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114th Congress    }                                  {   Rept. 114-760
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                  {          Part 1

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



 
                   GAO MANDATES REVISION ACT OF 2016

                                _______
                                

 September 19, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Chaffetz, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5687]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 5687) to eliminate or modify 
certain mandates of the Government Accountability Office, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     3
Explanation of Amendments........................................     4
Committee Consideration..........................................     4
Roll Call Votes..................................................     4
Correspondence...................................................     5
Application of Law to the Legislative Branch.....................    15
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    15
Statement of General Performance Goals and Objectives............    15
Duplication of Federal Programs..................................    15
Disclosure of Directed Rule Makings..............................    15
Federal Advisory Committee Act...................................    15
Unfunded Mandate Statement.......................................    15
Earmark Identification...........................................    15
Committee Estimate...............................................    16
Budget Authority and Congressional Budget Office Cost Estimate...    16
Changes in Existing Law Made by the Bill, as Reported............    17

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    H.R. 5687, the GAO Mandates Revision Act of 2016, improves 
the efficiency of the United States Government Accountability 
Office (GAO) by eliminating or reducing its obligation to 
conduct eight statutorily-mandated reports.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Government Accountability Office's (GAO) mission is to 
support Congress in meeting its constitutional responsibilities 
and to help improve the performance and ensure the 
accountability of the federal government for the benefit of the 
American people.\1\ In fulfilling this role, GAO's work has 
resulted in over $600 billion in financial benefits to the 
federal government since fiscal year 2003.\2\
---------------------------------------------------------------------------
    \1\Gov't Accountability Office, ``About GAO'', http://www.gao.gov/
about/ (Last visited Aug. 7, 2016).
    \2\Gov't Accountability Office, Fiscal Year 2017 Budget Request 
(March 2016) (GAO-16-409T).
---------------------------------------------------------------------------
    In helping set the agenda for GAO's work, Congress 
regularly enacts legislation that includes requirements for GAO 
to submit reports to Congress or its committees in support of 
its legislative and oversight responsibilities. However, some 
of these statutory reporting requirements are no longer 
necessary. GAO has little, if any, flexibility with respect to 
statutory mandates, which take priority over other GAO work 
requested by Congress and can use significant staffing 
resources. By eliminating or amending statutorily-mandated GAO 
reports that are no longer necessary, or may be needed on a 
less frequent basis, GAO will be able to better prioritize its 
resources.
    GAO conducted an agency-wide evaluation to identify 
statutorily-mandated reports that may be outdated or that 
generally added little value to oversight of the program. After 
GAO identified reports to amend or repeal, the House Committee 
on Oversight and Government Reform, the Senate Committee on 
Homeland Security and Governmental Affairs (HSGAC) and GAO 
worked with the committees of jurisdiction, on a bipartisan 
basis, to identify a final list of statutorily mandated reports 
that could either be modified or eliminated.
    H.R. 5687 is the outcome of this bipartisan process. This 
legislation eliminates four statutorily required GAO reports 
and amends four additional statutorily mandated reports to 
reduce scope or frequency. This bill also helps improve 
oversight of the federal government by ensuring GAO can more 
quickly and effectively fulfill pressing Congressional 
priorities.

                          LEGISLATIVE HISTORY

    H.R. 5687, the GAO Mandates Revision Act of 2016, was 
introduced on July 8, 2016 by Representative Jody Hice (R-GA) 
and referred to the Committee on Oversight and Government 
Reform. The bill was also referred to the Committees on 
Transportation and Infrastructure, Financial Services, Energy 
and Commerce, Ways and Means, and Homeland Security. On July 
12, 2016, the Committee on Oversight and Government Reform 
ordered H.R. 5687 favorably reported without amendment by voice 
vote.
    Companion legislation, S. 2964, was introduced in the 
Senate by Senator Ron Johnson (R-WI), Chairman of the Senate 
Committee on Homeland Security and Governmental Affairs, on May 
19, 2016. HSGAC ordered the bill favorably reported without 
amendment on May 25, 2016 by voice vote.

                           Section-by-Section


Section 1. Short title

    Designates the short title of the bill as the ``GAO 
Mandates Revision Act of 2016.''

Section 2. Reports eliminated

    Section 2(a) amends the Single Audit Act Amendments of 1996 
(P.L. 104-156; Chapter 75 of title 31, United States Code) to 
eliminate a GAO report to review legislation that requires 
financial audits of nonfederal entities receiving federal 
awards.
    Section 2(b) amends the Consolidated Appropriations Act 
2001 (P.L. 106-554; Section 111(c) of the Medicare Medicaid, 
and SCHIP Benefits Improvement and Protection Act of 2000 
[Appendix F; 114 Stat. 2763A-473]) to eliminate a GAO report to 
evaluate the extent to which premium levels for Medicare 
supplemental policies reflect reductions in coinsurance for 
hospital outpatient department services.
    Section 2(c) amends Section 1105 of the Sandy Recovery 
Improvement Act of 2013 (42 U.S.C. 5189 a note) to eliminate a 
GAO report on the Federal Emergency Management Agency's (FEMA) 
dispute resolution pilot program.
    Section 2(d) amends the Implementing Recommendations of the 
9/11 Commission Act of 2007 (Section 114(u) of title 49, United 
States Code) to eliminate a GAO report on a biennial 
satisfaction survey of recipients of transportation 
intelligence reports under the Department of Homeland 
Security's transportation security information sharing plan.

Section 3. Reports modified

    Section 3(a) amends the Emergency Economic Stabilization 
Act of 2008 (P.L. 110-343; 12 U.S. 5226(a)(3)) to require GAO 
to report annually (instead of the current requirement of every 
60 days) on its oversight of the Troubled Assets Relief Program 
(TARP).
    Section 3(b) amends the Dodd-Frank Wall Street Reform and 
Consumer Financial Protection Act of 2010 (P.L. 111-203; 15 
U.S.C. 78m note) to amend GAO's reporting of the effectiveness 
of disclosures relating to conflict minerals originating in the 
Democratic Republic of the Congo or adjoining countries on the 
rate of sexual- and gender-based violence and the promotion of 
peace and security in such areas. This section terminates GAO's 
annual reporting after 2020, but also requires reports in 2022 
and 2024.
    Section 3(c) amends the American Taxpayer Relief Act of 
2012 (P.L. 112-240; 126 Stat. 2354) to extend the GAO reporting 
deadline from December 31, 2015 to December 31, 2024 for a 
report on examining the inclusion of oral-only end-stage renal 
disease (ESRD) as they related to Medicare's bundled 
prospective payment system implemented by the Department of 
Health and Human Services (HHS).
    Section 3(d) amends the Public Health Service Act (42 
U.S.C. 280g-15) to transfer from GAO to the Secretary of HHS 
the responsibility to provide information, personnel, and 
administrative assistance for a review panel that consults with 
HHS about the award of grants to states for the development, 
implementation, and evaluation of alternatives to medical tort 
litigation.

                       Explanation of Amendments

    No amendments were offered to H.R. 5687 during Full 
Committee consideration of the bill.

                        Committee Consideration

    On July 12, 2016 the Committee on Oversight and Government 
Reform met in open session and reported favorably the bill, 
H.R. 5687, by voice vote, a quorum being present.

                            Roll Call Votes

    No roll call votes were requested or conducted during Full 
Committee consideration of H.R. 5687.


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill eliminates or modifies certain mandates of the 
Government Accountability Office. As such this bill does not 
relate to employment or access to public services and 
accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of the bill are to eliminate or modify 
certain mandates of the Government Accountability Office.

                    Duplication of Federal Programs

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting this bill does not 
direct the completion of any specific rule makings within the 
meaning of 5 U.S.C. 551.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
this bill. However, clause 3(d)(2)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for this bill from the Director of 
Congressional Budget Office:

                                                     July 28, 2016.
Hon. Jason Chaffetz,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5687, the GAO 
Mandates Revision Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 5687--GAO Mandates Revision Act of 2016

    The Congress often requires that the Government 
Accountability Office (GAO) perform an annual examination of a 
program, agency, or other federal activity. H.R. 5687 would 
modify or repeal nine of those activities.
    Based on information from GAO, CBO estimates that 
implementing the legislation would reduce discretionary costs 
by about $1 million over the 2017-2021 period; such reductions 
would be subject to future appropriations actions consistent 
with the provisions of this bill. GAO has an annual budget of 
more than $500 million and prepares hundreds of products for 
the Congress each year. CBO expects that implementing H.R. 5687 
would not have a significant effect on the agency's overall 
workload.
    Enacting H.R. 5687 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply. CBO 
estimates that enacting H.R. 5687 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2027.
    H.R. 5687 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    On June 22, 2016, CBO transmitted a cost estimate for S. 
2964, the GAO Mandates Revision Act of 2016, as ordered 
reported by the Senate Committee on Homeland Security and 
Governmental Affairs on May 25, 2016. The two pieces of 
legislation are similar, and CBO's estimates of their budgetary 
effects are the same.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION

           *       *       *       *       *       *       *


               CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS

Sec.
7501. Definitions.
     * * * * * * *
[7506. Monitoring responsibilities of the Comptroller General.
[7507. Effective date.]
7506. Effective date.

           *       *       *       *       *       *       *


[Sec. 7506. Monitoring responsibilities of the Comptroller General

  [(a) The Comptroller General shall review provisions 
requiring financial audits of non-Federal entities that receive 
Federal awards that are contained in bills and resolutions 
reported by the committees of the Senate and the House of 
Representatives.
  [(b) If the Comptroller General determines that a bill or 
resolution contains provisions that are inconsistent with the 
requirements of this chapter, the Comptroller General shall, at 
the earliest practicable date, notify in writing--
          [(1) the committee that reported such bill or 
        resolution; and
          [(2)(A) the Committee on Governmental Affairs of the 
        Senate (in the case of a bill or resolution reported by 
        a committee of the Senate); or
          [(B) the Committee on Government Reform and Oversight 
        of the House of Representatives (in the case of a bill 
        or resolution reported by a committee of the House of 
        Representatives).]

Sec. [7507.]  7506. Effective date

  This chapter shall apply to any non-Federal entity with 
respect to any of its fiscal years which begin after June 30, 
1996.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 111 OF THE MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT 
                       AND PROTECTION ACT OF 2000

SEC. 111. ACCELERATION OF REDUCTION OF BENEFICIARY COPAYMENT FOR 
                    HOSPITAL OUTPATIENT DEPARTMENT SERVICES.

