Homeland Security Act of 2002 Part 18

(2) Waiver.--The Secretary may waive the restrictions under paragraph (1) for a period of not to exceed 90 days upon a declaration and certification by the Secretary to Congress that a clear, compelling, and immediate need exists for such a waiver. A certification under this paragraph shall include a detailed justification for the declaration and certification, including the reasons and specific information that demonstrate that the Nation and the Coast Guard cannot respond effectively if the restrictions under paragraph (1) are not waived.

(f) Annual Review.-- (1) In general.--The Inspector General of the Department shall conduct an annual review that shall a.s.sess thoroughly the performance by the Coast Guard of all missions of the Coast Guard (including non-homeland security missions and homeland security missions) with a particular emphasis on examining the non-homeland security missions.

(2) Report.--The report under this paragraph shall be submitted to-- (A) the Committee on Governmental Affairs of the Senate; (B) the Committee on Government Reform of the House of Representatives; (C) the Committees on Appropriations of the Senate and the House of Representatives; (D) the Committee on Commerce, Science, and Transportation of the Senate; and (E) the Committee on Transportation and Infrastructure of the House of Representatives.

(g) Direct Reporting to Secretary.--Upon the transfer of the Coast Guard to the Department, the Commandant shall report directly to the Secretary without being required to report through any other official of the Department.

(h) Operation as a Service in the Navy.--None of the conditions and restrictions in this section shall apply when the Coast Guard operates as a service in the Navy under section 3 of t.i.tle 14, United States Code.

(i) Report on Accelerating the Integrated Deepwater System.--Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the Commandant of the Coast Guard, shall submit a report to the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committees on Appropriations of the Senate and the House of Representatives that-- (1) a.n.a.lyzes the feasibility of accelerating the rate of procurement in the Coast Guard's Integrated Deepwater System from 20 years to 10 years; (2) includes an estimate of additional resources required; (3) describes the resulting increased capabilities; (4) outlines any increases in the Coast Guard's homeland security readiness; (5) describes any increases in operational efficiencies; and (6) provides a revised a.s.set phase-in time line.

SEC. 889. HOMELAND SECURITY FUNDING a.n.a.lYSIS IN PRESIDENT'S BUDGET.

(a) * * *

(c) [31 U.S.C. 1105 note] Effective Date.--This section and the amendment made by this section shall apply beginning with respect to the fiscal year 2005 budget submission.

Subt.i.tle I--Information Sharing

SEC. 891. [6 U.S.C. 481] SHORT t.i.tLE; FINDINGS; AND SENSE OF CONGRESS.

(a) Short t.i.tle.--This subt.i.tle may be cited as the ''Homeland Security Information Sharing Act''.

(b) Findings.--Congress finds the following: (1) The Federal Government is required by the Const.i.tution to provide for the common defense, which includes terrorist attack.

(2) The Federal Government relies on State and local personnel to protect against terrorist attack.

(3) The Federal Government collects, creates, manages, and protects cla.s.sified and sensitive but uncla.s.sified information to enhance homeland security.

(4) Some homeland security information is needed by the State and local personnel to prevent and prepare for terrorist attack.

(5) The needs of State and local personnel to have access to relevant homeland security information to combat terrorism must be reconciled with the need to preserve the protected status of such information and to protect the sources and methods used to acquire such information.

(6) Granting security clearances to certain State and local personnel is one way to facilitate the sharing of information regarding specific terrorist threats among Federal, State, and local levels of government.

(7) Methods exist to decla.s.sify, redact, or otherwise adapt cla.s.sified information so it may be shared with State and local personnel without the need for granting additional security clearances.

(8) State and local personnel have capabilities and opportunities to gather information on suspicious activities and terrorist threats not possessed by Federal agencies.

(9) The Federal Government and State and local governments and agencies in other jurisdictions may benefit from such information.

(10) Federal, State, and local governments and intelligence, law enforcement, and other emergency preparation and response agencies must act in partnership to maximize the benefits of information gathering and a.n.a.lysis to prevent and respond to terrorist attacks.

