251 of this title takes 
                effect, the Secretary shall submit a report to 
                the Congress on the implementation of such 
                program.
    (b) Chief of Policy and Strategy.--
          (1) In general.--There shall be a position of Chief 
        of Policy and Strategy for [the Bureau of Border 
        Security] U.S. Immigration and Customs Enforcement.
          (2) Functions.--In consultation with [Bureau of 
        Border Security] U.S. Immigration and Customs 
        Enforcement personnel in local offices, the Chief of 
        Policy and Strategy shall be responsible for--
                  (A) making policy recommendations and 
                performing policy research and analysis on 
                immigration enforcement issues; and
                  (B) coordinating immigration policy issues 
                with the Chief of Policy and Strategy for [the 
                Bureau of Citizenship and Immigration Services] 
                U.S. Citizenship and Immigration Services 
                (established under part E of this subchapter), 
                as appropriate.
    (c) Legal Advisor.--There shall be a principal legal 
advisor to the Assistant Secretary of [the Bureau of Border 
Security] U.S. Immigration and Customs Enforcement. The legal 
advisor shall provide specialized legal advice to the Assistant 
Secretary of [the Bureau of Border Security] U.S. Immigration 
and Customs Enforcement and shall represent [the bureau] U.S. 
Immigration and Customs Enforcement in all exclusion, 
deportation, and removal proceedings before the Executive 
Office for Immigration Review.

SEC. 253. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW

    [The Under Secretary for Border and Transportation 
Security] The Secretary shall be responsible for--
          (1) conducting investigations of noncriminal 
        allegations of misconduct, corruption, and fraud 
        involving any employee of [the Bureau of Border 
        Security] U.S. Immigration and Customs Enforcement that 
        are not subject to investigation by the Inspector 
        General for the Department;
          (2) inspecting the operations of [the Bureau of 
        Border Security] U.S. Immigration and Customs 
        Enforcement and providing assessments of the quality of 
        the operations of such bureau as a whole and each of 
        its components; and
          (3) providing an analysis of the management of [the 
        Bureau of Border Security] U.S. Immigration and Customs 
        Enforcement.

SEC. 254. EMPLOYEE DISCIPLINE.

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

[SEC. 255. REPORT ON IMPROVING ENFORCEMENT FUNCTIONS].

    [(a) In General.--The Secretary, not later than 1 year 
after being sworn into office, shall submit to the Committees 
on Appropriations and the Judiciary of the House of 
Representatives and of the Senate a report with a plan 
detailing how the Bureau of Border Security, after the transfer 
of functions specified under section 251 of this title takes 
effect, will enforce comprehensively, effectively, and fairly 
all the enforcement provisions of the Immigration and 
Nationality Act (8 U.S.C. 1101 et seq.) relating to such 
functions.
    [(b) Consultation.--In carrying out subsection (a) of this 
section, the Secretary of Homeland Security shall consult with 
the Attorney General, the Secretary of State, the Director of 
the Federal Bureau of Investigation, the Secretary of the 
Treasury, the Secretary of Labor, the Commissioner of Social 
Security, the Director of the Executive Office for Immigration 
Review, and the heads of State and local law enforcement 
agencies to determine how to most effectively conduct 
enforcement operations.]

           *       *       *       *       *       *       *


              PART E--CITIZENSHIP AND IMMIGRATION SERVICE


SEC. 271. ESTABLISHMENT OF [BUREAU OF] U.S. CITIZENSHIP AND IMMIGRATION 
                    SERVICES.

    (a) Establishment [of Bureau].--
          (1) In general.--There shall be in the Department [a 
        bureau to be known as the ``Bureau of] an agency to be 
        known as ``U.S. Citizenship and Immigration Services''.
          (2) Director.--The head of [the Bureau of Citizenship 
        and Immigration Services] U.S. Citizenship and 
        Immigration Services shall be the Director of [the 
        Bureau of Citizenship and Immigration Services] U.S. 
        Citizenship and Immigration Services, who--
                  (A) shall report directly to the Deputy 
                Secretary;
                  (B) shall have a minimum of 5 years of 
                management experience; and
                  (C) shall be paid at the same level as the 
                Assistant Secretary of [the Bureau of Border 
                Security] U.S. Immigration and Customs 
                Enforcement.
          (3) Functions.--The Director of [the Bureau of 
        Citizenship and Immigration Services] U.S. Citizenship 
        and Immigration Services--
                  (A) shall establish the policies for 
                performing such functions as are transferred to 
                the Director by this section or this chapter or 
                otherwise vested in the Director by law;
                  (B) shall oversee the administration of such 
                policies;
                  (C) shall advise the Deputy Secretary with 
                respect to any policy or operation of [the 
                Bureau of Citizenship and Immigration Services] 
                U.S. Citizenship and Immigration Services that 
                may affect [the Bureau of Border Security of 
                the Department] U.S. Immigration and Customs 
                Enforcement, including potentially conflicting 
                policies or operations;
                  (D) shall establish national immigration 
                services policies and priorities;
                  (E) shall meet regularly with the Ombudsman 
                described in section 272 of this title to 
                correct serious service problems identified by 
                the Ombudsman; and
                  (F) shall establish procedures requiring a 
                formal response to any recommendations 
                submitted in the Ombudsman's annual report to 
                Congress within 3 months after its submission 
                to Congress.
          (4) Managerial rotation program.--
                  (A) In general.--Not later than 1 year after 
                the effective date specified in section 455, 
                the Director of [the Bureau of] U.S. 
                Citizenship and Immigration Services shall 
                design and implement a managerial rotation 
                program under which employees of [such bureau] 
                U.S. Citizenship and Immigration Services 
                holding positions involving supervisory or 
                managerial responsibility and classified, in 
                accordance with chapter 51 of Title 5, as a GS-
                14 or above, shall--
                          (i) gain some experience in all the 
                        major functions performed by [such 
                        bureau] U.S. Citizenship and 
                        Immigration Services; and
                          (ii) work in at least one field 
                        office and one service center of [such 
                        bureau] U.S. Citizenship and 
                        Immigration Services.
                  (B) Report.--Not later than 2 years after the 
                effective date specified in section 455, the 
                Secretary shall submit a report to Congress on 
                the implementation of such program.
          (5) Pilot initiatives for backlog elimination.--The 
        Director of [the Bureau of] U.S Citizenship and 
        Immigration Services is authorized to implement 
        innovative pilot initiatives to eliminate any remaining 
        backlog in the processing of immigration benefit 
        applications, and to prevent any backlog in the 
        processing of such applications from recurring, in 
        accordance with section 1573(a) of Title 8. Such 
        initiatives may include measures such as increasing 
        personnel, transferring personnel to focus on areas 
        with the largest potential for backlog, and 
        streamlining paperwork.
    (b) Transfer of Functions from Commissioner.--In accordance 
with subchapter XII of this chapter (relating to transition 
provisions), there are transferred from the Commissioner of 
Immigration and Naturalization to the Director of [the Bureau 
of] U.S. Citizenship and Immigration Services the following 
functions, and all personnel, infrastructure, and funding 
provided to the Commissioner in support of such functions 
immediately before the effective date specified in section 455:
          (1) Adjudications of immigrant visa petitions.
          (2) Adjudications of naturalization petitions.
          (3) Adjudications of asylum and refugee applications.
          (4) Adjudications performed at service centers.
          (5) All other adjudications performed by the 
        Immigration and Naturalization Service immediately 
        before the effective date specified in section 455.
    (c) Chief of Policy and Strategy.--
          (1) In general.--There shall be a position of Chief 
        of Policy and Strategy for [the Bureau of] U.S. 
        Citizenship and Immigration Services.
          (2) Functions.--In consultation with [the Bureau of] 
        U.S. Citizenship and Immigration Services personnel in 
        field offices, the Chief of Policy and Strategy shall 
        be responsible for--
                  (A) making policy recommendations and 
                performing policy research and analysis on 
                immigration services issues; and
                  (B) coordinating immigration policy issues 
                with the Chief of Policy and Strategy for [the 
                Bureau of] U.S. [Border Security of the 
                Department] Immigration and Customs 
                Enforcement.
    (d) Legal Advisor.--
          (1) In general.--There shall be a principal legal 
        advisor to the Director of [the Bureau of] U.S. 
        Citizenship and Immigration Services.
          (2) Functions.--The legal advisor shall be 
        responsible for--
                  (A) providing specialized legal advice, 
                opinions, determinations, regulations, and any 
                other assistance to the Director of [the Bureau 
                of] U.S. Citizenship and Immigration Services 
                with respect to legal matters affecting [the 
                Bureau of] U.S. Citizenship and Immigration 
                Services; and
                  (B) representing [the Bureau of] U.S. 
                Citizenship and Immigration Services in visa 
                petition appeal proceedings before the 
                Executive Office for Immigration Review.
    (e) Budget Officer.--
          (1) In general.--There shall be a Budget Officer for 
        [the Bureau of] U.S. Citizenship and Immigration 
        Services.
          (2) Functions.--
                  (A) In general.--The Budget Officer shall be 
                responsible for--
                          (i) formulating and executing the 
                        budget of [the Bureau of] U.S. 
                        Citizenship and Immigration Services;
                          (ii) financial management of [the 
                        Bureau of] U.S. Citizenship and 
                        Immigration Services; and
                          (iii) collecting all payments, fines, 
                        and other debts for [the Bureau of] 
                        U.S. Citizenship and Immigration 
                        Services.
    (f) Chief of Office of Citizenship.--
          (1) In general.--There shall be a position of Chief 
        of the Office of Citizenship for [the Bureau of] U.S. 
        Citizenship and Immigration Services.
          (2) Functions.--The Chief of the Office of 
        Citizenship for [the Bureau of] U.S. Citizenship and 
        Immigration Services shall be responsible for promoting 
        instruction and training on citizenship 
        responsibilities for aliens interested in becoming 
        naturalized citizens of the United States, including 
        the development of educational materials.
    (g) Office of the FBI Liaison.--
          (1) In general.--There shall be an Office of the FBI 
        Liaison in the Department of Homeland Security.
          (2) Functions.--The Office of the FBI Liaison shall 
        monitor the progress of the functions of the Federal 
        Bureau of Investigation in the naturalization process 
        to assist in the expeditious completion of all such 
        functions pertaining to naturalization applications 
        filed by, or on behalf of--
                  (A) current or former members of the Armed 
                Forces under section 1439 or 1440 of Title 8;
                  (B) current spouses of United States citizens 
                who are currently serving on active duty in the 
                Armed Forces, who qualify for naturalization 
                under section 1430(b) of Title 8, and surviving 
                spouses and children who qualify for 
                naturalization under section 1430(d) of Title 
                8; or
                  (C) a deceased individual who is eligible for 
                posthumous citizenship under section 1440-1 of 
                Title 8.
          (3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as may be 
        necessary to carry out this subsection.

[SEC. 271 NOTE.

    [Notwithstanding section 4, sections 451 through 455, and 
the amendments made by such sections, shall take effect on the 
date on which the transfer of functions specified under section 
441 takes effect.]

SEC. 272. CITIZENSHIP AND IMMIGRATION SERVICES OMBUDSMAN.

    (a) In General.--Within the Department, there shall be a 
position of Citizenship and Immigration Services Ombudsman (in 
this section referred to as the ``Ombudsman''). The Ombudsman 
shall report directly to the Deputy Secretary. The Ombudsman 
shall have a background in customer service as well as 
immigration law.
    (b) Functions.--It shall be the function of the Ombudsman--
          (1) to assist individuals and employers in resolving 
        problems with [the Bureau of] U.S. Citizenship and 
        Immigration Services;
          (2) to identify areas in which individuals and 
        employers have problems in dealing with [the Bureau of] 
        U.S. Citizenship and Immigration Services; and
          (3) to the extent possible, to propose changes in the 
        administrative practices of [the Bureau of] U.S. 
        Citizenship and Immigration Services to mitigate 
        problems identified under paragraph (2).
    (c) Annual Reports.--
          (1) Objectives.--Not later than June 30 of each 
        calendar year, the Ombudsman shall report to the 
        Committee on the Judiciary of the House of 
        Representatives and the Senate on the objectives of the 
        Office of the Ombudsman for the fiscal year beginning 
        in such calendar year. Any such report shall contain 
        full and substantive analysis, in addition to 
        statistical information, and--
                  (A) shall identify the recommendations the 
                Office of the Ombudsman has made on improving 
                services and responsiveness of [the Bureau of] 
                U.S. Citizenship and Immigration Services;
                  (B) shall contain a summary of the most 
                pervasive and serious problems encountered by 
                individuals and employers, including a 
                description of the nature of such problems;
                  (C) shall contain an inventory of the items 
                described in subparagraphs (A) and (B) for 
                which action has been taken and the result of 
                such action;
                  (D) shall contain an inventory of the items 
                described in subparagraphs (A) and (B) for 
                which action remains to be completed and the 
                period during which each item has remained on 
                such inventory;
                  (E) shall contain an inventory of the items 
                described in subparagraphs (A) and (B) for 
                which no action has been taken, the period 
                during which each item has remained on such 
                inventory, the reasons for the inaction, and 
                shall identify any official of [the Bureau of] 
                U.S. Citizenship and Immigration Services who 
                is responsible for such inaction;
                  (F) shall contain recommendations for such 
                administrative action as may be appropriate to 
                resolve problems encountered by individuals and 
                employers, including problems created by 
                excessive backlogs in the adjudication and 
                processing of immigration benefit petitions and 
                applications; and
                  (G) shall include such other information as 
                the Ombudsman may deem advisable.
          (2) Report to be submitted directly.--Each report 
        required under this subsection shall be provided 
        directly to the committees described in paragraph (1) 
        without any prior comment or amendment from the 
        Secretary, Deputy Secretary, Director of [the Bureau 
        of] U.S. Citizenship and Immigration Services, or any 
        other officer or employee of the Department or the 
        Office of Management and Budget.
    (d) Other Responsibilities.--The Ombudsman--
          (1) shall monitor the coverage and geographic 
        allocation of local offices of the Ombudsman;
          (2) shall develop guidance to be distributed to all 
        officers and employees of [the Bureau of] U.S. 
        Citizenship and Immigration Services outlining the 
        criteria for referral of inquiries to local offices of 
        the Ombudsman;
          (3) shall ensure that the local telephone number for 
        each local office of the Ombudsman is published and 
        available to individuals and employers served by the 
        office; and
          (4) shall meet regularly with the Director of [the 
        Bureau of] U.S. Citizenship and Immigration Services to 
        identify serious service problems and to present 
        recommendations for such administrative action as may 
        be appropriate to resolve problems encountered by 
        individuals and employers.
    (e) Personnel Actions.--
          (1) In general.--The Ombudsman shall have the 
        responsibility and authority--
                  (A) to appoint local ombudsmen and make 
                available at least 1 such ombudsman for each 
                State; and
                  (B) to evaluate and take personnel actions 
                (including dismissal) with respect to any 
                employee of any local office of the Ombudsman.
          (2) Consultation.--The Ombudsman may consult with the 
        appropriate supervisory personnel of [the Bureau of] 
        U.S. Citizenship and Immigration Services in carrying 
        out the Ombudsman's responsibilities under this 
        subsection.
    (f) Responsibilities of [Bureau of] U.S. Citizenship and 
Immigration Services.--The Director of [the Bureau of] U.S. 
Citizenship and Immigration Services shall establish procedures 
requiring a formal response to all recommendations submitted to 
such director by the Ombudsman within 3 months after submission 
to such director.
    (g) Operation of Local Offices.--
          (1) In general.--Each local ombudsman--
                  (A) shall report to the Ombudsman or the 
                delegate thereof;
                  (B) may consult with the appropriate 
                supervisory personnel of [the Bureau of] U.S. 
                Citizenship and Immigration Services regarding 
                the daily operation of the local office of such 
                ombudsman;
                  (C) shall, at the initial meeting with any 
                individual or employer seeking the assistance 
                of such local office, notify such individual or 
                employer that the local offices of the 
                Ombudsman operate independently of any other 
                component of the Department and report directly 
                to Congress through the Ombudsman; and
                  (D) at the local ombudsman's discretion, may 
                determine not to disclose to [the Bureau of] 
                U.S. Citizenship and Immigration Services 
                contact with, or information provided by, such 
                individual or employer.
          (2) Maintenance of independent communications.--Each 
        local office of the Ombudsman shall maintain a phone, 
        facsimile, and other means of electronic communication 
        access, and a post office address, that is separate 
        from those maintained by [the Bureau of] U.S. 
        Citizenship and Immigration Services, or any component 
        of [the Bureau of] U.S. Citizenship and Immigration 
        Services.

SEC. 273. PROFESSIONAL RESPONSIBILITY AND QUALITY REVIEW.

    (a) In General.--The Director of [the Bureau of] U.S. 
Citizenship and Immigration Services shall be responsible for--
          (1) conducting investigations of noncriminal 
        allegations of misconduct, corruption, and fraud 
        involving any employee of [the Bureau of] U.S. 
        Citizenship and Immigration Services that are not 
        subject to investigation by the Inspector General for 
        the Department;
          (2) inspecting the operations of [the Bureau of] U.S. 
        Citizenship and Immigration Services and providing 
        assessments of the quality of the operations of [such 
        bureau] U.S. as a whole and each of its components; and
          (3) providing an analysis of the management of [the 
        Bureau of] U.S. Citizenship and Immigration Services.
    (b) Special Considerations.--In providing assessments in 
accordance with subsection (a)(2) of this section with respect 
to a decision of [the Bureau of] U.S. Citizenship and 
Immigration Services, or any of its components, consideration 
shall be given to--
          (1) the accuracy of the findings of fact and 
        conclusions of law used in rendering the decision;
          (2) any fraud or misrepresentation associated with 
        the decision; and
          (3) the efficiency with which the decision was 
        rendered.

SEC. 274. EMPLOYEE DISCIPLINE.

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

SEC. 275. TRANSITION.

