To improve procedures relating to the classification of information.

TEXT OF AMENDMENTS

SA 3702. Mr. McCAIN (for himself and Mr. Lieberman) proposed an
amendment to the bill S. 2845, to reform the intelligence community and
the intelligence and intelligence-related activities of the United
States Government, and for other purposes; as follows:

At the appropriate place, insert the following:

TITLE   --TRANSPORTATION SECURITY

SEC.   01. DEFINITIONS.

In this title, the terms ``air carrier'', ``air
transportation'', ``aircraft'', ``airport'', ``cargo'',
``foreign air carrier'', and ``intrastate air
transportation'' have the meanings given such terms in
section 40102 of title 49, United States Code.

SEC.   02. NATIONAL STRATEGY FOR TRANSPORTATION SECURITY.

(a) Requirement for Strategy.--
(1) Responsibilities of secretary of homeland
security--.The Secretary of Homeland Security shall--
(A) develop and implement a National Strategy for
Transportation Security; and
(B) revise such strategy whenever necessary to improve or
to maintain the currency of the strategy or whenever the
Secretary otherwise considers it appropriate to do so.
(2) Consultation with secretary of transportation.--The
Secretary of Homeland Security shall consult with the
Secretary of Transportation in developing and revising the
National Strategy for Transportation Security under this
section.
(b) Content.--The National Strategy for Transportation
Security shall include the following matters:
(1) An identification and evaluation of the transportation
assets within the United States that, in the interests of
national security, must be protected from attack or
disruption by terrorist or other hostile forces, including
aviation, bridge and tunnel, commuter rail and ferry,
highway, maritime, pipeline, rail, urban mass transit, and
other public transportation infrastructure assets that could
be at risk of such an attack or disruption.
(2) The development of the risk-based priorities, and
realistic deadlines, for addressing security needs associated
with those assets.
(3) The most practical and cost-effective means of
defending those assets against threats to their security.
(4) A forward-looking strategic plan that assigns
transportation security roles and missions to departments and
agencies of the Federal Government (including the Armed
Forces), State governments (including the Army National Guard
and Air National Guard), local governments, and public
utilities, and establishes mechanisms for encouraging private
sector cooperation and participation in the implementation of
such plan.
(5) A comprehensive delineation of response and recovery
responsibilities and issues regarding threatened and executed
acts of terrorism within the United States.
(6) A prioritization of research and development objectives
that support transportation security needs, giving a higher
priority to research and development directed toward
protecting vital assets.
(7) A budget and recommendations for appropriate levels and
sources of funding to meet the objectives set forth in the
strategy.
(c) Submissions to Congress.--
(1) The national strategy.--
(A) Initial strategy.--The Secretary of Homeland Security
shall submit the National Strategy for Transportation
Security developed under this section to Congress not later
than April l, 2005.
(B) Subsequent versions.--After 2005, the Secretary of
Homeland Security shall submit the National Strategy for
Transportation Security, including any revisions, to Congress
not less frequently than April 1 of each evennumbered year.
(2) Periodic progress report.--
(A) 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 Congress an assessment of
the progress made on implementing the National Strategy for
Transportation Security.
(B) Content.--Each progress report under this paragraph
shall include, at a minimum, the following matters:
(i) An assessment of the adequacy of the resources
committed to meeting the objectives of the National Strategy
for Transportation Security.
(ii) Any recommendations for improving and implementing
that strategy that the Secretary, in consultation with the
Secretary of Transportation, considers appropriate.
(3) Classified material.--Any part of the National Strategy
for Transportation Security that involves information that is
properly classified under criteria established by Executive
order shall be submitted to Congress separately in classified
form.
(d) Priority Status.--
(1) In general.--The National Strategy for Transportation
Security shall be the governing document for Federal
transportation security efforts.
(2) Other plans and reports.--The National Strategy for
Transportation Security shall include, as an integral part or
as an appendix--
(A) the current National Maritime Transportation Security
Plan under section 70103 of title 46, United States Code;
(B) the report required by section 44938 of title 49,
United States Code; and
(C) any other transportation security plan or report that
the Secretary of Homeland Security determines appropriate for
inclusion.

SEC.   03. USE OF WATCHLISTS FOR PASSENGER AIR TRANSPORTATION
SCREENING.

(a) In General.--The Secretary of Homeland Security, acting
through the Transportation Security Administration, as soon
as practicable after the date of the enactment of this Act
but in no event later than 180 days after that date, shall--
(1) implement a procedure under which the Transportation
Security Administration compares information about passengers
who are to be carried aboard a passenger aircraft operated by
an air carrier or foreign air carrier in air transportation
or intrastate air transportation for flights and flight
segments originating in the United States with a
comprehensive, consolidated database containing information
about known or suspected terrorists and their associates; and
(2) use the information obtained by comparing the passenger
information with the information in the database to prevent
known or suspected terrorists and their associates from
boarding such flights or flight segments or to subject them
to specific additional security scrutiny, through the use of
``no fly'' and ``automatic selectee'' lists or other means.
(b) Air Carrier Cooperation.--The Secretary of Homeland
Security, in coordination with the Secretary of
Transportation, shall by order require air carriers to
provide the passenger information necessary to implement the
procedure required by subsection (a).
(c) Maintaining the Accuracy and Integrity of the ``No
Fly'' and ``Automatic Selectee'' Lists.--
(1) Watchlist database.--The Secretary of Homeland
Security, in consultation with the Director of the Federal
Bureau of Investigation, shall design guidelines, policies,
and operating procedures for the collection, removal, and
updating of data maintained, or to be maintained, in the
watchlist database described in subsection (a) (1) that are
designed to ensure the accuracy and integrity of the
database.
(2) Accuracy of entries.--In developing the ``no fly'' and
``automatic selectee'' lists under sub-section (a) (2), the
Secretary of Homeland Security shall establish a simple and
timely method for correcting erroneous entries, for
clarifying information known to cause false hits or
misidentification errors, and for updating relevant
information that is dispositive in the passenger screening
process. The Secretary shall also establish a process to
provide individuals whose names are confused with, or similar
to, names in the database with a means of demonstrating that
they are not a person named in the database.

SEC.   04. ENHANCED PASSENGER AND CARGO SCREENING.

(a) Aircraft Passenger Screening at Checkpoints.--

[[Page S9726]]