  (a) Reducing the Upper Limit on Beneficiary Copayment.--
          (1) In general.--[omitted--amended other Act]
          (2) Effective date.--The amendment made by paragraph 
        (1) shall apply with respect to services furnished on 
        or after April 1, 2001.
  (b) Construction Regarding Limiting Increases in Cost-
Sharing.--Nothing in this Act or the Social Security Act shall 
be construed as preventing a hospital from waiving the amount 
of any coinsurance for outpatient hospital services under the 
medicare program under title XVIII of the Social Security Act 
that may have been increased as a result of the implementation 
of the prospective payment system under section 1833(t) of the 
Social Security Act (42 U.S.C. 1395l(t)).
  [(c) GAO Study of Reduction in Medigap Premium Levels 
Resulting From Reductions in Coinsurance.--The Comptroller 
General of the United States shall work, in concert with the 
National Association of Insurance Commissioners, to evaluate 
the extent to which the premium levels for medicare 
supplemental policies reflect the reductions in coinsurance 
resulting from the amendment made by subsection (a). Not later 
than April 1, 2004, the Comptroller General shall submit to 
Congress a report on such evaluation and the extent to which 
the reductions in beneficiary coinsurance effected by such 
amendment have resulted in actual savings to medicare 
beneficiaries.]
                              ----------                              


SANDY RECOVERY IMPROVEMENT ACT OF 2013

           *       *       *       *       *       *       *


DIVISION B--SANDY RECOVERY IMPROVEMENT ACT OF 2013

           *       *       *       *       *       *       *


  Sec. 1105. DISPUTE RESOLUTION PILOT PROGRAM.
  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Administrator.--The term ``Administrator'' means 
        the Administrator of the Federal Emergency Management 
        Agency.
          (2) Eligible assistance.--The term ``eligible 
        assistance'' means assistance--
                  (A) under section 403, 406, or 407 of the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5170b, 
                5172, 5173);
                  (B) for which the legitimate amount in 
                dispute is not less than $1,000,000, which sum 
                the Administrator shall adjust annually to 
                reflect changes in the Consumer Price Index for 
                all Urban Consumers published by the Department 
                of Labor;
                  (C) for which the applicant has a non-Federal 
                share; and
                  (D) for which the applicant has received a 
                decision on a first appeal.
  (b) Procedures.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of this section, and in order to 
        facilitate an efficient recovery from major disasters, 
        the Administrator shall establish procedures under 
        which an applicant may request the use of alternative 
        dispute resolution, including arbitration by an 
        independent review panel, to resolve disputes relating 
        to eligible assistance.
          (2) Binding effect.--A decision by an independent 
        review panel under this section shall be binding upon 
        the parties to the dispute.
          (3) Considerations.--The procedures established under 
        this section shall--
                  (A) allow a party of a dispute relating to 
                eligible assistance to request an independent 
                review panel for the review;
                  (B) require a party requesting an independent 
                review panel as described in subparagraph (A) 
                to agree to forgo rights to any further appeal 
                of the dispute relating to any eligible 
                assistance;
                  (C) require that the sponsor of an 
                independent review panel for any alternative 
                dispute resolution under this section be--
                          (i) an individual or entity 
                        unaffiliated with the dispute (which 
                        may include a Federal agency, an 
                        administrative law judge, or a 
                        reemployed annuitant who was an 
                        employee of the Federal Government) 
                        selected by the Administrator; and
                          (ii) responsible for identifying and 
                        maintaining an adequate number of 
                        independent experts qualified to review 
                        and resolve disputes under this 
                        section;
                  (D) require an independent review panel to--
                          (i) resolve any remaining disputed 
                        issue in accordance with all applicable 
                        laws, regulations, and Agency 
                        interpretations of those laws through 
                        its published policies and guidance;
                          (ii) consider only evidence contained 
                        in the administrative record, as it 
                        existed at the time at which the Agency 
                        made its initial decision;
                          (iii) only set aside a decision of 
                        the Agency found to be arbitrary, 
                        capricious, an abuse of discretion, or 
                        otherwise not in accordance with law; 
                        and
                          (iv) in the case of a finding of 
                        material fact adverse to the claimant 
                        made on first appeal, only set aside or 
                        reverse such finding if the finding is 
                        clearly erroneous;
                  (E) require an independent review panel to 
                expeditiously issue a written decision for any 
                alternative dispute resolution under this 
                section; and
                  (F) direct that if an independent review 
                panel for any alternative dispute resolution 
                under this section determines that the basis 
                upon which a party submits a request for 
                alternative dispute resolution is frivolous, 
                the independent review panel shall direct the 
                party to pay the reasonable costs to the 
                Federal Emergency Management Agency relating to 
                the review by the independent review panel. Any 
                funds received by the Federal Emergency 
                Management Agency under the authority of this 
                section shall be deposited to the credit of the 
                appropriation or appropriations available for 
                the eligible assistance in dispute on the date 
                on which the funds are received.
  (c) Sunset.--A request for review by an independent review 
panel under this section may not be made after December 31, 
2015.
  [(d) Report.--
          [(1) In general.--Not later than 270 days after the 
        termination of authority under this section under 
        subsection (c), the Comptroller General of the United 
        States shall submit to the Committee on Homeland 
        Security and Governmental Affairs of the Senate and the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives a report analyzing the 
        effectiveness of the program under this section.
          [(2) Contents.--The report submitted under paragraph 
        (1) shall include--
                  [(A) a determination of the availability of 
                data required to complete the report;
                  [(B) an assessment of the effectiveness of 
                the program under this section, including an 
                assessment of whether the program expedited or 
                delayed the disaster recovery process;
                  [(C) an assessment of whether the program 
                increased or decreased costs to administer 
                section 403, 406, or 407 of the Robert T. 
                Stafford Disaster Relief and Emergency 
                Assistance Act;
                  [(D) an assessment of the procedures and 
                safeguards that the independent review panels 
                established to ensure objectivity and accuracy, 
                and the extent to which they followed those 
                procedures and safeguards;
                  [(E) a recommendation as to whether any 
                aspect of the program under this section should 
                be made a permanent authority; and
                  [(F) recommendations for any modifications to 
                the authority or the administration of the 
                authority under this section in order to 
                improve the disaster recovery process.]

