To amend the Internal Revenue Code of 1986 to allow taxpayers to designate $3 of their income tax liability for purposes of homeland security and further to establish an Office of Homeland Security within the Executive Office of the President.

January 29, 2002

Mr. PASCRELL introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To amend the Internal Revenue Code of 1986 to allow taxpayers to designate $3 of their income tax liability for purposes of homeland security and further to establish an Office of Homeland Security within the Executive Office of the President.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Homeland Security Fund Act of 2002'.

TITLE I--DESIGNATION OF AMOUNTS FOR HOMELAND SECURITY; HOMELAND SECURITY FUND

SEC. 101. DESIGNATION OF AMOUNTS FOR HOMELAND SECURITY.

(a) IN GENERAL- Subchapter A of chapter 61 of the Internal Revenue Code of 1986 (relating to returns and records) is amended by adding at the end the following new part:

`PART IX--DESIGNATION FOR HOMELAND SECURITY

`Sec. 6097. Designation.

`SEC. 6097. DESIGNATION.

`(a) IN GENERAL- Every taxpayer whose adjusted income tax liability for the taxable year is $3 or more may designate that $3 be paid over to the Homeland Security Fund.

`(b) MANNER AND TIME OF DESIGNATION- A designation under subsection (a) may be made with respect to any taxable year--

`(1) at the time of filing the return of the tax imposed by chapter 1 for such taxable year, or

`(2) at any other time (after the time of filing the return of the tax imposed by chapter 1 for such taxable year) specified in regulations prescribed by the Secretary.

Such designation shall be made in such manner as the Secretary prescribes by regulations except that, if such designation is made at the time of filing the return of the tax imposed by chapter 1 for such taxable year, such designation shall be made either on the first page of the return or on the page bearing the taxpayer's signature.

`(c) SPECIAL RULES-

`(1) DESIGNATION OF INCOME TAX LIABILITY-

`(A) JOINT RETURNS- In the case of a joint return having an adjusted income tax liability of $6 or more, each spouse may designate that $3 be paid over to the Homeland Security Fund.

`(B) ADJUSTED INCOME TAX LIABILITY- For purposes of this section, the term `adjusted income tax liability' means income tax liability (as defined in section 6096(b)) reduced by any amount designated under section 6096 (relating to designation of income tax payments to Presidential Election Campaign Fund).'

(b) CLERICAL AMENDMENT- The table of parts for such subchapter A is amended by adding at the end the following new item:

`Part IX. Designation for Homeland Security.'

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

SEC. 102. HOMELAND SECURITY FUND.

(a) IN GENERAL- Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund code) is amended by adding at the end the following new section:

`SEC. 9511. HOMELAND SECURITY FUND.

`(a) CREATION OF TRUST FUND- There is established in the Treasury of the United States a trust fund to be known as the `Homeland Security Fund', consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602(b).

`(b) TRANSFERS TO TRUST FUND- There are hereby appropriated to the Homeland Security Fund amounts equivalent to the amounts designated under section 6097 (relating to designation for homeland security).

`(c) EXPENDITURES- Amounts in the Homeland Security Fund shall be available, as provided in appropriation Acts, for making expenditures before January 1, 2007, for purposes of--

`(1) adapting public health infrastructure to new threats,

`(2) securing all modes of transportation,

`(3) protecting America's physical and informational infrastructure,

`(4) providing law enforcement with the technology to effectively combat terrorism,

`(5) improving interagency and intergovernmental coordination, prevention and response, and

`(6) preventing proliferation of weapons of mass destruction and preparing the military to effectively fight terrorism.'

(b) CLERICAL AMENDMENT- The table of sections for such subchapter is amended by adding at the end the following new item:

`Sec. 9511. Homeland Security Fund.'

TITLE II--OFFICE OF HOMELAND SECURITY

SEC. 201. OFFICE OF HOMELAND SECURITY.

There is established within the Executive Office of the President an office to be known as the `Office of Homeland Security' (in this title referred to as the `Office').

SEC. 202. DIRECTOR OF HOMELAND SECURITY.

(a) DIRECTOR- The head of the Office shall be the Director of the Office of Homeland Security, who shall be appointed by the President, by and with the advice and consent of the Senate. The President shall ensure that the Director functions as a cabinet-level official.

(b) EXECUTIVE SCHEDULE I PAY RATE FOR DIRECTOR- Section 5312 of title 5, United States Code, is amended by inserting after the item relating to the Director of National Drug Control Policy the following new item:

`Director of the Office of Homeland Security.'.

SEC. 203. RESPONSIBILITIES.

Subject to the direction and control of the President, the responsibilities of the Director shall include the following:

(1) Directing, in consultation with appropriate Federal and State agencies and Congress, the creation of a national strategy for homeland security, as provided in section 204, to include all aspects of prevention and response to terrorist activities.

(2) Developing, reviewing, and approving, in collaboration with the Director of the Office of Management and Budget, a national budget for homeland security and the allocation of amounts in the Homeland Security Fund among the purposes specified in section 9511(c) of the Internal Revenue Code of 1986.

(3) Reviewing programs, plans and activities of the relevant Federal agencies to insure effective implementation of the national homeland security strategy.

(4) Coordinating the planning and implementation of all Federal homeland security activities with relevant Federal agencies for the purposes of removing unnecessary duplication and gaps in counterterrorism activities.

(5) Certifying as part of the budget submission of the President to Congress the relevance and accuracy of counterterrorism budgets from Federal agencies and rejecting budget requests not consistent with the national homeland security strategy.

(6) Directing and reviewing the development of a comprehensive national assessment on the threat to homeland security, which shall be conducted by the heads of relevant Federal agencies.

(7) Overseeing the appropriate sharing of information among Federal, State, and local agencies involved in intelligence collection and law enforcement for the purpose of protecting homeland security.

(8) Establishing a center within the Office to analyze and publicize as appropriate lessons learned from homeland security exercises conducted by Federal, State, and local government agencies and other organizations involved in terrorism response.

(9) Consulting regularly with Congress on all issues relating to homeland security.

(10) Attending meetings of the President's cabinet and the National Security Council relating to counterterrorism and homeland security.

(11) Serving as the President's principal spokesperson on issues relevant to homeland security.

SEC. 204. NATIONAL HOMELAND SECURITY STRATEGY.

The national homeland security strategy created under section 203 shall include the following:

(1) A comprehensive research, development, and procurement plan for supporting homeland security.

(2) Mechanisms to insure the flexibility and mobility in Federal personnel policies and practices to achieve maximum effective use of personnel among all concerned agencies.

(3) Policies and procedures to maximize the collection, analysis, translation, exploitation, and dissemination of, throughout the Federal Government and with State and local authorities, information relevant to homeland security concerns.

(4) Plans for improving the resources of, coordination among, and effectiveness of health and medical sectors for detecting and responding to terrorist attacks on the homeland.

(5) Specific measures to enhance cooperative efforts between the public and private sectors in protecting homeland security.

SEC. 205. OFFICERS AND STAFF OF OFFICE.

(a) OFFICERS- The President shall assign to the Office such officers in addition to the Director, if any, as the President, in consultation with the Director, considers appropriate to discharge the responsibilities of the Office.

(b) STAFF- The Director may appoint such employees, and may detail employees from other agencies, as necessary to carry out the functions of the Office. Such employees shall include individuals with relevant State and local expertise.

SEC. 206. ANNUAL REPORTS.

The Director shall submit to the Congress annual reports of the activities of the Office in carrying out the responsibilities specified in section 203.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such amounts as are necessary to carry out this title.

END