(1) Detection of explosives.--
(A) Improvement of capabilities.--As soon as practicable
after the date of the enactment of this Act, the Secretary of
Homeland Security shall take such action as is necessary to
improve the capabilities at passenger screening checkpoints,
especially at commercial airports, to detect explosives
carried aboard aircraft by passengers or placed aboard
aircraft by passengers.
(B) Interim action.--Until measures are implemented that
enable the screening of all passengers for explosives, the
Secretary shall take immediate measures to require
Transportation Security Administration or other screeners to
screen for explosives any individual identified for
additional screening before that individual may board an
aircraft.
(2) Implementation report.--
(A) Requirement for report.--Within 90 days after the date
of the enactment of this Act, the Secretary of Homeland
Security shall transmit to the Senate and the House of
Representatives a report on how the Secretary intends to
achieve the objectives of the actions required under
paragraph (1). The report shall include an implementation
schedule.
(B) Classified information.--The Secretary may submit
separately in classified form any information in the report
under subparagraph (A) that involves information that is
properly classified under criteria established by Executive
order.
(b) Acceleration of Research and Development on, and
Deployment of, Detection of Explosives.--
(1) Required action.--The Secretary of Homeland Security,
in consultation with the Secretary of Transportation, shall
take such action as may be necessary to accelerate research
and development and deployment of technology for screening
aircraft passengers for explosives during or before the
aircraft boarding process.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary such sums as are
necessary to carry out this subsection for each of fiscal
years 2005 through 2009.
(c) Improvement of Screener Job Performance.--
(1) Required action.--The Secretary of Homeland Security
shall take such action as may be necessary to improve the job
performance of airport screening personnel.
(2) Human factors study.--In carrying out this subsection,
the Secretary shall, not later than 180 days after the date
of the enactment of this Act, conduct a human factors study
in order better to understand problems in screener
performance and to set attainable objectives for individual
screeners and screening checkpoints.
(d) Checked Baggage and Cargo.--
(1) In-line baggage screening.--The Secretary of Homeland
Security shall take such action as may be necessary to
expedite the installation and use of advanced in-line
baggage-screening equipment at commercial airports.
(2) Cargo security.--The Secretary shall take such action
as may be necessary to ensure that the Transportation
Security Administration in creases and improves its efforts
to screen potentially dangerous cargo.
(e) Blast-Resistant Cargo and Baggage Containers.--
(1) In general.--The Secretary of Homeland Security, in
coordination with the Secretary of Transportation--
(A) shall assess the feasibility of requiring the use of
blast-resistant containers for cargo and baggage on passenger
aircraft to minimize the potential effects of detonation of
an explosive device; and
(B) may require their use on some or all flights on
aircraft for which such containers are available.
(2) Pilot program.--Before requiring the use of such
containers on any such flights, the Secretary of Homeland
Security shall conduct a pilot program to evaluate the use of
currently available blast-resistant containers for cargo and
baggage on passenger aircraft. In conducting the pilot
program the Secretary--
(A) shall test the feasibility of using the containers by
deploying them on participating air carrier flights; but
(B) may not disclose to the public the number of blast-
resistant containers being used in the program or publicly
identify the flights on which the containers are used.
(3) Assistance for participation in pilot program.--
(A) In general.--As part of the pilot program, the
Secretary may provide assistance to air carriers to volunteer
to test the use of blast-resistant containers for cargo and
baggage on passenger aircraft.
(B) Applications.--To volunteer to participate in the
incentive program, an air carrier shall submit to the
Secretary an application that is in such form and contains
such information as the Secretary requires.
(C) Types of assistance.--Assistance provided by the
Secretary to air carriers that volunteer to participate in
the pilot program may include the use of blast-resistant
containers and financial assistance to cover increased costs
to the carriers associated with the use and maintenance of
the containers, including increased fuel costs.
(4) Technological improvements.--The Secretary of Homeland
Security, in cooperation with the Secretary of
Transportation, shall--
(A) support efforts to further the development and
improvement of blast-resistant containers for potential use
on aircraft, including designs that--
(i) will work on a variety of aircraft, including narrow
body aircraft; and
(ii) minimize the weight of such containers without
compromising their effectiveness; and
(B) explore alternative technologies for minimizing the
potential effects of detonation of an explosive device on
cargo and passenger aircraft.
(5) Report.--Not later than one year after the date of
enactment of this Act, the Secretary shall submit a report to
the Congress on the results of the pilot program and on
progress made in developing improved containers and
equivalent technologies. The report may be submitted in
classified and redacted formats.
(6) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of Homeland Security such
sums as are necessary to carry out this section. Such sums
shall remain available until expended.
(f) Cost-Sharing.--Not later than 45 days after the date of
the enactment of this Act, the Secretary of Homeland
Security, in consultation with representatives of air
carriers, airport operators, and other interested parties,
shall submit to the Senate and the House of Representatives--
(1) a proposed formula for cost-sharing, for the advanced
in-line baggage screening equipment required by this title,
between and among the Federal Government, State and local
governments, and the private sector that reflects
proportionate national security benefits and private sector
benefits for such enhancement; and
(2) recommendations, including recommended legislation, for
an equitable, feasible, and expeditious system for defraying
the costs of the advanced in-line baggage screening equipment
required by this title, which may be based on the formula
proposed under paragraph (1).

SEC.  05. EFFECTIVE DATE.

This title takes effect on the date of enactment of this
Act.
______

SA 3703. Mr. HOLLINGS submitted an amendment intended to be proposed
by him to the bill S. 2845, to reform the intelligence community and
the intelligence and intelligence-related activities of the United
States Government, and for other purposes; which was ordered to lie on
the table; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. NATIONAL INTELLIGENCE COORDINATOR.

(a) National Intelligence Coordinator.--There is a National
Intelligence Coordinator who shall be appointed by the
President.
(b) Responsibility.--Subject to the direction and control
of the President, the National Intelligence Coordinator shall
have the responsibility for coordinating the performance of
all intelligence and intelligence-related activities of the
United States Government, whether such activities are foreign
or domestic.
(c) Availability of Funds.--Funds shall be available to the
National Intelligence Coordinator for the performance of the
responsibility of the Coordinator under subsection (b) in the
manner provided by law or as directed by the President.
(d) Membership on National Security Council.--The National
Intelligence Coordinator shall be a member of the National
Security Council.
(e) Support.--(1) Any official, office, program, project,
or activity of the Central Intelligence Agency as of the date
of the enactment of this Act that supports the Director of
Central Intelligence in the performance of responsibilities
and authorities as the head of the intelligence community
shall, after that date, support the National Intelligence
Coordination in the performance of the responsibility of the
Coordinator under subsection (b).
(2) Any powers and authorities of the Director of Central
Intelligence under statute, Executive order, regulation, or
otherwise as of the date of the enactment of this Act that
relate to the performance by the Director of responsibilities
and authorities as the head of the intelligence community
shall, after that date, have no further force and effect.
(f) Accountability.--(1) The National Intelligence
Coordinator shall report directly to the President regarding
the performance of the responsibility of the Coordinator
under subsection (b), and shall be accountable to the
President regarding the performance of such responsibility.
(2) Except as otherwise provided by law, the National
Intelligence Coordinator shall not be accountable to Congress
regarding the performance of the responsibility of the
Coordinator.
______

SA 3704. Mr. WYDEN (for himself, Mr. Lott, Mr. Graham of Florida, Ms.
Snowe, and Mr. Cornyn) proposed an amendment to the bill S. 2845, to
reform the intelligence community and the intelligence and
intelligence-related activities of the United States Government, and
for other purposes; as follows:

At the end of title II, add the following:

Subtitle D--Classified Information

SEC. 231. SHORT TITLE.

This subtitle may be cited as the ``Independent National
Security Classification Board Act of 2004''.

[[Page S9727]]

SEC. 232. PURPOSE.

The purpose of this subtitle is to establish in the
executive branch an Independent National Security
Classification Board--
(1) to review the standards and procedures used in the
classification system for national security information;
(2) to propose and submit to Congress and the President for
comment new standards and procedures to be used in the
classification system for such information;
(3) to establish the new standards and procedures after
Congress and the President have had the opportunity to
comment; and
(4) to review, and make recommendations with respect to,
classifications of current and new information made under the
applicable classification system.

SEC. 233. INDEPENDENT NATIONAL SECURITY CLASSIFICATION BOARD.

(a) Establishment.--The Independent National Security
Classification Board (in this subtitle referred to as the
``Board'') is established as an independent agency in the
executive branch.
(b) Composition.--The Board shall be composed of one member
appointed by the President, one member jointly recommended by
the Majority Leader and the Minority Leader of the Senate and
appointed by the President, and one member jointly
recommended by the Speaker of the House of Representatives
and the Minority Leader of the House of Representatives and
appointed by the President, each by and with the advice and
consent of the Senate. Each member shall be knowledgeable on
classification matters.
(c) Term of Members.--Each member of the Board shall be
appointed for a term of 5 years. A member may be reappointed
for one additional 5-year term. A member whose term has
expired shall continue to serve on the Board until a
replacement has been appointed.
(d) Vacancies.--Any vacancy in the Board shall not affect
its powers, but shall be filled in the same manner as the
original appointment.
(e) Separate Office.--The Board shall have its own office
for carrying out its activities, and shall not share office
space with any element of the intelligence community or with
any other department, agency, or element of the United States
Government.
(f) Chairman.--The Board shall select a Chairman from among
its members.
(g) Meetings.--The Board shall meet at the call of the
Chairman.
(h) Quorum.--A majority of the members of the Board shall
constitute a quorum, but a lesser number of members may hold
hearings.
(i) Availability of Information.--The decision-making
process of the Board may be classified, but the final
decisions of the Board and the reports submitted under this
subtitle shall be made available to the public.
(j) Initial Appointments and Meeting.--
(1) Initial appointments.--Initial appointments of members
of the Board shall be made not later than 90 days after the
date of the enactment of this Act.
(2) Initial meeting.--The Board shall hold its first
meeting not later than 30 days after the date on which all
members of the Board have been appointed.
(k) Website.--The Board shall establish a website not later
than 90 days after the date on which all members of the Board
have been appointed.

SEC. 234. DUTIES OF BOARD.

