[DOCID: f:hr752.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-752
======================================================================
PERSONNEL REIMBURSEMENT FOR INTELLIGENCE COOPERATION AND ENHANCEMENT OF
HOMELAND SECURITY ACT
_______
July 10, 2008.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Thompson of Mississippi, from the Committee on Homeland Security,
submitted the following
R E P O R T
[To accompany H.R. 6098]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 6098) to amend the Homeland Security Act of 2002
to improve the financial assistance provided to State, local,
and tribal governments for information sharing activities, and
for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Congressional Budget Office Estimate............................. 5
Statement of General Performance Goals and Objectives............ 6
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 7
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Constitutional Authority Statement............................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 8
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Personnel Reimbursement for
Intelligence Cooperation and Enhancement of Homeland Security Act'' or
the ``PRICE of Homeland Security Act''.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) After the terrorist attacks on September 11, 2001, State,
local, and tribal governments redoubled their efforts to combat
terrorism and expended tremendous energy and financial
resources to help the Federal Government fight the terrorist
threat.
(2) States and localities have formed fusion centers, hired
intelligence analysts, and contributed a significant amount of
resources to the expansion of Federal homeland security
efforts.
(3) These actions, in conjunction with the efforts of the
Federal Government and private industry, have materially
contributed to the common defense of this Nation and have
helped keep our homeland secure.
(4) The National Strategy for Information Sharing issued by
the President in October 2007 plainly states that ``The Federal
Government may need to provide financial and technical
assistance, as well as human resource support, to these fusion
centers if they are to achieve and sustain a baseline level of
capability. The objective is to assist State and local
governments in the establishment and the sustained operation of
these fusion centers. A sustained Federal partnership with
State and major urban area fusion centers is critical to the
safety of our Nation, and therefore a national priority.''.
(5) The Federal Government has endeavored to support these
State efforts through the State Homeland Security Grant Program
and other methods of Federal assistance but have placed
restrictions on the use of these funds that make long-term
planning for fusion centers unmanageable.
(6) It is vital to the security of our homeland that States
and localities are able to continue to receive funding for the
participation of State and local analysts in fusion centers and
in their State and local efforts to combat terrorism and
terrorist-related activities.
SEC. 3. GRANT ELIGIBILITY FOR ANALYSTS.
Section 2008(a) of the Homeland Security Act of 2002 (6 U.S.C.
609(a)) is amended--
(1) in the matter preceding paragraph (1) by striking
``Grants'' and all that follows through ``plans, through'' and
inserting the following: ``The Administrator shall permit grant
recipients under section 2003 or 2004 to use grant funds to
achieve and sustain target capabilities related to preventing,
preparing for, protecting against, and responding to acts of
terrorism, consistent with a State homeland security plan and
relevant local, tribal, and regional homeland security plans,
through''; and
(2) in paragraph (10) by inserting the following after
``analysts'': ``regardless of whether such analysts are current
or new full-time employees or contract employees and such
funding shall be made available without time limitations placed
on the period of time that such analyst can serve under awarded
grants.''.
SEC. 4. USE OF FUNDS FOR PERSONNEL AND OPERATIONAL COSTS.
Section 2008(b)(2) of the Homeland Security Act of 2002 (6 U.S.C.
609(b)(2)) is amended by striking so much as precedes subparagraph (B)
and inserting the following:
``(2) Personnel and operational costs.--
``(A) In general.--The recipient of a grant under
section 2003 or 2004 may, at the recipient's
discretion, use up to 50 percent of the amount of the
grant awarded for any fiscal year to pay for personnel
and operational costs, including overtime and backfill
costs, in support of the uses authorized under
subsection (a).''.
Purpose and Summary
The purpose of H.R. 6098 is to amend the Homeland Security
Act of 2002 to improve the financial assistance provided to
State, local, and tribal governments for information sharing
activities, and for other purposes.
Background and Need for Legislation
A ``fusion center'' has been defined as ``a collaborative
effort of two or more agencies that provide resources,
expertise, and information to the center with the goal of
maximizing its ability to detect, prevent, investigate, and
respond to criminal and terrorist activity.'' Fusion centers
have been established by State and local governments to address
gaps in information sharing with the Federal Government and to
provide a conduit for information within a particular State or
locality. Fusion centers may include a range of Federal, State,
and local entities that collect and analyze information related
to homeland security. There is no one fusion center ``model''.