    (a) References.--With respect to any function transferred 
by this part to, and exercised on or after [the effective date 
specified in section 455] the date on which the functions 
specified under section 441 were transferred by, the Director 
of [the Bureau of] U.S. Citizenship and Immigration Services, 
any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to a component of government from which such 
function is transferred--
          (1) to the head of such component is deemed to refer 
        to the Director of [the Bureau of] U.S. Citizenship and 
        Immigration Services; or
          (2) to such component is deemed to refer to [the 
        Bureau of] U.S. Citizenship and Immigration Services.
    (b) Other Transition Issues.--
          (1) Exercise of authorities.--Except as otherwise 
        provided by law, a Federal official to whom a function 
        is transferred by this part may, for purposes of 
        performing the function, exercise all authorities under 
        any other provision of law that were available with 
        respect to the performance of that function to the 
        official responsible for the performance of the 
        function immediately before [the effective date 
        specified in section 455] the date on which the 
        functions specified under section 441 were transferred.
          (2) Transfer and allocation of appropriations and 
        personnel.--The personnel of the Department of Justice 
        employed in connection with the functions transferred 
        by this part (and functions that the Secretary 
        determines are properly related to the functions of 
        [the Bureau of] U.S. Citizenship and Immigration 
        Services), and the assets, liabilities, contracts, 
        property, records, and unexpended balance of 
        appropriations, authorizations, allocations, and other 
        funds employed, held, used, arising from, available to, 
        or to be made available to, the Immigration and 
        Naturalization Service in connection with the functions 
        transferred by this part, subject to section 1531 of 
        Title 31, shall be transferred to the Director of [the 
        Bureau of] U.S. Citizenship and Immigration Services 
        for allocation to the appropriate component of the 
        Department. Unexpended funds transferred pursuant to 
        this paragraph shall be used only for the purposes for 
        which the funds were originally authorized and 
        appropriated. The Secretary shall have the right to 
        adjust or realign transfers of funds and personnel 
        effected pursuant to this part for a period of 2 years 
        after [the effective date specified in section 455] the 
        date on which the functions specified under section 441 
        were transferred.

[SEC. 276. REPORT ON IMPROVING IMMIGRATION SERVICES.

    [(a) In General.--The Secretary, not later than 1 year 
after the effective date of this chapter, shall submit to the 
Committees on the Judiciary and Appropriations of the House of 
Representatives and of the Senate a report with a plan 
detailing how the Bureau of Citizenship and Immigration 
Services, after the transfer of functions specified in this 
part takes effect, will complete efficiently, fairly, and 
within a reasonable time, the adjudications described in 
paragraphs (1) through (5) of section 271(b) of this title.
    [(b) Contents.--For each type of adjudication to be 
undertaken by the Director of the Bureau of Citizenship and 
Immigration Services, the report shall include the following:
          [(1) Any potential savings of resources that may be 
        implemented without affecting the quality of the 
        adjudication.
          [(2) The goal for processing time with respect to the 
        application.
          [(3) Any statutory modifications with respect to the 
        adjudication that the Secretary considers advisable.
    [(c) Consultation.--In carrying out subsection (a) of this 
section, the Secretary shall consult with the Secretary of 
State, the Secretary of Labor, the Assistant Secretary of the 
Bureau of Border Security of the Department, and the Director 
of the Executive Office for Immigration Review to determine how 
to streamline and improve the process for applying for and 
making adjudications described in section 271(b) of this title 
and related processes.]

[SEC. 277. REPORT ON RESPONDING TO FLUCTUATING NEEDS.

    [Not later than 30 days after November 25, 2002, the 
Attorney General shall submit to Congress a report on changes 
in law, including changes in authorizations of appropriations 
and in appropriations, that are needed to permit the 
Immigration and Naturalization Service, and, after the transfer 
of functions specified in this part takes effect, the Bureau of 
Citizenship and Immigration Services of the Department, to 
ensure a prompt and timely response to emergent, unforeseen, or 
impending changes in the number of applications for immigration 
benefits, and otherwise to ensure the accommodation of changing 
immigration service needs.]

           *       *       *       *       *       *       *


                 PART F--GENERAL IMMIGRATION PROVISIONS


[SEC. 291. ABOLISHMENT OF INS.

    [(a) In General.--Upon completion of all transfers from the 
Immigration and Naturalization Service as provided for by this 
chapter, the Immigration and Naturalization Service of the 
Department of Justice is abolished.
    [(b) Prohibition.--The authority provided by section 542 of 
this title may be used to reorganize functions or 
organizational units within the Bureau of Border Security or 
the Bureau of Citizenship and Immigration Services, but may not 
be used to recombine the two bureaus into a single agency or 
otherwise to combine, join, or consolidate functions or 
organizational units of the two bureaus with each other.]

SEC. 292. VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) Definitions.--For purposes of this section--
          (1) the term ``employee'' means an employee (as 
        defined by section 2105 of Title 5) who--
                  (A) has completed at least 3 years of current 
                continuous service with 1 or more covered 
                entities; and
                  (B) is serving under an appointment without 
                time limitation,
                but does not include any person under 
                subparagraphs (A)-(G) of section 663(a)(2) of 
                Public Law 104-208 (5 U.S.C. 5597 note);
          (2) the term ``covered entity'' means--
                  (A) the Immigration and Naturalization 
                Service;
                  (B) [the Bureau of Border Security of the 
                Department of Homeland Security] U.S. 
                Immigration and Customs Enforcement; and
                  (C) [the Bureau of Citizenship and 
                Immigration Services of the Department of 
                Homeland Security] U.S. Citizenship and 
                Immigration Services; and
          (3) the term ``transfer date'' means the date on 
        which the transfer of functions specified under section 
        251 of this title takes effect.
    (b) Strategic Restructuring Plan.--Before the Attorney 
General or the Secretary obligates any resources for voluntary 
separation incentive payments under this section, such official 
shall submit to the appropriate committees of Congress a 
strategic restructuring plan, which shall include--
          (1) an organizational chart depicting the covered 
        entities after their restructuring pursuant to this 
        chapter;
          (2) a summary description of how the authority under 
        this section will be used to help carry out that 
        restructuring; and
          (3) the information specified in section 663(b)(2) of 
        Public Law 104-208 (5 U.S.C. 5597 note).
As used in the preceding sentence, the ``appropriate committees 
of Congress'' are the Committees on Appropriations, Government 
Reform, and the Judiciary of the House of Representatives, and 
the Committees on Appropriations, Governmental Affairs, and the 
Judiciary of the Senate.
    (c) Authority.--The Attorney General and the Secretary may, 
to the extent necessary to help carry out their respective 
strategic restructuring plan described in subsection (b) of 
this section, make voluntary separation incentive payments to 
employees. Any such payment--
          (1) shall be paid to the employee, in a lump sum, 
        after the employee has separated from service;
          (2) shall be paid from appropriations or funds 
        available for the payment of basic pay of the employee;
          (3) shall be equal to the lesser of--
                  (A) the amount the employee would be entitled 
                to receive under section 5595(c) of Title 5; or
                  (B) an amount not to exceed $25,000, as 
                determined by the Attorney General or the 
                Secretary;
          (4) may not be made except in the case of any 
        qualifying employee who voluntarily separates (whether 
        by retirement or resignation) before the end of--
                  (A) the 3-month period beginning on the date 
                on which such payment is offered or made 
                available to such employee; or
                  (B) the 3-year period beginning on November 
                25, 2002, whichever occurs first;
          (5) shall not be a basis for payment, and shall not 
        be included in the computation, of any other type of 
        Government benefit; and
          (6) shall not be taken into account in determining 
        the amount of any severance pay to which the employee 
        may be entitled under section 5595 of Title 5, based on 
        any other separation.
    (d) Additional Agency Contributions to the Retirement 
Fund.--
          (1) In general.--In addition to any payments which it 
        is otherwise required to make, the Department of 
        Justice and the Department of Homeland Security shall, 
        for each fiscal year with respect to which it makes any 
        voluntary separation incentive payments under this 
        section, remit to the Office of Personnel Management 
        for deposit in the Treasury of the United States to the 
        credit of the Civil Service Retirement and Disability 
        Fund the amount required under paragraph (2).
          (2) Amount required.--The amount required under this 
        paragraph shall, for any fiscal year, be the amount 
        under subparagraph (A) or (B), whichever is greater.
                  (A) First method.--The amount under this 
                subparagraph shall, for any fiscal year, be 
                equal to the minimum amount necessary to offset 
                the additional costs to the retirement systems 
                under Title 5 (payable out of the Civil Service 
                Retirement and Disability Fund) resulting from 
                the voluntary separation of the employees 
                described in paragraph (3), as determined under 
                regulations of the Office of Personnel 
                Management.
                  (B) Second method.--The amount under this 
                subparagraph shall, for any fiscal year, be 
                equal to 45 percent of the sum total of the 
                final basic pay of the employees described in 
                paragraph (3).
          (3) Computations to be based on separations occurring 
        in the fiscal year involved.--The employees described 
        in this paragraph are those employees who receive a 
        voluntary separation incentive payment under this 
        section based on their separating from service during 
        the fiscal year with respect to which the payment under 
        this subsection relates.
          (4) Final basic pay defined.--In this subsection, the 
        term ``final basic pay'' means, with respect to an 
        employee, the total amount of basic pay which would be 
        payable for a year of service by such employee, 
        computed using the employee's final rate of basic pay, 
        and, if last serving on other than a full-time basis, 
        with appropriate adjustment therefor.
    (e) Effect of Subsequent Employment With the Government.--
An individual who receives a voluntary separation incentive 
payment under this section and who, within 5 years after the 
date of the separation on which the payment is based, accepts 
any compensated employment with the Government or works for any 
agency of the Government through a personal services contract, 
shall be required to pay, prior to the individual's first day 
of employment, the entire amount of the incentive payment. Such 
payment shall be made to the covered entity from which the 
individual separated or, if made on or after the transfer date, 
to the Deputy Secretary [or the Under Secretary for Border and 
Transportation Security] (for transfer to the appropriate 
component of the Department of Homeland Security, if 
necessary).
    (f) Effect on Employment Levels.--
          (1) Intended effect.--Voluntary separations under 
        this section are not intended to necessarily reduce the 
        total number of full-time equivalent positions in any 
        covered entity.
          (2) Use of voluntary separations.--A covered entity 
        may redeploy or use the full-time equivalent positions 
        vacated by voluntary separations under this section to 
        make other positions available to more critical 
        locations or more critical occupations.

           *       *       *       *       *       *       *


SEC. 294. SENSE OF CONGRESS.

    It is the sense of Congress that--
          (1) the missions of [the Bureau of Border Security 
        and the Bureau of] U.S. Immigration and Customs 
        Enforcement and U.S. Citizenship and Immigration 
        Services are equally important and, accordingly, they 
        each should be adequately funded; and
          (2) the functions transferred under this part should 
        not, after such transfers take effect, operate at 
        levels below those in effect prior to November 25, 
        2002.

SEC. 295. DIRECTOR OF SHARED SERVICES.

    (a) In General--Within the Office of Deputy Secretary, 
there shall be a Director of Shared Services.
    (b) Functions.--The Director of Shared Services shall be 
responsible for the coordination of resources for [the Bureau 
of Border Security and the Bureau of] U.S. Immigration and 
Customs Enforcement and U.S. Citizenship and Immigration 
Services, including--
          (1) information resources management, including 
        computer databases and information technology;
          (2) records and file management; and
          (3) forms management.

SEC. 296. SEPARATION OF FUNDING.

    (a) In General.--There shall be established separate 
accounts in the Treasury of the United States for appropriated 
funds and other deposits available for [the Bureau of 
Citizenship and Immigration Services and the Bureau of Border 
Security] U.S. Immigration and Customs Enforcement and U.S. 
Citizenship and Immigration Services.
    (b) Separate Budgets.--To ensure that [the Bureau of 
Citizenship and Immigration Services and the Bureau of Border 
Security] U.S. Immigration and Customs Enforcement and U.S. 
Citizenship and Immigration Services are funded to the extent 
necessary to fully carry out their respective functions, the 
Director of the Office of Management and Budget shall separate 
the budget requests for each such entity.
    (c) Fees.--Fees imposed for a particular service, 
application, or benefit shall be deposited into the account 
established under subsection (a) of this section that is for 
the bureau with jurisdiction over the function to which the fee 
relates.
    (d) Fees Not Transferable.--No fee may be transferred 
between [the Bureau of Citizenship and Immigration Services and 
the Bureau of Border Security] U.S. Immigration and Customs 
Enforcement and U.S. Citizenship and Immigration Services for 
purposes not authorized by section 1356 of Title 8.

SEC. 297. REPORTS AND IMPLEMENTATION PLANS.

    (a) Division of Funds.--The Secretary, not later than 120 
days after the effective date of this chapter, shall submit to 
the Committees on Appropriations and the Judiciary of the House 
of Representatives and of the Senate a report on the proposed 
division and transfer of funds, including unexpended funds, 
appropriations, and fees, between [the Bureau of Citizenship 
and Immigration Services and the Bureau of Border Security] 
U.S. Citizenship and Immigration Services and U.S. Immigration 
and Customs Enforcement.
    (b) Division of Personnel.--The Secretary, not later than 
120 days after the effective date of this chapter, shall submit 
to the Committees on Appropriations and the Judiciary of the 
House of Representatives and of the Senate a report on the 
proposed division of personnel between [the Bureau of 
Citizenship and Immigration Services and the Bureau of Border 
Security] U.S. Citizenship and Immigration Services and U.S. 
Immigration and Customs Enforcement.
    [(c) Implementation Plan.--
          [(1) In general.--The Secretary, not later than 120 
        days after the effective date of this chapter, and 
        every 6 months thereafter until the termination of 
        fiscal year 2005, shall submit to the Committees on 
        Appropriations and the Judiciary of the House of 
        Representatives and of the Senate an implementation 
        plan to carry out this chapter.
          [(2) Contents.--The implementation plan should 
        include details concerning the separation of the Bureau 
        of Citizenship and Immigration Services and the Bureau 
        of Border Security, including the following:
                  [(A) Organizational structure, including the 
                field structure.
                  [(B) Chain of command.
                  [(C) Procedures for interaction among such 
                bureaus.
                  [(D) Fraud detection and investigation.
                  [(E) The processing and handling of removal 
                proceedings, including expedited removal and 
                applications for relief from removal.
                  [(F) Recommendations for conforming 
                amendments to the Immigration and Nationality 
                Act (8 U.S.C. 1101 et seq.).
                  [(G) Establishment of a transition team.
                  [(H) Methods to phase in the costs of 
                separating the administrative support systems 
                of the Immigration and Naturalization Service 
                in order to provide for separate administrative 
                support systems for the Bureau of Citizenship 
                and Immigration Services and the Bureau of 
                Border Security.
    [(d) Comptroller General Studies and Reports.--
          [(1) Status reports on transition.--Not later than 18 
        months after the date on which the transfer of 
        functions specified under section 251 of this title 
        takes effect, and every 6 months thereafter, until full 
        implementation of this part has been completed, the 
        Comptroller General of the United States shall submit 
        to the Committees on Appropriations and on the 
        Judiciary of the House of Representatives and the 
        Senate a report containing the following:
                  [(A) A determination of whether the transfers 
                of functions made by parts D and E of this 
                subchapter have been completed, and if a 
                transfer of functions has not taken place, 
                identifying the reasons why the transfer has 
                not taken place.
                  [(B) If the transfers of functions made by 
                parts D and E of this subchapter have been 
                completed, an identification of any issues that 
                have arisen due to the completed transfers.
                  [(C) An identification of any issues that may 
                arise due to any future transfer of functions.
          [(2) Report on management.--Not later than 4 years 
        after the date on which the transfer of functions 
        specified under section 251 of this title takes effect, 
        the Comptroller General of the United States shall 
        submit to the Committees on Appropriations and on the 
        Judiciary of the House of Representatives and the 
        Senate a report, following a study, containing the 
        following:
                  [(A) Determinations of whether the transfer 
                of functions from the Immigration and 
                Naturalization Service to the Bureau of 
                Citizenship and Immigration Services and the 
                Bureau of Border Security have improved, with 
                respect to each function transferred, the 
                following:
                          [(i) Operations.
                          [(ii) Management, including 
                        accountability and communication.
                          [(iii) Financial administration.
                          [(iv) Recordkeeping, including 
                        information management and technology.
                  [(B) A statement of the reasons for the 
                determinations under subparagraph (A).
                  [(C) Any recommendations for further 
                improvements to the Bureau of Citizenship and 
                Immigration Services and the Bureau of Border 
                Security.
          [(3) Report on fees.--Not later than 1 year after 
        November 25, 2002, the Comptroller General of the 
        United States shall submit to the Committees on the 
        Judiciary of the House of Representatives and of the 
        Senate a report examining whether the Bureau of 
        Citizenship and Immigration Services is likely to 
        derive sufficient funds from fees to carry out its 
        functions in the absence of appropriated funds.]

              Subchapter V--National Emergency Management


SEC. 311. DEFINITIONS.

    In this subchapter--
          (1) the term ``Administrator'' means the 
        Administrator of the Agency;
          (2) the term ``Agency'' means the Federal Emergency 
        Management Agency;
          (3) the term ``catastrophic incident'' means any 
        natural disaster, act of terrorism, or other man-made 
        disaster that results in extraordinary levels of 
        casualties or damage or disruption severely affecting 
        the population (including mass evacuations), 
        infrastructure, environment, economy, national morale, 
        or government functions in an area;
          (4) the terms ``credentialed'' and ``credentialing'' 
        mean having provided, or providing, respectively, 
        documentation that identifies personnel and 
        authenticates and verifies the qualifications of such 
        personnel by ensuring that such personnel possess a 
        minimum common level of training, experience, physical 
        and medical fitness, and capability appropriate for a 
        particular position in accordance with standards 
        created under section 320 of this title;
          (5) the term ``Federal coordinating officer'' means a 
        Federal coordinating officer as described in section 
        5143 of Title 42;
          (6) the term ``interoperable'' has the meaning given 
        the term ``interoperable communications'' under section 
        194(g)(1) of this title;
          (7) the term ``National Incident Management System'' 
        means a system to enable effective, efficient, and 
        collaborative incident management;
          (8) the term ``National Response Plan'' means the 
        National Response Plan or any successor plan prepared 
        under section 314(a)(6) of this title;
          (9) the term ``recovery'' means the short- and long-
        term process of restoring, reshaping, and enhancing the 
        resiliency of the physical, social, economic, and 
        natural environments, government institutions, and the 
        lives of affected individuals;
          [(9)](10) the term ``Regional Administrator'' means a 
        Regional Administrator appointed under section 317 of 
        this title;
          [(10)](11) the term ``Regional Office'' means a 
        Regional Office established under section 317 of this 
        title;
          [(11)](12) the term ``resources'' means personnel and 
        major items of equipment, supplies, and facilities 
        available or potentially available for responding to a 
        natural disaster, act of terrorism, or other man-made 
        disaster;
          [(12)] (13) the term ``surge capacity'' means the 
        ability to rapidly and substantially increase the 
        provision of search and rescue capabilities, food, 
        water, medicine, shelter and housing, medical care, 
        evacuation capacity, staffing (including disaster 
        assistance employees), and other resources necessary to 
        save lives and protect property during a catastrophic 
        incident;
          [(13)] (14) the term ``tribal government'' means the 
        government of any entity described in section 
        101(11)(B) of this title; and
          [(14)](15) the terms ``typed'' and ``typing'' mean 
        having evaluated, or evaluating, respectively, a 
        resource in accordance with standards created under 
        section 320 of this title.