(a) Review of Classification System.--
(1) In general.--The Board shall conduct a thorough review
of the classification system for national security
information, including the policy, procedures, and practices
of the system. The Board shall recommend reforms of such
system to ensure--
(A) the protection of the national security of the United
States;
(B) the sharing of information among departments, agencies,
and element of the United States Government; and
(C) an open and informed public discussion of national
security issues.
(2) Scope of review.--
(A) Consultation.--The Board shall consult with the Select
Committee on Intelligence, the Committee on Armed Services,
and the Committee on Foreign Relations of the Senate and the
Permanent Select Committee on Intelligence, the Committee on
Armed Services, and the Committee on International Relations
of the House of Representatives in determining the scope of
its review of the classification system.
(B) Review.--The Board shall submit a report describing the
proposed scope of review to the President and the committees
of Congress referred to in subparagraph (A) for comment.
(C) Revisions.--Not later than 30 days after receiving the
report under subparagraph (B)--
(i) the President shall notify the Board in writing of any
revisions to such scope of review; and
(ii) each committee of Congress referred to in subparagraph
(A) may submit to the Board, in writing, any comments of the
committee on the proposed scope of review.
(b) Adoption of National Security Information
Classification System.--
(1) Authority.--The Board shall prescribe the
classification system for national security information,
which shall apply to all departments, agencies, and elements
of the United States Government.
(2) Findings and recommendations.--The Board shall, in
accordance with the scope of review developed under
subsection (a)(2), review the classification system for
national security information and submit to the President and
Congress its findings and recommendations for new procedures
and standards to be used in such classification system.
(3) Classification system.--Not later than 180 days after
the date on which all members of the Board have been
confirmed by the Senate, the Board shall adopt a
classification system for national security information,
incorporating any comments received from the President and
considering any comments received from Congress. Upon the
adoption of the classification system, the system shall be
used for the classification of all national security
information.
(c) Review of Classification Decisions.--
(1) In general.--The Board shall, upon its own initiative
or pursuant to a request under paragraph (3), review any
classification decision made by an Executive agency with
respect to national security information.
(2) Access.--The Board shall have access to all documents
or other materials that are classified on the basis of
containing national security information.
(3) Requests for review.--The Board shall review in a
timely manner the existing or proposed classification of any
document or other material the review of which is requested
by--
(A) the head or Inspector General of an Executive agency
who is an authorized holder of such document or material; or
(B) the chairman or ranking member of--
(i) the Committee on Armed Services, the Committee on
Foreign Relations, or the Select Committee on Intelligence of
the Senate; or
(ii) the Committee on Armed Services, the Committee on
International Relations, or the Permanent Select Committee on
Intelligence of the House of Representatives.
(4) Recommendations.--
(A) In general.--The Board may make recommendations to the
President regarding decisions to classify all or portions of
documents or other material for national security purposes or
to declassify all or portions of documents or other material
classified for such purposes.
(B) Implementation.--Upon receiving a recommendation from
the Board under subparagraph (A), the President shall
either--
(i) accept and implement such recommendation; or
(ii) not later than 60 days after receiving the
recommendation if the President does not accept and implement
such recommendation, transmit in writing to Congress and have
posted on the website of the Board a notification in
unclassified form of the justification for the President's
decision not to implement such recommendation.
(5) Exemption from freedom of information act.--The Board
shall not be required to make documents or materials reviewed
under this subsection available to the public under section
552 of title 5, United States Code (commonly referred to as
the Freedom of Information Act).
(6) Regulations.--The Board shall prescribe regulations to
carry out this subsection.
(7) Executive agency defined.--In this section, the term
``Executive agency'' has the meaning given that term in
section 105 of title 5, United States Code.

SEC. 235. POWERS OF BOARD.

(a) Hearings.--The Board may hold such hearings, sit and
act at such times and places, take such testimony, and
receive such evidence as the Board considers advisable to
carry out this subtitle.
(b) Information From Federal Agencies.--The Board may
secure directly from any department, agency, or element of
the United States Government such information as the Board
considers necessary to carry out this subtitle. Upon request
of the Chairman of the Board, the head of such department,
agency, or element shall furnish such information to the
Board.
(c) Administrative Support Services.--Upon request of the
Board, the Administrator of General Services shall provide to
the Board, on a reimbursable basis, the administrative
support necessary for the Board to carry out its duties under
this subtitle.
(d) Postal Services.--The Board may use the United States
mails in the same manner and under the same conditions as
other departments and agencies of the Federal Government.
(e) Gifts.--The Board may accept, use, and dispose of gifts
or donations of services or property.

SEC. 236. BOARD PERSONNEL MATTERS.

(a) Executive Schedule Level IV.--Section 5315 of title 5,
United States Code, is amended by adding at the end the
following:
``Members, Independent National Security Classification
Board.''.
(b) Staff.--
(1) In general.--The Chairman of the Board may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional
personnel as may be necessary to enable the Board to perform
its duties under this subtitle. The employment of an
executive director shall be subject to confirmation by the
Board.
(2) Compensation.--The Chairman of the Board may fix the
compensation of the executive director and other personnel
without regard to chapter 51 and subchapter III of chapter 53
of title 5, United States Code, relating to classification of
positions and General Schedule pay rates, except that the
rate

[[Page S9728]]

of pay for the executive director and other personnel may not
exceed the rate payable for level V of the Executive Schedule
under section 5316 of such title.
(c) Detail of Government Employees.--Any employee of the
United States Government may be detailed to the Board without
reimbursement, and such detail shall be without interruption
or loss of civil service status or privilege.

SEC. 237. FUNDING.

Of the amount authorized to be appropriated by section 352,
$2,000,000 shall be available for the Board for purposes of
this section during fiscal year 2005.
______

SA 3705. Ms. COLLINS (for herself, Mr. Carper, and Mr. Lieberman)
proposed an amendment to the bill S. 2845, to reform the intelligence
community and the intelligence and intelligence-related activities of
the United States Government, and for other purposes; as follows:

At the end of the bill, add the following:

TITLE IV--HOMELAND SECURITY GRANTS

SEC. 401. SHORT TITLE.

This title may be cited as the ``Homeland Security Grant
Enhancement Act of 2004''.

SEC. 402. DEFINITIONS.

In this title, the following definitions shall apply:
(1) Insular area.--The term ``insular area'' means American
Samoa, the Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, Guam, and the Virgin Islands.
(2) Large high-threat state fund.--The term ``Large High-
Threat State Fund'' means the fund containing amounts
authorized to be appropriated for States that elect to
receive Federal financial assistance through a per capita
share of 38.625 percent of the amount appropriated for the
State Homeland Security Grant Program.
(3) Local government.--The term ``local government'' has
the same meaning given that term in section 2 of the Homeland
Security Act of 2002 (6 U.S.C. 101).
(4) State.--The term ``State'' means each of the several
States of the United States and the District of Columbia.
(5) State homeland security grant program.--The term
``State Homeland Security Grant Program'' means the program
receiving 75 percent of the amount appropriated for the
Threat-Based Homeland Security Grant Program.
(6) Threat-based homeland security grant program.--The term
``Threat-Based Homeland Security Grant Program'' means the
program authorized under section 6.
(7) Urban area security initiative grant program.--The term
``Urban Area Security Initiative Grant Program'' means the
program receiving 25 percent of the amount appropriated for
the Threat-Based Homeland Security Grant Program.

SEC. 403. PRESERVATION OF PRE-9/11 GRANT PROGRAMS FOR
TRADITIONAL FIRST RESPONDER MISSIONS.

(a) In General.--This title shall not be construed to
affect any authority to award grants under any Federal grant
program listed under subsection (b), which existed on
September 10, 2001, to enhance traditional missions of State
and local law enforcement, firefighters, ports, emergency
medical services, or public health missions.
(b) Programs Included.--The programs referred to in
subsection (a) are the following:
(1) The Firefighter Assistance Program authorized under
section 33 of the Federal Fire Prevention and Control Act of
1974 (15 U.S.C. 2229).
(2) The Emergency Management Performance Grant Program and
the Urban Search and Rescue Grant program authorized under--
(A) title VI of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5195 et seq.);
(B) the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations
Act, 2000 (Public Law 106-74; 113 Stat. 1047 et seq.); and
(C) the Earthquake Hazards Reduction Act of 1977 (42 U.S.C.
7701 et seq.).
(4) The Edward Byrne Memorial State and Local Law
Enforcement Assistance Programs authorized under part E of
title I of the Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3750 et seq.).
(5) The Public Safety and Community Policing (COPS ON THE
BEAT) Grant Program authorized under part Q of title I of the
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C.
3796dd et seq.).
(6) Grant programs under the Public Health Service Act
regarding preparedness for bioterrorism and other public
health emergencies and the Emergency Response Assistance
Program authorized under section 1412 of the Defense Against
Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2312).

SEC. 404. INTERAGENCY COMMITTEE TO COORDINATE AND STREAMLINE
HOMELAND SECURITY GRANT PROGRAMS.

(a) In General.--The Homeland Security Act of 2002 (6
U.S.C. 101 et seq.) is amended by inserting after section 801
the following:

``SEC. 802. INTERAGENCY COMMITTEE TO COORDINATE AND
STREAMLINE HOMELAND SECURITY GRANT PROGRAMS.