The potential value of fusion centers is clear: by integrating
the various streams of information and intelligence from the
Federal, State, local, and tribal governments, as well as the
private sector, a more accurate picture of risks to people,
economic infrastructure and communities can be developed and
translated into protective action. The ultimate goal of this
information fusion is to prevent terrorist attacks and to
respond to natural disasters and manmade threats quickly and
efficiently should they occur.
While fusion centers are increasingly seen as national
assets given their central role in sharing information across
the country, the cost of their operation has been a continuing
concern. Both Congress, in the Implementing Recommendations of
the 9/11 Commission Act of 2007 (P.L. 110-53) (``Implementing
9/11 Commission Act''), and the Administration in its October
2007 National Strategy for Information Sharing, recognized that
sustainment funding for fusion centers necessarily involves
Federal support for the hiring and retention of intelligence
analysts at fusion centers.
Section 101 of the Implementing 9/11 Commission Act amended
section 2006 of the Homeland Security Act of 2002 (P.L. 107-
296) to allow terrorism prevention funds to be used for paying
salaries and benefits for personnel, including individuals
employed by the grant recipient on the date of the relevant
grant application, to serve as qualified intelligence analysts.
Congress' intent was to allow State and local grant recipients
to have flexibility to use Federal funds to pay for both new
and existing intelligence analysts. The Federal Emergency
Management Agency (FEMA) issued grant guidance in early 2008,
however, that limited to two years the period during which
grant funds could be allocated to pay the salary and benefits
for a specific intelligence analyst. Although the guidance was
subsequently revised to allow for a third year of funding for
this purpose, Congress' intent was to allow continued use of
Federal funds to fund specific analysts regardless of their
date of hire or their time in service. Moreover, FEMA's grant
guidance limited to 25 percent the amount of State Homeland
Security Grant Program (SHSGP) and Urban Area Security
Initiative (UASI) funding that could be used for fusion center
and other personnel costs. The 9/11 Commission Act had included
a cap of 50 percent for those costs.
H.R. 6098 clarifies that SHSGP and UASI funds may be used
by States and localities to pay the salaries and benefits of
both new and existing intelligence analysts, without time
limitations. It likewise clarifies that grant recipients may
use up to 50 percent of an awarded grant for any fiscal year to
pay for personnel and associated operational costs.
Hearings
No hearings were held on H.R. 6098, however, the Committee
held oversight hearings listed below.
In the 109th Congress, the Subcommittee on Intelligence,
Information Sharing, and Terrorism Risk Assessment held a
hearing on September 7, 2006, entitled ``State and Local Fusion
Centers and the Role of DHS.'' The Subcommittee received
testimony from Mr. Charles E. Allen, Chief Intelligence
Officer, Department of Homeland Security; Col. Kenneth Bouche,
Deputy Director, Information & Technology Command, Illinois
State Police; Ms. Amy Whitmore, Analyst Supervisor, Virginia
Fusion Center, Virginia State Police; and Mr. Richard L. Canas,
Director, New Jersey Office of Homeland Security and
Preparedness.
On September 27, 2007, the Subcommittee on Intelligence,
Information Sharing, and Terrorism Risk Assessment held a
hearing entitled ``The Way Forward With Fusion Centers:
Challenges and Strategies for Change.'' The Subcommittee
received testimony from Ms. Eileen Larence, Director, Homeland
Security and Justice, Government Accountability Office; Mr.
Todd Masse, Specialist, Domestic Intelligence and
Counterterrorism, Congressional Research Service; Mr. John
Rollins, Specialist, Terrorism, International Crime,
Intelligence, and Homeland Security, Congressional Research
Service; Mr. Jack Tomarchio, Principal Deputy Assistant
Secretary, Intelligence and Analysis, Department of Homeland
Security; Mr. Michael Mines, Deputy Assistant Director,
Directorate of Intelligence, Federal Bureau of Investigation,
Department of Justice; Mr. Norman Beasley, Coordinator for
Counter Terrorism, Maricopa County Sheriff's Office.