           *       *       *       *       *       *       *


SEC. 314. AUTHORITY AND RESPONSIBILITIES.

    (a) In General.--The Administrator shall provide Federal 
leadership necessary to prepare for, protect against, respond 
to, recover from, or mitigate against a natural disaster, act 
of terrorism, or other man-made disaster, including--
          (1) helping to ensure the effectiveness of emergency 
        response providers to terrorist attacks, major 
        disasters, and other emergencies;
          (2) with respect to the Nuclear Incident Response 
        Team (regardless of whether it is operating as an 
        organizational unit of the Department pursuant to this 
        subchapter)--
                  (A) establishing standards and certifying 
                when those standards have been met;
                  (B) conducting joint and other exercises and 
                training and evaluating performance; and
                  (C) providing funds to the Department of 
                Energy and the Environmental Protection Agency, 
                as appropriate, for homeland security planning, 
                exercises and training, and equipment;
          (3) providing the Federal Government's response to 
        terrorist attacks and major disasters, including--
                  (A) managing such response;
                  (B) directing the Domestic Emergency Support 
                Team and (when operating as an organizational 
                unit of the Department pursuant to this 
                subchapter) the Nuclear Incident Response Team;
                  (C) overseeing the Metropolitan Medical 
                Response System; and
                  (D) coordinating other Federal response 
                resources, including requiring deployment of 
                the Strategic National Stockpile, in the event 
                of a terrorist attack or major disaster;
          (4) aiding the recovery from terrorist attacks and 
        major disasters;
          (5) building a comprehensive national incident 
        management system with Federal, State, and local 
        government personnel, agencies, and authorities, to 
        respond to such attacks and disasters;
          (6) consolidating existing Federal Government 
        emergency response plans into a single, coordinated 
        national response plan;
          (7) helping ensure the acquisition of operable and 
        interoperable communications capabilities by Federal, 
        State, local, and tribal governments and emergency 
        response providers;
          (8) assisting the President in carrying out the 
        functions under the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
        and carrying out all functions and authorities given to 
        the Administrator under that Act;
          (9) carrying out the mission of the Agency to reduce 
        the loss of life and property and protect the Nation 
        from all hazards by leading and supporting the Nation 
        in a risk-based, comprehensive emergency management 
        system of--
                  (A) mitigation, by taking sustained actions 
                to reduce or eliminate long-term risks to 
                people and property from hazards and their 
                effects;
                  (B) preparedness, by planning, training, and 
                building the emergency management profession to 
                prepare effectively for, mitigate against, 
                respond to, and recover from any hazard;
                  (C) response, by conducting emergency 
                operations to save lives and property through 
                positioning emergency equipment, personnel, and 
                supplies, through evacuating potential victims, 
                through providing food, water, shelter, and 
                medical care to those in need, and through 
                restoring critical public services; and
                  (D) recovery, by rebuilding communities so 
                individuals, businesses, and governments can 
                function on their own, return to normal life, 
                and protect against future hazards;
          (10) increasing efficiencies, by coordinating efforts 
        relating to preparedness, protection, response, 
        recovery, and mitigation;
          (11) helping to ensure the effectiveness of emergency 
        response providers in responding to a natural disaster, 
        act of terrorism, or other man-made disaster;
          (12) supervising grant programs administered by the 
        Agency;
          (13) administering and ensuring the implementation of 
        the National Response Plan, including coordinating and 
        ensuring the readiness of each emergency support 
        function under the National Response Plan;
          (14) coordinating with the National Advisory Council 
        established under section 318 of this title;
          (15) preparing and implementing the plans and 
        programs of the Federal Government for--
                  (A) continuity of operations;
                  (B) continuity of government; and
                  (C) continuity of plans;
          (16) minimizing, to the extent practicable, 
        overlapping planning and reporting requirements 
        applicable to State, local, and tribal governments and 
        the private sector;
          (17) maintaining and operating within the Agency the 
        National Response Coordination Center or its successor;
          (18) developing a national emergency management 
        system that is capable of preparing for, protecting 
        against, responding to, recovering from, and mitigating 
        against catastrophic incidents;
          (19) assisting the President in carrying out the 
        functions under the national preparedness goal and the 
        national preparedness system and carrying out all 
        functions and authorities of the Administrator under 
        the national preparedness System;
          (20) carrying out all authorities of the Federal 
        Emergency Management Agency and the Directorate of 
        Preparedness of the Department as transferred under 
        section 315 of this title; [and]
          (21) develop and implement the National Mitigation 
        Framework; and
          [(21)](22) otherwise carrying out the mission of the 
        Agency as described in section 313(b) of this title.
    (b) All-hazards Approach.--In carrying out the 
responsibilities under this section, the Administrator shall 
coordinate the implementation of a risk-based, all-hazards 
strategy that builds those common capabilities necessary to 
prepare for, protect against, respond to, recover from, or 
mitigate against natural disasters, acts of terrorism, and 
other man-made disasters, while also building the unique 
capabilities necessary to prepare for, protect against, respond 
to, recover from, or mitigate against the risks of specific 
types of incidents that pose the greatest risk to the Nation.

           *       *       *       *       *       *       *


SEC. 321C. DEPARTMENT AND AGENCY OFFICIALS.

    (a) Deputy Administrators.--
          [The President](1) In general.--The President may 
        appoint, by and with the advice and consent of the 
        Senate, not more than [4 Deputy Administrators] 3 
        Deputy Administrators to assist the Administrator in 
        carrying out this subchapter.
          (2) Chief management officer.--
                  (A) In general.--In addition to any Deputy 
                Administrators appointed under paragraph (1), 
                the President shall appoint 1 Deputy 
                Administrator who shall serve as the Chief 
                Management Officer of the Agency and advise the 
                Administrator on matters relating to the 
                management of the Agency, including--
                          (i) budgeting, appropriations, 
                        expenditures of funds, accounting, and 
                        finance;
                          (ii) procurement;
                          (iii) human resources and personnel;
                          (iv) information technology and 
                        communications systems;
                          (v) facilities, property, equipment, 
                        and other material resources;
                          (vi) security for personnel, 
                        information technology and 
                        communications systems, facilities, 
                        property, equipment, and other material 
                        resources;
                          (vii) identification and tracking of 
                        performance measures relating to the 
                        responsibilities of the Agency;
                          (viii) grants and other assistance 
                        management programs;
                          (ix) the conduct of internal audits 
                        and management analyses of the programs 
                        and activities of the Agency;
                          (x) controls over waste, fraud, and 
                        abuse; and (xi) any other management 
                        duties determined appropriate by the 
                        Administrator.
                  (B) Criteria.--The Deputy Administrator 
                appointed under subparagraph (A) shall have''
                          (i) extensive executive level 
                        leadership and management experience in 
                        the public or private sector;
                          (ii) strong leadership skills;
                          (iii) a demonstrated ability to 
                        manage large and complex organizations; 
                        and
                          (iv) a proven record in achieving 
                        positive operational results.
    (b) Cybersecurity and Communications.--There is in the 
Department an Assistant Secretary for Cybersecurity and 
Communications.
    (c) United States Fire Administration.--The Administrator 
of the United States Fire Administration shall have a rank 
equivalent to an assistant secretary of the Department.

           *       *       *       *       *       *       *


SEC. 321E. CHIEF MEDICAL OFFICER.

    (a) In General.--There is in the Department a Chief Medical 
Officer, who shall be appointed by the President, [who shall be 
appointed by the President. By and with the advise and consent 
of the Senate.] and who shall also have the title of Assistant 
Secretary for Health Affairs.
    (b) Qualifications.--The individual appointed as Chief 
Medical Officer shall possess a demonstrated ability in and 
knowledge of medicine and public health.
    (c) Responsibilities.--The Chief Medical Officer shall have 
the primary responsibility within the Department for medical 
issues related to natural disasters, acts of terrorism, and 
other man-made disasters, including--
          (1) serving as the principal advisor to the Secretary 
        and the Administrator on medical and public health 
        issues;
          (2) coordinating the biodefense activities of the 
        Department;
          (3) ensuring internal and external coordination of 
        all medical preparedness and response activities of the 
        Department, including training, exercises, and 
        equipment support;
          (4) serving as the Department's primary point of 
        contact with the Department of Agriculture, the 
        Department of Defense, the Department of Health and 
        Human Services, the Department of Transportation, the 
        Department of Veterans Affairs, and other Federal 
        departments or agencies, on medical and public health 
        issues;
          (5) serving as the Department's primary point of 
        contact for State, local, and tribal governments, the 
        medical community, and others within and outside the 
        Department, with respect to medical and public health 
        matters;
          (6) discharging, in coordination with the Under 
        Secretary for Science and Technology, the 
        responsibilities of the Department related to Project 
        Bioshield; [and]
          (7) ensuring that the workforce of the Department has 
        science-based policy, standards, requirements, and 
        metrics for occupational safety and health;
          (8) providing medical expertise for the components of 
        the Department with respect to prevention, 
        preparedness, protection, response, and recovery for 
        medical and public health matters;
          (9) working in conjunction with appropriate entities 
        of the Department and other appropriate Federal 
        agencies to develop guidance for prevention, 
        preparedness, protection, response, and recovery from 
        catastrophic events with human, animal, agricultural, 
        or environmental health consequences; and
          [(7)] (10) performing such other duties relating to 
        such responsibilities as the Secretary may require.

           *       *       *       *       *       *       *


                       Subchapter VII--Management


SEC. 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) of this section, 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] U.S. Immigration and 
                Customs Enforcement and U.S. 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 251 of this title 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 
        subchapter XII of this chapter, 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).

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SEC. 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) Responsibilities.--The Chief Information Officer 
shall--
          (1) advise and assist the Secretary, heads of the 
        components of the Department, and other senior officers 
        in carrying out the responsibilities of the Department 
        for all activities relating to the programs and 
        operations of the information technology functions of 
        the Department;
          (2) establish the information technology priorities, 
        policies, processes, standards, guidelines, and 
        procedures of the Department;
          (3) coordinate and ensure implementation of 
        information technology priorities, policies, processes, 
        standards, guidelines, and procedures within the 
        Department;
          (4) be responsible for information technology capital 
        planning and (investment management in accordance with 
        sections 11312 and 11313 of title 40, United States 
        Code;
          (5) in coordination with the Chief Procurement 
        Officer of the Department, assume responsibility for 
        information systems acquisition, development and 
        integration as required by section 11312 of title 40, 
        United States Code;
          (6) in coordination with the Chief Procurement 
        Officer of the Department, review and approve any 
        information technology acquisition with a total value 
        greater than a threshold level to be determined by the 
        Secretary;
          (7) in coordination with relevant officials of the 
        Department, ensure that information technology systems 
        meet the standards established under the information 
        sharing environment, as defined in section 1016 of the 
        Intelligence Reform and Terrorism Prevention Act of 
        2004 (6 U.S.C. 485);
          (8) perform other responsibilities required under 
        section 3506 of title 44, United States Code, and 
        section 11315 of title 40, United States Code; and
          (9) perform such other responsibilities as the 
        Secretary may prescribe.
    [(b)](c) 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.

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347. QUADRENNIAL HOMELAND SECURITY REVIEW

    (a) Requirement.--
          (1) Quadrennial reviews required.--In [fiscal year 
        2009] calendar year 2013, 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 order to ensure that each quadrennial 
        homeland security review conducted under this section 
        is coordinated with the quadrennial defense review 
        conducted by the Secretary of Defense under section 118 
        of title 10, United States Code, and any other major 
        strategic review relating to diplomacy, intelligence, 
        or other national security issues, the Secretary shall 
        conduct each quadrennial homeland security review 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 454 of this title.
    [(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) of this section and the 
                homeland security mission areas outlined under 
                subsection (b)(2) of this section;
                  [(E) an assessment of the organizational 
                alignment of the Department with the applicable 
                national homeland security strategy referred to 
                in subsection (b)(1) of this section and the 
                homeland security mission areas outlined under 
                subsection (b)(2) of this section, 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.]
      (b) Scope of Review and Report.
          (1) In general.--In each quadrennial homeland 
        security review, the Secretary shall--
                  (A) examine the homeland security aspects of 
                the security environment of the Nation, 
                including existing and potential homeland 
                security threats and challenges, and the effect 
                of laws, Presidential directives, national 
                strategies, and other relevant guidance 
                documents in meeting existing and potential 
                homeland security threats and challenges;
                  (B) review the capabilities and capacities 
                across the homeland security enterprise, and 
                the roles of Executive agencies, States, local 
                governments, Indian Tribes, and private 
                entities in providing those capabilities and 
                capacities;
                  (C) evaluate and prioritize the homeland 
                security mission areas of the Nation and 
                associated goals and objectives, and recommend 
                any necessary revisions to the mission areas, 
                goals, and objectives as appropriate;
                  (D) examine whether the capabilities and 
                capacities across the homeland security 
                enterprise should be adjusted based on any 
                proposed modifications to the mission areas, 
                goals, or objectives;
                  (E) identify additional capabilities and 
                capacities that may be needed across the 
                homeland security enterprise in response to 
                potential homeland security threats and 
                challenges, and the resources required to 
                provide the capabilities and capacities;
                  (F) identify redundant, wasteful, or 
                unnecessary capabilities and capacities where 
                resources can be redirected to support 
                capabilities and capacities identified under 
                subparagraph (E);
                  (G) evaluate the organization, organizational 
                structure, governance structure, and business 
                processes (including acquisition processes) of 
                the Department, as they relate to the ability 
                of the Department to meet the responsibilities 
                of the Department; and
                  (H) review any other matter the Secretary 
                considers appropriate.
          (2) Report.--During the year following the year in 
        which a quadrennial homeland security review is 
        conducted, and not later than the date on which the 
        budget of the President for the next fiscal year is 
        submitted to Congress under section 1105(a) of title 
        31, United States Code, the Secretary shall--
                  (A) submit to Congress a report--
                          (i) describing the process used in 
                        conducting the quadrennial homeland 
                        security review and explaining any 
                        underlying assumptions used in 
                        conducting the quadrennial homeland 
                        security review;
                          (ii) describing the findings and 
                        conclusions of the review, including 
                        findings and conclusions relating to 
                        each issue addressed under 
                        subparagraphs (A) through (H) of 
                        paragraph (1);
                          (iii) detailing any proposed 
                        revisions to the national homeland 
                        security strategy, including any 
                        proposed revisions to the homeland 
                        security missions, capabilities and 
                        capacities, goals, or objectives of the 
                        Nation;
                          (iv) describing how the conclusions 
                        under the quadrennial homeland security 
                        review are to be implemented through 
                        the Future Years Homeland Security 
                        Program under section 874;
                          (v) detailing how the conclusions 
                        under the quadrennial homeland security 
                        review will inform efforts to develop 
                        capabilities and build capacity of 
                        States, local governments, Indian 
                        Tribes, and private entities, and of 
                        individuals, families, and communities;
                          (vi) providing proposed changes to 
                        the authorities, organization, 
                        governance structure, or business 
                        processes (including acquisition 
                        processes) of the Department in order 
                        to better fulfill the responsibilities 
                        of the Department; and
                          (vii) describing any other matter the 
                        Secretary considers appropriate; and
                  (B) consistent with the protection of 
                national security and other sensitive matters, 
                make the report required under subparagraph (A) 
                publicly available on the website of the 
                Department.
    (c) Midterm Review of Implementation.--Not later than 2 
years after the date on which the Secretary submits a report 
under subsection (b)(2)(A), the Secretary shall submit to 
Congress a report on--
          (1) the implementation of the recommendations in the 
        report, including recommended revisions to the national 
        homeland security strategy made under subsection 
        (b)(2)(A)(iii) and changes proposed under subsection 
        (b)(2)(A)(vi); and
          (2) the preparations for the next quadrennial 
        homeland security review, including a detailed resource 
        plan specifying the estimated budget and number of 
        staff members that will be required for preparation of 
        the quadrennial homeland security review.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section.

           *       *       *       *       *       *       *


  Subchapter VIII--Coordination with Non-Federal Entities; Inspector 
 General; United States Secret Service; Coast Guard; General Provisions


             PART A--COORDINATION WITH NON-FEDERAL ENTITIES


SEC. 361. [OFFICE FOR] STATE AND LOCAL GOVERNMENT COORDINATION.

    (a) [Establishment] In General.--There is [established] 
within the Office of the Secretary the Office [for State and 
Local Government Coordination] of Intergovernmental Affairs, to 
oversee and coordinate departmental programs for and 
relationships with State and local governments.
    (b) Responsibilities.--The Office established under 
subsection (a) of this section 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.

           *       *       *       *       *       *       *


                          PART D--ACQUISITIONS


SEC. 391. RESEARCH AND DEVELOPMENT PROJECTS.

    (a) Authority.--[Until September 30, 2010] Until September 
30, 2016, 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 
        (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] Not later than 
September 30, 2015, 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; 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, 2011] 
        September 30, 2016, 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).

           *       *       *       *       *       *       *


PART H--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *



SEC. 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 542(b) of this title; or
          [(2) after] only 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) 
        of this section does not extend to the abolition of any 
        agency, entity, organizational unit, program, or 
        function established or required to be maintained by 
        this chapter.
          [(2) Abolitions.--Authority under subsection (a)(2) 
        of this section does not extend to the abolition of any 
        agency, entity, organizational unit, program, or 
        function established or required to be maintained by 
        statute.]
    (b) Limitations on Other Reorganization Authority.--
          (1) In general.--Authority under subsection (a) shall 
        not extend to the discontinuance, abolition, 
        substantial consolidation, alteration, or transfer of 
        any agency, entity, organizational unit, program, or 
        function established or required to be maintained by 
        statute.
          (2) Exception.--
                  (A) In general.--Notwithstanding paragraph 
                (1), if the President determines it to be 
                necessary because of an imminent threat to 
                homeland security, a function, power, or duty 
                vested by law in the Department, or an officer, 
                official, or agency thereof, may be 
                transferred, reassigned, or consolidated within 
                the Department.
                  (B) Notice.--Not later than 30 days after the 
                date on which the President makes a transfer, 
                reassignment, or consolidation under 
                subparagraph (A), the President shall notify 
                the appropriate congressional committees of the 
                transfer, reassignment, or consolidation.
                  (C) Duration.--A transfer, reassignment, or 
                consolidation under subparagraph (A) shall 
                remain in effect only until the President 
                determines that the threat to homeland security 
                has terminated or is no longer imminent.
    (c) Publication.--Not later than 30 days after the date on 
which the President or the Secretary makes a transfer, 
allocation, assignment, consolidation, alteration, 
establishment, or discontinuance under this section, the 
President or the Secretary shall publish in the Federal 
Register--
          (1) the reasons for the action taken; and
          (2) a list of each statutory provision implicated by 
        the action.