(11) Information systems, including the National Law Enforcement Telecommunications System and the Terrorist Threat Warning System, have been established for rapid sharing of cla.s.sified and sensitive but uncla.s.sified information among Federal, State, and local ent.i.ties.

(12) Increased efforts to share homeland security information should avoid duplicating existing information systems.

(c) Sense of Congress.--It is the sense of Congress that Federal, State, and local ent.i.ties should share homeland security information to the maximum extent practicable, with special emphasis on hard-to-reach urban and rural communities.

SEC. 892. [6 U.S.C. 482] FACILITATING HOMELAND SECURITY INFORMATION SHARING PROCEDURES.

(a) Procedures for Determining Extent of Sharing of Homeland Security Information.-- (1) The President shall prescribe and implement procedures under which relevant Federal agencies-- (A) share relevant and appropriate homeland security information with other Federal agencies, including the Department, and appropriate State and local personnel; (B) identify and safeguard homeland security information that is sensitive but uncla.s.sified; and (C) to the extent such information is in cla.s.sified form, determine whether, how, and to what extent to remove cla.s.sified information, as appropriate, and with which such personnel it may be shared after such information is removed.

(2) The President shall ensure that such procedures apply to all agencies of the Federal Government.

(3) Such procedures shall not change the substantive requirements for the cla.s.sification and safeguarding of cla.s.sified information.

(4) Such procedures shall not change the requirements and authorities to protect sources and methods.

(b) Procedures for Sharing of Homeland Security Information.-- (1) Under procedures prescribed by the President, all appropriate agencies, including the intelligence community, shall, through information sharing systems, share homeland security information with Federal agencies and appropriate State and local personnel to the extent such information may be shared, as determined in accordance with subsection (a), together with a.s.sessments of the credibility of such information.

(2) Each information sharing system through which information is shared under paragraph (1) shall-- (A) have the capability to transmit uncla.s.sified or cla.s.sified information, though the procedures and recipients for each capability may differ; (B) have the capability to restrict delivery of information to specified subgroups by geographic location, type of organization, position of a recipient within an organization, or a recipient's need to know such information; (C) be configured to allow the efficient and effective sharing of information; and (D) be accessible to appropriate State and local personnel.

(3) The procedures prescribed under paragraph (1) shall establish conditions on the use of information shared under paragraph (1)-- (A) to limit the redissemination of such information to ensure that such information is not used for an unauthorized purpose; (B) to ensure the security and confidentiality of such information; (C) to protect the const.i.tutional and statutory rights of any individuals who are subjects of such information; and (D) to provide data integrity through the timely removal and destruction of obsolete or erroneous names and information.

(4) The procedures prescribed under paragraph (1) shall ensure, to the greatest extent practicable, that the information sharing system through which information is shared under such paragraph include existing information sharing systems, including, but not limited to, the National Law Enforcement Telecommunications System, the Regional Information Sharing System, and the Terrorist Threat Warning System of the Federal Bureau of Investigation.

(5) Each appropriate Federal agency, as determined by the President, shall have access to each information sharing system through which information is shared under paragraph (1), and shall therefore have access to all information, as appropriate, shared under such paragraph.

(6) The procedures prescribed under paragraph (1) shall ensure that appropriate State and local personnel are authorized to use such information sharing systems-- (A) to access information shared with such personnel; and (B) to share, with others who have access to such information sharing systems, the homeland security information of their own jurisdictions, which shall be marked appropriately as pertaining to potential terrorist activity.

(7) Under procedures prescribed jointly by the Director of Central Intelligence and the Attorney General, each appropriate Federal agency, as determined by the President, shall review and a.s.sess the information shared under paragraph (6) and integrate such information with existing intelligence.

(c) Sharing of Cla.s.sified Information and Sensitive but Uncla.s.sified Information With State and Local Personnel.-- (1) The President shall prescribe procedures under which Federal agencies may, to the extent the President considers necessary, share with appropriate State and local personnel homeland security information that remains cla.s.sified or otherwise protected after the determinations prescribed under the procedures set forth in subsection (a).

(2) It is the sense of Congress that such procedures may include 1 or more of the following means: (A) Carrying out security clearance investigations with respect to appropriate State and local personnel.

