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TITLE VII-COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL; UNITED
                  STATES SECRET SERVICE; GENERAL PROVISIONS

              Subtitle A-Coordination with Non-Federal Entities

SEC. 701. RESPONSIBILITIES.

      In discharging his responsibilities relating to coordination
(including the provision of training and equipment) with State and local
government personnel, agencies, and authorities, with the private sector,
and with other entities, the responsibilities of the Secretary shall
include-

            (1) coordinating with State and local government personnel,
      agencies, and authorities, and with the private sector, to ensure
      adequate planning, equipment, training, and exercise activities;

            (2) coordinating and, as appropriate, consolidating, the Federal
      government's communications and systems of communications relating to
      homeland security with State and local government personnel, agencies,
      and authorities, the private sector, other entities, and the public;

            (3) directing and supervising grant programs of the Federal
      government for State and local government emergency response
      providers; and

            (4) distributing or, as appropriate, coordinating the
      distribution of, warnings and information to State and local
      government personnel, agencies, and authorities and to the public.

                        Subtitle B-Inspector General
[ Analysis ]
SEC. 710. AUTHORITY OF THE SECRETARY.

      (a) Notwithstanding the last two sentences of section 3(a) of the
Inspector General Act of 1978, the Inspector General shall be under the
authority, direction, and control of the Secretary with respect to audits
or investigations, or the issuance of subpoenas, that require access to
information concerning-

            (1) intelligence, counterintelligence, or counterterrorism
      matters;

            (2) ongoing criminal investigations or proceedings;

            (3) undercover operations;

            (4) the identity of confidential sources, including protected
      witnesses;

            (5) other matters the disclosure of which would, in the
      Secretary's judgment, constitute a serious threat to the protection of
      any person or property authorized protection by section 3056 of title
      18, United States Code, section 202 of title 3 of such Code, or any
      provision of the Presidential Protection Assistance Act of 1976; or

            (6) other matters the disclosure of which would, in the
      Secretary's judgment, constitute a serious threat to national
      security.

      (b) With respect to the information described in subsection (a), the
Secretary may prohibit the Inspector General from carrying out or
completing any audit or investigation, or from issuing any subpoena, after
such Inspector General has decided to initiate, carry out, or complete such
audit or investigation or to issue such subpoena, if the Secretary
determines that such prohibition is necessary to prevent the disclosure of
any information described in subsection (a), to preserve the national
security, or to prevent a significant impairment to the interests of the
United States.

      (c) The Secretary shall notify the President of the Senate and the
Speaker of the House of Representatives within thirty days of any exercise
of his authority under this section.

                   Subtitle C-United States Secret Service
[ Analysis ]

SEC. 720. FUNCTIONS TRANSFERRED.

      In accordance with title VIII, there shall be transferred to the
Secretary the functions, personnel, assets, and liabilities of the United
States Secret Service, which shall be maintained as a distinct entity
within the Department, including the functions of the Secretary of the
Treasury relating thereto.

                        Subtitle D-General Provisions
[ Analysis ]

SEC. 730. ESTABLISHMENT OF HUMAN RESOURCES MANAGEMENT SYSTEM.

      Title 5, United States Code, is amended by inserting-

            (1) after part III a new part as follows:

                  "PART IV-DEPARTMENT OF HOMELAND SECURITY

                                 CHAPTER 100

"Sec.

"10001.  Human Resources Management System.


"§ 10001.  Human Resources Management System

      "Notwithstanding any other provision of this title, the Secretary of
Homeland Security may, in regulations prescribed jointly with the Director
of the Office of Personnel Management, establish, and from time to time
adjust, a human resources management system for some or all of the
organizational units of the Department of Homeland Security, which shall be
flexible, contemporary, and grounded in the public employment principles of
merit and fitness."; and

            (2) the following after the matter relating to part III in the
      analysis:

                  "PART IV-DEPARTMENT OF HOMELAND SECURITY

"Chapter
                                                        Section"

"   1.   Human Resources Management System . . . . . . . . . . . .  . . . .
. . . . . . . . . . . . . . . 10001".
[ Analysis ]

SEC. 731. ADVISORY COMMITTEES.

      The Secretary may establish, appoint members of, and use the services
of, advisory committees, as he may deem necessary.  The service of an
individual as a member of an advisory committee established under this
paragraph shall not be considered to be service bringing him within the
provisions of sections 203, 205, or 207 of title 18, United States Code,
unless his act, which by any such section is made unlawful when performed
by an individual referred to therein, is with respect to any particular
matter that directly involves the Department or in which the Department is
directly interested.  An advisory committee established under this section
shall not be subject to Pub. L. No. 92-463, but the Secretary shall publish
notice in the Federal Register announcing the establishment of such a
committee and identifying its purpose and membership.
[ Analysis ]

SEC. 732. ACQUISITIONS; PROPERTY.