``(a) Establishment.--
``(1) In general.--The Secretary, in coordination with the
Attorney General, the Secretary of Health and Human Services,
the Secretary of Transportation, the Administrator of the
Environmental Protection Agency, and other agencies providing
assistance for first responder preparedness, as identified by
the President, shall establish the Interagency Committee to
Coordinate and Streamline Homeland Security Grant Programs
(referred to in this subtitle as the `Interagency
Committee').
``(2) Composition.--The Interagency Committee shall be
composed of--
``(A) a representative of the Department;
``(B) a representative of the Department of Health and
Human Services;
``(C) a representative of the Department of Transportation;
``(D) a representative of the Department of Justice;
``(E) a representative of the Environmental Protection
Agency; and
``(F) a representative of any other department or agency
determined to be necessary by the President.
``(3) Responsibilities.--The Interagency Committee shall--
``(A) report on findings to the Information Clearinghouse
established under section 801(d);
``(B) consult with State and local governments and
emergency response providers regarding their homeland
security needs and capabilities;
``(C) advise the Secretary on the development of
performance measures for homeland security grant programs and
the national strategy for homeland security;
``(D) compile a list of homeland security assistance
programs;
``(E) not later than 1 year after the effective date of the
Homeland Security Grant Enhancement Act of 2004--
``(i) develop a proposal to coordinate, to the maximum
extent practicable, the planning, reporting, application, and
other guidance documents contained in homeland security
assistance programs to eliminate all redundant and
duplicative requirements; and
``(ii) submit the proposal developed under clause (i) to
Congress and the President.
``(b) Administration.--The Department shall provide
administrative support to the Interagency Committee, which
shall include--
``(1) scheduling meetings;
``(2) preparing agenda;
``(3) maintaining minutes and records; and
``(4) producing reports.
``(c) Chairperson.--The Secretary shall designate a
chairperson of the Interagency Committee.
``(d) Meetings.--The Interagency Committee shall meet--
``(1) at the call of the Secretary; or
``(2) not less frequently than once every 1 month.''.
(b) Technical and Conforming Amendment.--The table of
contents for the Homeland Security Act of 2002 (6 U.S.C. 101
et seq.) is amended by inserting after the item relating to
section 801 the following:

``Sec. 802. Interagency Committee to Coordinate and Streamline Homeland
Security Grant Programs.''.

SEC. 405. STREAMLINING FEDERAL HOMELAND SECURITY GRANTS.

(a) Director of State and Local Government Coordination and
Preparedness.--Section 801(a) of the Homeland Security Act of
2002 (6 U.S.C. 361(a)) is amended to read as follows:
``(a) Establishment.--
``(1) In general.--There is established within the Office
of the Secretary the Office for State and Local Government
Coordination and Preparedness, which shall oversee and
coordinate departmental programs for, and relationships with,
State and local governments.
``(2) Executive director.--The Office established under
paragraph (1) shall be headed by the Executive Director of
State and Local Government Coordination and Preparedness, who
shall be appointed by the President, by and with the advice
and consent of the Senate.''.
(b) Office for Domestic Preparedness.--The Homeland
Security Act of 2002 (6 U.S.C. 101 et seq.) is amended--
(1) by redesignating section 430 as section 803 and
transferring that section to the end of subtitle A of title
VIII, as amended by section 4; and
(2) in section 803, as redesignated by paragraph (1)--
(A) in subsection (a), by striking ``the Directorate of
Border and Transportation Security'' and inserting ``the
Office for State and Local Government Coordination and
Preparedness'';
(B) in subsection (b), by striking ``who shall be appointed
by the President'' and all that follows and inserting ``who
shall report directly to the Executive Director of State and
Local Government Coordination and Preparedness.'';
(C) in subsection (c)--
(i) in paragraph (7)--

(I) by striking ``other'' and inserting ``the'';
(II) by striking ``consistent with the mission and
functions of the Directorate''; and
(III) by striking ``and'' at the end; and

(ii) in paragraph (8)--

(I) by inserting ``carrying out'' before ``those
elements'';
(II) by striking the period at the end and inserting ``;
and'' ; and

(iii) by adding at the end the following:
``(9) managing the Homeland Security Information
Clearinghouse established under section 801(d).'';

[[Page S9729]]

(D) by redesignating subsection (d) as subsection (e); and
(E) by inserting after subsection (c) the following:
``(d) Training and Exercises Office Within the Office for
Domestic Preparedness.--
``(1) In general.--The Secretary shall create within the
Office for Domestic Preparedness an internal office that
shall be the proponent for all national domestic
preparedness, training, education, and exercises within the
Office for State and Local Government Coordination.
``(2) Office head.--The Secretary shall select an
individual with recognized expertise in first-responder
training and exercises to head the office, and such person
shall report directly to the Director of the Office of
Domestic Preparedness.''.
(c) Technical and Conforming Amendments.--The table of
contents for the Homeland Security Act of 2002 (6 U.S.C. 101
et seq.) is amended--
(1) by striking the item relating to section 430;
(2) by amending section 801 to read as follows:

``Sec. 801. Office of State and Local Government Coordination and
Preparedness.''; and

(3) by inserting after the item relating to section 802, as
added by this Act, the following:

``Sec. 803. Office for Domestic Preparedness.''.

(d) Establishment of Homeland Security Information
Clearinghouse.--Section 801 of the Homeland Security Act of
2002 (6 U.S.C. 101 et seq.), as amended by subsection (a), is
further amended by adding at the end the following:
``(d) Homeland Security Information Clearinghouse.--
``(1) Establishment.--There is established within the
Office for State and Local Government Coordination a Homeland
Security Information Clearinghouse (referred to in this
section as the `Clearinghouse'), which shall assist States,
local governments, and first responders in accordance with
paragraphs (2) through (5).
``(2) Homeland security grant information.--The
Clearinghouse shall create a new website or enhance an
existing website, establish a toll-free number, and produce a
single publication that each contain information regarding
the homeland security grant programs identified under section
802(a)(4).
``(3) Technical assistance.--The Clearinghouse, in
consultation with the Interagency Committee established under
section 802, shall provide information regarding--
``(A) technical assistance provided by any Federal agency
to States and local governments to conduct threat analyses
and vulnerability assessments; and
``(B) templates for conducting threat analyses and
vulnerability assessments.
``(4) Best practices.--The Clearinghouse shall work with
States, local governments, emergency response providers and
the National Domestic Preparedness Consortium, and private
organizations to gather, validate, and disseminate
information regarding successful State and local homeland
security programs and practices.
``(5) Use of federal funds.--The Clearinghouse shall
compile information regarding equipment, training, and other
services purchased with Federal funds provided under the
homeland security grant programs identified under section
802(a)(4), and make such information, and information
regarding voluntary standards of training, equipment, and
exercises, available to States, local governments, and first
responders.
``(6) Other information.--The Clearinghouse shall provide
States, local governments, and first responders with any
other information that the Secretary determines necessary.''.

SEC. 406. THREAT-BASED HOMELAND SECURITY GRANT PROGRAM.

(a) Grants Authorized.--The Secretary of Homeland Security
(referred to in this section as the ``Secretary'') may award
grants to States and local governments to enhance homeland
security.
(b) Use of Funds.--
(1) In general.--Grants awarded under subsection (a)--
(A) shall be used to address homeland security matters
related to acts of terrorism or major disasters and related
capacity building; and
(B) shall not be used to supplant ongoing first responder
expenses or general protective measures.
(2) Allowable uses.--Grants awarded under subsection (a)
may be used to--
(A) develop State plans or risk assessments (including the
development of the homeland security plan) to respond to
terrorist attacks and strengthen all hazards emergency
planning and communitywide plans for responding to terrorist
or all hazards emergency events that are coordinated with the
capacities of applicable Federal, State, and local
governments, first responders, and State and local government
health agencies;
(B) develop State, regional, or local mutual aid
agreements;
(C) purchase or upgrade equipment based on State and local
needs as identified under a State homeland security plan;
(D) conduct exercises to strengthen emergency preparedness
of State and local first responders including law
enforcement, firefighting personnel, and emergency medical
service workers, and other emergency responders identified in
a State homeland security plan;
(E) pay for overtime expenses relating to--
(i) training activities consistent with the goals outlined
in a State homeland security plan;
(ii) as determined by the Secretary, activities relating to
an increase in the threat level under the Homeland Security
Advisory System; and
(iii) any other activity relating to the State Homeland
Security Strategy, and approved by the Secretary;
(F) promote training regarding homeland security
preparedness including--
(i) emergency preparedness responses to a use or threatened
use of a weapon of mass destruction; and
(ii) training in the use of equipment, including detection,
monitoring, and decontamination equipment, and personal
protective gear; and
(G) conduct any activity permitted under the Law
Enforcement Terrorism Prevention Grant Program.
(3) Prohibited uses.--
(A) Construction.--Grants awarded under subsection (a) may
not be used to construct buildings or other physical
facilities, except those described in section 611 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5196) and approved by the Secretary in the
homeland security plan certified under subsection (d), or to
acquire land.
(B) Cost sharing.--Grant funds provided under this section
shall not be used for any State or local government cost
sharing contribution request under this section.
(c) Application.--
(1) Submission.--A State may apply for a grant under this
section by submitting to the Secretary an application at such
time, and in such manner, and containing such information the
Secretary may reasonably require.
(2) Revisions.--A State may revise a homeland security plan
certified under subsection (d) at the time an application is
submitted under paragraph (1) after receiving approval from
the Secretary.
(3) Approval.--The Secretary shall not award a grant under
this section unless the application submitted by the State
includes a homeland security plan meeting the requirements of
subsection (d).
(4) Release of funds.--The Secretary shall release grant
funds to States with approved plans after the approval of an
application submitted under this subsection.
(d) Homeland Security Plan.--
(1) In general.--An application submitted under subsection
(c) shall include a certification that the State has prepared
a 3-year State homeland security plan (referred to in this
subsection as the ``plan'') to respond to terrorist attacks
and strengthen all hazards emergency planning that has been
approved by the Secretary.
(2) Contents.--The plan shall contain measurable goals and
objectives that--
(A) establish a 3-year strategy to set priorities for the
allocation of funding to political subdivisions based on the
risk, capabilities, and needs described under paragraph
(3)(C);
(B) provide for interoperable communications;
(C) provide for local coordination of response and recovery
efforts, including procedures for effective incident command
in conformance with the National Incident Management System;
(D) ensure that first responders and other emergency
personnel have adequate training and appropriate equipment
for the threats that may occur;
(E) provide for improved coordination and collaboration
among police, fire, and public health authorities at State
and local levels;
(F) coordinate emergency response and public health plans;
(G) mitigate risks to critical infrastructure that may be
vulnerable to terrorist attacks;
(H) promote regional coordination among contiguous local
governments;
(I) identify necessary protective measures by private
owners of critical infrastructure;
(J) promote orderly evacuation procedures when necessary;
(K) ensure support from the public health community for
measures needed to prevent, detect and treat bioterrorism,
and radiological and chemical incidents;
(L) increase the number of local jurisdictions
participating in local and statewide exercises;
(M) meet preparedness goals as determined by the Secretary;
and
(N) include a report from the relevant advisory committee
established under paragraph (3)(D) that documents the areas
of support, disagreement, or recommended changes to the plan
before its submission to the Secretary.
(3) Development process.--
(A) In general.--In preparing the plan under this section,
a State shall--
(i) provide for the consideration of all homeland security
needs;
(ii) follow a process that is continuing, inclusive,
cooperative, and comprehensive, as appropriate; and
(iii) coordinate the development of the plan with the
homeland security planning activities of local governments.
(B) Coordination with local planning activities.--The
coordination under subparagraph (A)(iii) shall contain input
from local stakeholders, including--

