Part 16 (2/2)

(a) In General.-- (1) Liability insurance required.--Any person or ent.i.ty that sells or otherwise provides a qualified anti-terrorism technology to Federal and non-Federal Government customers (''Seller'') shall obtain liability insurance of such types and in such amounts as shall be required in accordance with this section and certified by the Secretary to satisfy otherwise compensable third-party claims arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act.

(2) Maximum amount.--For the total claims related to 1 such act of terrorism, the Seller is not required to obtain liability insurance of more than the maximum amount of liability insurance reasonably available from private sources on the world market at prices and terms that will not unreasonably distort the sales price of Seller's anti-terrorism technologies.

(3) Scope of coverage.--Liability insurance obtained pursuant to this subsection shall, in addition to the Seller, protect the following, to the extent of their potential liability for involvement in the manufacture, qualification, sale, use, or operation of qualified anti-terrorism technologies deployed in defense against or response or recovery from an act of terrorism: (A) Contractors, subcontractors, suppliers, vendors and customers of the Seller.

(B) Contractors, subcontractors, suppliers, and vendors of the customer.

(4) Third party claims.--Such liability insurance under this section shall provide coverage against third party claims arising out of, relating to, or resulting from the sale or use of anti-terrorism technologies.

(b) Reciprocal Waiver of Claims.--The Seller shall enter into a reciprocal waiver of claims with its contractors, subcontractors, suppliers, vendors and customers, and contractors and subcontractors of the customers, involved in the manufacture, sale, use or operation of qualified anti- terrorism technologies, under which each party to the waiver agrees to be responsible for losses, including business interruption losses, that it sustains, or for losses sustained by its own employees resulting from an activity resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act.

(c) Extent of Liability.--Notwithstanding any other provision of law, liability for all claims against a Seller arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act and such claims result or may result in loss to the Seller, whether for compensatory or punitive damages or for contribution or indemnity, shall not be in an amount greater than the limits of liability insurance coverage required to be maintained by the Seller under this section.

SEC. 865. [6 U.S.C. 444] DEFINITIONS.

For purposes of this subt.i.tle, the following definitions apply: (1) Qualified anti-terrorism technology.--For purposes of this subt.i.tle, the term ''qualified anti- terrorism technology'' means any product, equipment, service (including support services), device, or technology (including information technology) designed, developed, modified, or procured for the specific purpose of preventing, detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise cause, that is designated as such by the Secretary.

(2) Act of terrorism.--(A) The term ''act of terrorism'' means any act that the Secretary determines meets the requirements under subparagraph (B), as such requirements are further defined and specified by the Secretary.

(B) Requirements.--An act meets the requirements of this subparagraph if the act-- (i) is unlawful; (ii) causes harm to a person, property, or ent.i.ty, in the United States, or in the case of a domestic United States air carrier or a United States-flag vessel (or a vessel based princ.i.p.ally in the United States on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), in or outside the United States; and (iii) uses or attempts to use instrumentalities, weapons or other methods designed or intended to cause ma.s.s destruction, injury or other loss to citizens or inst.i.tutions of the United States.

(3) Insurance carrier.--The term ''insurance carrier'' means any corporation, a.s.sociation, society, order, firm, company, mutual, partners.h.i.+p, individual aggregation of individuals, or any other legal ent.i.ty that provides commercial property and casualty insurance. Such term includes any affiliates of a commercial insurance carrier.

(4) Liability insurance.-- (A) In general.--The term ''liability insurance'' means insurance for legal liabilities incurred by the insured resulting from-- (i) loss of or damage to property of others; (ii) ensuing loss of income or extra expense incurred because of loss of or damage to property of others; (iii) bodily injury (including) to persons other than the insured or its employees; or (iv) loss resulting from debt or default of another.

(5) Loss.--The term ''loss'' means death, bodily injury, or loss of or damage to property, including business interruption loss.

(6) Non-federal government customers.--The term ''non-Federal Government customers'' means any customer of a Seller that is not an agency or instrumentality of the United States Government with authority under Public Law 85-804 to provide for indemnification under certain circ.u.mstances for third-party claims against its contractors, including but not limited to State and local authorities and commercial ent.i.ties.

Subt.i.tle H--Miscellaneous Provisions

SEC. 871. [6 U.S.C. 451] ADVISORY COMMITTEES.