           *       *       *       *       *       *       *


SEC. 454. FUTURE YEARS HOMELAND SECURITY PROGRAM

    (a) In General.--Each budget request submitted to Congress 
for the Department under section 1105 of Title 31 shall, at or 
about the same time, but in any event not later than 30 days 
after the date on which the budget request is submitted, be 
accompanied by a Future Years Homeland Security Program.
    (b) Contents.--The Future Years Homeland Security Program 
under subsection (a) of this section 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;
          (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. 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. 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. 459. OFFICE OF INTERNATIONAL AFFAIRS.

    (a) Establishment.--There is established within the 
Department an Office of International Affairs, which shall be 
headed by the Assistant Secretary for International Affairs, 
who shall be appointed by the President.
    (b) Responsibilities of the Assistant Secretary.--The 
Assistant Secretary for International Affairs shall--
          (1) coordinate international activities within the 
        Department;
          (2) develop and update, in consultation with all 
        components of the Department with international 
        activities, an international strategic plan for the 
        Department and establish a process for managing its 
        implementation;
          (3) provide guidance to components of the Department 
        on executing international activities and to employees 
        of the Department who are deployed overseas, 
        including--
                  (A) establishing predeployment preparedness 
                criteria for employees and any accompanying 
                family members;
                  (B) establishing, in coordination with the 
                Under Secretary for Management, minimum support 
                requirements for Department employees abroad, 
                to ensure the employees have the proper 
                resources and have received adequate and timely 
                support prior to and during tours of duty;
                  (C) providing information and training on 
                administrative support services available to 
                overseas employees from the Department of State 
                and other Federal agencies;
                  (D) establishing guidance on how Department 
                attaches are expected to coordinate with other 
                component staff and activities; and
                  (E) developing procedures and guidance for 
                employees of the Department returning to the 
                United States;
          (4) identify areas for homeland security information 
        and training exchange in which--
                  (A) the United States has a demonstrated 
                weakness; and
                  (B) a country that is a friend or ally of the 
                United States has a demonstrated expertise;
          (5) maintain situational awareness of--
                  (A) all international engagement and travel 
                conducted by offices and personnel of the 
                Department; and
                  (B) all spending by the Federal Government 
                for international assistance activities 
                relating to homeland security; and
          (6) perform other duties, as determined by the 
        Secretary.

           *       *       *       *       *       *       *


Subchapter XIV--Domestic Nuclear Detection Office

           *       *       *       *       *       *       *



SEC. 592. MISSION OF OFFICE.

    (a) Mission.--The Office shall be responsible for 
coordinating Federal efforts to detect and protect against the 
unauthorized importation, possession, storage, transportation, 
development, or use of a nuclear explosive device, fissile 
material, or radiological material in the United States, and to 
protect against attack using such devices or materials against 
the people, territory, or interests of the United States and, 
to this end, shall--
          (1) serve as the primary entity of the United States 
        Government to further develop, acquire, and support the 
        deployment of an enhanced domestic system to detect and 
        report on attempts to import, possess, store, 
        transport, develop, or use an unauthorized nuclear 
        explosive device, fissile material, or radiological 
        material in the United States, and improve that system 
        over time;
          (2) coordinate strategic planning and investments, 
        within the Department and with other Federal agencies 
        and State and local governments--
                  (A) to detect and prevent illegal trafficking 
                in nuclear weapons-making materials or 
                technologies; and
                  (B) to reduce the risk of a nuclear terrorist 
                attack;
          [(2)](3) enhance and coordinate the nuclear detection 
        efforts of Federal, State, local, and tribal 
        governments and the private sector to ensure a managed, 
        coordinated response;
          [(3)](4) establish, with the approval of the 
        Secretary and in coordination with the Attorney 
        General, the Secretary of Defense, and the Secretary of 
        Energy, additional protocols and procedures for use 
        within the United States to ensure that the detection 
        of unauthorized nuclear explosive devices, fissile 
        material, or radiological material is promptly reported 
        to the Attorney General, the Secretary, the Secretary 
        of Defense, the Secretary of Energy, and other 
        appropriate officials or their respective designees for 
        appropriate action by law enforcement, military, 
        emergency response, or other authorities;
          [(4)](5) develop, with the approval of the Secretary 
        and in coordination with the Attorney General, the 
        Secretary of State, the Secretary of Defense, and the 
        Secretary of Energy, an enhanced global nuclear 
        detection architecture with implementation under 
        which--
                  (A) the Office will be responsible for the 
                implementation of the domestic portion of the 
                global architecture;
                  (B) the Secretary of Defense will retain 
                responsibility for implementation of Department 
                of Defense requirements within and outside the 
                United States; and
                  (C) the Secretary of State, the Secretary of 
                Defense, and the Secretary of Energy will 
                maintain their respective responsibilities for 
                policy guidance and implementation of the 
                portion of the global architecture outside the 
                United States, which will be implemented 
                consistent with applicable law and relevant 
                international arrangements;
          [(5)](6) ensure that the expertise necessary to 
        accurately interpret detection data is made available 
        in a timely manner for all technology deployed by the 
        Office to implement the global nuclear detection 
        architecture;
          [(6) conduct, support, coordinate, and encourage an 
        aggressive, expedited, evolutionary, and 
        transformational program of research and development to 
        generate and improve technologies to detect and prevent 
        the illicit entry, transport, assembly, or potential 
        use within the United States of a nuclear explosive 
        device or fissile or radiological material, and 
        coordinate with the Under Secretary for Science and 
        Technology on basic and advanced or transformational 
        research and development efforts relevant to the 
        mission of both organizations;]
          (7) carry out a program to test and evaluate 
        technology for detecting a nuclear explosive device and 
        fissile or radiological material, in coordination with 
        the Secretary of Defense and the Secretary of Energy, 
        as appropriate, and establish performance metrics for 
        evaluating the effectiveness of individual detectors 
        and detection systems in detecting such devices or 
        material--
                  (A) under realistic operational and 
                environmental conditions; and
                  (B) against realistic adversary tactics and 
                countermeasures;
          (8) support and enhance the effective sharing and use 
        of appropriate information generated by the 
        intelligence community, law enforcement agencies, 
        counterterrorism community, other [government agencies] 
        Federal, State, and local entities, and foreign 
        governments, as well as provide appropriate information 
        to such entities;
          (9) further enhance and maintain continuous awareness 
        by analyzing information from all Office mission-
        related detection systems;
          (10) lead the development and implementation of the 
        national strategic five-year plan for improving the 
        nuclear forensic and attribution capabilities of the 
        United States required under section 1036 of the 
        National Defense Authorization Act for Fiscal Year 
        2010;
          (11) establish, within the Domestic Nuclear Detection 
        Office, the National Technical Nuclear Forensics Center 
        to provide centralized stewardship, planning, 
        assessment, gap analysis, exercises, improvement, and 
        integration for all Federal nuclear forensics and 
        attribution activities--
                  (A) to ensure an enduring national technical 
                nuclear forensics capability to strengthen the 
                collective response of the United States to 
                nuclear terrorism or other nuclear attacks; and
                  (B) to coordinate and implement the national 
                strategic five-year plan referred to in 
                paragraph (10);
          (12) establish a National Nuclear Forensics Expertise 
        Development Program, which--
                  (A) is devoted to developing and maintaining 
                a vibrant and enduring academic pathway from 
                undergraduate to post-doctorate study in 
                nuclear and geochemical science specialties 
                directly relevant to technical nuclear 
                forensics, including radiochemistry, 
                geochemistry, nuclear physics, nuclear 
                engineering, materials science, and analytical 
                chemistry;
                  (B) shall--
                          (i) make available for undergraduate 
                        study student scholarships, with a 
                        duration of up to 4 years per student, 
                        which shall include, if possible, at 
                        least 1 summer internship at a national 
                        laboratory or appropriate Federal 
                        agency in the field of technical 
                        nuclear forensics during the course of 
                        the student's undergraduate career;
                          (ii) make available for doctoral 
                        study student fellowships, with a 
                        duration of up to 5 years per student, 
                        which shall--
                                  (I) include, if possible, at 
                                least 2 summer internships at a 
                                national laboratory or 
                                appropriate Federal agency in 
                                the field of technical nuclear 
                                forensics during the course of 
                                the student's graduate career; 
                                and
                                  (II) require each recipient 
                                to commit to serve for 2 years 
                                in a post-doctoral position in 
                                a technical nuclear forensics-
                                related specialty at a national 
                                laboratory or appropriate 
                                Federal agency after 
                                graduation;
                          (iii) make available to faculty 
                        awards, with a duration of 3 to 5 years 
                        each, to ensure faculty and their 
                        graduate students have a sustained 
                        funding stream; and
                          (iv) place a particular emphasis on 
                        reinvigorating technical nuclear 
                        forensics programs while encouraging 
                        the participation of undergraduate 
                        students, graduate students, and 
                        university faculty from historically 
                        Black colleges and universities, 
                        Hispanic-serving institutions, Tribal 
                        Colleges and Universities, Asian 
                        American and Native American Pacific 
                        Islander-serving institutions, Alaska 
                        Native-serving institutions, and 
                        Hawaiian Native-serving institutions; 
                        and
                  (C) shall--
                          (i) provide for the selection of 
                        individuals to receive scholarships or 
                        fellowships under this section through 
                        a competitive process primarily on the 
                        basis of academic merit and the nuclear 
                        forensics and attribution needs of the 
                        United States Government;
                          (ii) provide for the setting aside of 
                        up to 10 percent of the scholarships or 
                        fellowships awarded under this section 
                        for individuals who are Federal 
                        employees to enhance the education of 
                        such employees in areas of critical 
                        nuclear forensics and attribution needs 
                        of the United States Government, for 
                        doctoral education under the 
                        scholarship on a full-time or part-time 
                        basis;
                          (iii) provide that the Secretary may 
                        enter into a contractual agreement with 
                        an institution of higher education 
                        under which the amounts provided for a 
                        scholarship under this section for 
                        tuition, fees, and other authorized 
                        expenses are paid directly to the 
                        institution with respect to which such 
                        scholarship is awarded;
                          (iv) require scholarship recipients 
                        to maintain satisfactory academic 
                        progress; and
                          (v) require that--
                                  (I) a scholarship recipient 
                                who fails to maintain a high 
                                level of academic standing, as 
                                defined by the Secretary, who 
                                is dismissed for disciplinary 
                                reasons from the educational 
                                institution such recipient is 
                                attending, or who voluntarily 
                                terminates academic training 
                                before graduation from the 
                                educational program for which 
                                the scholarship was awarded 
                                shall be liable to the United 
                                States for repayment within 1 
                                year after the date of such 
                                default of all scholarship 
                                funds paid to such recipient 
                                and to the institution of 
                                higher education on the behalf 
                                of such recipient, provided 
                                that the repayment period may 
                                be extended by the Secretary if 
                                the Secretary determines it 
                                necessary, as established by 
                                regulation; and
                                  (II) a scholarship recipient 
                                who, for any reason except 
                                death or disability, fails to 
                                begin or complete the post-
                                doctoral service requirements 
                                in a technical nuclear 
                                forensics-related specialty at 
                                a national laboratory or 
                                appropriate Federal agency 
                                after completion of academic 
                                training shall be liable to the 
                                United States for an amount 
                                equal to--
                                          (aa) the total amount 
                                        of the scholarship 
                                        received by such 
                                        recipient under this 
                                        section; and
                                          (bb) the interest on 
                                        such amounts which 
                                        would be payable if at 
                                        the time the 
                                        scholarship was 
                                        received such 
                                        scholarship was a loan 
                                        bearing interest at the 
                                        maximum legally 
                                        prevailing rate;
          (13) provide an annual report to Congress on the 
        activities carried out under paragraphs (10), (11), and 
        (12); and
          (14) perform other duties as assigned by the 
        Secretary.
    (b) Definitions.--In this section:
          (1) Alaska native-serving institution.--The term 
        ``Alaska Native-serving institution'' has the meaning 
        given the term in section 1059d of Title 20.
          (2) Asian american and native american pacific 
        islander-serving institution.--The term ``Asian 
        American and Native American Pacific Islander-serving 
        institution'' has the meaning given the term in section 
        1059g of Title 20.
          (3) Hawaiian native-serving institution.--The term 
        ``Hawaiian native-serving institution'' has the meaning 
        given the term in section 1059d of Title 20.
          (4) Hispanic-serving institution.--The term 
        ``Hispanic-serving institution'' has the meaning given 
        that term in section 1101a of Title 20.
          (5) Historically black college or university.--The 
        term ``historically Black college or university'' has 
        the meaning given the term ``part B institution'' in 
        section 1061(2) of Title 20.
          (6) Tribal college or university.--The term ``Tribal 
        College or University'' has the meaning given that term 
        in section 1059c(b) of Title 20.

           *       *       *       *       *       *       *


SEC. 596. CONTRACTING AND GRANT MAKING AUTHORITIES.

    The Secretary, acting through the Director for Domestic 
Nuclear Detection, in carrying out the responsibilities under 
[paragraphs (6) and (7) of section 592(a)] paragraph (7) of 
section 592(a) of this title, shall--
          (1) operate extramural and intramural programs and 
        distribute funds through grants, cooperative 
        agreements, and other transactions and contracts;
          (2) ensure that activities under [paragraphs (6) and 
        (7) of section 592(a)] paragraph (7) of section 592(a) 
        of this title include investigations of radiation 
        detection equipment in configurations suitable for 
        deployment at seaports, which may include underwater or 
        water surface detection equipment and detection 
        equipment that can be mounted on cranes and straddle 
        cars used to move shipping containers; and
          (3) have the authority to establish or contract with 
        1 or more federally funded research and development 
        centers to provide independent analysis of homeland 
        security issues and carry out other responsibilities 
        under this subchapter.

           *       *       *       *       *       *       *


                Subchapter XV--Homeland Security Grants


SEC. 601. DEFINITIONS.

    In this subchapter, the following definitions shall apply:
          (1) Administrator.--The term ``Administrator'' means 
        the Administrator of the Federal Emergency Management 
        Agency.
          (2) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                  (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                  (B) those committees of the House of 
                Representatives that the Speaker of the House 
                of Representatives determines appropriate.
          (3) Critical infrastructure sectors.--The term 
        ``critical infrastructure sectors'' means the following 
        sectors, in both urban and rural areas:
                  (A) Agriculture and food.
                  (B) Banking and finance.
                  (C) Chemical industries.
                  (D) Commercial facilities.
                  (E) Commercial nuclear reactors, materials, 
                and waste.
                  (F) Dams.
                  (G) The defense industrial base.
                  (H) Emergency services.
                  (I) Energy.
                  (J) Government facilities.
                  (K) Information technology.
                  (L) National monuments and icons.
                  (M) Postal and shipping.
                  (N) Public health and health care.
                  (O) Telecommunications.
                  (P) Transportation systems.
                  (Q) Water.
          (4) Directly eligible tribe.--The term ``directly 
        eligible tribe'' means--
                  (A) any Indian tribe--
                          (i) that is located in the 
                        continental United States;
                          (ii) that operates a law enforcement 
                        or emergency response agency with the 
                        capacity to respond to calls for law 
                        enforcement or emergency services;
                          (iii)(I) that is located on or near 
                        an international border or a coastline 
                        bordering an ocean (including the Gulf 
                        of Mexico) or international waters;
                          (II) that is located within 10 miles 
                        of a system or asset included on the 
                        prioritized critical infrastructure 
                        list established under section 
                        124l(a)(2) of this title or has such a 
                        system or asset within its territory;
                          (III) that is located within or 
                        contiguous to 1 of the 50 most populous 
                        metropolitan statistical areas in the 
                        United States; or
                          (IV) the jurisdiction of which 
                        includes not less than 1,000 square 
                        miles of Indian country, as that term 
                        is defined in section 1151 of Title 18; 
                        and
                          (iv) that certifies to the Secretary 
                        that a State has not provided funds 
                        under section 604 or 605 of this title 
                        to the Indian tribe or consortium of 
                        Indian tribes for the purpose for which 
                        direct funding is sought; and
                  (B) a consortium of Indian tribes, if each 
                tribe satisfies the requirements of 
                subparagraph (A).
          (5) Eligible metropolitan area.--The term ``eligible 
        metropolitan area'' means any of the 100 most populous 
        metropolitan statistical areas in the United States.
          (6) High-risk urban area.--The term ``high-risk urban 
        area'' means a high-risk urban area designated under 
        section 604(b)(3)(A) of this title.
          (7) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 450b(e) of Title 25.
          (8) Mass casualty incident.--The term ``mass casualty 
        incident'' means any natural disaster, act of 
        terrorism, or other man-made disaster, including a 
        disease epidemic, that results in significant numbers 
        of injuries or deaths and to which the response has the 
        potential to overwhelm routine emergency medical 
        services.
          [(8)](9) Metropolitan statistical area.--The term 
        ``metropolitan statistical area'' means a metropolitan 
        statistical area, as defined by the Office of 
        Management and Budget.
          [(9)](10) National special security event.--The term 
        ``National Special Security Event'' means a designated 
        event that, by virtue of its political, economic, 
        social, or religious significance, may be the target of 
        terrorism or other criminal activity.
          [(10)](11) Population.--The term ``population'' means 
        population according to the most recent United States 
        census population estimates available at the start of 
        the relevant fiscal year.
          [(11)](12) Population density.--The term ``population 
        density'' means population divided by land area in 
        square miles.
          [(12)](13) Qualified intelligence analyst.--The term 
        ``qualified intelligence analyst'' means an 
        intelligence analyst (as that term is defined in 
        section 124h(j) of this title), including law 
        enforcement personnel--
                  (A) who has successfully completed training 
                to ensure baseline proficiency in intelligence 
                analysis and production, as determined by the 
                Secretary, which may include training using a 
                curriculum developed under section 124f of this 
                title; or
                  (B) whose experience ensures baseline 
                proficiency in intelligence analysis and 
                production equivalent to the training required 
                under subparagraph (A), as determined by the 
                Secretary.
          [(13)](14) Target capabilities.--The term ``target 
        capabilities'' means the target capabilities for 
        Federal, State, local, and tribal government 
        preparedness for which guidelines are required to be 
        established under section 746(a) of this title.
          [(14)](15) Tribal government.--The term ``tribal 
        government'' means the government of an Indian tribe.