[[Page S9730]]

(i) local officials, including representatives of rural,
high-population, and high-threat jurisdictions;
(ii) first responders and emergency response providers; and
(iii) private sector companies, such as railroads and
chemical manufacturers.
(C) Scope of planning.--Each State preparing a plan under
this section shall, in conjunction with the local
stakeholders under subparagraph (B), address all the
information requested by the Secretary, and complete a
comprehensive assessment of--
(i) risk, including a--

(I) vulnerability assessment;
(II) threat assessment; and
(III) public health assessment, in coordination with the
State bioterrorism plan; and

(ii) capabilities and needs, including--

(I) an evaluation of current preparedness, mitigation, and
response capabilities based on such assessment mechanisms as
shall be determined by the Secretary;
(II) an evaluation of capabilities needed to address the
risks described under clause (i); and
(III) an assessment of the shortfall between the
capabilities described under subclause (I) and the required
capabilities described under subclause (II).

(D) Advisory committee.--
(i) In general.--Each State preparing a plan under this
section shall establish an advisory committee to receive
comments from the public and the local stakeholders
identified under subparagraph (B).
(ii) Composition.--The Advisory Committee shall include
local officials, local first responders, and emergency
response providers that are representative of the counties,
cities, and towns within the State, and which shall include
representatives of rural, high-population, and high-threat
jurisdictions.
(4) Plan approval.--The Secretary shall approve a plan upon
finding that the plan meets the requirements of--
(A) paragraphs (2) and (3);
(B) the interim performance measurements under subsection
(g)(1), or the national performance standards under
subsection (g)(2); and
(C) any other criteria the Secretary determines necessary
to the approval of a State plan.
(5) Review of advisory committee report.--The Secretary
shall review the recommendations of the advisory committee
report incorporated into a plan under subsection (d)(2)(N),
including any dissenting views submitted by advisory
committee members, to ensure cooperation and coordination
between local and State jurisdictions in planning the use of
grant funds under this section.
(e) Tentative Allocation.--
(1) Urban area security initiative grant program.--
(A) In general.--The Secretary shall allocate 25 percent of
the funds appropriated under the Threat-Based Homeland
Security Grant Program for discretionary grants to be
provided directly to local governments, including multistate
entities established by a compact between 2 or more States,
in high threat areas, as determined by the Secretary based on
the criteria under subparagraph (B).
(B) Criteria.--The Secretary shall ensure that each local
government receiving a grant under this paragraph--
(i) has a large population or high population density;
(ii) has a high degree of threat, risk, and vulnerability
related to critical infrastructure or not less than 1 key
asset identified by the Secretary or State homeland security
plan;
(iii) has an international border with Canada or Mexico, or
coastline bordering international waters of Canada, Mexico,
or bordering the Atlantic Ocean, the Pacific Ocean, or the
Gulf of Mexico; or
(iv) are subject to other threat factors specified in
writing by the Secretary.
(C) Consistency.--Any grant awarded under this paragraph
shall be used to supplement and support, in a consistent and
coordinated manner, those activities and objectives described
under subsection (b) or a State homeland security plan.
(D) Coordination.--The Secretary shall ensure that any
grants made under this paragraph encourage multiple
contiguous units of local government and mutual aid partners
to coordinate any homeland security activities.
(2) State homeland security grant program.--
(A) States.--Each State whose application is approved under
subsection (c) shall receive, for each fiscal year, the
greater of--
(i) 0.75 percent of the amounts appropriated for the State
Homeland Security Grant Program; or
(ii) the State's per capita share, as defined by the 2002
census population estimate, of 38.625 percent of the State
Homeland Security Grant Program.
(B) Insular areas.--Each insular area shall receive, for
each fiscal year, the greater of--
(i) 0.075 percent of the amounts appropriated for the State
Homeland Security Grant Program; or
(ii) the insular area's per capita share, as defined by the
2002 census population estimate, of 38.625 percent of the
State Homeland Security Grant Program.
(3) Secondary distribution.--After the distribution of
funds under paragraph (2), the Secretary shall, from the
remaining funds for the State Homeland Security Grant Program
and 10.8 percent of the amount appropriated for the Threat-
Based Homeland Security Grant Program pursuant to subsection
(j)(1), distribute amounts to each State that--
(A) has a substantial percentage of its population residing
in Metropolitan Statistical Areas, as defined by the Office
of Management and Budget;
(B) has a high degree of threat, risk, and vulnerability
related to critical infrastructure or not less than 1 key
asset identified by the Secretary or State homeland security
plan;
(C) has an international border with Canada or Mexico, or
coastline bordering international waters of Canada, Mexico,
or bordering the Atlantic Ocean, the Pacific Ocean, or the
Gulf of Mexico; or
(D) are subject to other threat factors specified in
writing by the Secretary.
(4) Distribution of funds.--If the amounts tentatively
allocated under paragraphs (1) through (3) equal the sum of
the amounts appropriated pursuant to subsection (j), the
Secretary shall distribute the appropriated amounts based on
the tentative allocation.
(5) Proportional reduction.--If the amount appropriated for
the Large High-Threat State Fund pursuant to subsection
(j)(2) is less than 10.8 percent of the amount appropriated
for the Threat-Based Homeland Security Grant Program pursuant
to subsection (j)(1), the Secretary shall proportionately
reduce the amounts tentatively allocated under paragraphs (1)
through (3) so that the amount distributed is equal to the
sum of the amounts appropriated for such programs.
(6) Funding for local entities and first responders.--The
Secretary shall require recipients of the State Homeland
Security Grant to provide local governments and first
responders, consistent with the applicable State homeland
security plan, with not less than 80 percent of the grant
funds, the resources purchased with such grant funds, or a
combination thereof, not later than 60 days after receiving
grant funding.
(7) Supplement not supplant.--Amounts appropriated for
grants under this subsection shall be used to supplement and
not supplant other State and local public funds obligated for
the purposes provided under this Act.
(8) Law enforcement terrorism prevention program.--
(A) In general.--The Secretary shall designate not more
than 25 percent of the amounts allocated through the State
Homeland Security Grant Program to be used for the Law
Enforcement Terrorism Prevention Program to provide grants to
law enforcement agencies to enhance capabilities for
terrorism prevention.
(B) Use of funds.--Grants awarded under this paragraph may
be used for--
(i) information sharing to preempt terrorist attacks;
(ii) target hardening to reduce the vulnerability of
selected high value targets;
(iii) threat recognition to recognize the potential or
development of a threat;
(iv) intervention activities to interdict terrorists before
they can execute a threat;
(v) interoperable communication systems;
(vi) overtime expenses related to the State Homeland
Security Strategy approved by the Secretary; and
(vii) any other terrorism prevention activity authorized by
the Secretary.
(f) Report on Homeland Security Spending.--Each recipient
of a grant under this section shall annually submit a report
to the Secretary that contains--
(A) an accounting of the amount of State and local funds
spent on homeland security activities under the applicable
State homeland security plan; and
(B) information regarding the use of grant funds by units
of local government as required by the Secretary.
(g) Accountability.--
(1) Interim performance measures.--
(A) In general.--Before establishing performance standards
under paragraph (2), the Secretary shall assist each State in
establishing interim performance measures based upon--
(i) the goals and objectives under subsection (d)(2); and
(ii) any other factors determined by the Secretary.
(B) Annual report.--Before establishing performance
measures under paragraph (2), each State with an approved
State plan shall submit to the Secretary a report detailing
the progress the State has made in meeting the interim
performance measures established under subparagraph (A).
(2) National performance standards.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall set national
performance standards based in part on the goals and
objectives under subsection (d)(2) and any other factors the
Secretary determines relevant.
(B) Compliance.--The Secretary shall ensure that State
plans are in conformance with the standards set under
subparagraph (A).
(C) Annual report.--After the establishment of performance
standards under subparagraph (A), each State with an approved
State homeland security plan shall submit to the Secretary a
report on the progress the State has made in meeting such
standards.
(3) General accounting office access to information.--Each
recipient of a grant under this section and the Department of
Homeland Security shall provide the General