(B) With respect to information that is sensitive but uncla.s.sified, entering into nondisclosure agreements with appropriate State and local personnel.

(C) Increased use of information-sharing partnerships that include appropriate State and local personnel, such as the Joint Terrorism Task Forces of the Federal Bureau of Investigation, the Anti-Terrorism Task Forces of the Department of Justice, and regional Terrorism Early Warning Groups.

(3)(A) The Secretary shall establish a program to provide appropriate training to officials described in subparagraph (B) in order to a.s.sist such officials in-- (i) identifying sources of potential terrorist threats through such methods as the Secretary determines appropriate; (ii) reporting information relating to such potential terrorist threats to the appropriate Federal agencies in the appropriate form and manner; (iii) a.s.suring that all reported information is systematically submitted to and pa.s.sed on by the Department for use by appropriate Federal agencies; and (iv) understanding the mission and roles of the intelligence community to promote more effective information sharing among Federal, State, and local officials and representatives of the private sector to prevent terrorist attacks against the United States.

(B) The officials referred to in subparagraph (A) are officials of State and local government agencies and representatives of private sector ent.i.ties with responsibilities relating to the oversight and management of first responders, counterterrorism activities, or critical infrastructure.

(C) The Secretary shall consult with the Attorney General to ensure that the training program established in subparagraph (A) does not duplicate the training program established in section 908 of the USA PATRIOT Act (Public Law 107-56; 28 U.S.C. 509 note).

(D) The Secretary shall carry out this paragraph in consultation with the Director of Central Intelligence and the Attorney General.

(d) Responsible Officials.--For each affected Federal agency, the head of such agency shall designate an official to administer this Act with respect to such agency.

(e) Federal Control of Information.--Under procedures prescribed under this section, information obtained by a State or local government from a Federal agency under this section shall remain under the control of the Federal agency, and a State or local law authorizing or requiring such a government to disclose information shall not apply to such information.

(f) Definitions.--As used in this section: (1) The term ''homeland security information''

means any information possessed by a Federal, State, or local agency that-- (A) relates to the threat of terrorist activity; (B) relates to the ability to prevent, interdict, or disrupt terrorist activity; (C) would improve the identification or investigation of a suspected terrorist or terrorist organization; or (D) would improve the response to a terrorist act.

(2) The term ''intelligence community'' has the meaning given such term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).

(3) The term ''State and local personnel'' means any of the following persons involved in prevention, preparation, or response for terrorist attack: (A) State Governors, mayors, and other locally elected officials.

(B) State and local law enforcement personnel and firefighters.

(C) Public health and medical professionals.

(D) Regional, State, and local emergency management agency personnel, including State adjutant generals.

(E) Other appropriate emergency response agency personnel.

(F) Employees of private-sector ent.i.ties that affect critical infrastructure, cyber, economic, or public health security, as designated by the Federal Government in procedures developed pursuant to this section.

(4) The term ''State'' includes the District of Columbia and any commonwealth, territory, or possession of the United States.

(g) Construction.--Nothing in this Act shall be construed as authorizing any department, bureau, agency, officer, or employee of the Federal Government to request, receive, or transmit to any other Government ent.i.ty or personnel, or transmit to any State or local ent.i.ty or personnel otherwise authorized by this Act to receive homeland security information, any information collected by the Federal Government solely for statistical purposes in violation of any other provision of law relating to the confidentiality of such information.

SEC. 893. [6 U.S.C. 483] REPORT.

(a) Report Required.--Not later than 12 months after the date of the enactment of this Act, the President shall submit to the congressional committees specified in subsection (b) a report on the implementation of section 892. The report shall include any recommendations for additional measures or appropriation requests, beyond the requirements of section 892, to increase the effectiveness of sharing of information between and among Federal, State, and local ent.i.ties.

(b) Specified Congressional Committees.--The congressional committees referred to in subsection (a) are the following committees: (1) The Permanent Select Committee on Intelligence and the Committee on the Judiciary of the House of Representatives.

(2) The Select Committee on Intelligence and the Committee on the Judiciary of the Senate.