           *       *       *       *       *       *       *


           PART A--GRANTS TO STATES AND HIGH-RISK URBAN AREAS


SEC. 603. HOMELAND SECURITY GRANT PROGRAMS.

    (a) Grants Authorized.--The Secretary, through the 
Administrator, may award grants under sections 604 and 605 of 
this title to State, local, and tribal governments.
    (b) Programs Not Affected.--This part shall not be 
construed to affect any of the following Federal programs:
          (1) Firefighter and other assistance programs 
        authorized under the Federal Fire Prevention and 
        Control Act of 1974 (15 U.S.C. 2201 et seq.).
          (2) Grants authorized under the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5121 et seq.).
          (3) Emergency Management Performance Grants under the 
        amendments made by title II of the Implementing 
        Recommendations of the 9/11 Commission Act of 2007.
          (4) Grants to protect critical infrastructure, 
        including port security grants authorized under section 
        70107 of Title 46, and the grants authorized under 
        Title [FN1] XIV and XV of the Implementing 
        Recommendations of the 9/11 Commission Act of 2007 [6 
        U.S.C. 1131 et seq., 1151 et seq.] and the amendments 
        made by such titles.
          (5) The Metropolitan Medical Response System 
        authorized under subtitle C [section 723] of this 
        title.
          (6) The Interoperable Emergency Communications Grant 
        Program authorized under subchapter XIII.
          (7) Grant programs other than those administered by 
        the Department.
    (c) Relationship to Other Laws.--
          (1) In general.--The grant programs authorized under 
        sections 604 and 605 of this title shall supercede all 
        grant programs authorized under section 3714 of Title 
        42.
          (2) Allocation.--The allocation of grants authorized 
        under section 604 or 605 of this title shall be 
        governed by the terms of this part and not by any other 
        provision of law.

           *       *       *       *       *       *       *


                CHAPTER 2--NATIONAL EMERGENCY MANAGEMENT


SEC. 701. DEFINITIONS.

    In this title--
          (1) the term ``Administrator'' means the 
        Administrator of the Agency;
          (2) the term ``Agency'' means the Federal Emergency 
        Management Agency;
          (3) the term ``appropriate committees of Congress'' 
        means--
                  (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                  (B) those committees of the House of 
                Representatives that the Speaker of the House 
                of Representatives determines appropriate;
          (4) the term ``catastrophic incident'' means any 
        natural disaster, act of terrorism, or other man-made 
        disaster that results in extraordinary levels of 
        casualties or damage or disruption severely affecting 
        the population (including mass evacuations), 
        infrastructure, environment, economy, national morale, 
        or government functions in an area;
          (5) the term ``critical infrastructure'' has the 
        meaning given that term in section 1016(e) of the USA 
        PATRIOT Act (42 U.S.C. 5195c(e));
          [(5)](6) the term ``Department'' means the Department 
        of Homeland Security;
          [(6)](7) the terms ``emergency'' and ``major 
        disaster'' have the meanings given the terms in section 
        5122 of Title 42;
          [(7)](8) the term ``emergency management'' means the 
        governmental function that coordinates and integrates 
        all activities necessary to build, sustain, and improve 
        the capability to prepare for, protect against, respond 
        to, recover from, or mitigate against threatened or 
        actual natural disasters, acts of terrorism, or other 
        man-made disasters;
          [(8)](9) the term ``emergency response provider'' has 
        the meaning given the term in section 101 of this 
        title;
          [(9)](10) the term ``Federal coordinating officer'' 
        means a Federal coordinating officer as described in 
        section 5143 of Title 42;
          [(10)](11) the term ``individual with a disability'' 
        has the meaning given the term in section 12102 of 
        Title 42;
          [(11)](12) the terms ``local government'' and 
        ``State'' have the meaning given the terms in section 
        101 of this title;
          [(12)](13) the term ``National Incident Management 
        System'' means a system to enable effective, efficient, 
        and collaborative incident management;
          [(13)](14) the term ``National Response Plan'' means 
        the National Response Plan or any successor plan 
        prepared under section 314(a)(6) of this title;
          [(14)](15) the term ``Secretary'' means the Secretary 
        of Homeland Security;
          [(15)](16) the term ``surge capacity'' means the 
        ability to rapidly and substantially increase the 
        provision of search and rescue capabilities, food, 
        water, medicine, shelter and housing, medical care, 
        evacuation capacity, staffing (including disaster 
        assistance employees), and other resources necessary to 
        save lives and protect property during a catastrophic 
        incident; and
          [(16)](17) the term ``tribal government'' means the 
        government of an Indian tribe or authorized tribal 
        organization, or in Alaska a Native village or Alaska 
        Regional Native Corporation.

           *       *       *       *       *       *       *


Subchapter I--Personnel Provisions

           *       *       *       *       *       *       *



[SEC. 723. METROPOLITAN MEDICAL RESPONSE GRANT PROGRAM.

    [(a) In General.--There is a Metropolitan Medical Response 
Program.
    [(b) Purposes.--The program shall include each purpose of 
the program as it existed on June 1, 2006.
    [(c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out the program for fiscal year 
2008, an amount equal to the amount appropriated for the 
program for fiscal year 2007 and an additional $30,000,000.]

           *       *       *       *       *       *       *


            Subchapter II--Comprehensive Preparedness System


Part A--National Preparedness System

           *       *       *       *       *       *       *



SEC. 753. FEDERAL PREPAREDNESS.

    (a) Definition.--In this section, the term ``catastrophic 
incident planning'' means planning to prevent, prepare for, 
protect against, respond to, and recover from a catastrophic 
incident.
    (b) Planning.--In support of the national preparedness 
system, the President shall ensure that there are comprehensive 
plans to prevent, prepare for, protect against, respond to, and 
recover from natural disasters, acts of terrorism, and other 
man-made disasters, including catastrophic incidents, 
throughout the Federal Government.
    [(a)](c) Agency Responsibility.--In support of the national 
preparedness system, the President shall ensure that each 
Federal agency with responsibilities under the National 
Response Plan--
          (1) has the operational capability to meet the 
        national preparedness goal, including--
                  (A) the personnel to make and communicate 
                decisions;
                  (B) organizational structures that are 
                assigned, trained, and exercised for the 
                missions of the agency;
                  (C) sufficient physical resources; and
                  (D) the command, control, and communication 
                channels to make, monitor, and communicate 
                decisions;
          (2) complies with the National Incident Management 
        System, including credentialing of personnel and typing 
        of resources likely needed to respond to a natural 
        disaster, act of terrorism, or other man-made disaster 
        in accordance with section 320 of this title;
          (3) develops, trains, and exercises rosters of 
        response personnel to be deployed when the agency is 
        called upon to support a Federal response;
          (4) conducts catastrophic incident planning as 
        required under subsection (d)(2);
          [(4)](5) develops deliberate operational plans, 
        including for catastrophic incidents, and the 
        corresponding capabilities, including crisis planning, 
        to respond effectively to natural disasters, acts of 
        terrorism, and other man-made disasters in support of 
        the National Response Plan to ensure a coordinated 
        Federal response; and
          [(5)](6) regularly updates, verifies the accuracy of, 
        and provides to the Administrator the information in 
        the inventory required under section 751 of this title.
    (d) Catastrophic Incident Planning.--In carrying out 
subsections (b) and (c), the President shall--
          (1) identify and prioritize risks of catastrophic 
        incidents, including risks across all critical 
        infrastructure sectors;
          (2) ensure that Federal agencies coordinate to 
        conduct comprehensive and effective catastrophic 
        incident planning to address prioritized catastrophic 
        risks; and
          (3) review plans for catastrophic incidents developed 
        by Federal agencies to ensure the effectiveness of the 
        plans, including assessing whether--
                  (A) the assumptions underlying plans for 
                catastrophic incidents are realistic;
                  (B) the resources identified to implement the 
                plans are adequate for catastrophic incidents, 
                including whether the number, skills, and 
                training of the available workforce is 
                sufficient to implement the plans; and
                  (C) plans for catastrophic incidents reflect 
                coordination with governmental and 
                nongovernmental entities that would play a 
                significant role in the response to the 
                catastrophic incident.
    [(b)](e) Operational plans.--An operations plan developed 
under [subsection (a)(4)] subsection (c)(5) of this section 
shall meet the following requirements:
          (1) The operations plan shall be coordinated under a 
        unified system with a common terminology, approach, and 
        framework.
          (2) The operations plan shall be developed, in 
        coordination with State, local, and tribal government 
        officials, to address both regional and national risks.
          (3) The operations plan shall contain, as 
        appropriate, the following elements:
                  (A) Concepts of operations.
                  (B) Critical tasks and responsibilities.
                  (C) Detailed resource and personnel 
                requirements, together with sourcing 
                requirements.
                  (D) Specific provisions for the rapid 
                integration of the resources and personnel of 
                the agency into the overall response.
          (4) The operations plan shall address, as 
        appropriate, the following matters:
                  (A) Support of State, local, and tribal 
                governments in conducting mass evacuations, 
                including--
                          (i) transportation and relocation;
                          (ii) short- and long-term sheltering 
                        and accommodation;
                          (iii) provisions for populations with 
                        special needs, keeping families 
                        together, and expeditious location of 
                        missing children; and
                          (iv) policies and provisions for 
                        pets.
                  (B) The preparedness and deployment of public 
                health and medical resources, including 
                resources to address the needs of evacuees and 
                populations with special needs.
                  (C) The coordination of interagency search 
                and rescue operations, including land, water, 
                and airborne search and rescue operations.
                  (D) The roles and responsibilities of the 
                Senior Federal Law Enforcement Official with 
                respect to other law enforcement entities.
                  (E) The protection of critical 
                infrastructure.
                  (F) The coordination of maritime salvage 
                efforts among relevant agencies.
                  (G) The coordination of Department of Defense 
                and National Guard support of civilian 
                authorities.
                  (H) To the extent practicable, the 
                utilization of Department of Defense, National 
                Air and Space Administration, National Oceanic 
                and Atmospheric Administration, and commercial 
                aircraft and satellite remotely sensed imagery.
                  (I) The coordination and integration of 
                support from the private sector and 
                nongovernmental organizations.
                  (J) The safe disposal of debris, including 
                hazardous materials, and, when practicable, the 
                recycling of debris.
                  (K) The identification of the required surge 
                capacity.
                  (L) Specific provisions for the recovery of 
                affected geographic areas.
    [(c)](f) Mission Assignments.--To expedite the provision of 
assistance under the National Response Plan, the President 
shall ensure that the Administrator, in coordination with 
Federal agencies with responsibilities under the National 
Response Plan, develops prescripted mission assignments, 
including logistics, communications, mass care, health 
services, and public safety.
    [(d)](g) Certification.--The President shall certify to the 
Committee on Homeland Security and Governmental Affairs of the 
Senate and the Committee on Homeland Security and the Committee 
on Transportation and Infrastructure of the House of 
Representatives on an annual basis that each Federal agency 
with responsibilities under the National Response Plan complies 
with [subsections (a) and (b)] subsections (c) and (e) of this 
section.
    [(e)](h) Construction.--Nothing in this section shall be 
construed to limit the authority of the Secretary of Defense 
with regard to--
          (1) the command, control, training, planning, 
        equipment, exercises, or employment of Department of 
        Defense forces; or
          (2) the allocation of Department of Defense 
        resources.

           *       *       *       *       *       *       *


                    PART B--ADDITIONAL PREPAREDNESS


SEC. 761. EMERGENCY MANAGEMENT ASSISTANCE COMPACT GRANTS.

    (a) In General.--The Administrator may make grants to 
administer the Emergency Management Assistance Compact 
consented to by the Joint Resolution entitled ``Joint 
Resolution granting the consent of Congress to the Emergency 
Management Assistance Compact'' (Public Law 104-321; 110 Stat. 
3877).
    (b) Uses.--A grant under this section shall be used--
          (1) to carry out recommendations identified in the 
        Emergency Management Assistance Compact after-action 
        reports for the 2004 and 2005 hurricane season;
          (2) to administer compact operations on behalf of all 
        member States and territories;
          (3) to continue coordination with the Agency and 
        appropriate Federal agencies;
          (4) to continue coordination with State, local, and 
        tribal government entities and their respective 
        national organizations; and
          (5) to assist State and local governments, emergency 
        response providers, and organizations representing such 
        providers with credentialing emergency response 
        providers and the typing of emergency response 
        resources.
    (c) Coordination.--The Administrator shall consult with the 
Administrator of the Emergency Management Assistance Compact to 
ensure effective coordination of efforts in responding to 
requests for assistance.
    (d) Authorization.--There is authorized to be appropriated 
to carry out this section [$4,000,000 for fiscal year 2008] 
$2,000,000 for each of fiscal years 2012 through 2016. Such 
sums shall remain available until expended.

           *       *       *       *       *       *       *


PART D--PREVENTION OF FRAUD, WASTE, AND ABUSE

           *       *       *       *       *       *       *



SEC. 796. REGISTRY OF DISASTER RESPONSE CONTRACTORS.

    (a) Definitions.--In this section.--
          (1) the term ``registry'' means the registry created 
        under subsection (b); and
          (2) the terms ``small business concern'', ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'', ``small 
        business concern owned and controlled by women'', and 
        ``small business concern owned and controlled by 
        service-disabled veterans'' have the meanings given 
        those terms under the Small Business Act (15 U.S.C. 631 
        et seq.).
    (b) Registry.--
          (1) In general.--The Administrator shall establish 
        and maintain a registry of contractors who are willing 
        to perform debris removal, distribution of supplies, 
        reconstruction, and other disaster or emergency relief 
        activities.
          (2) Contents.--The registry shall include, for each 
        business concern--
                  (A) the name of the business concern;
                  (B) the location of the business concern;
                  (C) the area served by the business concern;
                  (D) the type of good or service provided by 
                the business concern;
                  (E) the bonding level of the business 
                concern; and
                  (F) whether the business concern is--
                          (i) a small business concern;
                          (ii) a small business concern owned 
                        and controlled by socially and 
                        economically disadvantaged individuals;
                          (iii) a small business concern owned 
                        and controlled by women; or
                          (iv) a small business concern owned 
                        and controlled by service-disabled 
                        veterans.
          (3) Source of information.--Information maintained in 
        the registry shall be submitted on a voluntary basis 
        and be kept current by the submitting business 
        concerns.
                  (A) Submission.--Information maintained in 
                the registry shall be submitted on a voluntary 
                basis and be kept current by the submitting 
                business concerns.
                  (B) Attestation.--Each business concern 
                submitting information to the registry shall 
                submit--
                          (i) an attestation that the 
                        information is true; and
                          (ii) documentation supporting such 
                        attestation.
                  (C) Verification.--The Administrator shall 
                verify that the documentation submitted by each 
                business concern supports the information 
                submitted by that business concern.
          (4) Availability of registry.--The registry shall be 
        made generally available on the Internet site of the 
        Agency.
          (5) Consultation of registry.--As part of the 
        acquisition planning for contracting for debris 
        removal, distribution of supplies in a disaster, 
        reconstruction, and other disaster or emergency relief 
        activities, a Federal agency shall [consult the 
        registry] consult the Central Contractor Registration 
        database maintained under subpart 4.11 of the Federal 
        Acquisition Regulation, or any successor thereto.

SEC. 797. FRAUD PREVENTION TRAINING PROGRAM.

    [The Administrator] (a) In General.--The Administrator 
shall develop and implement a program to provide training on 
the prevention of waste, fraud, and abuse of Federal disaster 
relief assistance relating to the response to or recovery from 
natural disasters and acts of terrorism or other man-made 
disasters and ways to identify such potential waste, fraud, and 
abuse.
    (b) Reporting.--For the fiscal year in which this 
subsection is enacted, and each fiscal year thereafter for 5 
fiscal years, the Administrator shall submit to Committee on 
Homeland Security and Governmental Affairs of the Senate and 
the Committee on Homeland Security and the Committee on 
Transportation and Infrastructure of the House of 
Representatives a report identifying the number of employees of 
the Agency and contractors trained under the program developed 
under subsection (a).

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CHAPTER 4--TRANSPORTATION SECURITY

           *       *       *       *       *       *       *



Subchapter IV--Surface Transportation Security

           *       *       *       *       *       *       *



Part C--Over-the-Road Bus and Trucking Security

           *       *       *       *       *       *       *



[SEC. 1182. OVER-THE-ROAD BUS SECURITY ASSISTANCE.