[[Page S9731]]

Accounting Office with full access to information regarding
the activities carried out under this section.
(4) Audit.--Grant recipients that expend $500,000 or more
in Federal funds during any fiscal year shall submit to the
Secretary an organization wide financial and compliance audit
report in conformance with the requirements of chapter 75 of
title 31, United States Code.
(h) Remedies for Non-Compliance.--
(1) In general.--If the Secretary finds, after reasonable
notice and an opportunity for a hearing, that a recipient of
a grant under this section has failed to substantially comply
with any provision of this section, the Secretary shall--
(A) terminate any payment of grant funds to be made to the
recipient under this section;
(B) reduce the amount of payment of grant funds to the
recipient by an amount equal to the amount of grants funds
that were not expended by the recipient in accordance with
this section; or
(C) limit the use of grant funds received under this
section to programs, projects, or activities not affected by
the failure to comply.
(2) Duration of penalty.--The Secretary shall apply an
appropriate penalty under paragraph (1) until such time as
the Secretary determines that the grant recipient is in full
compliance with this section.
(3) Direct funding.--If a State fails to substantially
comply with any provision of this section, including failing
to provide local governments with grant funds or resources
purchased with grant funds in a timely fashion, a local
government entitled to receive such grant funds or resources
may petition the Secretary, at such time and in such manner
as determined by the Secretary, to request that grant funds
or resources be provided directly to the local government.
(i) Reports to Congress.--The Secretary shall submit an
annual report to Congress that provides--
(1) findings relating to the performance standards
established under subsection (g);
(2) the status of preparedness goals and objectives;
(3) an evaluation of how States and local governments are
meeting preparedness goals and objectives;
(4) the total amount of resources provided to the States;
(5) the total amount of resources provided to units of
local government; and
(6) a list of how these resources were expended.
(j) Authorization of Appropriations.--
(1) Threat-based homeland security grant program.--There
are authorized to be appropriated such sums as are necessary
to carry out this section.
(2) Large high-threat state fund.--There are authorized to
be appropriated 10.8 percent of the funds appropriated in any
fiscal year pursuant to paragraph (1), which shall be used to
carry out the Large High-Threat State Fund.

SEC. 407. ELIMINATING HOMELAND SECURITY FRAUD, WASTE, AND
ABUSE.

(a) Annual General Accounting Office Audit and Report.--
(1) Audit.--The Comptroller General shall conduct an annual
audit of the Threat Based Homeland Security Grant Program
(2) Report.--The Comptroller General shall provide a report
to Congress on the results of the audit conducted under
paragraph (1), which includes--
(A) an analysis of whether the grant recipients allocated
funding consistent with the State homeland security plan and
the guidelines established by the Department of Homeland
Security; and
(B) the amount of funding devoted to overtime and
administrative expenses.
(b) Reviews of Threat-Based Homeland Security Funding.--The
Secretary, through the appropriate agency, shall conduct
periodic reviews of grants made through the Threat Based
Homeland Security Grant Program to ensure that recipients
allocate funds consistent with the guidelines established by
the Department of Homeland Security.
(c) Remedies for Non-Compliance.--If the Secretary
determines, after reasonable notice and an opportunity for a
hearing, that a recipient of a Threat Based Homeland Security
Grant has failed to substantially comply with any regulations
or guidelines issues by the Department regarding eligible
expenditures, the Secretary shall--
(1) terminate any payment of grant funds scheduled to be
made to the recipient;
(2) reduce the amount of payment of grant finds to the
recipient by an amount equal to the amount of grant funds
that were not expended by the recipient in accordance with
such guidelines; or
(3) limit the use of grant funds received under the Threat
Based Homeland Security Grant Program to programs, projects,
or activities not affected by the failure to comply.
(d) Duration of Penalty.--The Secretary shall apply an
appropriate penalty under subsection (c) until such time as
the Secretary determines that the grant recipient is in full
compliance with the guidelines established by the Department
of Homeland Security.

SEC. 408. FLEXIBILITY IN UNSPENT HOMELAND SECURITY FUNDS.

(a) Reallocation of Funds.--The Director of the Office for
Domestic Preparedness, Department of Homeland Security, shall
allow any State to request approval to reallocate funds
received pursuant to appropriations for the State Homeland
Security Grant Program under Public Laws 105-277 (112 Stat.
2681 et seq.), 106-113 (113 Stat. 1501A-3 et seq.), 106-553
(114 Stat. 2762A-3 et seq.), 107-77 (115 Stat. 78 et seq.),
or the Consolidated Appropriations Resolution of 2003 (Public
Law 108-7), among the 4 categories of equipment, training,
exercises, and planning.
(b) Approval of Reallocation Requests.--The Director shall
approve reallocation requests under subsection (a) in
accordance with the State plan and any other relevant factors
that the Secretary of Homeland Security determines to be
necessary.
(c) Limitation.--A waiver under this section shall not
affect the obligation of a State to pass through 80 percent
of the amount appropriated for equipment to units of local
government.

SEC. 409. CERTIFICATION RELATIVE TO THE SCREENING OF
MUNICIPAL SOLID WASTE TRANSPORTED INTO THE
UNITED STATES.

(a) In General.--The Secretary of Homeland Security shall
deny entry into the United States of any commercial motor
vehicle (as defined in section 31101(1) of title 49, United
States Code) carrying municipal solid waste unless and until
the Secretary certifies to Congress that the methodologies
and technologies used by the Bureau of Customs and Border
Protection of the Department of Homeland Security to screen
for and detect the presence of chemical, nuclear, biological,
and radiological weapons in such waste are as effective as
the methodologies and technologies used by the Bureau to
screen for such materials in other items of commerce entering
into the United States by commercial motor vehicle transport.
(b) Defined Term.--In this section, the term ``municipal
solid waste'' includes sludge (as defined in section 1004 of
the Solid Waste Disposal Act (42 U.S.C. 6903)).
______

SA 3706. Mr. SPECTER (for himself, Mr. Shelby, Mr. Roberts, Mr. Bond,
and Mr. Wyden) submitted an amendment intended to be proposed by him to
the bill S. 2845, to reform the intelligence community and the
intelligence and intelligence-related activities of the United States
Government, and for other purposes; which was ordered to lie on the
table; as follows:

On page 10, line 23, strike ``a principal'' and insert
``the principal''.
On page 10, line 26, strike ``and''.
On page 11, strike line 1 and 2 and insert the following:
(4) direct, oversee, and execute the National Intelligence
Program; and
(5) supervise, direct, and control the operations of the
Central Intelligence Agency, the National Security Agency,
the National Geospatial-Intelligence Agency, the National
Reconnaissance Office, and the elements, components, and
programs of the Defense Intelligence Agency (other than the
defense attaches) engaged in the collection of national
intelligence, with the head of each such agency, element,
component, or program reporting directly to the National
Intelligence Director.
On page 14, line 3, strike ``issue'' and insert ``direct''.
On page 14, line 13, strike ``manage and oversee'' and
insert ``supervise, direct, and control''.
On page 15, line 10, strike ``encourage and''.
On page 16, line 5, strike ``condition of'' and insert
``requirement for''.
On page 19, line 6, strike ``and''.
On page 19, between lines 6 and 7, insert the following:
(20) review, approve, and manage the research and
development efforts of the intelligence community;
(21) review, approve, and manage the acquisition programs
of the National Intelligence Program, including all
acquisitions of major systems by the intelligence community
covered by section 506A of the National Security Act of 1947
(50 U.S.C. 415a-1) or described in section 162 of this Act;
and
On page 19, line 7, strike ``(20)'' and insert ``(22)''.
On page 20, between lines 3 and 4, insert the following:
(d) Responsibility for Performance of Specific Functions.--
In carrying out responsibilities under this section, the
National Intelligence Director shall ensure--
(1) through the National Security Agency (except as
otherwise directed by the President or the National Security
Council), the continued operation of an effective unified
organization for the conduct of signals intelligence
activities and shall ensure that the product is disseminated
in a timely manner to authorized recipients;
(2) through the Defense Intelligence Agency (except as
otherwise directed by the President or the National Security
Council), effective management of human intelligence
activities (other than activities of the defense attaches,
which shall remain under the direction of the Secretary of
Defense) and other national intelligence collection
activities performed by the Defense Intelligence Agency;
(3) through the National Geospatial-Intelligence Agency
(except as otherwise directed by the President or the
National Security Council), with appropriate representation
from the intelligence community, the continued operation of
an effective unified organization--
(A) for carrying out tasking of imagery collection;
(B) for the coordination of imagery processing and
exploitation activities;