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 49, UNITED STATES CODE

SUBTITLE I--DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *


CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *


Sec. 114. Transportation Security Administration

  (a) In General.--The Transportation Security Administration 
shall be an administration of the Department of Transportation.
  (b) Under Secretary.--
          (1) Appointment.--The head of the Administration 
        shall be the Under Secretary of Transportation for 
        Security. The Under Secretary shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate.
          (2) Qualifications.--The Under Secretary must--
                  (A) be a citizen of the United States; and
                  (B) have experience in a field directly 
                related to transportation or security.
          (3) Term.--The term of office of an individual 
        appointed as the Under Secretary shall be 5 years.
  (c) Limitation on Ownership of Stocks and Bonds.--The Under 
Secretary may not own stock in or bonds of a transportation or 
security enterprise or an enterprise that makes equipment that 
could be used for security purposes.
  (d) Functions.--The Under Secretary shall be responsible for 
security in all modes of transportation, including--
          (1) carrying out chapter 449, relating to civil 
        aviation security, and related research and development 
        activities; and
          (2) security responsibilities over other modes of 
        transportation that are exercised by the Department of 
        Transportation.
  (e) Screening Operations.--The Under Secretary shall--
          (1) be responsible for day-to-day Federal security 
        screening operations for passenger air transportation 
        and intrastate air transportation under sections 44901 
        and 44935;
          (2) develop standards for the hiring and retention of 
        security screening personnel;
          (3) train and test security screening personnel; and
          (4) be responsible for hiring and training personnel 
        to provide security screening at all airports in the 
        United States where screening is required under section 
        44901, in consultation with the Secretary of 
        Transportation and the heads of other appropriate 
        Federal agencies and departments.
  (f) Additional Duties and Powers.--In addition to carrying 
out the functions specified in subsections (d) and (e), the 
Under Secretary shall--
          (1) receive, assess, and distribute intelligence 
        information related to transportation security;
          (2) assess threats to transportation;
          (3) develop policies, strategies, and plans for 
        dealing with threats to transportation security;
          (4) make other plans related to transportation 
        security, including coordinating countermeasures with 
        appropriate departments, agencies, and 
        instrumentalities of the United States Government;
          (5) serve as the primary liaison for transportation 
        security to the intelligence and law enforcement 
        communities;
          (6) on a day-to-day basis, manage and provide 
        operational guidance to the field security resources of 
        the Administration, including Federal Security Managers 
        as provided by section 44933;
          (7) enforce security-related regulations and 
        requirements;
          (8) identify and undertake research and development 
        activities necessary to enhance transportation 
        security;
          (9) inspect, maintain, and test security facilities, 
        equipment, and systems;
          (10) ensure the adequacy of security measures for the 
        transportation of cargo;
          (11) oversee the implementation, and ensure the 
        adequacy, of security measures at airports and other 
        transportation facilities;
          (12) require background checks for airport security 
        screening personnel, individuals with access to secure 
        areas of airports, and other transportation security 
        personnel;
          (13) work in conjunction with the Administrator of 
        the Federal Aviation Administration with respect to any 
        actions or activities that may affect aviation safety 
        or air carrier operations;
          (14) work with the International Civil Aviation 
        Organization and appropriate aeronautic authorities of 
        foreign governments under section 44907 to address 
        security concerns on passenger flights by foreign air 
        carriers in foreign air transportation; and
          (15) carry out such other duties, and exercise such 
        other powers, relating to transportation security as 
        the Under Secretary considers appropriate, to the 
        extent authorized by law.
  (g) National Emergency Responsibilities.--
          (1) In general.--Subject to the direction and control 
        of the Secretary, the Under Secretary, during a 
        national emergency, shall have the following 
        responsibilities:
                  (A) To coordinate domestic transportation, 
                including aviation, rail, and other surface 
                transportation, and maritime transportation 
                (including port security).
                  (B) To coordinate and oversee the 
                transportation-related responsibilities of 
                other departments and agencies of the Federal 
                Government other than the Department of Defense 
                and the military departments.
                  (C) To coordinate and provide notice to other 
                departments and agencies of the Federal 
                Government, and appropriate agencies of State 
                and local governments, including departments 
                and agencies for transportation, law 
                enforcement, and border control, about threats 
                to transportation.
                  (D) To carry out such other duties, and 
                exercise such other powers, relating to 
                transportation during a national emergency as 
                the Secretary shall prescribe.
          (2) Authority of other departments and agencies.--The 
        authority of the Under Secretary under this subsection 
        shall not supersede the authority of any other 
        department or agency of the Federal Government under 
        law with respect to transportation or transportation-
        related matters, whether or not during a national 
        emergency.
          (3) Circumstances.--The Secretary shall prescribe the 
        circumstances constituting a national emergency for 
        purposes of this subsection.
  (h) Management of Security Information.--In consultation with 
the Transportation Security Oversight Board, the Under 
Secretary shall--
          (1) enter into memoranda of understanding with 
        Federal agencies or other entities to share or 
        otherwise cross-check as necessary data on individuals 
        identified on Federal agency databases who may pose a 
        risk to transportation or national security;
          (2) establish procedures for notifying the 
        Administrator of the Federal Aviation Administration, 
        appropriate State and local law enforcement officials, 
        and airport or airline security officers of the 
        identity of individuals known to pose, or suspected of 
        posing, a risk of air piracy or terrorism or a threat 
        to airline or passenger safety;
          (3) in consultation with other appropriate Federal 
        agencies and air carriers, establish policies and 
        procedures requiring air carriers--
                  (A) to use information from government 
                agencies to identify individuals on passenger 
                lists who may be a threat to civil aviation or 
                national security; and
                  (B) if such an individual is identified, 
                notify appropriate law enforcement agencies, 
                prevent the individual from boarding an 
                aircraft, or take other appropriate action with 
                respect to that individual; and
          (4) consider requiring passenger air carriers to 
        share passenger lists with appropriate Federal agencies 
        for the purpose of identifying individuals who may pose 
        a threat to aviation safety or national security.
  (i) View of NTSB.--In taking any action under this section 
that could affect safety, the Under Secretary shall give great 
weight to the timely views of the National Transportation 
Safety Board.
  (j) Acquisitions.--
          (1) In general.--The Under Secretary is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise) such real property, 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                  (B) to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain such personal 
                property (including office space and patents), 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                  (C) to lease to others such real and personal 
                property and to provide by contract or 
                otherwise for necessary facilities for the 
                welfare of its employees and to acquire, 
                maintain, and operate equipment for these 
                facilities;
                  (D) to acquire services, including such 
                personal services as the Secretary determines 
                necessary, and to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain research and 
                testing sites and facilities; and
                  (E) in cooperation with the Administrator of 
                the Federal Aviation Administration, to utilize 
                the research and development facilities of the 
                Federal Aviation Administration.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (k) Transfers of Funds.--The Under Secretary is authorized to 
accept transfers of unobligated balances and unexpended 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions transferred, on or after the date of enactment of the 
Aviation and Transportation Security Act, by law to the Under 
Secretary.
  (l) Regulations.--
          (1) In general.--The Under Secretary is authorized to 
        issue, rescind, and revise such regulations as are 
        necessary to carry out the functions of the 
        Administration.
          (2) Emergency procedures.--
                  (A) In general.--Notwithstanding any other 
                provision of law or executive order (including 
                an executive order requiring a cost-benefit 
                analysis), if the Under Secretary determines 
                that a regulation or security directive must be 
                issued immediately in order to protect 
                transportation security, the Under Secretary 
                shall issue the regulation or security 
                directive without providing notice or an 
                opportunity for comment and without prior 
                approval of the Secretary.
                  (B) Review by transportation security 
                oversight board.--Any regulation or security 
                directive issued under this paragraph shall be 
                subject to review by the Transportation 
                Security Oversight Board established under 
                section 115. Any regulation or security 
                directive issued under this paragraph shall 
                remain effective for a period not to exceed 90 
                days unless ratified or disapproved by the 
                Board or rescinded by the Under Secretary.
          (3) Factors to consider.--In determining whether to 
        issue, rescind, or revise a regulation under this 
        section, the Under Secretary shall consider, as a 
        factor in the final determination, whether the costs of 
        the regulation are excessive in relation to the 
        enhancement of security the regulation will provide. 
        The Under Secretary may waive requirements for an 
        analysis that estimates the number of lives that will 
        be saved by the regulation and the monetary value of 
        such lives if the Under Secretary determines that it is 
        not feasible to make such an estimate.
          (4) Airworthiness objections by faa.--
                  (A) In general.--The Under Secretary shall 
                not take an aviation security action under this 
                title if the Administrator of the Federal 
                Aviation Administration notifies the Under 
                Secretary that the action could adversely 
                affect the airworthiness of an aircraft.
                  (B) Review by secretary.--Notwithstanding 
                subparagraph (A), the Under Secretary may take 
                such an action, after receiving a notification 
                concerning the action from the Administrator 
                under subparagraph (A), if the Secretary of 
                Transportation subsequently approves the 
                action.
  (m) Personnel and Services; Cooperation by Under Secretary.--
          (1) Authority of under secretary.--In carrying out 
        the functions of the Administration, the Under 
        Secretary shall have the same authority as is provided 
        to the Administrator of the Federal Aviation 
        Administration under subsections (l) and (m) of section 
        106.
          (2) Authority of agency heads.--The head of a Federal 
        agency shall have the same authority to provide 
        services, supplies, equipment, personnel, and 
        facilities to the Under Secretary as the head has to 
        provide services, supplies, equipment, personnel, and 
        facilities to the Administrator of the Federal Aviation 
        Administration under section 106(m).
  (n) Personnel Management System.--The personnel management 
system established by the Administrator of the Federal Aviation 
Administration under section 40122 shall apply to employees of 
the Transportation Security Administration, or, subject to the 
requirements of such section, the Under Secretary may make such 
modifications to the personnel management system with respect 
to such employees as the Under Secretary considers appropriate, 
such as adopting aspects of other personnel systems of the 
Department of Transportation.
  (o) Authority of Inspector General.--The Transportation 
Security Administration shall be subject to the Inspector 
General Act of 1978 (5 U.S.C. App.) and other laws relating to 
the authority of the Inspector General of the Department of 
Transportation.
  (p) Law Enforcement Powers.--
          (1) In general.--The Under Secretary may designate an 
        employee of the Transportation Security Administration 
        or other Federal agency to serve as a law enforcement 
        officer.
          (2) Powers.--While engaged in official duties of the 
        Administration as required to fulfill the 
        responsibilities under this section, a law enforcement 
        officer designated under paragraph (1) may--
                  (A) carry a firearm;
                  (B) make an arrest without a warrant for any 
                offense against the United States committed in 
                the presence of the officer, or for any felony 
                cognizable under the laws of the United States 
                if the officer has probable cause to believe 
                that the person to be arrested has committed or 
                is committing the felony; and
                  (C) seek and execute warrants for arrest or 
                seizure of evidence issued under the authority 
                of the United States upon probable cause that a 
                violation has been committed.
          (3) Guidelines on exercise of authority.--The 
        authority provided by this subsection shall be 
        exercised in accordance with guidelines prescribed by 
        the Under Secretary, in consultation with the Attorney 
        General of the United States, and shall include 
        adherence to the Attorney General's policy on use of 
        deadly force.
          (4) Revocation or suspension of authority.--The 
        powers authorized by this subsection may be rescinded 
        or suspended should the Attorney General determine that 
        the Under Secretary has not complied with the 
        guidelines prescribed in paragraph (3) and conveys the 
        determination in writing to the Secretary of 
        Transportation and the Under Secretary.
  (q) Authority To Exempt.--The Under Secretary may grant an 
exemption from a regulation prescribed in carrying out this 
section if the Under Secretary determines that the exemption is 
in the public interest.
  (r) Nondisclosure of Security Activities.--
          (1) In general.--Notwithstanding section 552 of title 
        5, the Under Secretary shall prescribe regulations 
        prohibiting the disclosure of information obtained or 
        developed in carrying out security under authority of 
        the Aviation and Transportation Security Act (Public 
        Law 107-71) or under chapter 449 of this title if the 
        Under Secretary decides that disclosing the information 
        would--
                  (A) be an unwarranted invasion of personal 
                privacy;
                  (B) reveal a trade secret or privileged or 
                confidential commercial or financial 
                information; or
                  (C) be detrimental to the security of 
                transportation.
          (2) Availability of information to congress.--
        Paragraph (1) does not authorize information to be 
        withheld from a committee of Congress authorized to 
        have the information.
          (3) Limitation on transferability of duties.--Except 
        as otherwise provided by law, the Under Secretary may 
        not transfer a duty or power under this subsection to 
        another department, agency, or instrumentality of the 
        United States.
          (4) Limitations.--Nothing in this subsection, or any 
        other provision of law, shall be construed to authorize 
        the designation of information as sensitive security 
        information (as defined in section 1520.5 of title 49, 
        Code of Federal Regulations)--
                  (A) to conceal a violation of law, 
                inefficiency, or administrative error;
                  (B) to prevent embarrassment to a person, 
                organization, or agency;
                  (C) to restrain competition; or
                  (D) to prevent or delay the release of 
                information that does not require protection in 
                the interest of transportation security, 
                including basic scientific research information 
                not clearly related to transportation security.
  (s) Transportation Security Strategic Planning.--
          (1) In general.--The Secretary of Homeland Security 
        shall develop, prepare, implement, and update, as 
        needed--
                  (A) a National Strategy for Transportation 
                Security; and
                  (B) transportation modal security plans 
                addressing security risks, including threats, 
                vulnerabilities, and consequences, for 
                aviation, railroad, ferry, highway, maritime, 
                pipeline, public transportation, over-the-road 
                bus, and other transportation infrastructure 
                assets.
          (2) Role of secretary of transportation.--The 
        Secretary of Homeland Security shall work jointly with 
        the Secretary of Transportation in developing, 
        revising, and updating the documents required by 
        paragraph (1).
          (3) Contents of national strategy for transportation 
        security.--The National Strategy for Transportation 
        Security shall include the following:
                  (A) An identification and evaluation of the 
                transportation assets in the United States 
                that, in the interests of national security and 
                commerce, must be protected from attack or 
                disruption by terrorist or other hostile 
                forces, including modal security plans for 
                aviation, bridge and tunnel, commuter rail and 
                ferry, highway, maritime, pipeline, rail, mass 
                transit, over-the-road bus, and other public 
                transportation infrastructure assets that could 
                be at risk of such an attack or disruption.
                  (B) The development of risk-based priorities, 
                based on risk assessments conducted or received 
                by the Secretary of Homeland Security 
                (including assessments conducted under the 
                Implementing Recommendations of the 9/11 
                Commission Act of 2007 across all 
                transportation modes and realistic deadlines 
                for addressing security needs associated with 
                those assets referred to in subparagraph (A).
                  (C) The most appropriate, practical, and 
                cost-effective means of defending those assets 
                against threats to their security.
                  (D) A forward-looking strategic plan that 
                sets forth the agreed upon roles and missions 
                of Federal, State, regional, local, and tribal 
                authorities and establishes mechanisms for 
                encouraging cooperation and participation by 
                private sector entities, including nonprofit 
                employee labor organizations, in the 
                implementation of such plan.
                  (E) A comprehensive delineation of 
                prevention, response, and recovery 
                responsibilities and issues regarding 
                threatened and executed acts of terrorism 
                within the United States and threatened and 
                executed acts of terrorism outside the United 
                States to the extent such acts affect United 
                States transportation systems.
                  (F) A prioritization of research and 
                development objectives that support 
                transportation security needs, giving a higher 
                priority to research and development directed 
                toward protecting vital transportation assets. 
                Transportation security research and 
                development projects shall be based, to the 
                extent practicable, on such prioritization. 
                Nothing in the preceding sentence shall be 
                construed to require the termination of any 
                research or development project initiated by 
                the Secretary of Homeland Security or the 
                Secretary of Transportation before the date of 
                enactment of the Implementing Recommendations 
                of the 9/11 Commission Act of 2007.
                  (G) A 3- and 10-year budget for Federal 
                transportation security programs that will 
                achieve the priorities of the National Strategy 
                for Transportation Security.
                  (H) Methods for linking the individual 
                transportation modal security plans and the 
                programs contained therein, and a plan for 
                addressing the security needs of intermodal 
                transportation.
                  (I) Transportation modal security plans 
                described in paragraph (1)(B), including 
                operational recovery plans to expedite, to the 
                maximum extent practicable, the return to 
                operation of an adversely affected 
                transportation system following a major 
                terrorist attack on that system or other 
                incident. These plans shall be coordinated with 
                the resumption of trade protocols required 
                under section 202 of the SAFE Port Act (6 
                U.S.C. 942) and the National Maritime 
                Transportation Security Plan required under 
                section 70103(a) of title 46.
          (4) Submissions of plans to congress.--
                  (A) Initial strategy.--The Secretary of 
                Homeland Security shall submit the National 
                Strategy for Transportation Security, including 
                the transportation modal security plans, 
                developed under this subsection to the 
                appropriate congressional committees not later 
                than April 1, 2005.
                  (B) Subsequent versions.--After December 31, 
                2005, the Secretary of Homeland Security shall 
                submit the National Strategy for Transportation 
                Security, including the transportation modal 
                security plans and any revisions to the 
                National Strategy for Transportation Security 
                and the transportation modal security plans, to 
                appropriate congressional committees not less 
                frequently than April 1 of each even-numbered 
                year.