    [(a) In General.--The Secretary shall establish a program 
for making grants to eligible private operators providing 
transportation by an over-the-road bus for security 
improvements described in subsection (b) of this section.
    [(b) Uses of Funds.--A recipient of a grant received under 
subsection (a) of this section shall use the grant funds for 
one or more of the following:
          [(1) Constructing and modifying terminals, garages, 
        and facilities, including terminals and other over-the-
        road bus facilities owned by State or local 
        governments, to increase their security.
          [(2) Modifying over-the-road buses to increase their 
        security.
          [(3) Protecting or isolating the driver of an over-
        the-road bus.
          [(4) Acquiring, upgrading, installing, or operating 
        equipment, software, or accessorial services for 
        collection, storage, or exchange of passenger and 
        driver information through ticketing systems or other 
        means and for information links with government 
        agencies, for security purposes.
          [(5) Installing cameras and video surveillance 
        equipment on over-the-road buses and at terminals, 
        garages, and over-the-road bus facilities.
          [(6) Establishing and improving an emergency 
        communications system linking drivers and over-the-road 
        buses to the recipient's operations center or linking 
        the operations center to law enforcement and emergency 
        personnel.
          [(7) Implementing and operating passenger screening 
        programs for weapons and explosives.
          [(8) Public awareness campaigns for enhanced over-
        the-road bus security.
          [(9) Operating and capital costs associated with 
        over-the-road bus security awareness, preparedness, and 
        response training, including training under section 
        1184 of this title and training developed by 
        institutions of higher education and by nonprofit 
        employee labor organizations, for over-the-road bus 
        employees, including frontline employees.
          [(10) Chemical, biological, radiological, or 
        explosive detection, including canine patrols for such 
        detection.
          [(11) Overtime reimbursement, including reimbursement 
        of State, local, and tribal governments for costs, for 
        enhanced security personnel assigned to duties related 
        to over-the-road bus security during periods of high or 
        severe threat levels, National Special Security Events, 
        or other periods of heightened security as determined 
        by the Secretary.
          [(12) Live or simulated exercises, including those 
        described in section 1183 of this title.
          [(13) Operational costs to hire, train, and employ 
        police and security officers, including canine units, 
        assigned to full-time security or counterterrorism 
        duties related to over-the-road bus transportation, 
        including reimbursement of State, local, and tribal 
        government costs for such personnel.
          [(14) Development of assessments or security plans 
        under section 1181 of this title.
          [(15) Such other improvements as the Secretary 
        considers appropriate.
    [(c) Due Consideration.--In making grants under this 
section, the Secretary shall prioritize grant funding based on 
security risks to bus passengers and the ability of a project 
to reduce, or enhance response to, that risk, and shall not 
penalize private operators of over-the-road buses that have 
taken measures to enhance over-the-road bus transportation 
security prior to September 11, 2001.
    [(d) Department of Homeland Security Responsibilities.--In 
carrying out the responsibilities under subsection (a) of this 
section, the Secretary shall--
          [(1) determine the requirements for recipients of 
        grants under this section, including application 
        requirements;
          [(2) select grant recipients;
          [(3) award the funds authorized by this section based 
        on risk, as identified by the plans required under 
        section 1181 of this title or assessment or plan 
        described in subsection (f)(2) of this section; and
          [(4) pursuant to subsection (c) of this section, 
        establish priorities for the use of funds for grant 
        recipients.
    [(e) Distribution of Grants.--Not later than 90 days after 
August 3, 2007, the Secretary and the Secretary of 
Transportation shall determine the most effective and efficient 
way to distribute grant funds to the recipients of grants 
determined by the Secretary under subsection (a) of this 
section. Subject to the determination made by the Secretaries, 
the Secretary may transfer funds to the Secretary of 
Transportation for the purposes of disbursing funds to the 
grant recipient.
    [(f) Eligibility.--
          [(1) A private operator providing transportation by 
        an over-the-road bus is eligible for a grant under this 
        section if the operator has completed a vulnerability 
        assessment and developed a security plan that the 
        Secretary has approved under section 1181 of this 
        title. Grant funds may only be used for permissible 
        uses under subsection (b) of this section to further an 
        over-the-road bus security plan.
          [(2) Notwithstanding the requirements for eligibility 
        and uses in paragraph (1), prior to the earlier of 1 
        year after the date of issuance of final regulations 
        requiring vulnerability assessments and security plans 
        under section 1181 of this title or 3 years after 
        August 3, 2007, the Secretary may award grants under 
        this section for over-the-road bus security 
        improvements listed under subsection (b) of this 
        section based upon over-the-road bus vulnerability 
        assessments and security plans that the Secretary deems 
        are sufficient for the purposes of this section but 
        have not been approved by the Secretary in accordance 
        with section 1181 of this title.
    [(g) Subject to Certain Terms and Conditions.--Except as 
otherwise specifically provided in this section, a grant made 
under this section shall be subject to the terms and conditions 
applicable to subrecipients who provide over-the-road bus 
transportation under section 5311(f) of Title 49 and such other 
terms and conditions as are determined necessary by the 
Secretary.
    [(h) Limitation on Uses of Funds.--A grant made under this 
section may not be used to make any State or local government 
cost-sharing contribution under any other Federal law.
    [(i) Annual Reports.--Each recipient of a grant under this 
section shall report annually to the Secretary and on the use 
of such grant funds.
    [(j) Consultation.--In carrying out this section, the 
Secretary shall consult with over-the-road bus operators and 
nonprofit employee labor organizations representing over-the-
road bus employees, public safety and law enforcement 
officials.
    [(k) Authorization.--
        [(1) In general.--From the amounts appropriated 
        pursuant to section 114(w) of Title 49, there shall be 
        made available to the Secretary to make grants under 
        this section--
                  [(A) $12,000,000 for fiscal year 2008;
                  [(B) $25,000,000 for fiscal year 2009;
                  [(C) $25,000,000 for fiscal year 2010; and
                  [(D) $25,000,000 for fiscal year 2011.
          [(2) Period of availability.--Sums appropriated to 
        carry out this section shall remain available until 
        expended.]

           *       *       *       *       *       *       *


TITLE 8--ALIENS AND NATIONALITY

           *       *       *       *       *       *       *


CHAPTER 15--ENHANCED BORDER SECURITY AND VISA ENTRY REFORM

           *       *       *       *       *       *       *



Subchapter VI--Miscellaneous Provisions

           *       *       *       *       *       *       *



SEC. 1778. VULNERABILITY AND THREAT ASSESSMENT.

    (a) Study.--The [Under Secretary of Homeland Security for 
Border and Transportation Security] Secretary of Homeland 
Security, in consultation with the Under Secretary of Homeland 
Security for Science and Technology and the Under Secretary of 
Homeland Security for Information Analysis and Infrastructure 
Protection, shall study the technology, equipment, and 
personnel needed to address security vulnerabilities within the 
United States for each field office of the Bureau of Customs 
and Border Protection that has responsibility for any portion 
of the United States borders with Canada and Mexico. The 
[Under] Secretary shall conduct follow-up studies at least once 
every 5 years.
    (b) Report to Congress.--The [Under] Secretary shall submit 
a report to Congress on the [Under Secretary's findings and 
conclusions] Secretary's findings and conclusions from each 
study conducted under subsection (a) of this section together 
with legislative recommendations, as appropriate, for 
addressing any security vulnerabilities found by the study.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Department of Homeland Security 
[Directorate of Border and Transportation Security] such sums 
as may be necessary for fiscal years 2006 through 2011 to carry 
out any such recommendations from the first study conducted 
under subsection (a) of this section.

           *       *       *       *       *       *       *


TITLE 31--MONEY AND FINANCE

           *       *       *       *       *       *       *


Subtitle II--The Budget Process

           *       *       *       *       *       *       *



CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

           *       *       *       *       *       *       *



SEC. 1105. BUDGET CONTENTS AND SUBMISSION TO CONGRESS.

    (a) On or after the first Monday in January but not later 
than the first Monday in February of each year, the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information. The President 
shall include in each budget the following:
          (1) information on activities and functions of the 
        Government.
          (2) when practicable, information on costs and 
        achievements of Government programs.
          (3) other desirable classifications of information.
          (4) a reconciliation of the summary information on 
        expenditures with proposed appropriations.
          (5) except as provided in subsection (b) of this 
        section, estimated expenditures and proposed 
        appropriations the President decides are necessary to 
        support the Government in the fiscal year for which the 
        budget is submitted and the 4 fiscal years after that 
        year.
          (6) estimated receipts of the Government in the 
        fiscal year for which the budget is submitted and the 4 
        fiscal years after that year under--
                  (A) laws in effect when the budget is 
                submitted; and
                  (B) proposals in the budget to increase 
                revenues.
          (7) appropriations, expenditures, and receipts of the 
        Government in the prior fiscal year.
          (8) estimated expenditures and receipts, and 
        appropriations and proposed appropriations, of the 
        Government for the current fiscal year.
          (9) balanced statements of the--
                  (A) condition of the Treasury at the end of 
                the prior fiscal year;
                  (B) estimated condition of the Treasury at 
                the end of the current fiscal year; and
                  (C) estimated condition of the Treasury at 
                the end of the fiscal year for which the budget 
                is submitted if financial proposals in the 
                budget are adopted.
          (10) essential information about the debt of the 
        Government.
          (11) other financial information the President 
        decides is desirable to explain in practicable detail 
        the financial condition of the Government.
          (12) for each proposal in the budget for legislation 
        that would establish or expand a Government activity or 
        function, a table showing--
                  (A) the amount proposed in the budget for 
                appropriation and for expenditure because of 
                the proposal in the fiscal year for which the 
                budget is submitted; and
                  (B) the estimated appropriation required 
                because of the proposal for each of the 4 
                fiscal years after that year that the proposal 
                will be in effect.
          (13) an allowance for additional estimated 
        expenditures and proposed appropriations for the fiscal 
        year for which the budget is submitted.
          (14) an allowance for unanticipated uncontrollable 
        expenditures for that year.
          (15) a separate statement on each of the items 
        referred to in section 301(a)(1)-(5) of the 
        Congressional Budget Act of 1974 (2 U.S.C. 632(a)(1)-
        (5) ).
          (16) the level of tax expenditures under existing law 
        in the tax expenditures budget (as defined in section 
        3(a)(3) of the Congressional Budget Act of 1974 (2 
        U.S.C. 622(a)(3)) for the fiscal year for which the 
        budget is submitted, considering projected economic 
        factors and changes in the existing levels based on 
        proposals in the budget.
          (17) information on estimates of appropriations for 
        the fiscal year following the fiscal year for which the 
        budget is submitted for grants, contracts, and other 
        payments under each program for which there is an 
        authorization of appropriations for that following 
        fiscal year when the appropriations are authorized to 
        be included in an appropriation law for the fiscal year 
        before the fiscal year in which the appropriation is to 
        be available for obligation.
          (18) a comparison of the total amount of budget 
        outlays for the prior fiscal year, estimated in the 
        budget submitted for that year, for each major program 
        having relatively uncontrollable outlays with the total 
        amount of outlays for that program in that year.
          (19) a comparison of the total amount of receipts for 
        the prior fiscal year, estimated in the budget 
        submitted for that year, with receipts received in that 
        year, and for each major source of receipts, a 
        comparison of the amount of receipts estimated in that 
        budget with the amount of receipts from that source in 
        that year.
          (20) an analysis and explanation of the differences 
        between each amount compared under clauses (18) and 
        (19) of this subsection.
          (21) a horizontal budget showing--
                  (A) the programs for meteorology and of the 
                National Climate Program established under 
                section 5 of the National Climate Program Act 
                (15 U.S.C. 2904);
                  (B) specific aspects of the program of, and 
                appropriations for, each agency; and
                  (C) estimated goals and financial 
                requirements.
          (22) a statement of budget authority, proposed budget 
        authority, budget outlays, and proposed budget outlays, 
        and descriptive information in terms of--
                  (A) a detailed structure of national needs 
                that refers to the missions and programs of 
                agencies (as defined in section 101 of this 
                title); and
                  (B) the missions and basic programs.
          (23) separate appropriation accounts for 
        appropriations under the Occupational Safety and Health 
        Act of 1970 (29 U.S.C. 651 et seq.) and the Federal 
        Mine Safety and Health Act of 1977 (30 U.S.C. 801 et 
        seq.).
          (24) recommendations on the return of Government 
        capital to the Treasury by a mixed-ownership 
        corporation (as defined in section 9101(2) of this 
        title) that the President decides are desirable.
          (25) a separate appropriation account for 
        appropriations for each Office of Inspector General of 
        an establishment defined under section 11(2) of the 
        Inspector General Act of 1978.
          (26) a separate statement of the amount of 
        appropriations requested for the Office of National 
        Drug Control Policy and each program of the National 
        Drug Control Program.
          (27) a separate statement of the amount of 
        appropriations requested for the Office of Federal 
        Financial Management.
          (28) beginning with fiscal year 1999, a Federal 
        Government performance plan for the overall budget as 
        provided for under section 1115.
          (29) information about the Violent Crime Reduction 
        Trust Fund, including a separate statement of amounts 
        in that Trust Fund.
          (30) an analysis displaying, by agency, proposed 
        reductions in full-time equivalent positions compared 
        to the current year's level in order to comply with 
        section 5 of the Federal Workforce Restructuring Act of 
        1994.
          (31) a separate statement of the amount of 
        appropriations requested for the Chief Financial 
        Officer in the Executive Office of the President.
          (32) a statement of the levels of budget authority 
        and outlays for each program assumed to be extended in 
        the baseline as provided in section 257(b)(2)(A) and 
        for excise taxes assumed to be extended under section 
        257(b)(2)(C) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.
          (33) a separate appropriation account for 
        appropriations for the Council of the Inspectors 
        General on Integrity and Efficiency, and, included in 
        that account, a separate statement of the aggregate 
        amount of appropriations requested for each academy 
        maintained by the Council of the Inspectors General on 
        Integrity and Efficiency.
          (34) with respect to the amount of appropriations 
        requested for use by the Export-Import Bank of the 
        United States, a separate statement of the amount 
        requested for its program budget, the amount requested 
        for its administrative expenses, and of the amount 
        requested for its administrative expenses, the amount 
        requested for technology expenses.
          (35)(A)(i) a detailed, separate analysis, by budget 
        function, by agency, and by initiative area (as 
        determined by the administration) for the prior fiscal 
        year, the current fiscal year, the fiscal years for 
        which the budget is submitted, and the ensuing fiscal 
        year identifying the amounts of gross and net 
        appropriations or obligational authority and outlays 
        that contribute to homeland security, with separate 
        displays for mandatory and discretionary amounts, 
        including--
                  (I) summaries of the total amount of such 
                appropriations or new obligational authority 
                and outlays requested for homeland security;
                  (II) an estimate of the current service 
                levels of homeland security spending;
                  (III) the most recent risk assessment and 
                summary of homeland security needs in each 
                initiative area (as determined by the 
                administration); and
                  (IV) an estimate of user fees collected by 
                the Federal Government on behalf of homeland 
                security activities;
          (ii) with respect to subclauses (I) through (IV) of 
        clause (i), amounts shall be provided by account for 
        each program, project and activity; and
          (iii) an estimate of expenditures for homeland 
        security activities by State and local governments and 
        the private sector for the prior fiscal year and the 
        current fiscal year.
          (B) In this paragraph, consistent with the Office of 
        Management and Budget's June 2002 ``Annual Report to 
        Congress on Combatting Terrorism'', the term ``homeland 
        security'' refers to those activities that detect, 
        deter, protect against, and respond to terrorist 
        attacks occurring within the United States and its 
        territories.
          (C) In implementing this paragraph, including 
        determining what Federal activities or accounts 
        constitute homeland security for purposes of budgetary 
        classification, the Office of Management and Budget is 
        directed to consult periodically, but at least 
        annually, with the House and Senate Budget Committees, 
        the House and Senate Appropriations Committees, and the 
        Congressional Budget Office.
          (D) In implementing this paragraph, the President 
        shall include in each budget a description of resources 
        identified to support the preparedness, response, and 
        recovery responsibilities of each Federal agency with 
        responsibilities under the National Response Framework 
        and the National Disaster Recovery Framework.
          (36) as supplementary materials, a separate analysis 
        of the budgetary effects for all prior fiscal years, 
        the current fiscal year, the fiscal year for which the 
        budget is submitted, and ensuing fiscal years of the 
        actions the Secretary of the Treasury has taken or 
        plans to take using any authority provided in the 
        Emergency Economic Stabilization Act of 2008, 
        including--
                  (A) an estimate of the current value of all 
                assets purchased, sold, and guaranteed under 
                the authority provided in the Emergency 
                Economic Stabilization Act of 2008 using 
                methodology required by the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661 et seq.) and 
                section 5232 of Title 12;
                  (B) an estimate of the deficit, the debt held 
                by the public, and the gross Federal debt using 
                methodology required by the Federal Credit 
                Reform Act of 1990 and section 5232 of Title 
                12;
                  (C) an estimate of the current value of all 
                assets purchased, sold, and guaranteed under 
                the authority provided in the Emergency 
                Economic Stabilization Act of 2008 calculated 
                on a cash basis;
                  (D) a revised estimate of the deficit, the 
                debt held by the public, and the gross Federal 
                debt, substituting the cash-based estimates in 
                subparagraph (C) for the estimates calculated 
                under subparagraph (A) pursuant to the Federal 
                Credit Reform Act of 1990 and section 5232 of 
                Title 12; and
                  (E) the portion of the deficit which can be 
                attributed to any action taken by the Secretary 
                using authority provided by the Emergency 
                Economic Stabilization Act of 2008 and the 
                extent to which the change in the deficit since 
                the most recent estimate is due to a reestimate 
                using the methodology required by the Federal 
                Credit Reform Act of 1990 and section 5232 of 
                Title 12.
          (37) [FN1] information on estimates of appropriations 
        for the fiscal year following the fiscal year for which 
        the budget is submitted for the following medical care 
        accounts of the Veterans Health Administration, 
        Department of Veterans Affairs account:
                  (A) Medical Services.
                  (B) Medical Support and Compliance.
                  (C) Medical Facilities.
          (38) a separate statement for the Crow Settlement 
        Fund established under section 411 of the Crow Tribe 
        Water Rights Settlement Act of 2010, which shall 
        include the estimated amount of deposits into the Fund, 
        obligations, and outlays from the Fund.
          (37) [FN2] the list of plans and reports, as provided 
        for under section 1125, that agencies identified for 
        elimination or consolidation because the plans and 
        reports are determined outdated or duplicative of other 
        required plans and reports.
    (b) Estimated expenditures and proposed appropriations for 
the legislative branch and the judicial branch to be included 
in each budget under subsection (a)(5) of this section shall be 
submitted to the President before October 16 of each year and 
included in the budget by the President without change.
    (c) The President shall recommend in the budget appropriate 
action to meet an estimated deficiency when the estimated 
receipts for the fiscal year for which the budget is submitted 
(under laws in effect when the budget is submitted) and the 
estimated amounts in the Treasury at the end of the current 
fiscal year available for expenditure in the fiscal year for 
which the budget is submitted, are less than the estimated 
expenditures for that year. The President shall make 
recommendations required by the public interest when the 
estimated receipts and estimated amounts in the Treasury are 
more than the estimated expenditures.
    (d) When the President submits a budget or supporting 
information about a budget, the President shall include a 
statement on all changes about the current fiscal year that 
were made before the budget or information was submitted.
    (e)(1) The President shall submit with materials related to 
each budget transmitted under subsection (a) on or after 
January 1, 1985, an analysis for the ensuing fiscal year that 
shall identify requested appropriations or new obligational 
authority and outlays for each major program that may be 
classified as a public civilian capital investment program and 
for each major program that may be classified as a military 
capital investment program, and shall contain summaries of the 
total amount of such appropriations or new obligational 
authority and outlays for public civilian capital investment 
programs and summaries of the total amount of such 
appropriations or new obligational authority and outlays for 
military capital investment programs. In addition, the analysis 
under this paragraph shall contain--
          (A) an estimate of the current service levels of 
        public civilian capital investment and of military 
        capital investment and alternative high and low levels 
        of such investments over a period of ten years in 
        current dollars and over a period of five years in 
        constant dollars;
          (B) the most recent assessment analysis and summary, 
        in a standard format, of public civilian capital 
        investment needs in each major program area over a 
        period of ten years;
          (C) an identification and analysis of the principal 
        policy issues that affect estimated public civilian 
        capital investment needs for each major program; and
          (D) an identification and analysis of factors that 
        affect estimated public civilian capital investment 
        needs for each major program, including but not limited 
        to the following factors:
                  (i) economic assumptions;
                  (ii) engineering standards;
                  (iii) estimates of spending for operation and 
                maintenance;
                  (iv) estimates of expenditures for similar 
                investments by State and local governments; and
                  (v) estimates of demand for public services 
                derived from such capital investments and 
                estimates of the service capacity of such 
                investments.
        To the extent that any analysis required by this 
        paragraph relates to any program for which Federal 
        financial assistance is distributed under a formula 
        prescribed by law, such analysis shall be organized by 
        State and within each State by major metropolitan area 
        if data are available.
    (2) For purposes of this subsection, any appropriation, new 
obligational authority, or outlay shall be classified as a 
public civilian capital investment to the extent that such 
appropriation, authority, or outlay will be used for the 
construction, acquisition, or rehabilitation of any physical 
asset that is capable of being used to produce services or 
other benefits for a number of years and is not classified as a 
military capital investment under paragraph (3). Such assets 
shall include (but not be limited to)--
          (A) roadways or bridges,
          (B) airports or airway facilities,
          (C) mass transportation systems,
          (D) wastewater treatment or related facilities,
          (E) water resources projects,
          (F) hospitals,
          (G) resource recovery facilities,
          (H) public buildings,
          (I) space or communications facilities,
          (J) railroads, and
          (K) federally assisted housing.
    (3) For purposes of this subsection, any appropriation, new 
obligational authority, or outlay shall be classified as a 
military capital investment to the extent that such 
appropriation, authority, or outlay will be used for the 
construction, acquisition, or rehabilitation of any physical 
asset that is capable of being used to produce services or 
other benefits for purposes of national defense and security 
for a number of years. Such assets shall include military 
bases, posts, installations, and facilities.
    (4) Criteria and guidelines for use in the identification 
of public civilian and military capital investments, for 
distinguishing between public civilian and military capital 
investments, and for distinguishing between major and nonmajor 
capital investment programs shall be issued by the Director of 
the Office of Management and Budget after consultation with the 
Comptroller General and the Congressional Budget Office. The 
analysis submitted under this subsection shall be accompanied 
by an explanation of such criteria and guidelines.
    (5) For purposes of this subsection--
          (A) the term ``construction'' includes the design, 
        planning, and erection of new structures and 
        facilities, the expansion of existing structures and 
        facilities, the reconstruction of a project at an 
        existing site or adjacent to an existing site, and the 
        installation of initial and replacement equipment for 
        such structures and facilities;
          (B) the term ``acquisition'' includes the addition of 
        land, sites, equipment, structures, facilities, or 
        rolling stock by purchase, lease-purchase, trade, or 
        donation; and
          (C) the term ``rehabilitation'' includes the 
        alteration of or correction of deficiencies in an 
        existing structure or facility so as to extend the 
        useful life or improve the effectiveness of the 
        structure or facility, the modernization or replacement 
        of equipment at an existing structure or facility, and 
        the modernization of, or replacement of parts for, 
        rolling stock.
    (f) The budget transmitted pursuant to subsection (a) for a 
fiscal year shall be prepared in a manner consistent with the 
requirements of the Balanced Budget and Emergency Deficit 
Control Act of 1985 that apply to that and subsequent fiscal 
years.
    (g)(1) The Director of the Office of Management and Budget 
shall establish the funding for advisory and assistance 
services for each department and agency as a separate object 
class in each budget annually submitted to the Congress under 
this section.
    (2)(A) In paragraph (1), except as provided in subparagraph 
(B), the term ``advisory and assistance services'' means the 
following services when provided by nongovernmental sources:
          (i) Management and professional support services.
          (ii) Studies, analyses, and evaluations.
          (iii) Engineering and technical services.
    (B) In paragraph (1), the term ``advisory and assistance 
services'' does not include the following services:
          (i) Routine automated data processing and 
        telecommunications services unless such services are an 
        integral part of a contract for the procurement of 
        advisory and assistance services.
          (ii) Architectural and engineering services, as 
        defined in section 1102 of title 40.
          (iii) Research on basic mathematics or medical, 
        biological, physical, social, psychological, or other 
        phenomena.
    (h)(1) If there is a medicare funding warning under section 
801(a)(2) of the Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003 made in a year, the President shall 
submit to Congress, within the 15-day period beginning on the 
date of the budget submission to Congress under subsection (a) 
for the succeeding year, proposed legislation to respond to 
such warning.
    (2) Paragraph (1) does not apply if, during the year in 
which the warning is made, legislation is enacted which 
eliminates excess general revenue medicare funding (as defined 
in section 801(c) of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003) for the 7-fiscal-
year reporting period, as certified by the Board of Trustees of 
each medicare trust fund (as defined in section 801(c)(5) of 
such Act) not later than 30 days after the date of the 
enactment of such legislation.