[[Page S9732]]

(C) for ensuring the dissemination of imagery in a timely
manner to authorized recipients; and
(D) notwithstanding any other provision of law and
consistent with the policies, procedures, standards, and
other directives of the National Intelligence Director and
the Chief Information Officer of the National Intelligence
Authority, for--
(i) prescribing technical architecture and standards
related to imagery intelligence and geospatial information
and ensuring compliance with such architecture and standards;
and
(ii) developing and fielding systems of common concern
related to imagery intelligence and geospatial information;
and
(4) through the National Reconnaissance Office (except as
otherwise directed by the President or the National Security
Council), the continued operation of an effective unified
organization for the research, development, acquisition, and
operation of overhead reconnaissance systems necessary to
satisfy the requirements of all elements of the intelligence
community.
(e) National Intelligence Collection.--The National
Intelligence Director shall--
(1) ensure the efficient and effective collection of
national intelligence using technical means, human sources,
and other lawful techniques;
(2) provide overall direction for and coordinate the
collection of national intelligence through human sources by
elements of the intelligence community authorized to
undertake such collection; and
(3) coordinate with other departments, agencies, and
elements of the United States Government which are authorized
to undertake such collection and ensure that the most
effective use is made of the resources of such departments,
agencies, and elements with respect to such collection, and
resolve operational conflicts regarding such collection.
On page 20, line 4, strike ``(d)'' and insert ``(f)''.
On page 32, beginning on line 8, strike ``oversee and
direct'' and all that follows through line 10 and insert
``direct and coordinate''.
On page 109, line 12, strike ``subject to paragraph (4),''
On page 109, line 13, strike ``and''.
On page 109, line 19, strike the period and insert ``;
and''.
On page 109, between lines 19 and 20, insert the following:
(D) ensure compliance with section 506A of the National
Security Act of 1947 (50 U.S.C. 415a-1).
On page 110, strike lines 4 through 19 and insert the
following:
(3) With respect to the acquisition of a major system (as
that term is defined in section 506A(e) of the National
Security Act of 1947), the National Intelligence Director may
delegate a duty, responsibility, or authority under this
section or any other provision of law only to the Principal
Deputy National Intelligence Director or to another Deputy
National Intelligence Director specified by the Director.
(4) In this subsection:
On page 111, line 1, strike ``whole'' and insert ``whole or
in part''.
On page 111, line 3, strike ``The term'' and insert
``Except for purposes of paragraph (3), the term''.
On page 179, strike lines 1 through 4 and insert the
following:
``(b) Supervision.--(1) The Director of the Central
Intelligence Agency shall be under the direction,
supervision, and control of the National Intelligence
Director.
``(2) The Director of the Central Intelligence Agency shall
report directly to the National Intelligence Director
regarding the activities of the Central Intelligence Agency.
On page 179, line 20, add ``and'' at the end.
On page 179, strike line 21 and all that follows through
page 180, line 6.
On page 180, line 7, strike ``(4)'' and insert ``(3)''.
On page 181, strike lines 1 through 10.
On page 196, between lines 19 and 20, insert the following:

SEC. 304. NATIONAL SECURITY AGENCY.

The National Security Agency Act of 1959 (50 U.S.C. 402
note) is amended by inserting after the first section the
following new sections:
``Sec. 2. There is a National Security Agency.
``Sec. 3. (a) The Director of the National Security Agency
is the head of the National Security Agency.
``(b)(1) The Director of the National Security Agency shall
be under the direction, supervision, and control of the
National Intelligence Director.
``(2) The Director of the National Security Agency shall
report directly to the National Intelligence Director
regarding the activities of the National Security Agency.''.

SEC. 305. DEFENSE INTELLIGENCE AGENCY.

(a) Supervision.--Except as provided in subsection (b), the
Director of the Defense Intelligence Agency shall be under
the direction, supervision, and control of the National
Intelligence Director regarding the national intelligence
collection mission of the Defense Intelligence Agency.
(b) Defense Attaches.--With respect to the activities of
the defense attaches, the Director of the Defense
Intelligence Agency shall be under the direction,
supervision, and control of the Secretary of Defense.
(c) Line of Authority.--The Director of the Defense
Intelligence Agency shall report directly to the National
Intelligence Director with respect to any programs,
operations, and elements of the Directorate for Human
Intelligence and the Directorate for MASINT and Technical
Collection of the Defense Intelligence Agency that carry out
the national intelligence collection mission of the Defense
Intelligence Agency, other than those specified in subsection
(b).

SEC. 306. NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY.

(a) Supervision and Control by National Intelligence
Director.--(1) Section 441 of title 10, United States Code,
is amended by striking subsection (c) and inserting the
following new subsection (c):
``(c) Supervision.--(1) The Director of the National
Geospatial-Intelligence Agency shall be under the direction,
supervision, and control of the National Intelligence
Director.
``(2) The Director of the National Geospatial-Intelligence
Agency shall report directly to the National Intelligence
regarding the activities of the National Geospatial-
Intelligence Agency.''.
(2) Such title is further amended by striking ``Secretary
of Defense'' each place it appears in the following
provisions and inserting ``National Intelligence Director'':
(A) Section 453(a).
(B) Section 453(b)(1).
(C) Section 454.
(D) Section 455(b)(1), both places it appears.
(E) Section 462, the first place it appears.
(b) Support.--Section 444 of such title is amended by
striking ``Director of Central Intelligence'' each place it
appears and inserting ``Director of the Central Intelligence
Agency''.
(c) Other Amendments.--(1) Subsection (d) of section 441 of
such title is amended by striking ``The Secretary of Defense,
in consultation with the Director of Central Intelligence,''
and inserting ``The National Intelligence Director''.
(2) Section 442(b) of such title is amended by striking
``Secretary of Defense'' and inserting ``National
Intelligence Director, in coordination with the Secretary of
Defense''.
(3) Section 443(d) of such title is amended--
(A) in the subsection caption, by striking ``Central
Intelligence'' and inserting ``Central Intelligence Agency'';
and
(B) by striking ``of the Agency shall coordinate with the
Director of Central Intelligence'' and inserting ``of the
National Geospatial-Intelligence Agency shall coordinate with
the Director of the Central Intelligence Agency''.
(4) Section 451 of such title is amended by striking
``Secretary of Defense'' and inserting ``National
Intelligence Director, in coordination with the Secretary of
Defense,''.
(5) Section 452(a) of such title is amended--
(A) by striking ``of the Department of Defense''; and
(B) by striking ``Secretary of Defense'' and inserting
``National Intelligence Director''.
(6) Section 455(b)(1) of such title is amended by striking
``Department of Defense'' and inserting ``United States
Government''.
(7) Section 457(a) of such title is amended by striking
``Secretary of Defense'' and inserting ``Director of the
National Geospatial-Intelligence Agency, in coordination with
the National Intelligence Director,''.
(8) Section 462 of such title is further amended by
striking ``by the Secretary of Defense''.

SEC. 307. NATIONAL RECONNAISSANCE OFFICE.