                  (C) Periodic progress report.--
                          (i) Requirement for report.--Each 
                        year, in conjunction with the 
                        submission of the budget to Congress 
                        under section 1105(a) of title 31, 
                        United States Code, the Secretary of 
                        Homeland Security shall submit to the 
                        appropriate congressional committees an 
                        assessment of the progress made on 
                        implementing the National Strategy for 
                        Transportation Security, including the 
                        transportation modal security plans.
                          (ii) Content.--Each progress report 
                        submitted under this subparagraph shall 
                        include, at a minimum, the following:
                                  (I) Recommendations for 
                                improving and implementing the 
                                National Strategy for 
                                Transportation Security and the 
                                transportation modal and 
                                intermodal security plans that 
                                the Secretary of Homeland 
                                Security, in consultation with 
                                the Secretary of 
                                Transportation, considers 
                                appropriate.
                                  (II) An accounting of all 
                                grants for transportation 
                                security, including grants and 
                                contracts for research and 
                                development, awarded by the 
                                Secretary of Homeland Security 
                                in the most recent fiscal year 
                                and a description of how such 
                                grants accomplished the goals 
                                of the National Strategy for 
                                Transportation Security.
                                  (III) An accounting of all--
                                          (aa) funds requested 
                                        in the President's 
                                        budget submitted 
                                        pursuant to section 
                                        1105 of title 31 for 
                                        the most recent fiscal 
                                        year for transportation 
                                        security, by mode;
                                          (bb) personnel 
                                        working on 
                                        transportation security 
                                        by mode, including the 
                                        number of contractors; 
                                        and
                                          (cc) information on 
                                        the turnover in the 
                                        previous year among 
                                        senior staff of the 
                                        Department of Homeland 
                                        Security, including 
                                        component agencies, 
                                        working on 
                                        transportation security 
                                        issues. Such 
                                        information shall 
                                        include the number of 
                                        employees who have 
                                        permanently left the 
                                        office, agency, or area 
                                        in which they worked, 
                                        and the amount of time 
                                        that they worked for 
                                        the Department.
                          (iii) Written explanation of 
                        transportation security activities not 
                        delineated in the national strategy for 
                        transportation security.--At the end of 
                        each fiscal year, the Secretary of 
                        Homeland Security shall submit to the 
                        appropriate congressional committees a 
                        written explanation of any Federal 
                        transportation security activity that 
                        is inconsistent with the National 
                        Strategy for Transportation Security, 
                        including the amount of funds to be 
                        expended for the activity and the 
                        number of personnel involved.
                  (D) Classified material.--Any part of the 
                National Strategy for Transportation Security 
                or the transportation modal security plans that 
                involve information that is properly classified 
                under criteria established by Executive order 
                shall be submitted to the appropriate 
                congressional committees separately in a 
                classified format.
                  (E) Appropriate congressional committees 
                defined.--In this subsection, the term 
                ``appropriate congressional committees'' means 
                the Committee on Transportation and 
                Infrastructure and the Committee on Homeland 
                Security of the House of Representatives and 
                the Committee on Commerce, Science, and 
                Transportation, the Committee on Homeland 
                Security and Governmental Affairs, and the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate.
          (5) Priority Status.--
                  (A) In general.--The National Strategy for 
                Transportation Security shall be the governing 
                document for Federal transportation security 
                efforts.
                  (B) Other plans and reports.--The National 
                Strategy for Transportation Security shall 
                include, as an integral part or as an 
                appendix--
                          (i) the current National Maritime 
                        Transportation Security Plan under 
                        section 70103 of title 46;
                          (ii) the report required by section 
                        44938 of this title;
                          (iii) transportation modal security 
                        plans required under this section;
                          (iv) the transportation sector 
                        specific plan required under Homeland 
                        Security Presidential Directive-7; and
                          (v) any other transportation security 
                        plan or report that the Secretary of 
                        Homeland Security determines 
                        appropriate for inclusion.
          (6) Coordination.--In carrying out the 
        responsibilities under this section, the Secretary of 
        Homeland Security, in coordination with the Secretary 
        of Transportation, shall consult, as appropriate, with 
        Federal, State, and local agencies, tribal governments, 
        private sector entities (including nonprofit employee 
        labor organizations), institutions of higher learning, 
        and other entities.
          (7) Plan distribution.--The Secretary of Homeland 
        Security shall make available and appropriately 
        publicize an unclassified version of the National 
        Strategy for Transportation Security, including its 
        component transportation modal security plans, to 
        Federal, State, regional, local and tribal authorities, 
        transportation system owners or operators, private 
        sector stakeholders, including nonprofit employee labor 
        organizations representing transportation employees, 
        institutions of higher learning, and other appropriate 
        entities.
  (u)  Transportation Security Information Sharing Plan.--
          (1) Definitions.--In this subsection:
                  (A) Appropriate congressional committees.--
                The term ``appropriate congressional 
                committees'' has the meaning given that term in 
                [subsection (t)] subsection (s)(4)(E).
                  (B) Plan.--The term ``Plan'' means the 
                Transportation Security Information Sharing 
                Plan established under paragraph (2).
                  (C) Public and private stakeholders.--The 
                term ``public and private stakeholders'' means 
                Federal, State, and local agencies, tribal 
                governments, and appropriate private entities, 
                including nonprofit employee labor 
                organizations representing transportation 
                employees.
                  (D) Secretary.--The term ``Secretary'' means 
                the Secretary of Homeland Security.
                  (E) Transportation security information.--The 
                term ``transportation security information'' 
                means information relating to the risks to 
                transportation modes, including aviation, 
                public transportation, railroad, ferry, 
                highway, maritime, pipeline, and over-the-road 
                bus transportation, and may include specific 
                and general intelligence products, as 
                appropriate.
          (2) Establishment of plan.--The Secretary of Homeland 
        Security, in consultation with the program manager of 
        the information sharing environment established under 
        section 1016 of the Intelligence Reform and Terrorism 
        Prevention Act of 2004 (6 U.S.C. 485), the Secretary of 
        Transportation, and public and private stakeholders, 
        shall establish a Transportation Security Information 
        Sharing Plan. In establishing the Plan, the Secretary 
        shall gather input on the development of the Plan from 
        private and public stakeholders and the program manager 
        of the information sharing environment established 
        under section 1016 of the Intelligence Reform and 
        Terrorism Prevention Act of 2004 (6 U.S.C. 485).
          (3) Purpose of plan.--The Plan shall promote sharing 
        of transportation security information between the 
        Department of Homeland Security and public and private 
        stakeholders.
          (4) Content of plan.--The Plan shall include--
                  (A) a description of how intelligence 
                analysts within the Department of Homeland 
                Security will coordinate their activities 
                within the Department and with other Federal, 
                State, and local agencies, and tribal 
                governments, including coordination with 
                existing modal information sharing centers and 
                the center described in section 1410 of the 
                Implementing Recommendations of the 9/11 
                Commission Act of 2007;
                  (B) the establishment of a point of contact, 
                which may be a single point of contact within 
                the Department of Homeland Security, for each 
                mode of transportation for the sharing of 
                transportation security information with public 
                and private stakeholders, including an 
                explanation and justification to the 
                appropriate congressional committees if the 
                point of contact established pursuant to this 
                subparagraph differs from the agency within the 
                Department that has the primary authority, or 
                has been delegated such authority by the 
                Secretary, to regulate the security of that 
                transportation mode;
                  (C) a reasonable deadline by which the Plan 
                will be implemented; and
                  (D) a description of resource needs for 
                fulfilling the Plan.
          (5) Coordination with information sharing.--The Plan 
        shall be--
                  (A) implemented in coordination, as 
                appropriate, with the program manager for the 
                information sharing environment established 
                under section 1016 of the Intelligence Reform 
                and Terrorism Prevention Act of 2004 (6 U.S.C. 
                485); and
                  (B) consistent with the establishment of the 
                information sharing environment and any 
                policies, guidelines, procedures, instructions, 
                or standards established by the President or 
                the program manager for the implementation and 
                management of the information sharing 
                environment.
          (6) Reports to congress.--
                  (A) In general.--Not later than 150 days 
                after the date of enactment of this subsection, 
                and annually thereafter, the Secretary shall 
                submit to the appropriate congressional 
                committees, a report containing the Plan.
                  (B) Annual report.--Not later than 1 year 
                after the date of enactment of this subsection, 
                the Secretary shall submit to the appropriate 
                congressional committees a report on updates to 
                and the implementation of the Plan.
          [(7) Survey and report.--
                  [(A) In general.--The Comptroller General of 
                the United States shall conduct a biennial 
                survey of the satisfaction of recipients of 
                transportation intelligence reports 
                disseminated under the Plan.
                  [(B) Information sought.--The survey 
                conducted under subparagraph (A) shall seek 
                information about the quality, speed, 
                regularity, and classification of the 
                transportation security information products 
                disseminated by the Department of Homeland 
                Security to public and private stakeholders.
                  [(C) Report.--Not later than 1 year after the 
                date of the enactment of the Implementing 
                Recommendations of the 9/11 Commission Act of 
                2007, and every even numbered year thereafter, 
                the Comptroller General shall submit to the 
                appropriate congressional committees, a report 
                on the results of the survey conducted under 
                subparagraph (A). The Comptroller General shall 
                also provide a copy of the report to the 
                Secretary.]
          [(8)] (7) Security clearances.--The Secretary shall, 
        to the greatest extent practicable, take steps to 
        expedite the security clearances needed for designated 
        public and private stakeholders to receive and obtain 
        access to classified information distributed under this 
        section, as appropriate.
          [(9)] (8) Classification of material.--The Secretary, 
        to the greatest extent practicable, shall provide 
        designated public and private stakeholders with 
        transportation security information in an unclassified 
        format.
  (v) Enforcement of Regulations and Orders of the Secretary of 
Homeland Security.--
          (1) Application of subsection.--
                  (A) In general.--This subsection applies to 
                the enforcement of regulations prescribed, and 
                orders issued, by the Secretary of Homeland 
                Security under a provision of chapter 701 of 
                title 46 and under a provision of this title 
                other than a provision of chapter 449 (in this 
                subsection referred to as an ``applicable 
                provision of this title'').
                  (B) Violations of chapter 449.--The penalties 
                for violations of regulations prescribed and 
                orders issued by the Secretary of Homeland 
                Security under chapter 449 of this title are 
                provided under chapter 463 of this title.
                  (C) Nonapplication to certain violations.--
                          (i) Paragraphs (2) through (5) do not 
                        apply to violations of regulations 
                        prescribed, and orders issued, by the 
                        Secretary of Homeland Security under a 
                        provision of this title--
                                  (I) involving the 
                                transportation of personnel or 
                                shipments of materials by 
                                contractors where the 
                                Department of Defense has 
                                assumed control and 
                                responsibility;
                                  (II) by a member of the armed 
                                forces of the United States 
                                when performing official 
                                duties; or
                                  (III) by a civilian employee 
                                of the Department of Defense 
                                when performing official 
                                duties.
                          (ii) Violations described in 
                        subclause (I), (II), or (III) of clause 
                        (i) shall be subject to penalties as 
                        determined by the Secretary of Defense 
                        or the Secretary's designee.
          (2) Civil penalty.--
                  (A) In general.--A person is liable to the 
                United States Government for a civil penalty of 
                not more than $10,000 for a violation of a 
                regulation prescribed, or order issued, by the 
                Secretary of Homeland Security under an 
                applicable provision of this title.
                  (B) Repeat violations.--A separate violation 
                occurs under this paragraph for each day the 
                violation continues.
          (3) Administrative imposition of civil penalties.--
                  (A) In general.--The Secretary of Homeland 
                Security may impose a civil penalty for a 
                violation of a regulation prescribed, or order 
                issued, under an applicable provision of this 
                title. The Secretary shall give written notice 
                of the finding of a violation and the penalty.
                  (B) Scope of civil action.--In a civil action 
                to collect a civil penalty imposed by the 
                Secretary under this subsection, a court may 
                not re-examine issues of liability or the 
                amount of the penalty.
                  (C) Jurisdiction.--The district courts of the 
                United States shall have exclusive jurisdiction 
                of civil actions to collect a civil penalty 
                imposed by the Secretary under this subsection 
                if--
                          (i) the amount in controversy is more 
                        than--
                                  (I) $400,000, if the 
                                violation was committed by a 
                                person other than an individual 
                                or small business concern; or
                                  (II) $50,000 if the violation 
                                was committed by an individual 
                                or small business concern;
                          (ii) the action is in rem or another 
                        action in rem based on the same 
                        violation has been brought; or
                          (iii) another action has been brought 
                        for an injunction based on the same 
                        violation.
                  (D) Maximum penalty.--The maximum civil 
                penalty the Secretary administratively may 
                impose under this paragraph is--
                          (i) $400,000, if the violation was 
                        committed by a person other than an 
                        individual or small business concern; 
                        or
                          (ii) $50,000, if the violation was 
                        committed by an individual or small 
                        business concern.
                  (E) Notice and opportunity to request 
                hearing.--Before imposing a penalty under this 
                section the Secretary shall provide to the 
                person against whom the penalty is to be 
                imposed--
                          (i) written notice of the proposed 
                        penalty; and
                          (ii) the opportunity to request a 
                        hearing on the proposed penalty, if the 
                        Secretary receives the request not 
                        later than 30 days after the date on 
                        which the person receives notice.
          (4) Compromise and setoff.--
                  (A) The Secretary may compromise the amount 
                of a civil penalty imposed under this 
                subsection.
                  (B) The Government may deduct the amount of a 
                civil penalty imposed or compromised under this 
                subsection from amounts it owes the person 
                liable for the penalty.
          (5) Investigations and proceedings.--Chapter 461 
        shall apply to investigations and proceedings brought 
        under this subsection to the same extent that it 
        applies to investigations and proceedings brought with 
        respect to aviation security duties designated to be 
        carried out by the Secretary.
          (6) Definitions.--In this subsection:
                  (A) Person.--The term ``person'' does not 
                include--
                          (i) the United States Postal Service; 
                        or
                          (ii) the Department of Defense.
                  (B) Small business concern.--The term ``small 
                business concern'' has the meaning given that 
                term in section 3 of the Small Business Act (15 
                U.S.C. 632).
          (7) Enforcement transparency.--
                  (A) In general.--Not later than December 31, 
                2008, and annually thereafter, the Secretary 
                shall--
                          (i) provide an annual summary to the 
                        public of all enforcement actions taken 
                        by the Secretary under this subsection; 
                        and
                          (ii) include in each such summary the 
                        docket number of each enforcement 
                        action, the type of alleged violation, 
                        the penalty or penalties proposed, and 
                        the final assessment amount of each 
                        penalty.
                  (B) Electronic availability.--Each summary 
                under this paragraph shall be made available to 
                the public by electronic means.
                  (C) Relationship to the freedom of 
                information act and the privacy act.--Nothing 
                in this subsection shall be construed to 
                require disclosure of information or records 
                that are exempt from disclosure under sections 
                552 or 552a of title 5.
                  (D) Enforcement guidance.--Not later than 180 
                days after the enactment of the Implementing 
                Recommendations of the 9/11 Commission Act of 
                2007, the Secretary shall provide a report to 
                the public describing the enforcement process 
                established under this subsection.
  (w) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Homeland Security for--
          (1) railroad security--
                  (A) $488,000,000 for fiscal year 2008;
                  (B) $483,000,000 for fiscal year 2009;
                  (C) $508,000,000 for fiscal year 2010; and
                  (D) $508,000,000 for fiscal year 2011;
          (2) over-the-road bus and trucking security--
                  (A) $14,000,000 for fiscal year 2008;
                  (B) $27,000,000 for fiscal year 2009;
                  (C) $27,000,000 for fiscal year 2010; and
                  (D) $27,000,000 for fiscal year 2011; and
          (3) hazardous material and pipeline security--
                  (A) $12,000,000 for fiscal year 2008;
                  (B) $12,000,000 for fiscal year 2009; and
                  (C) $12,000,000 for fiscal year 2010.