Committee Consideration
H.R. 6098 was introduced in the House on May 20, 2008, by
Mr. Reichert and referred solely to the Committee on Homeland
Security. Within the Committee, H.R. 6098 was referred to the
Subcommittee on Intelligence, Information Sharing, and
Terrorism Risk Assessment.
The Subcommittee on Intelligence, Information Sharing and
Terrorism Risk Assessment considered H.R. 6098 on June 11,
2008, and ordered the measure favorably forwarded to the Full
Committee for consideration, amended, by unanimous consent.
The following amendment was offered:
An Amendment in the Nature of a Substitute offered by
Mr. Reichert (#1), was AGREED TO by unanimous consent.
On June 26, 2008, the Full Committee considered H.R. 6098
and ordered the measure to be reported to the House favorably,
as amended, by voice vote.
The following amendment was offered:
An amendment offered by Mr. Reichert (#1); was AGREED
TO by unanimous consent.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto.
No recorded votes were requested during Committee
consideration.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held oversight
hearings and made findings that are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the
Rules of the House of Representatives, the Committee finds that
H.R. 6098, the Personnel Reimbursement for Intelligence
Cooperation and Enhancement of Homeland Security Act, would
result in no new or increased budget authority, entitlement
authority, or tax expenditures or revenues.
Congressional Budget Office Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 8, 2008.
Hon. Bennie G. Thompson,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6098, the PRICE of
Homeland Security Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Daniel
Hoople.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 6098--PRICE of Homeland Security Act
CBO estimates that implementing H.R. 6098 would have no
significant cost over the next five years. Enacting this
legislation would not affect direct spending or revenues.
H.R. 6098 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The bill would benefit those governments by authorizing grant
programs for homeland security; any costs to those governments
would be incurred voluntarily.
H.R. 6098 would permit state and local governments to use
funds provided through the State Homeland Security Grant
Program (SHSP) and the Urban Area Security Initiative (UASI) to
pay the salaries and expenses of individual intelligence
analysts beyond two years. The bill also would allow recipients
to use such funding to pay for operational costs incurred under
the grant.
The SHSP provides grants to states for identified planning,
equipment, and training needs in preparation for recovery from
acts of terrorism and other catastrophic events. The UASI
provides grants to high-threat, high-density urban areas for
similar purposes. Grant funds from either program may be used
to pay for personnel costs, including the salaries and expenses
of intelligence analysts; however, under rules implemented by
the Department of Homeland Security (DHS), costs must be
assumed by the grantee following a period of two years. After
this period, grant funds may be used to hire a new analyst but
may not be used to continue funding an existing analyst. H.R.
6098 would prevent DHS from continuing this requirement as a
condition of a grant award.
Under current law, the Congress has authorized
appropriations totaling $8.25 billion for SHSP and UASI through
fiscal year 2012 and such sums as may be necessary thereafter
(see Public Law 110-53). CBO does not expect that the changes
included in H.R. 6098 would significantly alter the
expenditures of the grantees or the federal grant programs. As
such, we estimate that implementing the bill would have no
effect on the federal budget over the next five years.
The CBO staff contact for this estimate is Daniel Hoople.
This estimate was approved by Peter H. Fontaine, Assistant
Director for Budget Analysis.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, H.R. 6098, contains the following
general performance goals, and objectives, including outcome
related goals and objectives authorized.
H.R. 6098 ensures that the will of both the Congress and
the Administration are properly executed by FEMA and the
Department of Homeland Security generally when it comes to
funding State and local fusion centers. In order to sustain
fusion centers going forward, and to help solidify their
critical information sharing role as part of the Nation's
overall homeland security effort, this measure will allow
States and locals to use homeland security grant funding to
hire and keep intelligence analysts in fusion centers for
however long they deem necessary. Consistent with the
requirements of the Implementing 9/11 Commission Act (P.L. 110-
53), moreover, they will be required to provide rigorous
privacy and civil liberties training to all intelligence
analysts at fusion centers to ensure fusion centers strictly
adheres to all privacy, civil liberties, and other applicable
Constitutional requirements. This will ensure more and better
information sharing to make the Nation safer while safeguarding
the rights of all Americans in the process.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
In compliance with rule XXI of the Rules of the House of
Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of the rule
XXI.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 1, which grants Congress the power
to provide for the common Defense of the United States.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section states that this measure may be cited as the
``Personnel Reimbursement for Intelligence Cooperation and
Enhancement of Homeland Security Act'' or the ``PRICE of
Homeland Security Act''.