           *       *       *       *       *       *       *


TITLE 41--PUBLIC CONTRACTS

           *       *       *       *       *       *       *


Subtitle I--Federal Procurement Policy

           *       *       *       *       *       *       *



Division B--Office of Federal Procurement Policy

           *       *       *       *       *       *       *



CHAPTER 19--SIMPLIFIED ACQUISITION PROCEDURES

           *       *       *       *       *       *       *



SEC. 1903. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

    (a) Applicability.--The authorities provided in subsections 
(b) and (c) apply [with respect to] with respect to--
          (1) a procurement of property or services by or for 
        an executive agency that the head of the executive 
        agency determines are to be used--
                  [(1)](A) in support of a contingency 
                operation (as defined in section 101(a) of 
                title 10); or
                  [(2)](B) to facilitate the defense against or 
                recovery from nuclear, biological, chemical, or 
                radiological attack against the [United 
                States.] United States; and
                  (C) a procurement of property or services by 
                or for the Department of Homeland Security that 
                the Secretary of Homeland Security determines 
                are to be used in support of domestic emergency 
                operations, in accordance with subsection (d).
    (b) Increased Thresholds and Limitation.--For a procurement 
to which this section applies under subsection (a)--
          (1) the amount specified in section 1902(a), (d), and 
        (e) of this title shall be deemed to be--
                  (A) $15,000 in the case of a contract to be 
                awarded and performed, or purchase to be made, 
                in the United States; and
                  (B) $25,000 in the case of a contract to be 
                awarded and performed, or purchase to be made, 
                outside the United States;
          (2) the term ``simplified acquisition threshold'' 
        means--
                  (A) $250,000 in the case of a contract to be 
                awarded and performed, or purchase to be made, 
                in the United States; and
                  (B) $1,000,000 in the case of a contract to 
                be awarded and performed, or purchase to be 
                made, outside the United States; and
          (3) the $5,000,000 limitation in sections 1901(a)(2) 
        and 3305(a)(2) of this title and section 2304(g)(1)(B) 
        of title 10 is deemed to be $10,000,000.
    (c) Authority To Treat Property or Service as Commercial 
Item.--
          (1) In general.--The head of an executive agency 
        carrying out a procurement of property or a service to 
        which this section applies under [subsection (a)(2)] 
        subsection (a)(1)(B) may treat the property or service 
        as a commercial item for the purpose of carrying out 
        the procurement.
          (2) Certain contracts not exempt from standards or 
        requirements.--A contract in an amount of more than 
        $15,000,000 that is awarded on a sole source basis for 
        an item or service treated as a commercial item under 
        paragraph (1) is not exempt from--
                  (A) cost accounting standards prescribed 
                under section 1502 of this title; or
                  (B) cost or pricing data requirements 
                (commonly referred to as truth in negotiating) 
                under chapter 35 of this title and section 
                2306a of title 10.
    (d) Domestic Emergency Operations.--The Secretary of 
Homeland Security, or a designee at the Chief Procurement 
Officer level or higher, in consultation with the 
Administrator, may utilize the authorities provided under 
paragraphs (1)(A), (2)(A), and (3) of subsection (b) in a 
domestic emergency operation to provide support for--
          (1) an emergency or major disaster, as those terms 
        are defined under section 102 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5122); or
          (2) any occasion or instance for which the Secretary 
        of Homeland Security determines Federal assistance is 
        needed to supplement State and local efforts and 
        capabilities to save lives and to protect property and 
        public health and safety, or to lessen or avert the 
        threat of a catastrophe in any part of the United 
        States.

           *       *       *       *       *       *       *


TITLE 42--THE PUBLIC HEALTH AND WELFARE

           *       *       *       *       *       *       *


CHAPTER 68--DISASTER RELIEF

           *       *       *       *       *       *       *



Subchapter I--Findings, Declaration, and Definitions

           *       *       *       *       *       *       *



5SEC. 5122. DEFINITIONS.

    As used in this chapter--
          (1) Emergency.--``Emergency'' means any occasion or 
        instance for which, in the determination of the 
        President, Federal assistance is needed to supplement 
        State and local efforts and capabilities to save lives 
        and to protect property and public health and safety, 
        or to lessen or avert the threat of a catastrophe in 
        any part of the United States.
          [(2) Major disaster.--``Major disaster'' means any 
        natural catastrophe (including any hurricane, tornado, 
        storm, high water, winddriven water, tidal wave, 
        tsunami, earthquake, volcanic eruption, landslide, 
        mudslide, snowstorm, or drought), or, regardless of 
        cause, any fire, flood, or explosion, in any part of 
        the United States, which in the determination of the 
        President causes damage of sufficient severity and 
        magnitude to warrant major disaster assistance under 
        this chapter to supplement the efforts and available 
        resources of States, local governments, and disaster 
        relief organizations in alleviating the damage, loss, 
        hardship, or suffering caused thereby.]
          (2) Major disaster.--The term ``major disaster'' 
        means any natural disaster (including a pandemic), act 
        of terrorism, or other man-made disaster, in any part 
        of the United States, which in the determination of the 
        President causes damage of sufficient severity and 
        magnitude to warrant major disaster assistance under 
        this Act to supplement the efforts and available 
        resources of States, local governments, and disaster 
        relief organizations in alleviating the damage, loss, 
        hardship, or suffering caused thereby.
          (3) ``United States'' means the fifty States, the 
        District of Columbia, Puerto Rico, the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands.
          (4) ``State'' means any State of the United States, 
        the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
          (5) ``Governor'' means the chief executive of any 
        State.
          (6) Individual with a disability.--The term 
        ``individual with a disability'' means an individual 
        with a disability as defined in section 12102(2) of 
        this title.
          (7) Local government.--The term ``local government'' 
        means--
                  (A) a county, municipality, city, town, 
                township, local public authority, school 
                district, special district, intrastate 
                district, council of governments (regardless of 
                whether the council of governments is 
                incorporated as a nonprofit corporation under 
                State law), regional or interstate government 
                entity, or agency or instrumentality of a local 
                government;
                  (B) an Indian tribe or authorized tribal 
                organization, or Alaska Native village or 
                organization; and
                  (C) a rural community, unincorporated town or 
                village, or other public entity, for which an 
                application for assistance is made by a State 
                or political subdivision of a State.
          (8) ``Federal agency'' means any department, 
        independent establishment, Government corporation, or 
        other agency of the executive branch of the Federal 
        Government, including the United States Postal Service, 
        but shall not include the American National Red Cross.
          (9) Public facility.--``Public facility'' means the 
        following facilities owned by a State or local 
        government:
                  (A) Any flood control, navigation, 
                irrigation, reclamation, public power, sewage 
                treatment and collection, water supply and 
                distribution, watershed development, or airport 
                facility.
                  (B) Any non-Federal-aid street, road, or 
                highway.
                  (C) Any other public building, structure, or 
                system, including those used for educational, 
                recreational, or cultural purposes.
                  (D) Any park.
          (10) Private nonprofit facility.--
                  (A) In general.--The term ``private nonprofit 
                facility'' means private nonprofit educational, 
                utility, irrigation, emergency, medical, 
                rehabilitational, and temporary or permanent 
                custodial care facilities (including those for 
                the aged and disabled) and facilities on Indian 
                reservations, as defined by the President.
                  (B) Additional facilities.--In addition to 
                the facilities described in subparagraph (A), 
                the term ``private nonprofit facility'' 
                includes any private nonprofit facility that 
                provides essential services of a governmental 
                nature to the general public (including 
                museums, zoos, performing arts facilities, 
                community arts centers, libraries, homeless 
                shelters, senior citizen centers, 
                rehabilitation facilities, shelter workshops, 
                and facilities that provide health and safety 
                services of a governmental nature), as defined 
                by the President.
          (11) Recovery.--The term ``recovery'' has the meaning 
        given that term in section 501 of the Homeland Security 
        Act of 2002 (6 U.S.C. 311).
          (12) National disaster recovery framework.--The term 
        ``National Disaster Recovery Framework'' means the 
        National Disaster Recovery Framework developed under 
        section 655 of the Post-Katrina Emergency Management 
        Reform Act of 2006.
          (13) Catastrophic incident.--The term ``catastrophic 
        incident'' has the meaning given that term in section 
        501 of the Homeland Security Act of 2002 (6 U.S.C. 
        311).

SEC. 5149. PERFORMANCE OF SERVICES.

    (a) Utilization of services or facilities of State and 
local government.--In carrying out the purposes of this 
chapter, any Federal agency is authorized to accept and utilize 
the services or facilities of any State or local government, or 
of any agency, office, or employee thereof, with the consent of 
such government.
    (b) Appointment of temporary personnel, experts, and 
consultants; acquisition, rental, or hire of equipment, 
services, materials and supplies.--In performing any services 
under this chapter, any Federal agency is authorized--
          (1) to appoint and fix the compensation of such 
        temporary personnel or permanent seasonal employees as 
        may be necessary, without regard to the provisions of 
        Title 5 governing appointments in competitive service;
          (2) to employ experts and consultants in accordance 
        with the provisions of section 3109 of such Title, 
        without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of such Title relating to 
        classification and General Schedule pay rates; and
          (3) to incur obligations on behalf of the United 
        States by contract or otherwise for the acquisition, 
        rental, or hire of equipment, services, materials, and 
        supplies for shipping, drayage, travel, and 
        communications, and for the supervision and 
        administration of such activities. Such obligations, 
        including obligations arising out of the temporary 
        employment of additional personnel or the employment of 
        permanent seasonal employees (as that term is defined 
        under section 529(a)(8) of the Homeland Security Act of 
        2002), may be incurred by an agency in such amount as 
        may be made available to it by the President.

           *       *       *       *       *       *       *


Subchapter IV--Major Disaster Assistance Programs

           *       *       *       *       *       *       *



SEC. 5170A. GENERAL FEDERAL ASSISTANCE.

    In any major disaster, the President may--
          (1) direct any Federal agency, with or without 
        reimbursement, to utilize its authorities and the 
        resources granted to it under Federal law (including 
        personnel, equipment, supplies, facilities, and 
        managerial, technical, and advisory services) in 
        support of State and local assistance response or 
        recovery efforts, including precautionary evacuations;
          (2) coordinate all disaster relief assistance 
        (including voluntary assistance) provided by Federal 
        agencies, private organizations, and State and local 
        governments, including precautionary evacuations and 
        recovery;
          (3) provide technical and advisory assistance to 
        affected State and local governments for--
                  (A) the performance of essential community 
                services;
                  (B) issuance of warnings of risks and 
                hazards;
                  (C) public health and safety information, 
                including dissemination of such information;
                  (D) provision of health and safety measures; 
                and
                  (E) management, control, and reduction of 
                immediate threats to public health and safety; 
                [and]
                  [(F) recovery activities, including disaster 
                impact assessments and planning;]
          (4) assist State and local governments in the 
        distribution of medicine, food, and other consumable 
        supplies, and emergency assistance; [and]
          (5) provide accelerated federal assistance and 
        Federal support where necessary to save lives, prevent 
        human suffering, or mitigate severe damage, which may 
        be provided in the absence of a specific request and in 
        which case the President--
                  (A) shall, to the fullest extent practicable, 
                promptly notify and coordinate with officials 
                in a State in which such assistance or support 
                is provided; and
                  (B) shall not, in notifying and coordinating 
                with a State under subparagraph (A), delay or 
                impede the rapid deployment, use, and 
                distribution of critical resources to victims 
                of a major disaster[.]; and
          (6) assist State and local governments to recover 
        from a major disaster and coordinate Federal assistance 
        for recovery from the major disaster by--
                  (A) identifying and coordinating Federal 
                resources, programs, and agencies to support 
                the implementation of recovery and mitigation 
                efforts of State and local governments;
                  (B) providing technical and other advice to 
                State and local governments to manage, control, 
                and mitigate hazards and risk to reduce damages 
                from a subsequent major disaster;
                  (C) in the case of a catastrophic incident, 
                establishing a Commission under section 327; 
                and
                  (D) providing financial and technical 
                assistance and advice to State and local 
                governments affected by a major disaster to--
                          (i) assess the effects of the major 
                        disaster;
                          (ii) support coordinated and 
                        comprehensive recovery planning; and
                          (iii) support and facilitate 
                        implementation of recovery plans and 
                        actions.

SEC. 410. REPEAL OF EMERGENCY OPERATIONS CENTER GRANT PROGRAM.

           *       *       *       *       *       *       *


                              42 USC 5196:

TITLE 42--PUBLIC HEALTH AND WELFARE

           *       *       *       *       *       *       *



CHAPTER 68--DISASTER RELIEF

           *       *       *       *       *       *       *



Subchapter IV-B--Emergency and Preparedness

           *       *       *       *       *       *       *



PART A--POWERS AND DUTIES

           *       *       *       *       *       *       *



[SEC. 5196C. GRANTS FOR CONSTRUCTION OF EMERGENCY OPERATIONS CENTERS.

    [(a) Grants.--The Administrator of the Federal Emergency 
Management Agency may make grants to States under this 
subchapter for equipping, upgrading, and constructing State and 
local emergency operations centers.
    [(b) Federal Share.--Notwithstanding any other provision of 
this subchapter, the Federal share of the cost of an activity 
carried out using amounts from grants made under this section 
shall not exceed 75 percent.]

TITLE 49--TRANSPORTATION

           *       *       *       *       *       *       *


Subtitle VII--Aviation Programs

           *       *       *       *       *       *       *


PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *



Subpart III--Safety

           *       *       *       *       *       *       *



CHAPTER 449--SECURITY

           *       *       *       *       *       *       *



Subchapter I--Requirements

           *       *       *       *       *       *       *



SEC. 44903. AIR TRANSPORTATION SECURITY.