           *       *       *       *       *       *       *

                              ----------                              


EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

           *       *       *       *       *       *       *


DIVISION A--EMERGENCY ECONOMIC STABILIZATION

           *       *       *       *       *       *       *


TITLE I--TROUBLED ASSETS RELIEF PROGRAM

           *       *       *       *       *       *       *


SEC. 116. OVERSIGHT AND AUDITS.

  (a) Comptroller General Oversight.--
          (1) Scope of oversight.--The Comptroller General of 
        the United States shall, upon establishment of the 
        troubled assets relief program under this Act (in this 
        section referred to as the ``TARP''), commence ongoing 
        oversight of the activities and performance of the TARP 
        and of any agents and representatives of the TARP (as 
        related to the agent or representative's activities on 
        behalf of or under the authority of the TARP), 
        including vehicles established by the Secretary under 
        this Act. The subjects of such oversight shall include 
        the following:
                  (A) The performance of the TARP in meeting 
                the purposes of this Act, particularly those 
                involving--
                          (i) foreclosure mitigation;
                          (ii) cost reduction;
                          (iii) whether it has provided 
                        stability or prevented disruption to 
                        the financial markets or the banking 
                        system;
                          (iv) whether it has protected 
                        taxpayers; and
                          (v) public accountability for the 
                        exercise of such authority, including 
                        with respect to actions taken by those 
                        entities participating in programs 
                        established under this Act.
                  (B) The financial condition and internal 
                controls of the TARP, its representatives and 
                agents.
                  (C) Characteristics of transactions and 
                commitments entered into, including transaction 
                type, frequency, size, prices paid, and all 
                other relevant terms and conditions, and the 
                timing, duration and terms of any future 
                commitments to purchase assets.
                  (D) Characteristics and disposition of 
                acquired assets, including type, acquisition 
                price, current market value, sale prices and 
                terms, and use of proceeds from sales.
                  (E) Efficiency of the operations of the TARP 
                in the use of appropriated funds.
                  (F) Compliance with all applicable laws and 
                regulations by the TARP, its agents and 
                representatives.
                  (G) The efforts of the TARP to prevent, 
                identify, and minimize conflicts of interest 
                involving any agent or representative 
                performing activities on behalf of or under the 
                authority of the TARP.
                  (H) The efficacy of contracting procedures 
                pursuant to section 107(b), including, as 
                applicable, the efforts of the TARP in 
                evaluating proposals for inclusion and 
                contracting to the maximum extent possible of 
                minorities (as such term is defined in 1204(c) 
                of the Financial Institutions Reform, Recovery, 
                and Enhancement Act of 1989 (12 U.S.C. 1811 
                note), women, and minority- and women-owned 
                businesses, including ascertaining and 
                reporting the total amount of fees paid and 
                other value delivered by the TARP to all of its 
                agents and representatives, and such amounts 
                paid or delivered to such firms that are 
                minority- and women-owned businesses (as such 
                terms are defined in section 21A of the Federal 
                Home Loan Bank Act (12 U.S.C. 1441a)).
          (2) Conduct and administration of oversight.--
                  (A) Definition.--In this paragraph, the term 
                ``governmental unit'' has the meaning given 
                under section 101(27) of title 11, United 
                States Code, and does not include any insured 
                depository institution as defined under section 
                3 of the Federal Deposit Insurance Act (12 
                U.S.C. 8113).
                  (B) GAO presence.--The Secretary shall 
                provide the Comptroller General with 
                appropriate space and facilities in the 
                Department of the Treasury as necessary to 
                facilitate oversight of the TARP until the 
                termination date established in section 5230 of 
                this title.
                  (C) Access to records.--
                          (i) In general.--Notwithstanding any 
                        other provision of law, and for 
                        purposes of reviewing the performance 
                        of the TARP, the Comptroller General 
                        shall have access, upon request, to any 
                        information, data, schedules, books, 
                        accounts, financial records, reports, 
                        files, electronic communications, or 
                        other papers, things, or property 
                        belonging to or in use by the TARP, any 
                        entity established by the Secretary 
                        under this Act, any entity that is 
                        established by a Federal reserve bank 
                        and receives funding from the TARP, or 
                        any entity (other than a governmental 
                        unit) participating in a program 
                        established under the authority of this 
                        Act, and to the officers, employees, 
                        directors, independent public 
                        accountants, financial advisors and any 
                        and all other agents and 
                        representatives thereof, at such time 
                        as the Comptroller General may request.
                          (ii) Verification.--The Comptroller 
                        General shall be afforded full 
                        facilities for verifying transactions 
                        with the balances or securities held 
                        by, among others, depositories, fiscal 
                        agents, and custodians.
                          (iii) Copies.--The Comptroller 
                        General may make and retain copies of 
                        such books, accounts, and other records 
                        as the Comptroller General determines 
                        appropriate.
                  (D) Agreement by entities.--Each contract, 
                term sheet, or other agreement between the 
                Secretary or the TARP (or any TARP vehicle, 
                officer, director, employee, independent public 
                accountant, financial advisor, or other TARP 
                agent or representative) and an entity (other 
                than a governmental unit) participating in a 
                program established under this Act shall 
                provide for access by the Comptroller General 
                in accordance with this section.
                  (E) Restriction on public disclosure.--
                          (i) In general.--The Comptroller 
                        General may not publicly disclose 
                        proprietary or trade secret information 
                        obtained under this section.
                          (ii) Exception for congressional 
                        committees.--This subparagraph does not 
                        limit disclosures to congressional 
                        committees or members thereof having 
                        jurisdiction over a private or public 
                        entity referred to under subparagraph 
                        (C).
                          (iii) Rule of construction.--Nothing 
                        in this section shall be construed to 
                        alter or amend the prohibitions against 
                        the disclosure of trade secrets or 
                        other information prohibited by section 
                        1905 of title 18, United States Code, 
                        section 714(c) of title 31, United 
                        States Code, or other applicable 
                        provisions of law.
                  (F) Reimbursement of costs.--The Treasury 
                shall reimburse the Government Accountability 
                Office for the full cost of any such oversight 
                activities as billed therefor by the 
                Comptroller General of the United States. Such 
                reimbursements shall be credited to the 
                appropriation account ``Salaries and Expenses, 
                Government Accountability Office'' current when 
                the payment is received and remain available 
                until expended.
          (3) Reporting.--The Comptroller General shall submit 
        reports of findings under this section[, regularly and 
        no less frequently than once every 60 days,] annually 
        to the appropriate committees of Congress, and the 
        Special Inspector General for the Troubled Asset Relief 
        Program established under this Act on the activities 
        and performance of the TARP. The Comptroller may also 
        submit special reports under this subsection as 
        warranted by the findings of its oversight activities.
  (b) Comptroller General Audits.--
          (1) Annual audit.--The TARP shall annually prepare 
        and issue to the appropriate committees of Congress and 
        the public audited financial statements prepared in 
        accordance with generally accepted accounting 
        principles, and the Comptroller General shall annually 
        audit such statements in accordance with generally 
        accepted auditing standards. The Treasury shall 
        reimburse the Government Accountability Office for the 
        full cost of any such audit as billed therefor by the 
        Comptroller General. Such reimbursements shall be 
        credited to the appropriation account ``Salaries and 
        Expenses, Government Accountability Office'' current 
        when the payment is received and remain available until 
        expended. The financial statements prepared under this 
        paragraph shall be on the fiscal year basis prescribed 
        under section 1102 of title 31, United States Code.
          (2) Authority.--The Comptroller General may audit the 
        programs, activities, receipts, expenditures, and 
        financial transactions of the TARP and any agents and 
        representatives of the TARP (as related to the agent or 
        representative's activities on behalf of or under the 
        authority of the TARP), including vehicles established 
        by the Secretary under this Act.
          (3) Corrective responses to audit problems.--The TARP 
        shall--
                  (A) take action to address deficiencies 
                identified by the Comptroller General or other 
                auditor engaged by the TARP; or
                  (B) certify to appropriate committees of 
                Congress that no action is necessary or 
                appropriate.
  (c) Internal Control.--
          (1) Establishment.--The TARP shall establish and 
        maintain an effective system of internal control, 
        consistent with the standards prescribed under section 
        3512(c) of title 31, United States Code, that provides 
        reasonable assurance of--
                  (A) the effectiveness and efficiency of 
                operations, including the use of the resources 
                of the TARP;
                  (B) the reliability of financial reporting, 
                including financial statements and other 
                reports for internal and external use; and
                  (C) compliance with applicable laws and 
                regulations.
          (2) Reporting.--In conjunction with each annual 
        financial statement issued under this section, the TARP 
        shall--
                  (A) state the responsibility of management 
                for establishing and maintaining adequate 
                internal control over financial reporting; and
                  (B) state its assessment, as of the end of 
                the most recent year covered by such financial 
                statement of the TARP, of the effectiveness of 
                the internal control over financial reporting.
  (d) Sharing of Information.--Any report or audit required 
under this section shall also be submitted to the Congressional 
Oversight Panel established under section 125.
  (e) Termination.--Any oversight, reporting, or audit 
requirement under this section shall terminate on the later 
of--
          (1) the date that the last troubled asset acquired by 
        the Secretary under section 101 has been sold or 
        transferred out of the ownership or control of the 
        Federal Government; or
          (2) the date of expiration of the last insurance 
        contract issued under section 102.