(a) In General.--The Secretary may establish, appoint members of, and use the services of, advisory committees, as the Secretary may deem necessary. An advisory committee established under this section may be exempted by the Secretary from Public Law 92-463, but the Secretary shall publish notice in the Federal Register announcing the establishment of such a committee and identifying its purpose and members.h.i.+p.

Notwithstanding the preceding sentence, members of an advisory committee that is exempted by the Secretary under the preceding sentence who are special Government employees (as that term is defined in section 202 of t.i.tle 18, United States Code) shall be eligible for certifications under subsection (b)(3) of section 208 of t.i.tle 18, United States Code, for official actions taken as a member of such advisory committee.

(b) Termination.--Any advisory committee established by the Secretary shall terminate 2 years after the date of its establishment, unless the Secretary makes a written determination to extend the advisory committee to a specified date, which shall not be more than 2 years after the date on which such determination is made. The Secretary may make any number of subsequent extensions consistent with this subsection.

SEC. 872. [6 U.S.C. 452] REORGANIZATION.

(a) Reorganization.--The Secretary may allocate or reallocate functions among the officers of the Department, and may establish, consolidate, alter, or discontinue organizational units within the Department, but only-- (1) pursuant to section 1502(b); or (2) after the expiration of 60 days after providing notice of such action to the appropriate congressional committees, which shall include an explanation of the rationale for the action.

(b) Limitations.-- (1) In general.--Authority under subsection (a)(1) does not extend to the abolition of any agency, ent.i.ty, organizational unit, program, or function established or required to be maintained by this Act.

(2) Abolitions.--Authority under subsection (a)(2) does not extend to the abolition of any agency, ent.i.ty, organizational unit, program, or function established or required to be maintained by statute.

SEC. 873. [6 U.S.C. 453] USE OF APPROPRIATED FUNDS.

(a) Disposal of Property.-- (1) Strict compliance.--If specifically authorized to dispose of real property in this or any other Act, the Secretary shall exercise this authority in strict compliance with section 204 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485).

(2) Deposit of proceeds.--The Secretary shall deposit the proceeds of any exercise of property disposal authority into the miscellaneous receipts of the Treasury in accordance with section 3302(b) of t.i.tle 31, United States Code.

(b) Gifts.--Except as authorized by section 2601 of t.i.tle 10, United States Code, and by section 93 of t.i.tle 14, United States Code, gifts 1 or donations of services or property of or for the Department may not be accepted, used, or disposed of unless specifically permitted in advance in an appropriations Act and only under the conditions and for the purposes specified in such appropriations Act.

--------------------------------------------------------------------------- 1 Section 103(3) of Public Law 108-7 (117 Stat. 529) amends subsection (b) by inserting ''Except as authorized by section 2601 of t.i.tle 10, United States Code, and by section 93 of t.i.tle 14, United States Code,'' before the word ''Gifts'' in the second place it appears and by striking the letter ''G'' and inserting in lieu thereof ''g'' in the word ''Gifts'' in the second place it appears. The word ''Gifts''

appears once in the text, however, the amendments have been executed to reflect the probable intent of Congress.

--------------------------------------------------------------------------- (c) Budget Request.--Under section 1105 of t.i.tle 31, United States Code, the President shall submit to Congress a detailed budget request for the Department for fiscal year 2004, and for each subsequent fiscal year.

SEC. 874. [6 U.S.C. 454] FUTURE YEAR HOMELAND SECURITY PROGRAM.

(a) In General.--Each budget request submitted to Congress for the Department under section 1105 of t.i.tle 31, United States Code, shall, at or about the same time, be accompanied by a Future Years Homeland Security Program.

(b) Contents.--The Future Years Homeland Security Program under subsection (a) shall-- (1) include the same type of information, organizational structure, and level of detail as the future years defense program submitted to Congress by the Secretary of Defense under section 221 of t.i.tle 10, United States Code; (2) set forth the homeland security strategy of the Department, which shall be developed and updated as appropriate annually by the Secretary, that was used to develop program planning guidance for the Future Years Homeland Security Program; and (3) include an explanation of how the resource allocations included in the Future Years Homeland Security Program correlate to the homeland security strategy set forth under paragraph (2).

(c) Effective Date.--This section shall take effect with respect to the preparation and submission of the fiscal year 2005 budget request for the Department and for any subsequent fiscal year, except that the first Future Years Homeland Security Program shall be submitted not later than 90 days after the Department's fiscal year 2005 budget request is submitted to Congress.

SEC. 875. [6 U.S.C. 455] MISCELLANEOUS AUTHORITIES.

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