      (a)(1) When the Secretary carries out basic, applied, and advanced
research and development projects, he may exercise the same authority
(subject to the same limitations and conditions) with respect to such
research and projects as the Secretary of Defense may exercise under
section 2371 of title 10, United States Code (except for subsections (b)
and (f)), after making a determination that the use of a contract, grant,
or cooperative agreement for such project is not feasible or appropriate.
The annual report required under subsection (h) of such section, as applied
to the Secretary by this paragraph, shall be submitted to the President of
the Senate and the Speaker of the House of Representatives.

            (2) The Secretary may, under the authority of paragraph (1),
      carry out prototype projects in accordance with the requirements and
      conditions provided for carrying out prototype projects under section
      845 of the National Defense Authorization Act for Fiscal Year 1994
      (Pub. L. No. 103-160).  In applying the authorities of such section
      845, subsection (c) thereof shall apply with respect to prototype
      projects under this paragraph, and the Secretary shall perform the
      functions of the Secretary of Defense under subsection (d) thereof.

      (b) Notwithstanding the time and pay limitations of section 3109 of
title 5, United States Code, the Secretary may procure personal services,
including the services of experts and consultants (or organizations
thereof).

      (c) Section 602 of the Act of June 30, 1949 (40 U.S.C. 474) is
amended by replacing "; or (21)" with "; (21) the Department of Homeland
Security; or (22)".

      (d) Notwithstanding any other provision of law, the Secretary, in
accordance with regulations prescribed jointly with the Administrator of
General Services and the Director of the Office of Management and Budget-

            (1) may acquire replacement real property (including interests
      therein)-

                 (A) by transfer or exchange of the Department's property
           with other executive agencies; or

                 (B) by sale to or exchange of the Department's property
           with non-Federal parties;

            (2) by lease, permit, license, or other similar instrument, may
      make available to other executive agencies and to non-Federal parties,
      on a fair market rental value basis, the unexpired portion of any
      government lease for real property occupied or possessed by the
      Department;

            (3) may make available by outlease agreements with other
      executive agencies or with non-Federal parties, any unused or
      underused portion of or interest in any real or related personal
      property occupied or possessed by the Department; and

            (4) may deposit the proceeds of any exercise of the authority
      granted by this subsection into any account in the Treasury available
      to him, without regard to fiscal year limitations.

      (e) Upon the written request of the Secretary, the Administrator of
General Services shall delegate to him all responsibilities and authorities
provided by law to the Administrator for the care and handling of the
Department's surplus real and related personal property, pending its
disposition, and for the disposal of such property.

      (f) Notwithstanding any other provision of law, the Secretary may
retain, from the proceeds of the sale of personal property, amounts
necessary to recover, to the extent practicable, the full costs (direct and
indirect) incurred by the Secretary in disposing of such property,
including but not limited to the costs of warehousing, storage,
environmental services, advertising, appraisal, and transportation.  Such
amounts shall be deposited into an account available for such expenses
without regard to fiscal year limitations.
[ Analysis ]

SEC. 733. REORGANIZATION; TRANSFER.

      (a) The Secretary is authorized to allocate or reallocate functions
among the officers of the Department, and to establish, consolidate, alter,
or discontinue such organizational units within the Department, as he may
deem necessary or appropriate, but such authority does not extend to-

            (1) any entity transferred to the Department and established by
      statute, or any function vested by statute in such an entity or
      officer of such an entity, unless not less than ninety days' notice
      has been given to the President of the Senate and Speaker of the House
      of Representatives; or

            (2) the abolition of any entity established or required to be
      maintained as a distinct entity by this Act.

      (b) Except as otherwise specifically provided by law, not to exceed
five percent of any appropriation available to the Secretary in any fiscal
year may be transferred between such appropriations:  provided, That not
less than fifteen days' notice shall be given to the Committees on
Appropriations of the Senate and House of Representatives before any such
transfer is made.
[ Analysis ]
SEC. 734. MISCELLANEOUS PROVISIONS.

      (a) The Department shall have a seal, whose design is subject to the
approval of the President.

      (b) With respect to the Department, the Secretary shall have the same
authorities that the Attorney General has with respect to the Department of
Justice under section 524(d) of title 28, United States Code.

      (c) With respect to the Department, the Secretary shall have the same
authorities that the Secretary of Transportation has with respect to the
Department of Transportation under section 324 of title 49, United States
Code.

      (d) Unless otherwise provided in the delegation or by law, any
function delegated under this Act may be redelegated to any subordinate.
[ Analysis ]

SEC. 735. AUTHORIZATION OF APPROPRIATIONS

      There are authorized to be appropriated such sums as may be necessary
to carry out the provisions of this Act.
[ Analysis ]