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                              ----------                              


DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT

           *       *       *       *       *       *       *


TITLE XV--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *


SEC. 1502. CONFLICT MINERALS.

  (a) Sense of Congress on Exploitation and Trade of Conflict 
Minerals Originating in the Democratic Republic of the Congo.--
It is the sense of Congress that the exploitation and trade of 
conflict minerals originating in the Democratic Republic of the 
Congo is helping to finance conflict characterized by extreme 
levels of violence in the eastern Democratic Republic of the 
Congo, particularly sexual- and gender-based violence, and 
contributing to an emergency humanitarian situation therein, 
warranting the provisions of section 13(p) of the Securities 
Exchange Act of 1934, as added by subsection (b).
  (b) Disclosure Relating to Conflict Minerals Originating in 
the Democratic Republic of the Congo.--Section 13 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78m), as amended by 
this Act, is amended by adding at the end the following new 
subsection:
  ``(p) Disclosures Relating to Conflict Minerals Originating 
in the Democratic Republic of the Congo.--
          ``(1) Regulations.--
                  ``(A) In general.--Not later than 270 days 
                after the date of the enactment of this 
                subsection, the Commission shall promulgate 
                regulations requiring any person described in 
                paragraph (2) to disclose annually, beginning 
                with the person's first full fiscal year that 
                begins after the date of promulgation of such 
                regulations, whether conflict minerals that are 
                necessary as described in paragraph (2)(B), in 
                the year for which such reporting is required, 
                did originate in the Democratic Republic of the 
                Congo or an adjoining country and, in cases in 
                which such conflict minerals did originate in 
                any such country, submit to the Commission a 
                report that includes, with respect to the 
                period covered by the report--
                          ``(i) a description of the measures 
                        taken by the person to exercise due 
                        diligence on the source and chain of 
                        custody of such minerals, which 
                        measures shall include an independent 
                        private sector audit of such report 
                        submitted through the Commission that 
                        is conducted in accordance with 
                        standards established by the 
                        Comptroller General of the United 
                        States, in accordance with rules 
                        promulgated by the Commission, in 
                        consultation with the Secretary of 
                        State; and
                          ``(ii) a description of the products 
                        manufactured or contracted to be 
                        manufactured that are not DRC conflict 
                        free (`DRC conflict free' is defined to 
                        mean the products that do not contain 
                        minerals that directly or indirectly 
                        finance or benefit armed groups in the 
                        Democratic Republic of the Congo or an 
                        adjoining country), the entity that 
                        conducted the independent private 
                        sector audit in accordance with clause 
                        (i), the facilities used to process the 
                        conflict minerals, the country of 
                        origin of the conflict minerals, and 
                        the efforts to determine the mine or 
                        location of origin with the greatest 
                        possible specificity.
                  ``(B) Certification.--The person submitting a 
                report under subparagraph (A) shall certify the 
                audit described in clause (i) of such 
                subparagraph that is included in such report. 
                Such a certified audit shall constitute a 
                critical component of due diligence in 
                establishing the source and chain of custody of 
                such minerals.
                  ``(C) Unreliable determination.--If a report 
                required to be submitted by a person under 
                subparagraph (A) relies on a determination of 
                an independent private sector audit, as 
                described under subparagraph (A)(i), or other 
                due diligence processes previously determined 
                by the Commission to be unreliable, the report 
                shall not satisfy the requirements of the 
                regulations promulgated under subparagraph 
                (A)(i).
                  ``(D) DRC conflict free.--For purposes of 
                this paragraph, a product may be labeled as 
                `DRC conflict free' if the product does not 
                contain conflict minerals that directly or 
                indirectly finance or benefit armed groups in 
                the Democratic Republic of the Congo or an 
                adjoining country.
                  ``(E) Information available to the public.--
                Each person described under paragraph (2) shall 
                make available to the public on the Internet 
                website of such person the information 
                disclosed by such person under subparagraph 
                (A).
          ``(2) Person described.--A person is described in 
        this paragraph if--
                  ``(A) the person is required to file reports 
                with the Commission pursuant to paragraph 
                (1)(A); and
                  ``(B) conflict minerals are necessary to the 
                functionality or production of a product 
                manufactured by such person.
          ``(3) Revisions and waivers.--The Commission shall 
        revise or temporarily waive the requirements described 
        in paragraph (1) if the President transmits to the 
        Commission a determination that--
                  ``(A) such revision or waiver is in the 
                national security interest of the United States 
                and the President includes the reasons 
                therefor; and
                  ``(B) establishes a date, not later than 2 
                years after the initial publication of such 
                exemption, on which such exemption shall 
                expire.
          ``(4) Termination of disclosure requirements.--The 
        requirements of paragraph (1) shall terminate on the 
        date on which the President determines and certifies to 
        the appropriate congressional committees, but in no 
        case earlier than the date that is one day after the 
        end of the 5-year period beginning on the date of the 
        enactment of this subsection, that no armed groups 
        continue to be directly involved and benefitting from 
        commercial activity involving conflict minerals.
          ``(5) Definitions.--For purposes of this subsection, 
        the terms `adjoining country', `appropriate 
        congressional committees', `armed group', and `conflict 
        mineral' have the meaning given those terms under 
        section 1502 of the Dodd-Frank Wall Street Reform and 
        Consumer Protection Act.''.
  (c) Strategy and Map to Address Linkages Between Conflict 
Minerals and Armed Groups.--
          (1) Strategy.--
                  (A) In general.--Not later than 180 days 
                after the date of the enactment of this Act, 
                the Secretary of State, in consultation with 
                the Administrator of the United States Agency 
                for International Development, shall submit to 
                the appropriate congressional committees a 
                strategy to address the linkages between human 
                rights abuses, armed groups, mining of conflict 
                minerals, and commercial products.
                  (B) Contents.--The strategy required by 
                subparagraph (A) shall include the following:
                          (i) A plan to promote peace and 
                        security in the Democratic Republic of 
                        the Congo by supporting efforts of the 
                        Government of the Democratic Republic 
                        of the Congo, including the Ministry of 
                        Mines and other relevant agencies, 
                        adjoining countries, and the 
                        international community, in particular 
                        the United Nations Group of Experts on 
                        the Democratic Republic of Congo, to--
                                  (I) monitor and stop 
                                commercial activities involving 
                                the natural resources of the 
                                Democratic Republic of the 
                                Congo that contribute to the 
                                activities of armed groups and 
                                human rights violations in the 
                                Democratic Republic of the 
                                Congo; and
                                  (II) develop stronger 
                                governance and economic 
                                institutions that can 
                                facilitate and improve 
                                transparency in the cross-
                                border trade involving the 
                                natural resources of the 
                                Democratic Republic of the 
                                Congo to reduce exploitation by 
                                armed groups and promote local 
                                and regional development.
                          (ii) A plan to provide guidance to 
                        commercial entities seeking to exercise 
                        due diligence on and formalize the 
                        origin and chain of custody of conflict 
                        minerals used in their products and on 
                        their suppliers to ensure that conflict 
                        minerals used in the products of such 
                        suppliers do not directly or indirectly 
                        finance armed conflict or result in 
                        labor or human rights violations.
                          (iii) A description of punitive 
                        measures that could be taken against 
                        individuals or entities whose 
                        commercial activities are supporting 
                        armed groups and human rights 
                        violations in the Democratic Republic 
                        of the Congo.
          (2) Map.--
                  (A) In general.--Not later than 180 days 
                after the date of the enactment of this Act, 
                the Secretary of State shall, in accordance 
                with the recommendation of the United Nations 
                Group of Experts on the Democratic Republic of 
                the Congo in their December 2008 report--
                          (i) produce a map of mineral-rich 
                        zones, trade routes, and areas under 
                        the control of armed groups in the 
                        Democratic Republic of the Congo and 
                        adjoining countries based on data from 
                        multiple sources, including--
                                  (I) the United Nations Group 
                                of Experts on the Democratic 
                                Republic of the Congo;
                                  (II) the Government of the 
                                Democratic Republic of the 
                                Congo, the governments of 
                                adjoining countries, and the 
                                governments of other Member 
                                States of the United Nations; 
                                and
                                  (III) local and international 
                                nongovernmental organizations;
                          (ii) make such map available to the 
                        public; and
                          (iii) provide to the appropriate 
                        congressional committees an explanatory 
                        note describing the sources of 
                        information from which such map is 
                        based and the identification, where 
                        possible, of the armed groups or other 
                        forces in control of the mines 
                        depicted.
                  (B) Designation.--The map required under 
                subparagraph (A) shall be known as the 
                ``Conflict Minerals Map'', and mines located in 
                areas under the control of armed groups in the 
                Democratic Republic of the Congo and adjoining 
                countries, as depicted on such Conflict 
                Minerals Map, shall be known as ``Conflict Zone 
                Mines''.
                  (C) Updates.--The Secretary of State shall 
                update the map required under subparagraph (A) 
                not less frequently than once every 180 days 
                until the date on which the disclosure 
                requirements under paragraph (1) of section 
                13(p) of the Securities Exchange Act of 1934, 
                as added by subsection (b), terminate in 
                accordance with the provisions of paragraph (4) 
                of such section 13(p).
                  (D) Publication in federal register.--The 
                Secretary of State shall add minerals to the 
                list of minerals in the definition of conflict 
                minerals under section 1502, as appropriate. 
                The Secretary shall publish in the Federal 
                Register notice of intent to declare a mineral 
                as a conflict mineral included in such 
                definition not later than one year before such 
                declaration.
  (d) Reports.--
          (1) Baseline report.--Not later than 1 year after the 
        date of the enactment of this Act and annually 
        thereafter [until the termination of the disclosure 
        requirements under section 13(p) of the Securities 
        Exchange Act of 1934] through 2020, in 2022, and in 
        2024, the Comptroller General of the United States 
        shall submit to appropriate congressional committees a 
        report that includes an assessment of the rate of 
        sexual- and gender-based violence in war-torn areas of 
        the Democratic Republic of the Congo and adjoining 
        countries.
          (2) Regular report on effectiveness.--Not later than 
        2 years after the date of the enactment of this Act and 
        annually thereafter through 2020, in 2022, and in 2024, 
        the Comptroller General of the United States shall 
        submit to the appropriate congressional committees a 
        report that includes the following:
                  (A) An assessment of the effectiveness of 
                section 13(p) of the Securities Exchange Act of 
                1934, as added by subsection (b), in promoting 
                peace and security in the Democratic Republic 
                of the Congo and adjoining countries.
                  (B) A description of issues encountered by 
                the Securities and Exchange Commission in 
                carrying out the provisions of such section 
                13(p).
                  (C)(i) A general review of persons described 
                in clause (ii) and whether information is 
                publicly available about--
                                  (I) the use of conflict 
                                minerals by such persons; and
                                  (II) whether such conflict 
                                minerals originate from the 
                                Democratic Republic of the 
                                Congo or an adjoining country.
                          (ii) A person is described in this 
                        clause if--
                                  (I) the person is not 
                                required to file reports with 
                                the Securities and Exchange 
                                Commission pursuant to section 
                                13(p)(1)(A) of the Securities 
                                Exchange Act of 1934, as added 
                                by subsection (b); and
                                  (II) conflict minerals are 
                                necessary to the functionality 
                                or production of a product 
                                manufactured by such person.
          (3) Report on private sector auditing.--Not later 
        than 30 months after the date of the enactment of this 
        Act, and annually thereafter, the Secretary of Commerce 
        shall submit to the appropriate congressional 
        committees a report that includes the following:
                  (A) An assessment of the accuracy of the 
                independent private sector audits and other due 
                diligence processes described under section 
                13(p) of the Securities Exchange Act of 1934.
                  (B) Recommendations for the processes used to 
                carry out such audits, including ways to--
                          (i) improve the accuracy of such 
                        audits; and
                          (ii) establish standards of best 
                        practices.
                  (C) A listing of all known conflict mineral 
                processing facilities worldwide.
  (e) Definitions.--For purposes of this section:
          (1) Adjoining country.--The term ``adjoining 
        country'', with respect to the Democratic Republic of 
        the Congo, means a country that shares an 
        internationally recognized border with the Democratic 
        Republic of the Congo.
          (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                  (A) the Committee on Appropriations, the 
                Committee on Foreign Affairs, the Committee on 
                Ways and Means, and the Committee on Financial 
                Services of the House of Representatives; and
                  (B) the Committee on Appropriations, the 
                Committee on Foreign Relations, the Committee 
                on Finance, and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate.
          (3) Armed group.--The term ``armed group'' means an 
        armed group that is identified as perpetrators of 
        serious human rights abuses in the annual Country 
        Reports on Human Rights Practices under sections 116(d) 
        and 502B(b) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2151n(d) and 2304(b)) relating to the Democratic 
        Republic of the Congo or an adjoining country.
          (4) Conflict mineral.--The term ``conflict mineral'' 
        means--
                  (A) columbite-tantalite (coltan), 
                cassiterite, gold, wolframite, or their 
                derivatives; or
                  (B) any other mineral or its derivatives 
                determined by the Secretary of State to be 
                financing conflict in the Democratic Republic 
                of the Congo or an adjoining country.
          (5) Under the control of armed groups.--The term 
        ``under the control of armed groups'' means areas 
        within the Democratic Republic of the Congo or 
        adjoining countries in which armed groups--
                  (A) physically control mines or force labor 
                of civilians to mine, transport, or sell 
                conflict minerals;
                  (B) tax, extort, or control any part of trade 
                routes for conflict minerals, including the 
                entire trade route from a Conflict Zone Mine to 
                the point of export from the Democratic 
                Republic of the Congo or an adjoining country; 
                or
                  (C) tax, extort, or control trading 
                facilities, in whole or in part, including the 
                point of export from the Democratic Republic of 
                the Congo or an adjoining country.