Section 2. Findings
This section outlines a series of Congressional findings,
including: (1) since the 9/11 attacks, State, local, and tribal
governments have expended tremendous energy and financial
resources to help the Federal Government fight terrorism; (2)
among other things, they have established fusion centers, hired
intelligence analysts, and contributed a significant amount of
resources to the expansion of Federal homeland security
efforts; (3) these efforts have materially contributed to the
common defense and security of the homeland; (4) the
Administration's October 2007 National Strategy for Information
Sharing States that the Federal Government may need to provide
financial and other support--including human resources
support--to fusion centers in order to help establish and
sustain them going forward; (5) restrictions on Federal funding
have made long-term planning for fusion centers unmanageable;
and (6) States and localities need to continue to receive
funding for intelligence analysts in fusion centers in order to
combat terrorism and terrorist-related activities.
Section 3. Grant eligibility for analysts
This section modifies Section 2008(a) of the Homeland
Security Act of 2002 (P.L. 107-296) to permit States and
localities receiving funds under either State Homeland Security
Grant Program (SHSGP) and the Urban Area Security Initiative
(UASI) grant program to use grant funds to achieve and sustain
target capabilities related to preventing, preparing for,
protecting against, and responding to acts of terrorism,
consistent with State homeland security plan and relevant
local, tribal, and regional homeland security plans. The
section further allows such funding to be used towards salaries
for analysts regardless of whether such analysts are current or
new full-time employees or contract employees and without
limitations on the period of time that such analysts can serve
under awarded grants.
Section 4. Use of funds for personnel and operational costs
This section modifies Section 2008(b)(2) of the Homeland
Security Act of 2002 (P.L. 107-296) to clarify that a recipient
of a grant under the aforementioned programs may use up to 50
percent of the amount of the grant awarded for any fiscal year
to pay for personnel and operating costs, including overtime
and backfill costs, in support of the uses authorized in this
measure.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
HOMELAND SECURITY ACT OF 2002
* * * * * * *
TITLE XX--HOMELAND SECURITY GRANTS
* * * * * * *
Subtitle A--Grants to States and High-Risk Urban Areas
* * * * * * *
SEC. 2008. USE OF FUNDS.
(a) Permitted Uses.--[Grants awarded under section 2003 or
2004 may be used to achieve target capabilities related to
preventing, preparing for, protecting against, and responding
to acts of terrorism, consistent with a State homeland security
plan and relevant local, tribal, and regional homeland security
plans, through] The Administrator shall permit grant recipients
under section 2003 or 2004 to use grant funds to achieve and
sustain target capabilities related to preventing, preparing
for, protecting against, and responding to acts of terrorism,
consistent with a State homeland security plan and relevant
local, tribal, and regional homeland security plans, through--
(1) developing and enhancing homeland security,
emergency management, or other relevant plans,
assessments, or mutual aid agreements;
* * * * * * *
(10) paying salaries and benefits for personnel,
including individuals employed by the grant recipient
on the date of the relevant grant application, to serve
as qualified intelligence analysts regardless of
whether such analysts are current or new full-time
employees or contract employees and such funding shall
be made available without time limitations placed on
the period of time that such analyst can serve under
awarded grants;
* * * * * * *
(b) Limitations on Use of Funds.--
(1) * * *
[(2) Personnel.--
[(A) In general.--Not more than 50 percent of
the amount awarded to a grant recipient under
section 2003 or 2004 in any fiscal year may be
used to pay for personnel, including overtime
and backfill costs, in support of the permitted
uses under subsection (a).]
(2) Personnel and operational costs.--
(A) In general.--The recipient of a grant
under section 2003 or 2004 may, at the
recipient's discretion, use up to 50 percent of
the amount of the grant awarded for any fiscal
year to pay for personnel and operational
costs, including overtime and backfill costs,
in support of the uses authorized under
subsection (a).
* * * * * * *
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