SEC. 894. [6 U.S.C. 484] AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be necessary to carry out section 892.

Subt.i.tle J--Secure Handling of Ammonium Nitrate

SEC. 899A. [6 U.S.C. 488] DEFINITIONS.

In this subt.i.tle: (1) Ammonium nitrate.--The term ''ammonium nitrate'' means-- (A) solid ammonium nitrate that is chiefly the ammonium salt of nitric acid and contains not less than 33 percent nitrogen by weight; and (B) any mixture containing a percentage of ammonium nitrate that is equal to or greater than the percentage determined by the Secretary under section 899B(b).

(2) Ammonium nitrate facility.--The term ''ammonium nitrate facility'' means any ent.i.ty that produces, sells or otherwise transfers ownership of, or provides application services for ammonium nitrate.

(3) Ammonium nitrate purchaser.--The term ''ammonium nitrate purchaser'' means any person who purchases ammonium nitrate from an ammonium nitrate facility.

SEC. 899B. [6 U.S.C. 488A] REGULATION OF THE SALE AND TRANSFER OF AMMONIUM NITRATE.

(a) In General.--The Secretary shall regulate the sale and transfer of ammonium nitrate by an ammonium nitrate facility in accordance with this subt.i.tle to prevent the misappropriation or use of ammonium nitrate in an act of terrorism.

(b) Ammonium Nitrate Mixtures.--Not later than 90 days after the date of the enactment of this subt.i.tle, the Secretary, in consultation with the heads of appropriate Federal departments and agencies (including the Secretary of Agriculture), shall, after notice and an opportunity for comment, establish a threshold percentage for ammonium nitrate in a substance.

(c) Registration of Owners of Ammonium Nitrate Facilities.-- (1) Registration.--The Secretary shall establish a process by which any person that-- (A) owns an ammonium nitrate facility is required to register with the Department; and (B) registers under subparagraph (A) is issued a registration number for purposes of this subt.i.tle.

(2) Registration information.--Any person applying to register under paragraph (1) shall submit to the Secretary-- (A) the name, address, and telephone number of each ammonium nitrate facility owned by that person; (B) the name of the person designated by that person as the point of contact for each such facility, for purposes of this subt.i.tle; and (C) such other information as the Secretary may determine is appropriate.

(d) Registration of Ammonium Nitrate Purchasers.-- (1) Registration.--The Secretary shall establish a process by which any person that-- (A) intends to be an ammonium nitrate purchaser is required to register with the Department; and (B) registers under subparagraph (A) is issued a registration number for purposes of this subt.i.tle.

(2) Registration information.--Any person applying to register under paragraph (1) as an ammonium nitrate purchaser shall submit to the Secretary-- (A) the name, address, and telephone number of the applicant; and (B) the intended use of ammonium nitrate to be purchased by the applicant.

(e) Records.-- (1) Maintenance of records.--The owner of an ammonium nitrate facility shall-- (A) maintain a record of each sale or transfer of ammonium nitrate, during the two- year period beginning on the date of that sale or transfer; and (B) include in such record the information described in paragraph (2).

(2) Specific information required.--For each sale or transfer of ammonium nitrate, the owner of an ammonium nitrate facility shall-- (A) record the name, address, telephone number, and registration number issued under subsection (c) or (d) of each person that purchases ammonium nitrate, in a manner prescribed by the Secretary; (B) if applicable, record the name, address, and telephone number of an agent acting on behalf of the person described in subparagraph (A), at the point of sale; (C) record the date and quant.i.ty of ammonium nitrate sold or transferred; and (D) verify the ident.i.ty of the persons described in subparagraphs (A) and (B), as applicable, in accordance with a procedure established by the Secretary.

(3) Protection of information.--In maintaining records in accordance with paragraph (1), the owner of an ammonium nitrate facility shall take reasonable actions to ensure the protection of the information included in such records.

(f) Exemption for Explosive Purposes.--The Secretary may exempt from this subt.i.tle a person producing, selling, or purchasing ammonium nitrate exclusively for use in the production of an explosive under a license or permit issued under chapter 40 of t.i.tle 18, United States Code.