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                              ----------                              


AMERICAN TAXPAYER RELIEF ACT OF 2012

           *       *       *       *       *       *       *


TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS

           *       *       *       *       *       *       *


Subtitle C--Other Health Provisions

           *       *       *       *       *       *       *


SEC. 632. REVISIONS TO THE MEDICARE ESRD BUNDLED PAYMENT SYSTEM TO 
                    REFLECT FINDINGS IN THE GAO REPORT.

  (a) Adjustment to ESRD Bundled Payment Rate To Account for 
Changes in the Utilization of Certain Drugs and Biologicals.--
Section 1881(b)(14) of the Social Security Act (42 U.S.C. 
1395rr(b)(14)) is amended by adding at the end the following 
new subparagraph:
  ``(I) For services furnished on or after January 1, 2014, the 
Secretary shall, by comparing per patient utilization data from 
2007 with such data from 2012, make reductions to the single 
payment that would otherwise apply under this paragraph for 
renal dialysis services to reflect the Secretary's estimate of 
the change in the utilization of drugs and biologicals 
described in clauses (ii), (iii), and (iv) of subparagraph (B) 
(other than oral-only ESRD-related drugs, as such term is used 
in the final rule promulgated by the Secretary in the Federal 
Register on August 12, 2010 (75 Fed. Reg. 49030)). In making 
reductions under the preceding sentence, the Secretary shall 
take into account the most recently available data on average 
sales prices and changes in prices for drugs and biological 
reflected in the ESRD market basket percentage increase factor 
under subparagraph (F).''.
  (b) Two-year Delay of Implementation of Oral-Only ESRD-
Related Drugs in the ESRD Prospective Payment System; 
Monitoring.--
          (1) Delay.--The Secretary of Health and Human 
        Services may not implement the policy under section 
        413.174(f)(6) of title 42, Code of Federal Regulations 
        (relating to oral-only ESRD-related drugs in the ESRD 
        prospective payment system), prior to January 1, 2025. 
        Notwithstanding section 1881(b)(14)(A)(ii) of the 
        Social Security Act (42 U.S.C. 1395rr(b)(14)(A)(ii)), 
        implementation of the policy described in the previous 
        sentence shall be based on data from the most recent 
        year available.
          (2) Monitoring.--With respect to the implementation 
        of oral-only ESRD-related drugs in the ESRD prospective 
        payment system under subsection (b)(14) of section 1881 
        of the Social Security Act (42 U.S.C. 1395rr(b)(14)), 
        the Secretary of Health and Human Services shall 
        monitor the bone and mineral metabolism of individuals 
        with end stage renal disease.
  (c) Analysis of Case Mix Payment Adjustments.--By not later 
than January 1, 2016, the Secretary of Health and Human 
Services shall--
          (1) conduct an analysis of the case mix payment 
        adjustments being used under section 1881(b)(14)(D)(i) 
        of the Social Security Act (42 U.S.C. 
        1395rr(b)(14)(D)(i)); and
          (2) make appropriate revisions to such case mix 
        payment adjustments.
  (d) Updated GAO Report.--Not later than [December 31, 2015] 
December 31, 2023, the Comptroller General of the United States 
shall submit to Congress a report that updates the report 
submitted to Congress under section 10336 of the Patient 
Protection and Affordable Care Act (Public Law 111-148; 124 
Stat. 974). The updated report shall include an analysis of how 
the Secretary of Health and Human Services has addressed points 
raised in the report submitted under such section 10336 with 
respect to the Secretary's preparations to implement payment 
for oral-only ESRD-related drugs in the bundled prospective 
payment system under section 1881(b)(14) of the Social Security 
Act (42 U.S.C. 1395rr(b)(14)).

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                              ----------                              


PUBLIC HEALTH SERVICE ACT

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TITLE III--GENERAL POWERS AND DUTIES OF PUBLIC HEALTH SERVICE

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PART P--ADDITIONAL PROGRAMS

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SEC. 399V-4. STATE DEMONSTRATION PROGRAMS TO EVALUATE ALTERNATIVES TO 
                    CURRENT MEDICAL TORT LITIGATION.