           *       *       *       *       *       *       *


    (l) Air Charter Program.--
          (1) In general.--The [Under Secretary for Border and 
        Transportation Security of the Department of] Secretary 
        of Homeland Security shall implement an aviation 
        security program for charter air carriers (as defined 
        in section 40102(a)) with a maximum certificated 
        takeoff weight of more than 12,500 pounds.
          (2) Exemption for armed forces charters.--
                  (A) In general.--Paragraph (1) and the other 
                requirements of this chapter do not apply to 
                passengers and property carried by aircraft 
                when employed to provide charter transportation 
                to members of the armed forces.
                  (B) Security procedures.--The Secretary of 
                Defense, in consultation with the Secretary of 
                Homeland Security and the Secretary of 
                Transportation, shall establish security 
                procedures relating to the operation of 
                aircraft when employed to provide charter 
                transportation to members of the armed forces 
                to or from an airport described in section 
                44903(c).
                  (C) Armed forces defined.--In this paragraph, 
                the term ``armed forces'' has the meaning given 
                that term by section 101(a)(4) of title 10.

                         49 USC 44918(a)(2)(E):

TITLE 49--TRANSPORTATION

           *       *       *       *       *       *       *



Subtitle VII--Aviation Programs

           *       *       *       *       *       *       *



PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *



Subpart III--Safety

           *       *       *       *       *       *       *



CHAPTER 449--SECURITY

           *       *       *       *       *       *       *



Subchapter I--Requirements

           *       *       *       *       *       *       *



SEC. 44918. CREW TRAINING.

    (a) Basic Security Training.--
          (1) In general.--Each air carrier providing scheduled 
        passenger air transportation shall carry out a training 
        program for flight and cabin crew members to prepare 
        the crew members for potential threat conditions.
          (2) Program elements.--An air carrier training 
        program under this subsection shall include, at a 
        minimum, elements that address each of the following:
                  (A) Recognizing suspicious activities and 
                determining the seriousness of any occurrence.
                  (B) Crew communication and coordination.
                  (C) The proper commands to give passengers 
                and attackers.
                  (D) Appropriate responses to defend oneself.
                  (E) Use of protective devices assigned to 
                crew members (to the extent such devices are 
                required by the Administrator of the Federal 
                Aviation Administration or the [Under Secretary 
                for Border and Transportation Security of the 
                Department of] Secretary of Homeland Security).
                  (F) Psychology of terrorists to cope with 
                hijacker behavior and passenger responses.
                  (G) Situational training exercises regarding 
                various threat conditions.
                  (H) Flight deck procedures or aircraft 
                maneuvers to defend the aircraft and cabin crew 
                responses to such procedures and maneuvers.
                  (I) The proper conduct of a cabin search, 
                including explosive device recognition.
                  (J) Any other subject matter considered 
                appropriate by the Under Secretary.
          (3) Approval.--An air carrier training program under 
        this subsection shall be subject to approval by the 
        Under Secretary.
          (4) Minimum standards.--Not later than one year after 
        the date of enactment of the Vision 100--Century of 
        Aviation Reauthorization Act, the Under Secretary may 
        establish minimum standards for the training provided 
        under this subsection and for recurrent training.
          (5) Existing programs.--Notwithstanding paragraphs 
        (3) and (4), any training program of an air carrier to 
        prepare flight and cabin crew members for potential 
        threat conditions that was approved by the 
        Administrator or the Under Secretary before the date of 
        enactment of the Vision 100--Century of Aviation 
        Reauthorization Act may continue in effect until 
        disapproved or ordered modified by the Under Secretary.
          (6) Monitoring.--The Under Secretary, in consultation 
        with the Administrator, shall monitor air carrier 
        training programs under this subsection and 
        periodically shall review an air carrier's training 
        program to ensure that the program is adequately 
        preparing crew members for potential threat conditions. 
        In determining when an air carrier's training program 
        should be reviewed under this paragraph, the Under 
        Secretary shall consider complaints from crew members. 
        The Under Secretary shall ensure that employees 
        responsible for monitoring the training programs have 
        the necessary resources and knowledge.
          (7) Updates.--The Under Secretary, in consultation 
        with the Administrator, shall order air carriers to 
        modify training programs under this subsection to 
        reflect new or different security threats.

           *       *       *       *       *       *       *


TITLE 49--TRANSPORTATION

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Subtitle VII--Aviation Programs

           *       *       *       *       *       *       *



PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *



Subpart III--Safety

           *       *       *       *       *       *       *



CHAPTER 449--SECURITY

           *       *       *       *       *       *       *



Subchapter I--Requirements

           *       *       *       *       *       *       *



SEC. 44923. AIRPORT SECURITY IMPROVEMENT PROJECTS.

    (a) Grant Authority.--Subject to the requirements of this 
section, the [Under Secretary for Border and Transportation 
Security of the Department of] Secretary of Homeland Security 
shall make grants to airport sponsors--
          (1) for projects to replace baggage conveyer systems 
        related to aviation security;
          (2) for projects to reconfigure terminal baggage 
        areas as needed to install explosive detection systems;
          (3) for projects to enable the [Under Secretary] 
        Secretary of Homeland Security to deploy explosive 
        detection systems behind the ticket counter, in the 
        baggage sorting area, or in line with the baggage 
        handling system; and
          (4) for other airport security capital improvement 
        projects.
    (b) Applications.--A sponsor seeking a grant under this 
section shall submit to the [Under Secretary] Secretary of 
Homeland Security an application in such form and containing 
such information as the Under Secretary prescribes.
    (c) Approval.--The [Under Secretary] Secretary of Homeland 
Security, after consultation with the Secretary of 
Transportation, may approve an application of a sponsor for a 
grant under this section only if the [Under Secretary] 
Secretary of Homeland Security determines that the project will 
improve security at an airport or improve the efficiency of the 
airport without lessening security.
    (d) Letters of Intent.--
          (1) Issuance.--The [Under Secretary] Secretary of 
        Homeland Security shall issue a letter of intent to a 
        sponsor committing to obligate from future budget 
        authority an amount, not more than the Federal 
        Government's share of the project's cost, for an 
        airport security improvement project (including 
        interest costs and costs of formulating the project).
          (2) Schedule.--A letter of intent under this 
        subsection shall establish a schedule under which the 
        [Under Secretary] Secretary of Homeland Security will 
        reimburse the sponsor for the Government's share of the 
        project's costs, as amounts become available, if the 
        sponsor, after the [Under Secretary] Secretary of 
        Homeland Security issues the letter, carries out the 
        project without receiving amounts under this section.
          (3) Notice to [under] secretary.--A sponsor that has 
        been issued a letter of intent under this subsection 
        shall notify the [Under Secretary] Secretary of 
        Homeland Security of the sponsor's intent to carry out 
        a project before the project begins.
          (4) Notice to congress.--The [Under Secretary] 
        Secretary of Homeland Security shall transmit to the 
        Committees on Appropriations and Transportation and 
        Infrastructure of the House of Representatives and the 
        Committees on Appropriations and Commerce, Science and 
        Transportation of the Senate a written notification at 
        least 3 days before the issuance of a letter of intent 
        under this section.
          (5) Limitations.--A letter of intent issued under 
        this subsection is not an obligation of the Government 
        under section 1501 of title 31, and the letter is not 
        deemed to be an administrative commitment for 
        financing. An obligation or administrative commitment 
        may be made only as amounts are provided in 
        authorization and appropriations laws.
          (6) Statutory construction.--Nothing in this 
        subsection shall be construed to prohibit the 
        obligation of amounts pursuant to a letter of intent 
        under this subsection in the same fiscal year as the 
        letter of intent is issued.
    (e) Federal Share.--
          (1) In general.--The Government's share of the cost 
        of a project under this section shall be 90 percent for 
        a project at a medium or large hub airport and 95 
        percent for a project at any other airport.
          (2) Existing letters of intent.--The [Under 
        Secretary] Secretary of Homeland Security shall revise 
        letters of intent issued before the date of enactment 
        of this section to reflect the cost share established 
        in this subsection with respect to grants made after 
        September 30, 2003.
    (f) Sponsor Defined.--In this section, the term ``sponsor'' 
has the meaning given that term in section 47102.
    (g) Applicability of Certain Requirements.--The 
requirements that apply to grants and letters of intent issued 
under chapter 471 (other than section 47102(3)) shall apply to 
grants and letters of intent issued under this section.
    (h) Aviation Security Capital Fund.--
          (1) In general.--There is established within the 
        Department of Homeland Security a fund to be known as 
        the Aviation Security Capital Fund. The first 
        $250,000,000 derived from fees received under section 
        44940(a)(1) in each of fiscal years 2004 through 2028 
        shall be available to be deposited in the Fund. The 
        [Under Secretary] Secretary of Homeland Security shall 
        impose the fee authorized by section 44940(a)(1) so as 
        to collect at least $250,000,000 in each of such fiscal 
        years for deposit into the Fund. Amounts in the Fund 
        shall be available to the [Under Secretary] Secretary 
        of Homeland Security to make grants under this section.
          (2) Allocation.--Of the amount made available under 
        paragraph (1) for a fiscal year, not less than 
        $200,000,000 shall be allocated to fulfill letters of 
        intent issued under subsection (d).
          (3) Discretionary grants.--Of the amount made 
        available under paragraph (1) for a fiscal year, up to 
        $50,000,000 shall be used to make discretionary grants, 
        including other transaction agreements for airport 
        security improvement projects, with priority given to 
        small hub airports and nonhub airports.
    (i) Leveraged funding.--For purposes of this section, a 
grant under subsection (a) to an airport sponsor to service an 
obligation issued by or on behalf of that sponsor to fund a 
project described in subsection (a) shall be considered to be a 
grant for that project.
    (j) Authorization of Appropriations.--
          (1) In general.--In addition to amounts made 
        available under subsection (h), there is authorized to 
        be appropriated to carry out this section $400,000,000 
        for each of fiscal years 2005, 2006, and 2007, and 
        $450,000,000 for each of fiscal years 2008 through 2011 
        [FN1] Such sums shall remain available until expended.
          (2) Allocations.--50 percent of amounts appropriated 
        pursuant to this subsection for a fiscal year shall be 
        used for making allocations under subsection (h)(2) and 
        50 percent of such amounts shall be used for making 
        discretionary grants under subsection (h)(3).

                             49 USC 44924:

TITLE 49--TRANSPORTATION

           *       *       *       *       *       *       *



Subtitle VII--Aviation Programs

           *       *       *       *       *       *       *



PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *



Subpart III--Safety

           *       *       *       *       *       *       *



CHAPTER 449--SECURITY

           *       *       *       *       *       *       *



Subchapter I--Requirements

           *       *       *       *       *       *       *



SEC. 44923. REPAIR STATION SECURITY.

    (a) Security Review and Audit.--To ensure the security of 
maintenance and repair work conducted on air carrier aircraft 
and components at foreign repair stations, the [Under Secretary 
for Border and Transportation Security of the Department of] 
Secretary of Homeland Security, in consultation with the 
Administrator of the Federal Aviation Administration, shall 
complete a security review and audit of foreign repair stations 
that are certified by the Administrator under part 145 of title 
14, Code of Federal Regulations, and that work on air carrier 
aircraft and components. The review shall be completed not 
later than 6 months after the date on which the [Under 
Secretary] Secretary of Homeland Security issues regulations 
under subsection (f).
    (b) Addressing Security Concerns.--The [Under Secretary] 
Secretary of Homeland Security shall require a foreign repair 
station to address the security issues and vulnerabilities 
identified in a security audit conducted under subsection (a) 
within 90 days of providing notice to the repair station of the 
security issues and vulnerabilities so identified and shall 
notify the Administrator that a deficiency was identified in 
the security audit.
    (c) Suspensions and Revocations of Certificates.--
          (1) Failure to carry out effective security 
        measures.--If, after the 90th day on which a notice is 
        provided to a foreign repair station under subsection 
        (b), the [Under Secretary] Secretary of Homeland 
        Security determines that the foreign repair station 
        does not maintain and carry out effective security 
        measures, the [Under Secretary] Secretary of Homeland 
        Security shall notify the Administrator of the 
        determination. Upon receipt of the determination, the 
        Administrator shall suspend the certification of the 
        repair station until such time as the [Under Secretary] 
        Secretary of Homeland Security determines that the 
        repair station maintains and carries out effective 
        security measures and transmits the determination to 
        the Administrator.
          (2) Immediate security risk.--If the [Under 
        Secretary] Secretary of Homeland Security determines 
        that a foreign repair station poses an immediate 
        security risk, the [Under Secretary] Secretary of 
        Homeland Security shall notify the Administrator of the 
        determination. Upon receipt of the determination, the 
        Administrator shall revoke the certification of the 
        repair station.
          (3) Procedures for appeals.--The [Under Secretary] 
        Secretary of Homeland Security, in consultation with 
        the Administrator, shall establish procedures for 
        appealing a revocation of a certificate under this 
        subsection.
    (d) Failure to Meet Audit Deadline.--If the security audits 
required by subsection (a) are not completed on or before the 
date that is 6 months after the date on which the [Under 
Secretary] Secretary of Homeland Security issues regulations 
under subsection (f), the Administrator shall be barred from 
certifying any foreign repair station (other than a station 
that was previously certified, or is in the process of 
certification, by the Administration under this part) until 
such audits are completed for existing stations.
    (e) Priority for Audits.--In conducting the audits 
described in subsection (a), the [Under Secretary] Secretary of 
Homeland Security and the Administrator shall give priority to 
foreign repair stations located in countries identified by the 
Government as posing the most significant security risks.
    (f) Regulations.--Not later than 240 days after the date of 
enactment of this section, the [Under Secretary] Secretary of 
Homeland Security, in consultation with the Administrator, 
shall issue final regulations to ensure the security of foreign 
and domestic aircraft repair stations.
    (g) Report to Congress.--If the [Under Secretary] Secretary 
of Homeland Security does not issue final regulations before 
the deadline specified in subsection (f), the [Under Secretary] 
Secretary of Homeland Security shall transmit to the Committee 
on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing an explanation 
as to why the deadline was not met and a schedule for issuing 
the final regulations.

                             49 USC 46111:

TITLE 49--TRANSPORTATION

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Subtitle VII--Aviation Programs

           *       *       *       *       *       *       *



Part A--Air Commerce and Safety

           *       *       *       *       *       *       *



Subpart IV--Enforcement and Penalties

           *       *       *       *       *       *       *



CHAPTER 461--INVESTIGATIONS AND PROCEEDINGS

           *       *       *       *       *       *       *



SEC. 46111. CERTIFICATE ACTIONS IN RESPONSE TO A SECURITY THREAT.

    (a) Orders.--The Administrator of Federal Aviation 
Administration shall issue an order amending, modifying, 
suspending, or revoking any part of a certificate issued under 
this title if the Administrator is notified by the [Under 
Secretary for Border and Transportation Security of] Secretary 
of the Department of Homeland Security that the holder of the 
certificate poses, or is suspected of posing, a risk of air 
piracy or terrorism or a threat to airline or passenger safety. 
If requested by the [Under Secretary] Secretary of Homeland 
Security, the order shall be effective immediately.
    (b) Hearings for Citizens.--An individual who is a citizen 
of the United States who is adversely affected by an order of 
the Administrator under subsection (a) is entitled to a hearing 
on the record.
    (c) Hearings.--When conducting a hearing under this 
section, the administrative law judge shall not be bound by 
findings of fact or interpretations of laws and regulations of 
the Administrator or the [Under Secretary] Secretary of 
Homeland Security.
    (d) Appeals.--An appeal from a decision of an 
administrative law judge as the result of a hearing under 
subsection (b) shall be made to the Transportation Security 
Oversight Board established by section 115. The Board shall 
establish a panel to review the decision. The members of this 
panel (1) shall not be employees of the Transportation Security 
Administration, (2) shall have the level of security clearance 
needed to review the determination made under this section, and 
(3) shall be given access to all relevant documents that 
support that determination. The panel may affirm, modify, or 
reverse the decision.
    (e) Review.--A person substantially affected by an action 
of a panel under subsection (d), or the [Under Secretary] 
Secretary of Homeland Security when the [Under Secretary] 
Secretary of Homeland Security decides that the action of the 
panel under this section will have a significant adverse impact 
on carrying out this part, may obtain review of the order under 
section 46110. The [Under Secretary] Secretary of Homeland 
Security and the Administrator shall be made a party to the 
review proceedings. Findings of fact of the panel are 
conclusive if supported by substantial evidence.
    (f) Explanation of Decisions.--An individual who commences 
an appeal under this section shall receive a written 
explanation of the basis for the determination or decision and 
all relevant documents that support that determination to the 
maximum extent that the national security interests of the 
United States and other applicable laws permit.
    (g) Classified Evidence.--
          (1) In general.--The [Under Secretary] Secretary of 
        Homeland Security, in consultation with the 
        Administrator and the Director of Central Intelligence, 
        shall issue regulations to establish procedures by 
        which the [Under Secretary] Secretary of Homeland 
        Security, as part of a hearing conducted under this 
        section, may provide an unclassified summary of 
        classified evidence upon which the order of the 
        Administrator was based to the individual adversely 
        affected by the order.
          (2) Review of classified evidence by administrative 
        law judge.--
                  (A) Review.--As part of a hearing conducted 
                under this section, if the order of the 
                Administrator issued under subsection (a) is 
                based on classified information (as defined in 
                section 1(a) of the Classified Information 
                Procedures Act (18 U.S.C. App.), such 
                information may be submitted by the [Under 
                Secretary] Secretary of Homeland Security to 
                the reviewing administrative law judge, 
                pursuant to appropriate security procedures, 
                and shall be reviewed by the administrative law 
                judge ex parte and in camera.
                  (B) Security clearances.--Pursuant to 
                existing procedures and requirements, the 
                [Under Secretary] Secretary of Homeland 
                Security shall, in coordination, as necessary, 
                with the heads of other affected departments or 
                agencies, ensure that administrative law judges 
                reviewing orders of the Administrator under 
                this section possess security clearances 
                appropriate for their work under this section.
          (3) Unclassified summaries of classified evidence.--
        As part of a hearing conducted under this section and 
        upon the request of the individual adversely affected 
        by an order of the Administrator under subsection (a), 
        the [Under Secretary] Secretary of Homeland Security 
        shall provide to the individual and reviewing 
        administrative law judge, consistent with the 
        procedures established under paragraph (1), an 
        unclassified summary of any classified information upon 
        which the order of the Administrator is based.