(a) Supervision.--The Director of the National
Reconnaissance Office shall be under the direction,
supervision, and control of the National Intelligence
Director.
(b) Line of Authority.--The Director of the National
Reconnaissance Office shall report directly to the National
Intelligence Director regarding the activities of the
National Reconnaissance Office.
On page 196, line 20, strike ``304.'' and insert ``308.''.
On page 197, line 8, strike ``305.'' and insert ``309.''.
On page 198, line 19, strike ``306.'' and insert ``310.''.
On page 200, line 5, strike ``307.'' and insert ``311.''.
On page 200, strike lines 9 through 11 and insert the
following:
(a) In General.--Subsection (a) of section 105 of the
National Security Act of 1947 (50 U.S.C. 403-5) is amended--
(1) by redesignating paragraphs (2) through (6) as
paragraphs (3) through (7), respectively;
(2) by striking paragraph (1) and inserting the following
new paragraphs:
``(1) ensure that--
``(A) the budgets of the elements of the intelligence
community within the Department of Defense relating to the
tactical intelligence activities of such elements are
adequate to satisfy the tactical intelligence needs of the
Department of Defense, including the needs of the chairman of
the Joint Chiefs of Staff and the commanders of the unified
and specified commands; and
``(B) the budgets of the elements of the intelligence
community within the Department of Defense relating to the
intelligence and intelligence-related activities of such
elements--
``(i) comply with the requirements and priorities specified
by the Director with respect to the National Intelligence
Program; and
``(ii) conform, to the maximum extent, to the guidance
provided by the Director to such elements on those portions
of their budgets in the Joint Military Intelligence

[[Page S9733]]

Program and the Tactical Intelligence and Related Activities
Program;
``(2) ensure that the national intelligence needs of the
Department of Defense, including the needs of the chairman of
the Joint Chiefs of Staff and the commanders of the unified
and specified commands, are conveyed to the Director for
purposes of setting requirements and priorities for national
intelligence;'';
(3) in paragraph (3), as so redesignated, by striking
``appropriate''; and
(4) in paragraph (5), as so redesignated, by inserting
``and comply with the national intelligence decisions of the
Director'' before the semicolon.
(b) Specific Functions.--Subsection (b) of such section is
amended--
(1) by striking paragraphs (1), (2), and (3);
(2) by redesignating paragraphs (4), (5), and (6) as
paragraphs (1), (2), and (3) respectively;
(3) in paragraph (1), as so redesignated, by striking ``or
the National Security Council)'' and inserting ``, the
National Security Council, or the National Intelligence
Director (when exercising the responsibilities and
authorities provided under this Act, the National
Intelligence Reform Act of 2004, or any other provision of
law))''; and
(4) in paragraph (2), as so redesignated, by striking
``Department of Defense human intelligence activities,
including''.
(c) Annual Evaluation of Performance of Certain
Officials.--Such section is further amended by adding at the
end the following new subsection:
``(d) Annual Evaluation of Performance of Certain
Officials.--(1) The Secretary of Defense shall, in
consultation with the Chairman of the Joint Chiefs of Staff,
submit each year to the National Security Council, the
National Intelligence Director, and the appropriate
committees of Congress an evaluation of the performance and
responsiveness to military intelligence requirements of the
officials specified in paragraph (2).
``(2) The officials specified in this paragraph are as
follows:
``(A) The Director of the Central Intelligence Agency.
``(B) The Director of the National Security Agency.
``(C) The Director of the Defense Intelligence Agency.
``(D) The Director of the National Geospatial-Intelligence
Agency.
``(E) The Director of the National Reconnaissance Office.
On page 200, line 12, strike ``308.'' and insert ``312.''.
On page 200, line 19, strike ``309.'' and insert ``313.''.
On page 201, line 11, strike ``310.'' and insert ``314.''.
On page 203, between lines 8 and 9, insert the following:

SEC. 315. OVERSIGHT OF COMBAT SUPPORT AGENCIES OF THE
INTELLIGENCE COMMUNITY.

(a) Oversight.--(1) Chapter 8 of title 10, United States
Code, is amended by inserting after section 193 the following
new section:

``Sec. 193a. Combat support agencies of the intelligence
community: oversight

``(a) Combat Readiness.--(1) Every two years (or sooner, if
approved by the National Intelligence Director), the Chairman
of the Joint Chiefs of Staff shall, in consultation with the
Secretary of Defense, submit to the National Intelligence
Director a report on the combat support agencies of the
intelligence community. Each report shall include--
``(A) a determination with respect to the responsiveness
and readiness of each such agency to support operating forces
in the event of a war or threat to national security; and
``(B) any recommendations that the Chairman considers
appropriate.
``(2) In preparing each report, the Chairman shall review
the plans of each combat support agency of the intelligence
community with respect to its support of operating forces in
the event of a war or threat to national security. After
consultation with the Secretaries of the military departments
and the commanders of the unified and specified combatant
commands, as appropriate, the Chairman may, with the approval
of the Secretary of Defense, provide the National
Intelligence Director any recommendations for modifications
of such plans that the Chairman considers appropriate.
``(b) Participation in Joint Training Exercises.--The
Chairman shall, with the cooperation of the National
Intelligence Director--
``(1) provide for the participation of the combat support
agencies of the intelligence community in joint training
exercises to the extent necessary to ensure that such
agencies are capable of performing their support missions
with respect to a war or threat to national security; and
``(2) assess the performance in joint training exercises of
each combat support agency of the intelligence community and,
in accordance with guidelines established by the Secretary of
Defense, take steps to provide the National Intelligence
Director recommendations for any change that the Chairman
considers appropriate to improve that performance.
``(c) Readiness Reporting System.--The Chairman shall
develop, in consultation with the director of each combat
support agency of the intelligence community, a uniform
system for reporting to the Secretary of Defense, the
commanders of the unified and specified combatant commands,
and the Secretaries of the military departments concerning
the readiness of each combat support agency of the
intelligence community to perform with respect to a war or
threat to national security.
``(d) Review of NSA, NGA, and NRO.--(1) Subsections (a),
(b), and (c) shall apply to the National Security Agency, the
National Geospatial-Intelligence Agency, and the National
Reconnaissance Office, but only with respect to combat
support functions that such agencies perform for the
Department of Defense.
``(2) The Secretary of Defense shall, in coordination with
the National Intelligence Director, establish policies and
procedures with respect to the application of subsections
(a), (b), and (c) to the National Security Agency, the
National Geospatial-Intelligence Agency, and the National
Reconnaissance Office.
``(e) Combat Support Capabilities of DIA, NSA, NGA, and
NRO.--The Secretary of Defense and the National Intelligence
Director shall jointly develop and implement such policies
and programs as they determine necessary to correct such
deficiencies as the Chairman of the Joint Chiefs of Staff and
other officials of the Department of Defense may identify in
the capabilities of the Defense Intelligence Agency, the
National Security Agency, the National Geospatial-
Intelligence Agency, and the National Reconnaissance Office
to accomplish assigned missions in support of military combat
operations.
``(f) Combat Support Agency of the Intelligence Community
Defined.--In this section, the term `combat support agency of
the intelligence community' means any of the following
agencies:
``(1) The National Security Agency.
``(2) The Defense Intelligence Agency.
``(3) The National Geospatial-Intelligence Agency.
``(4) The National Reconnaissance Office.''.
(2) The table of sections at the beginning of subchapter I
of chapter 8 of such title is amended by inserting after the
item relating to section 193 the following new item:

``193a. Combat support agencies of the intelligence community:
oversight.''.

(b) Conforming Amendments.--Section 193 of such title is
amended--
(1) by striking subsections (d) and (e);
(2) by redesignating subsection (f) as subsection (d); and
(3) in subsection (d), as so redesignated--
(A) by striking paragraphs (2) and (4); and
(B) by redesignating paragraphs (3) and (5) as paragraphs
(2) and (3), respectively.
On page 203, line 9, strike ``311.'' and insert ``316.''.
On page 204, line 1, strike ``312.'' and insert ``317.''.
On page 209, line 4, strike ``334.'' and insert ``333.''.
On page 209, line 15, strike ``335.'' and insert ``334.''.
On page 210, line 23, strike ``336.'' and insert ``315.''.
______

SA 3707. Mr. SPECTER submitted an amendment intended to be proposed
by him to the bill S. 2845, to reform the intelligence community and
the intelligence and intelligence-related activities of the United
States Government, and for other purposes; which was ordered to lie on
the table; as follows:
On page 10, between lines 16 and 17, insert the following:
(d) Term of Office; Removal.--(1) The term of service of
the National Intelligence Director shall be ten years.
(2) An individual may not serve more than one term of
service as National Intelligence Director.
(3) Paragraphs (1) and (2) shall apply with respect to any
individual appointed as National Intelligence Director after
the date of the enactment of this Act.
(4) If the individual serving as Director of Central
Intelligence on the date of the enactment of this Act is the
first person appointed as National Intelligence Director
under this section, the date of appointment of such
individual as National Intelligence Director shall be deemed
to be the date of the commencement of the term of service of
such individual as National Intelligence Director.
(5) The individual serving as National Intelligence
Director may be removed from service as National Intelligence
Director only for good cause shown.
On page 10, line 17, strike ``(d)'' and insert ``(e)''.
On page 11, line 3, strike ``(e)'' and insert ``(f)''.
On page 11, line 5, strike ``subsection (c)'' and insert
``subsection (e)''.
______

SA 3708. Mr. INHOFE submitted an amendment intended to be proposed by
him to the bill S. 2845, to reform the intelligence community and the
intelligence and intelligence-related activities of the United States
Government, and for other purposes; which was ordered to lie on the
table; as follows:

On page 13 after line 19 insert the following:
``(a) In General.--Subtitle B of title VI of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5197 et seq.) is amended by adding at the end the
following:''

____________________