  (a) In General.--The Secretary is authorized to award 
demonstration grants to States for the development, 
implementation, and evaluation of alternatives to current tort 
litigation for resolving disputes over injuries allegedly 
caused by health care providers or health care organizations. 
In awarding such grants, the Secretary shall ensure the 
diversity of the alternatives so funded.
  (b) Duration.--The Secretary may award grants under 
subsection (a) for a period not to exceed 5 years.
  (c) Conditions for Demonstration Grants.--
          (1) Requirements.--Each State desiring a grant under 
        subsection (a) shall develop an alternative to current 
        tort litigation that--
                  (A) allows for the resolution of disputes 
                over injuries allegedly caused by health care 
                providers or health care organizations; and
                  (B) promotes a reduction of health care 
                errors by encouraging the collection and 
                analysis of patient safety data related to 
                disputes resolved under subparagraph (A) by 
                organizations that engage in efforts to improve 
                patient safety and the quality of health care.
          (2) Alternative to current tort litigation.--Each 
        State desiring a grant under subsection (a) shall 
        demonstrate how the proposed alternative described in 
        paragraph (1)(A)--
                  (A) makes the medical liability system more 
                reliable by increasing the availability of 
                prompt and fair resolution of disputes;
                  (B) encourages the efficient resolution of 
                disputes;
                  (C) encourages the disclosure of health care 
                errors;
                  (D) enhances patient safety by detecting, 
                analyzing, and helping to reduce medical errors 
                and adverse events;
                  (E) improves access to liability insurance;
                  (F) fully informs patients about the 
                differences in the alternative and current tort 
                litigation;
                  (G) provides patients the ability to opt out 
                of or voluntarily withdraw from participating 
                in the alternative at any time and to pursue 
                other options, including litigation, outside 
                the alternative;
                  (H) would not conflict with State law at the 
                time of the application in a way that would 
                prohibit the adoption of an alternative to 
                current tort litigation; and
                  (I) would not limit or curtail a patient's 
                existing legal rights, ability to file a claim 
                in or access a State's legal system, or 
                otherwise abrogate a patient's ability to file 
                a medical malpractice claim.
          (3) Sources of compensation.--Each State desiring a 
        grant under subsection (a) shall identify the sources 
        from and methods by which compensation would be paid 
        for claims resolved under the proposed alternative to 
        current tort litigation, which may include public or 
        private funding sources, or a combination of such 
        sources. Funding methods shall to the extent 
        practicable provide financial incentives for activities 
        that improve patient safety.
          (4) Scope.--
                  (A) In general.--Each State desiring a grant 
                under subsection (a) shall establish a scope of 
                jurisdiction (such as Statewide, designated 
                geographic region, a designated area of health 
                care practice, or a designated group of health 
                care providers or health care organizations) 
                for the proposed alternative to current tort 
                litigation that is sufficient to evaluate the 
                effects of the alternative. No scope of 
                jurisdiction shall be established under this 
                paragraph that is based on a health care payer 
                or patient population.
                  (B) Notification of patients.--A State shall 
                demonstrate how patients would be notified that 
                they are receiving health care services that 
                fall within such scope, and the process by 
                which they may opt out of or voluntarily 
                withdraw from participating in the alternative. 
                The decision of the patient whether to 
                participate or continue participating in the 
                alternative process shall be made at any time 
                and shall not be limited in any way.
          (5) Preference in awarding demonstration grants.--In 
        awarding grants under subsection (a), the Secretary 
        shall give preference to States--
                  (A) that have developed the proposed 
                alternative through substantive consultation 
                with relevant stakeholders, including patient 
                advocates, health care providers and health 
                care organizations, attorneys with expertise in 
                representing patients and health care 
                providers, medical malpractice insurers, and 
                patient safety experts;
                  (B) that make proposals that are likely to 
                enhance patient safety by detecting, analyzing, 
                and helping to reduce medical errors and 
                adverse events; and
                  (C) that make proposals that are likely to 
                improve access to liability insurance.
  (d) Application.--
          (1) In general.--Each State desiring a grant under 
        subsection (a) shall submit to the Secretary an 
        application, at such time, in such manner, and 
        containing such information as the Secretary may 
        require.
          (2) Review panel.--
                  (A) In general.--In reviewing applications 
                under paragraph (1), the Secretary shall 
                consult with a review panel composed of 
                relevant experts appointed by the Comptroller 
                General.
                  (B) Composition.--
                          (i) Nominations.--The Comptroller 
                        General shall solicit nominations from 
                        the public for individuals to serve on 
                        the review panel.
                          (ii) Appointment.--The Comptroller 
                        General shall appoint, at least 9 but 
                        not more than 13, highly qualified and 
                        knowledgeable individuals to serve on 
                        the review panel and shall ensure that 
                        the following entities receive fair 
                        representation on such panel:
                                  (I) Patient advocates.
                                  (II) Health care providers 
                                and health care organizations.
                                  (III) Attorneys with 
                                expertise in representing 
                                patients and health care 
                                providers.
                                  (IV) Medical malpractice 
                                insurers.
                                  (V) State officials.
                                  (VI) Patient safety experts.
                  (C) Chairperson.--The Comptroller General[, 
                or an individual within the Government 
                Accountability Office designated by the 
                Comptroller General, shall] shall designate a 
                member of the review panel to be the 
                chairperson of the review panel.
                  (D) Availability of information.--The 
                [Comptroller General] Secretary shall make 
                available to the review panel such information, 
                personnel, and administrative services and 
                assistance as the review panel may reasonably 
                require to carry out its duties.
                  (E) Information from agencies.--The review 
                panel may request directly from any department 
                or agency of the United States any information 
                that such panel considers necessary to carry 
                out its duties. To the extent consistent with 
                applicable laws and regulations, the head of 
                such department or agency shall furnish the 
                requested information to the review panel.
  (e) Reports.--
          (1) By state.--Each State receiving a grant under 
        subsection (a) shall submit to the Secretary an annual 
        report evaluating the effectiveness of activities 
        funded with grants awarded under such subsection. Such 
        report shall, at a minimum, include the impact of the 
        activities funded on patient safety and on the 
        availability and price of medical liability insurance.
          (2) By secretary.--The Secretary shall submit to 
        Congress an annual compendium of the reports submitted 
        under paragraph (1) and an analysis of the activities 
        funded under subsection (a) that examines any 
        differences that result from such activities in terms 
        of the quality of care, number and nature of medical 
        errors, medical resources used, length of time for 
        dispute resolution, and the availability and price of 
        liability insurance.
  (f) Technical Assistance.--
          (1) In general.--The Secretary shall provide 
        technical assistance to the States applying for or 
        awarded grants under subsection (a).
          (2) Requirements.--Technical assistance under 
        paragraph (1) shall include--
                  (A) guidance on non-economic damages, 
                including the consideration of individual facts 
                and circumstances in determining appropriate 
                payment, guidance on identifying avoidable 
                injuries, and guidance on disclosure to 
                patients of health care errors and adverse 
                events; and
                  (B) the development, in consultation with 
                States, of common definitions, formats, and 
                data collection infrastructure for States 
                receiving grants under this section to use in 
                reporting to facilitate aggregation and 
                analysis of data both within and between 
                States.
          (3) Use of common definitions, formats, and data 
        collection infrastructure.--States not receiving grants 
        under this section may also use the common definitions, 
        formats, and data collection infrastructure developed 
        under paragraph (2)(B).
  (g) Evaluation.--
          (1) In general.--The Secretary, in consultation with 
        the review panel established under subsection (d)(2), 
        shall enter into a contract with an appropriate 
        research organization to conduct an overall evaluation 
        of the effectiveness of grants awarded under subsection 
        (a) and to annually prepare and submit a report to 
        Congress. Such an evaluation shall begin not later than 
        18 months following the date of implementation of the 
        first program funded by a grant under subsection (a).
          (2) Contents.--The evaluation under paragraph (1) 
        shall include--
                  (A) an analysis of the effects of the grants 
                awarded under subsection (a) with regard to the 
                measures described in paragraph (3);
                  (B) for each State, an analysis of the extent 
                to which the alternative developed under 
                subsection (c)(1) is effective in meeting the 
                elements described in subsection (c)(2);
                  (C) a comparison among the States receiving 
                grants under subsection (a) of the 
                effectiveness of the various alternatives 
                developed by such States under subsection 
                (c)(1);
                  (D) a comparison, considering the measures 
                described in paragraph (3), of States receiving 
                grants approved under subsection (a) and 
                similar States not receiving such grants; and
                  (E) a comparison, with regard to the measures 
                described in paragraph (3), of--
                          (i) States receiving grants under 
                        subsection (a);
                          (ii) States that enacted, prior to 
                        the date of enactment of the Patient 
                        Protection and Affordable Care Act, any 
                        cap on non-economic damages; and
                          (iii) States that have enacted, prior 
                        to the date of enactment of the Patient 
                        Protection and Affordable Care Act, a 
                        requirement that the complainant obtain 
                        an opinion regarding the merit of the 
                        claim, although the substance of such 
                        opinion may have no bearing on whether 
                        the complainant may proceed with a 
                        case.
          (3) Measures.--The evaluations under paragraph (2) 
        shall analyze and make comparisons on the basis of--
                  (A) the nature and number of disputes over 
                injuries allegedly caused by health care 
                providers or health care organizations;
                  (B) the nature and number of claims in which 
                tort litigation was pursued despite the 
                existence of an alternative under subsection 
                (a);
                  (C) the disposition of disputes and claims, 
                including the length of time and estimated 
                costs to all parties;
                  (D) the medical liability environment;
                  (E) health care quality;
                  (F) patient safety in terms of detecting, 
                analyzing, and helping to reduce medical errors 
                and adverse events;
                  (G) patient and health care provider and 
                organization satisfaction with the alternative 
                under subsection (a) and with the medical 
                liability environment; and
                  (H) impact on utilization of medical 
                services, appropriately adjusted for risk.
          (4) Funding.--The Secretary shall reserve 5 percent 
        of the amount appropriated in each fiscal year under 
        subsection (k) to carry out this subsection.
  (h) MedPAC and MACPAC Reports.--
          (1) MedPAC.--The Medicare Payment Advisory Commission 
        shall conduct an independent review of the alternatives 
        to current tort litigation that are implemented under 
        grants under subsection (a) to determine the impact of 
        such alternatives on the Medicare program under title 
        XVIII of the Social Security Act, and its 
        beneficiaries.
          (2) MACPAC.--The Medicaid and CHIP Payment and Access 
        Commission shall conduct an independent review of the 
        alternatives to current tort litigation that are 
        implemented under grants under subsection (a) to 
        determine the impact of such alternatives on the 
        Medicaid or CHIP programs under titles XIX and XXI of 
        the Social Security Act, and their beneficiaries.
          (3) Reports.--Not later than December 31, 2016, the 
        Medicare Payment Advisory Commission and the Medicaid 
        and CHIP Payment and Access Commission shall each 
        submit to Congress a report that includes the findings 
        and recommendations of each respective Commission based 
        on independent reviews conducted under paragraphs (1) 
        and (2), including an analysis of the impact of the 
        alternatives reviewed on the efficiency and 
        effectiveness of the respective programs.
  (i) Option To Provide for Initial Planning Grants.--Of the 
funds appropriated pursuant to subsection (k), the Secretary 
may use a portion not to exceed $500,000 per State to provide 
planning grants to such States for the development of 
demonstration project applications meeting the criteria 
described in subsection (c). In selecting States to receive 
such planning grants, the Secretary shall give preference to 
those States in which State law at the time of the application 
would not prohibit the adoption of an alternative to current 
tort litigation.
  (j) Definitions.--In this section:
          (1) Health care services.--The term ``health care 
        services'' means any services provided by a health care 
        provider, or by any individual working under the 
        supervision of a health care provider, that relate to--
                  (A) the diagnosis, prevention, or treatment 
                of any human disease or impairment; or
                  (B) the assessment of the health of human 
                beings.
          (2) Health care organization.--The term ``health care 
        organization'' means any individual or entity which is 
        obligated to provide, pay for, or administer health 
        benefits under any health plan.
          (3) Health care provider.--The term ``health care 
        provider'' means any individual or entity--
                  (A) licensed, registered, or certified under 
                Federal or State laws or regulations to provide 
                health care services; or
                  (B) required to be so licensed, registered, 
                or certified but that is exempted by other 
                statute or regulation.
  (k) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section, $50,000,000 for the 
5-fiscal year period beginning with fiscal year 2011.
  (l) Current State Efforts To Establish Alternative To Tort 
Litigation.--Nothing in this section shall be construed to 
limit any prior, current, or future efforts of any State to 
establish any alternative to tort litigation.
  (m) Rule of Construction.--Nothing in this section shall be 
construed as limiting states' authority over or responsibility 
for their state justice systems.

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